utility information pipeline

5 easy ways to get more bank draft customers

Recently, during a sales presentation, I came to the bank draft tab in Logics’ Utility Management application. I asked, as I always do, if they accepted bank drafts. The City Administrator spoke up and said he wished 99% of their customers were bank draft customers. When I asked why not 100%, he replied “There’s always that one percent that won’t do it, no matter how much sense it makes.”

After everyone stopped laughing, one of the office staff asked if I had any ideas how to increase bank draft participation. Interestingly enough, I had just finished the first draft of an ebook entitled 5 Surefire Ways to Save Time Processing Payments. The first of the five ways is bank drafts and the chapter goes on to list five ways to promote bank drafts.

Here they are…

1. Waive the first late fee in exchange for signing up for bank drafts

Whenever a customer calls to complain about being charged a late fee, offer to waive the penalty if they sign up for bank drafts. Once they are a bank draft account, they will never be late again!

2. Offer incentives to sign up

I know of utilities that offer a one-time $5.00 credit for signing up for bank drafts. Others give a $1.00 per month credit for the first year the customer is drafted.

3. Ask every new customer if they want to pay by bank draft

Have you applied for a life insurance policy recently? Insurers practically make issuing the policy contingent upon the insured agreeing to pay by direct debit. Why not deal with new customers applying for service the same way? There’s an age-old adage in sales, “assume the close”, and the same technique can work for signing new applicants up for bank drafts. Why not hand them a bank draft form along with the application to sign?

4. Include a signup form on your website

Ideally, your customers should be able to complete an online form with the bank draft information. But, if not, at least post a downloadable sign-up form on your website so your customers can complete and return it to your office.

5. Promote bank drafts on your utility bill

Does your utility bill have a section for comments you can enter each billing? Why not use this to publicize bank drafts along with whatever other announcements you have that month? If you print full-page bills, you can also include a bank draft sign-up form as an insert with the utility bill.

How do you promote bank drafts?

What does your utility do to promote bank drafts? Do you have a unique or innovative way of encouraging your customers to sign up for bank drafts? Please leave a comment at the bottom of this post for other readers to see.

2017 Utility Fee Survey results

The next Utility Information Pipeline, to be published on July 18, will include the first set of results for the 2017 Utility Fee Survey. The survey technically closed at the end of the day, June 30, but I haven’t started recapping the results yet.

If you haven’t participated and would still like to, you may click here to complete the survey. It should take less than five minutes to complete.

Trying to streamline payment processing?

If you’re looking to reduce the amount of time it takes to process payments, or streamline any other part of your operation, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help you review your entire office operation.

 

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© 2017 Gary Sanders

How to update your Google Maps listing

Before we get to the topic of this post, the last Utility Information Pipeline included a poll asking how you handle temporarily inactive accounts. Here is a recap of the responses to the poll (clicking on the chart will open a larger graphic in a new window):

I was pleasantly surprised to see that a majority of the poll responses do charge temporarily inactive accounts, whether it’s continuing to bill them or by assessing a fee.

Google Maps error

I was involved in a sales presentation last week and had an interesting experience when I clicked on the Mapping link within Logics’ Utility Management software. I always set the service address of my demo account to the prospect’s office address so they recognize the map.

The pushpin for the address appeared in the correct place, but the Google Business icon for the utility office was on the house next door! I commented on this and the utility staff laughed and said, yes, customers often drive past their office and have to turn around next door.

I said “Let’s fix that.” and clicked on the “Report a map error” link in the lower right corner of the inset map (this link is called “Send feedback” if you are in native Google Maps). I was able to drag the icon to the correct building on the map and, within minutes, received an email from Google confirming my correction had been made.

Step-by-step instructions to correct a map error

Back in 2012, I wrote about updating your listing in Google Places (now called Google Business). In case your Google Map listing is misplaced, as was the case with Auburn Water System, here are the steps to correct it.

As you can see from the screen shot below, the pushpin was between two buildings rather than directly on the Auburn Water System office:

  1. Click the “Send feedback” link in the lower right corner.
  1. Select “Edit the map” from the Send feedback menu.

  1. Click on the icon for the business you want to correct, in this case Auburn Water System.
  1. Check “Marker is placed incorrectly on the map” beside Location on the Suggest an edit menu.

  1. Drag the marker to the proper place on the map.
  1. Click submit.
  1. A message will pop up thanking you for improving Google Maps.

