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Aiming for tailored payment experiences
Aiming for tailored payment experiences
With payments a top priority for customers and utilities alike, it reassuring to see that investment in better payment experiences is already on the agenda at the majority of our participating organisations.
The message from our industry panel that tailored payment arrangements are a priority area for improvement was strongly backed up with survey input stating that well over half (57%) of participating organisations have imminent or clear near-term plans to diversify payment options. Just short of another third (29%) say they aspire to introduce new payment options, but don’t have clear plans in place.
In terms of the returns companies hope to see from their investments in new payment options, our penal was clear that meeting the expectations of a new generation of customers is essential. Two thirds said this is their primary objective, while improving customer satisfaction more broadly came a close second (identified as a key motivator for payments diversification by 58%). Ranked second and third as drivers are improving customer satisfaction (58%). Reducing bad debt was a tertiary consideration, identified as a key motivator by half of our panel.
“There is a new generation that we haven’t necessarily built a service for yet.”
Mark Wilkinson, head of income, Northumbrian Water
What's motivating the exploration of alternative payment options in utilities?
Reflecting on these insights, Northumbrian Water’s head of income, Mark Wilkinson says he believes “there is a new generation that we haven’t necessarily built a service for yet.”
Thinking about the challenges many “Gen Zers” are currently experiencing buying property or moving out of shared accommodation, Wilkinson goes on to suggest utilities need to think harder about payment options for customers in shared housing, for example.
“I think we will have to find a way of splitting bills differently and allowing flexibility between multiple people who are sharing properties,” he says. “You can see that market emerging. Student housing is the obvious example where you sign up to a third party company, you pay your part of the bills and they manage that for you. That doesn’t work in the way that utilities have historically operated, but I think that’s one area where we’ve got to see more development.”
“Intuitive interfaces, quick load times, and a smooth overall experience, plus appreciating personalised content are all baseline expectations for next generation customers – for them, it is a given.”
Claire Sharp, customer director, Northumbrian Water
More broadly, Wilkinson is clear that injecting innovation and flexibility into payments is “the way forward for [water] as a sector” and his colleague Claire Sharp, customer director strongly agrees.
Looking to the future, Sharp says that “mobile services, optimised for smartphones and tablets are a priority” because these devices play an increasingly central role in customers’ lives.
“We are already doing this with our mobile-first design thinking and app development,” she says. “Intuitive interfaces, quick load times, and a smooth overall experience, plus appreciating personalised content are all baseline expectations for next generation customers – for them, it is a given.”
Sharp adds that accessibility and inclusivity are also important to customers, and they want to see these value reflected in their digital experiences they encounter. Likewise, growing consumer interest in sustainability and climate change issues need to be taken into account.
“The majority of customers, not just next generation, prefer services that align with their values,” says Sharp. “It means we are well placed as an environmentally conscious and socially responsible business to promote this through our digital services.”
Thames Water’s former customer experience CIO agrees that there is a ripe moment of opportunity for utilities to leverage digital transformation to change their relationship with customers and more onto a new, more positive footing.
“I am seeing innovation starting to come through in terms of water companies thinking about making it easier for customers to pay, as well as giving them more control over the method and frequency that they want to pay.”
However, he adds: “It is obvious that some companies are further along that journey than others. I think how fast a company moves in that direction will often depend on the leadership and their appetite for change.”
Tackling affordability
Alongside pleasing a new generation of digital native customers, the third main reason utilities are considering payments diversification is to reduce their exposure to bad debt. This is a growing concern for utilities – especially energy companies – in the context of a deepening cost of living crisis, according to Andy Sage, head of propositions and partnerships at E.ON Next….
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