At a time when people are facing rising bills, and increasing costs of living across the board, in conjunction with the impact of economic uncertainty on businesses, it has never been more important to handle the topic of timely payments sensitively.
There are a number of ways that water providers can support customers and guide them through the payment process during financial hardships and ensure that effective communications, payments and debt management processes are in place to protect both customers and providers. Here, Rachael Merrell, CSD and operational debt management expert at Echo Managed Services, discusses how water providers can utilise customer insight data to identify vulnerable customers and how flexibility and variety when it comes to payment are key to debt management.
Get to know your customers
With the continued digital transformation of the water industry, there is more customer insight available than ever before. Water providers should harness this increased access to data to enhance understanding of their customers and identify those who may be vulnerable or likely to fall behind on payments. Data can be segmented to help to prioritise high-risk customers, allowing for monitoring of these accounts and support from customer service agents.
Using billing software such as Aptumo, which can manage different payment methods, make flexible payment arrangements personalised to individual needs, and flag customer accounts requiring attention, can help customer service teams to engage more effectively with customers.
Identify indicators that a customer may be unable to pay
It’s important to be aware of early indicators that a customer may have difficulty paying their water bill. An example of this would be a customer who makes regular billing enquiries or someone who may have cancelled their direct debit. Identifying and flagging changes in behavioural habits quickly, before a payment is missed, allows the provider to reach out to the customer and signpost support before it becomes an issue.
Offer a variety of payment methods
Flexibility is key when it comes to the payment process and it’s crucial that customers have a variety of options to pay in the way that best suits their needs. Additionally, if customers are having difficulty paying, then it’s vital that customer service teams make them aware of the solutions and support systems in place. These may include a payment plan, payment breaks, an extended grace period or a partial write off. Solutions such as a payment plan help to reinforce the habit of paying on a regular basis.
Allowing for meter reading and billing flexibility, whereby customers can choose when and how often their meter is read and they are billed, can also help customers to pay in the way that works for them. Even collecting less than is owed is better than nothing at all, so working with the customer will ensure that both parties are able to resolve any outstanding payments.
Ensure there are multiple channels of communication
Similarly, there needs to be a variety of ways for customers to contact their provider if they have a payment query. Ensuring that there are telephone, email and digital channels of communication increases the likelihood that a customer can get in contact to seek support or resolve any billing queries. Data segmentation can also be used to identify different age groups and their communication preferences. For example, elderly customers may be less used to using technology to communicate and may prefer to talk to their water provider over the phone.
Maintaining regular contact between the water provider and the customer can also help to reduce the likelihood of debt becoming an issue. Once vulnerable customers have been identified, customer service agents can make proactive outbound calls to check in and guide people through the bill paying process. This is also a prime opportunity to go through the support options available and ensure that customers feel that they are a priority. In the CCW’s recent Water Matters survey, only 50% of those surveyed felt that communication from their water company was good so increasing the contact options available and building awareness of these is likely to improve this view.
Regular staff training or a dedicated debt collection team
It’s essential that customer service teams take part in regular training on dealing with vulnerable customers and are aware of and kept updated on all the ways that a customer can pay. Furthermore, agents need to be actively signposting where support can be found, for example, through a community outreach scheme or designated charities.
Having a dedicated debt-collection team can help to deal with the most complex cases. These agents can be trained to engage with customers and respond to their needs and limitations. Some accounts may be given an additional care flag, which means that the team can reach out to these customers on a regular basis and pay particular attention to high-risk accounts.
Final thoughts
Water providers now have access to more technology and tools than ever before, and these should be utilised effectively to increase understanding of their customer base and provide tailored services and solutions. Many people are facing financial difficulty and we don’t want a service as essential as water to add to their worries. For some, it may be the first time that they’ve struggled to pay a bill and these customers may be unfamiliar with the support available. Therefore, offering payment flexibility, signposting support, and having dedicated customer service teams who can be contacted in a variety of ways, are all key to effective debt management processes.
