What are you missing with third party online bill pay?

One of the earliest Utility Information Pipeline issues (it was newsletter #12 and this issue is #187) dealt with the advantages of a fully integrated online bill pay system. Much has changed in the seven years since that issue was published and the topic is worth revisiting.

A good, fully integrated online bill pay system is like a Swiss Army knife – one tool that serves many purposes.

Do you offer online payments?

The most important question is are you offering online payments? If the answer is “no”, the obvious response is “why not?” Second only to bank drafts, online payments are the easiest way to accept payments. Especially if you charge a third-party convenience fee, because your customer pays the full price of processing the credit card transaction.

Even if your software vendor doesn’t offer online bill pay, there are many third-party options available. If a third party is your only option, I encourage you to consider it.

However, if your software vendor does offer a fully integrated online bill pay option, and you’re not taking advantage of it, here are some of the features you might be missing.

Real time integration

Third-party online bill pay vendors generally fall into one of two categories – companies whose primary line of business is payment processing and outsource print vendors. In the first case, an updated file with customer balances is usually provided to the third party once a day. Outsource bill print vendors who offer online bill pay generally rely upon the balance provided in the most recent bill print file.

The obvious weakness of either of these options is out-of-date information. In the first situation, payments made earlier in the day aren’t reflected in the balance. The classic case is a customer pays the bill in the morning and then, not knowing a payment has already been made, their spouse pays it again later in the day. The online bill pay vendor scenario is even worse – no adjustments or payments made all month are reflected in the balance.

A fully integrated online bill pay system solves this dilemma because payments are logged in real time and the customer’s balance is always up-to-date, eliminating the chance of overpayments on an account.

Additionally, third party systems require a file of payments to be imported the next day. This isn’t necessary with a fully integrated system because the payments are logged in the system as they happen.

History viewable online

Third-party providers generally provide little more than the customer’s balance and due date. A fully integrated online bill pay system should display billing history, payment history, and usage history.

The more information your customers can find online, the less they need to call your office for assistance, reducing the call burden on your customer service staff.

Customer portal

Over the years, fully integrated online bill pay systems have evolved into customer portals where customers can do much more than just pay bills and view history.

If you offer paperless billing, also called ebilling (and you should!), a fully integrated customer portal allows your customers to change their email addresses as desired, again reducing calls to your customer service staff.

Additional options provided by some customer portals include updating address and contact information, applying for service, initiating turn-off service orders, and sending messages to customer service.

Is your online bill pay system doing all it can for you?

Are you trying to determine if moving to an automated meter reading system is the right decision for your utility? If so, please give me a call at 919-232-2320 or e-mail me at gsanders@logicssolutions.com to learn how a business review could help.

Water and Wastewater Utility Management Survey results webinar

The 2017-2018 North Carolina Water and Wastewater Utility Management Survey is now complete. This survey was conducted by the Environmental Finance Center (EFC) at the University of North Carolina’s School of Government and the North Carolina League of Municipalities (NCLM) and covered the management and long-term planning practices and policies of North Carolina drinking water and wastewater utilities.

The results will be presented in a webinar, this Thursday, August 30, at 11:00 am ET. You can register to participate in the webinar here.

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© 2018 Gary Sanders

How to make your customers happier

For the last eight years, Fiserv, a global company in the financial services industry, publishes an Annual Billing Household Survey. This survey reports trends in how consumers receive and pay their bills.

Past Utility Information Pipeline articles referenced this survey in 2012 and 2014. The Eighth Annual Billing Household Survey is now available and this issue will highlight a few statistics from it.

Customers want choices

This graphic, from page 20 of the report, highlights how offering different billing and payment options impact customer satisfaction (clicking on any of the graphics will open a larger image in a new window):

Customer Satisfaction Factors

Multiple payment options

Almost as if it were written for the audience of this blog, consider this quote from the graphic on page 21 of the report:

“The expectation of multiple payment options does not vary depending on the type of biller. In fact, consumers expect a local utility to provide the same options as a national wireless carrier or cable provider.”

