Topics: customer assistance programs
Elusive Definitions Total Customer Engagement is an amorphous concept that is difficult to define or quantify. Depending on the nature of a given business, engagement may be described using language such as touches, opens, responses, clicks, registrations, reach, shares, influence, views, or other nebulous terms. This language leaves organizations ill-equipped to define and measure the impact and benefits of communicating with customers in a wide-range of situations.
For the water industry in particular, a century of silent service has created an aversion to engaging with customers. Complaints from customers on high bills, boil notices, and service outages created the impression that less engagement with customers was preferable. Now that customers are always connected with digital devices and real-time notifications from nearly every common service provider (electric, mobile phone, internet, cable, etc.), the bar for more...see more
How to Maintain Infrastructure Without Compromising Affordability There’s a lot we don’t agree on; however, there’s one thing we can all say is true—everyone deserves access to clean water. Drinking water and wastewater utilities have taken on the responsibility of providing clean drinking water and to uphold public health standards in neighborhoods and communities. Unfortunately, there’s always a trade off: utilities have to invest in a variety of innovative technologies and infrastructure to ensure they are up to date with current drinking water standards. In order to pay for these investments, utilities typically rely on customer revenues, which can raise another problem—affordability.
Why Are Water Rates Rising? According to Circle of Blue’s annual water pricing survey, the average monthly water utility bill for a household using 50-100 gallons per person per day rose nearly six percent in 30 major U.S. cities in 2015 and...see more
The Size of the Challenge Water remains relatively inexpensive. So if a handful of end-users can't, won't, or forget to pay their water bill, you wouldn't think it would have much impact on utility finances. It turns out that payment performance is actually a really big deal that costs the industry hundreds of millions of dollars each year. As of 2010 U.S. water utilities generated over $42 billion in annual revenue and given the pace of rate hikes over the past few years that number is now likely closer to $50B. Perhaps unsurprisingly, water utilities report being unable to collect between 0.5% and 1.5% of billed revenues each year. To make the math simple, let’s assume that 1% of $50B in annual revenue is uncollectible which equals losses of $500 million each year.
Yet it doesn’t end there. Many customers that are unable to pay their bill are subject to costly service disconnections that add to utility losses. It’s estimated that...see more
Water utilities spend a disproportionate amount of time engaging with disadvantaged communities, often to address delinquent or unpaid bills and service disconnections that leave everyone worse off. If a utility is using a shutoff notice as an engagement tool, they are doing it wrong. There are better ways, like implementing customer assistance programs (CAP) to prevent shutoffs in the first place.
Preexisting notions about disadvantaged customers being out of reach of digital communications methods are, in fact, incorrect. According to the Pew Research Center, over 50 percent of low-income households own a smartphone. Smartphone penetration in this demographic creates substantial opportunities for utilities to reach disadvantaged communities with software solutions like customer self-service platforms and targeted digital communications.
The following framework is inspired by the EPA’s framework...see more