If you’ve been reading the Utility Information Pipeline for any length of time, you know that bank drafts are the easiest way to collect payments.
The challenge is – how do you get more customers to pay by bank draft?
This issue takes a look at several strategies you can employ to get more customers to sign up for bank drafts.
1. It’s as simple as asking
There’s an old adage in sales that goes “if you don’t ask, the answer is always no.” This is as true for signing customers up for bank drafts as it is for any sales situation. Sure, a few people will ask if you offer bank drafts, but you will get a lot more if you ask.
It’s been my experience that utilities with a significantly higher percentage of customers paying by bank draft ask every new customer if they would like to pay by bank draft.
2. Promote, promote, promote
Do you have signs prominently displayed in your collections and customer service areas that promote your bank draft program?
Do you list the various ways customers can pay, including bank drafts, on the back of your utility bill? Do you routinely include a bank draft sign-up form with your bill?
Does your website include instructions about how to sign up for bank drafts? Can your customers download the sign-up form?
All of these are simple ways to promote your bank draft program and encourage more participation.
3. Waive security deposits as an incentive
Admittedly, this is a bit unusual and I’ve only ever heard of one utility offering it. However, by not charging a security deposit to customers who sign up for bank drafts, this utility has an astounding 60% bank draft adoption rate!
Read about it here to see if this makes sense for your utility.
4. Remove first-time late fees as an incentive
How many calls have you taken from customers who have never been late before asking if you can remove the late fee?
As a gracious customer service gesture, why not offer to remove the late fee if they, in turn, agree to sign up for bank drafts? By doing so, they will never be charged another late fee and you have one more bank draft customer.
5. Offer rebates
Another option offered by some utilities is rebates for customers who sign up for bank drafts.
We recently did a presentation to a town that offers a $.50 monthly credit to bank draft customers as an enticement to continue on bank drafts.
Other utilities offer a larger, one-time rebate – often after a twelve month qualifying period – for customers who sign up and remain on bank drafts for the full year.
Are you looking for ways to improve payment processing?
Are you looking for ways your office could process payments more efficiently? If so, please give me a call at 919-232-2320 or e-mail me at email@example.com to learn how a business review could benefit your utility.
© 2014 Gary Sanders