As the graphic shows, 79% of customers expect your utility to provide the same options as much larger national companies:

Expectation of Multiple Payment Options

Preferred payment options

According to the survey respondents, as shown in the graphic below from page 8 of the report, the majority of online households prefer to pay their bill at your website, ahead of paying by check:

Online Household Payment Methods
In third place is paying the bill online at the customer’s financial institution website. The text accompanying this graphic says:

“Between the Seventh and Eighth Annual Billing Household Surveys, there was a 72 percent increase in consumers making payments at both biller and financial institution websites. Paying bills at a financial institution’s site also grew significantly by 55 percent.”

Clearly, the trend is toward paying bills online, whether that is your website or the customer’s financial institution’s website. The next Utility Information Pipeline issue will deal with automating payments made by your customers using their bank’s online bill pay.

Paperless billing

The final statistic I want to highlight is how important paperless billing is becoming to customers. The graphic pictured below, from page 14 of the report, shows that 79% of households receive some of their bills electronically, and 25% receive all bills paperlessly.

Paperless Billing Preferences
In addition, only 22% have no interest in going paperless! Clearly, paperless billing is the way of the future.

Are you offering your customers the choices they want?

Are you offering your customers all the payment options they desire? Are you offering paperless billing? If the answer to either question is “no”, please give me a call at 919-232-2320 or email me at gsanders@logicssolutions.com to learn how a business review could help you learn how your office could better meet your customer’s needs.

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© 2016 Gary Sanders

Are you staying abreast of the latest trends…?

Two years ago, I wrote about the 2012 Fiserv Billing Household Survey and offering your customers payment choices.

2014 Billing Household Survey

In December, Fiserv released the updated 2014 Billing Household Survey slideshow. Below is an infographic highlighting several key points from the 2014 Survey. Clicking on the infographic will open a larger version from the Fiserv website.

Billing and Payment Options Positively Impact Customer Satisfaction and Loyalty

In this article, I’ve recapped some of the highlights of the 2014 Survey.

Multiple payment methods

According to the survey, the average household uses three different payment methods each month (slide 5) and offering multiple bill payment options increases customer satisfaction (slide 7).

Customers paying with a mobile device increased 69% from 2013 (slide 12). Over half of all tablet owners have used their tablet device to pay a bill (slide 16) and the most common way to pay a bill by mobile device is your website (slide 15).

What this says to me is, if you’re not offering your customers online bill pay, they aren’t going to be happy with you.

Late payments

36% of customers pay bills late for several reasons, and second only to cash flow problems is forgetting the due date (slide 8). Over 75% of customers say due date reminders increase customer satisfaction (slide 17).

Offering due date alerts can increase the chances of those same customers adopting e-billing (slide 18).

If you aren’t alerting your customers of an impending due date (and I’m not talking about old-fashioned printed second notices), you’re missing out on an opportunity for improved customer service.

Paperless billing options

Almost a quarter of all U.S. bills are sent electronically with no paper bill produced and nearly half of all customers indicate that receiving paperless bills increases customer satisfaction (slide 19).

Almost a quarter of all U.S. bills are sent electronically                                                                                                                                                       

As could be expected, the youngest customers are most interested in doing away with paper bills (slide 20). However, nearly half of all bill payers choose to receive a combination of paper and e-bills (slide 21).

Knowing the demographics of your customer base can help predict the adoption rate of offering paperless billing.

Need assistance?

If you have questions about offering additional payment options or improving the way you communicate with your customers, please give me a call at 919-232-2320 or e-mail me at gsanders@logicssolutions.com to learn how a business review could help your utility.

Still time to complete the 2015 Utility Fee Survey

Just a friendly reminder – if you haven’t yet participated in the 2015 Utility Fee Survey, there is still time to do so. 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 looking 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 Utility Fee Survey.

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© 2015 Gary Sanders