One in six delayed payment of a water bill due to lack of understanding

• Water companies can use clear communications and proactive engagement to improve payment times.

• 22% of bill payers delayed payment as they believed their bill was incorrect, 23% did not pay as their bill was higher than expected.
• 16% of billpayers said they had missed a payment as they simply forgot.

Research by Aptumo, the next-generation water billing and CRM software powered by Echo Managed Services, published in its Affordability and the Water Sector report found that confusing bills meant 14% of people delayed their bill payment. A problem that can be often rectified with clear communication and support.

The research of 2,000 UK billpayers found more than a fifth (22%) of people delayed payment as they believed their bill was incorrect, and 23% did not pay immediately as their bill was higher than expected. 16% of billpayers said they had missed a payment as they simply forgot.

Rachael Merrell, customer service director at Echo Managed Services commented:

“These findings highlight the opportunity for an improvement in the way that water providers communicate with their customers. Effective communications can be the difference in a customer paying immediately or delaying it while they look into the matter further. This can have a significant impact on water providers considering the current financial pressures on consumers and economic conditions.”

There are proactive steps that water companies can take to improve their practices and subsequently impact payment times. Through clear and regular communications, water providers can make sure customers are reassured that their bill is in fact correct. They can be prewarned if it is going to be higher than normal, and tips on conserving water can be shared to prevent high bills for those on metered supply in the future.

Considerations must be made around the wording of customer communications. Use of plain language rather than jargon, and clarification of any necessary industry terminology will curb the amount of questions a customer may have. Given many people simply scan a bill, thoughtful and consistent bill design can result in a customer’s understanding being increased. By clearly explaining water usage, any fluctuations and seasonality, and how they occur, water companies can increase the level of prompt payment.

Despite one in six (16%) people saying their ability to pay their water bills had worsened, water companies can still improve their practices and impact payment times.

Rachael Merrell, customer service director at Echo Managed Services commented:

“Effective, tailored communications can also help those whose income is lower than their outgoings to avoid missing a payment or falling into unexpected debt. Proactive payment reminders to let a customer know that a bill is on its way can help them to plan when money is tight, while a payment plan made up of smaller amounts can also help to ease the burden. “Encouraging a customer to make a regular – preferably automated – payment will help to keep the relationship on track. Payment plans are the most readily accepted form of a structured payment agreement and, even when a bill payer’s income is stretched, the habit remains in-tact and the relationship continues with understanding on both sides.”

To find out more about Aptumo’s report on Affordability and the Water Sector, or the services it provides, visit: https://www.echo-ms.com/knowledge-centre/research-resources/affordability-and-the-water-sector-how-water-companies-can-support-their-customers-through-these-turbulent-times.