  1. Once your edit has been approved, you will receive an email from Google Maps letting you know it was a success!

The end result is the pushpin is now directly on the Auburn Water System office building! I guess now I should do the same thing for Choctawhatchee Electric Cooperative, who share the same building with Auburn Water System. (I’m unsure why they didn’t show on the “before” map…)

Last chance for the 2017 Utility Fee Survey

This is your last chance to participate in the 2017 Utility Fee Survey. The survey will be closing at the end of the day, June 30, so if you haven’t already done so, please click here to complete the survey. It should take less than five minutes to complete. For an idea of what to expect from the survey, here are the results of the 2015 Utility Fee Survey:

If you have any questions, please feel free to e-mail me at gsanders@logicssolutions.com or call me at 919-232-2320.

Thank you in advance for your participation in the 2017 Utility Fee Survey.

Reviewing your policies?

If you’re in the process of reviewing or updating your policies, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help you review your entire office operation.

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© 2017 Gary Sanders

How do you handle temporarily inactive accounts?

I had a Town Manager who attended my recent presentation at the North Carolina Rural Water Association Annual Conference contact me with a question. He wanted to know what I recommended regarding billing for temporarily inactive accounts.

Snowbirds

If you have seasonal customers, you know the issue he was inquiring about – snowbirds from colder climates who go south for the winter (or, conversely, winter homes in warmer climates) or summer homes where your customer only wants the utilities on for the summer months.

The dilemma facing your utility is should you continue to bill the base charge each month, even if the customer has no usage?

Recovery of infrastructure costs

One clue as to how to handle this is understanding the rationale behind your base charge.

For many utilities, the base charge is designed to recover the investment you have in providing service to the property, regardless if there is usage. You must maintain the infrastructure and service lines year-round and you have an investment in a meter at the premises, even if no one is living there.

If this is the case for your utility’s base charge, you have every reason to continue to charge the base charge, even if the account is temporarily inactive.

Fees in lieu of monthly billing

An alternative to billing the customer each month is to charge a fee to turn the service off and another fee to turn it back on (based on the user fee concept that you are performing a service for this customer that wouldn’t otherwise be required).

The idea here is the two fees combined should cover your staff’s time and effort to disconnect and reconnect the service as well as recoup what your customer would have paid if they left the service on with no usage and paid the base charge only.

How does your utility handle this?

How does your utility handle temporarily inactive accounts? Please take this quick poll.


 
Once you’ve taken the poll, you will be able to see the results to see how other utilities responded. I’ll publish the final results in the next issue.

2017 Utility Fee Survey

The 2017 Utility Fee Survey is ongoing. If you haven’t already completed it, please click here to complete the survey. It should take less than five minutes to complete. For an idea of what to expect from the survey, here are the results of the 2015 Utility Fee Survey:

If you have any questions, please feel free to e-mail me at gsanders@logicssolutions.com or call me at 919-232-2320.

I’m hoping for as much participation as possible in the survey, so please feel free to pass this on to your colleagues at other utilities.

Thank you in advance for your participation in the 2017 Utility Fee Survey.

Reviewing your policies?

If you’re in the process of reviewing or updating your policies, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help you review your entire office operation.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2017 Gary Sanders

What are your repayment plan policies?

Once again, one of the listservs I subscribe to provided the subject matter for a newsletter. This time it was a town manager asking about policies allowing repayment plans.

Due Date

A previous Utility Information Pipeline described the distinctions between extensions, installment services, and payment arrangements. This issue will examine some of the requirements many utilities impose on customers requesting a repayment plan.

Limited number of repayment plans

Most utilities impose a limit on the number of repayment plans a customer may have within a given timeframe. For example, only allowing two extensions per calendar year or twelve month period.

The rationale for this is, under normal circumstances, your customers should be able to pay their bill by your established due date. Customers who habitually request additional time to pay are abusing the system.

No history of dishonored payment plans

For most utilities that offer repayment plans, failing to honor a previous payment plan automatically makes a customer ineligible for future payment plans. If your customer failed to live up to their agreement, why allow them to take advantage of you again?

Signed agreement

Perhaps the most important part is to require a signed agreement stating the repayment terms and consequences of failing to honor the agreement.

This signed agreement should include promised payment dates and amounts, along with any interest or finance charge to be assessed. As with any legal document, it’s always wise to consult with your attorney when drafting the document.

2017 Utility Fee Survey

The 2017 Utility Fee Survey is still open. If you haven’t already completed it, and would like to participate, please click here to complete the survey. It should take less than five minutes to complete. For an idea of what to expect from the survey, here are the results of the 2015 Utility Fee Survey:

If you have any questions, please feel free to e-mail me at gsanders@logicssolutions.com or call me at 919-232-2320.

I’m hoping for as much participation as possible in the survey, so please feel free to pass this on to your colleagues at other utilities.

Thank you in advance for your participation in the 2017 Utility Fee Survey.

North Carolina Rural Water Association presentation

If you or any of your co-workers or board members will be attending the North Carolina Rural Water Association Annual Conference, please be sure to attend my presentation on Improving Revenue Collections for Utilities this Thursday, May 18 at 8:30am.

If you or someone from your utility does attend, please be sure to introduce yourselves!

Need assistance?

If you’re considering offering payment plans or are unsure if your delinquent account policies are adequate, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help you review your entire office operation.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2017 Gary Sanders

Do you bill yourself?

Does your utility bill itself for usage in buildings you own?  At first, this may sound like an odd question, but let’s look a little closer.

Three possible scenarios

When it comes to your own usage, there are three possible billing scenarios:

  1. Don’t meter or bill yourself
  2. Meter the usage but calculate bills using a no charge rate
  3. Bill yourself at your normal rate for commercial customers

Clearly, the first option is not a good one. If you’re not metering your own usage, you have no way to look for usage trends or, for water utilities, check for leaks.

In my experience, the second choice is far and away the most common. Metering and tracking usage with a no charge rate provides a way to compare usage trends for your own accounts, just as you would with any other customer. Additionally, if you are a water utility and monitor your water loss, your own usage represents non-revenue water that should be tracked.

Why would you bill yourself?

The third option makes the most sense for local governments, especially those that operate their utilities as enterprise funds. Good accounting practice (and the law in some states) frowns on inter-fund transfers, such as the General Fund supporting the Water or Electric Fund.

Since many government buildings (think City Hall, Police Department, Fire Department, Parks and Recreation facilities) are part of the General Fund, “paying” yourself in the form of a utility bill is a perfectly legitimate way to transfer funds from the General Fund to a utility fund.

2017 Utility Fee Survey

The 2017 Utility Fee Survey is still open. If you haven’t already completed it, and would like to participate, please click here to complete the survey. It should take less than five minutes to complete.

If you have any questions, please feel free to e-mail me at gsanders@logicssolutions.com or call me at 919-232-2320.

I’m hoping for as much participation as possible in the survey, so please feel free to pass this on to your colleagues at other utilities.

Thank you in advance for your participation in the 2017 Utility Fee Survey.

Last chance to register for aging workforce seminar

A major issue facing management of all utilities, large and small, is an aging workforce. As more key employees approach retirement age, utilities across the country are having to face the issue of replacing the loss of institutional and operational knowledge these long-time workers hold.

Does your utility have a plan in place to deal with the aging workforce?

The Utility Management Committee of the NC AWWA-WEA, of which I am a member, is sponsoring an Aging Workforce Issues – Best Practices Panel & Luncheon seminar. This seminar, originally scheduled for last October, has been rescheduled to Thursday, May 4 from 11:30 am to 1:30 pm.

If you are located within driving distance of the University of North Carolina at Chapel Hill, I encourage you to join us. If not, you can still participate in a live webcast of the seminar.

The seminar moderator is J.D. Solomon, PE, CRE, CMRP; Vice President of CH2M. The panelists are:

  • Rod Dones, Organizational Development & Learning Specialist, Charlotte Water
  • Tamara Byers, Human Resources Manager, Charlotte Water
  • Ed Kerwin, PE, Executive Director, Orange Water & Sewer Authority
  • Matt Bernhardt, Director of Public Works and Utilities, City of Gastonia
  • Courtney Driver, PE, Utilities Director, City of Winston-Salem

For more information, or to register for the seminar, please click here.

North Carolina Rural Water Association presentation

If you or any of your co-workers or board members will be attending the North Carolina Rural Water Association Annual Conference, please be sure to attend my presentation on Improving Revenue Collections for Utilities at 8:30am on Thursday, May 18.

Part of this presentation includes an exercise for calculating how much your security deposit should be, based on your days of exposure.

If you or someone from your utility does attend, please be sure to introduce yourselves!

Need assistance?

If, after completing the 2017 Utility Fee Survey, you’re wondering if your fee schedule is up-to-date, or if you need to find ways to reduce your days of exposure, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help you review your entire office operation.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2017 Gary Sanders

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Gary Sanders

I am the Senior Consultant with Logics, LLC in Raleigh, North Carolina. I have over 35 years experience developing and implementing utility billing and financial software and consulting with utilities and municipalities. My bi-weekly email newsletter draws from my experience in working with over 200 utilities and local governments to offer insight into how utilities can improve operations and better serve their customers. If you have a comment or a suggestion for a future email, please contact me by calling 919-232-2320 or sending an email to gsanders@logicssolutions.com