How to improve your billing practices and keep customers
A recent spate of major billing mistakes has seen the likes of British Gas and Vodafone suffer from large fines and a weathering of trust among customers. Here, expert outsourcer at Echo Managed Services, Chris Cullen, tells business owners how they can achieve better billing practices.
Technology has transformed how we do business streamlining processes and cutting costs while working to improve efficiency.
Billing is one such process that has seen a marked change, with automated solutions replacing traditional clerical operations. Bills are now generated automatically through software and delivered under instruction whether that’s physically through a letterbox or electronically to an email inbox.
But, it’s not all plain-sailing for those companies undergoing digital transformations as technology can be just as prone to errors as humans are.
In fact, as recently as this month, there has been a major issue with SSE smart meters which has caused thousands of pounds to be added to customers? bills. And this isnt an occurrence in isolation British Gas had a similar issue due to an IT glitch which saw customers charged double just before Christmas.
Over the last 12 months, it seems billing blunders are becoming more common and befalling a growing number of companies from various industries.
What are these companies getting wrong?
At one point or another, the 75 per cent of consumers will encounter a billing error whether it’s due to inaccurate meter readings, the wrong details being held or an IT failure causing a customer to be overcharged.
While this isnt ideal, it’s often easily resolved with a refund and an apology. But when the same mistakes are repeated, happen frequently and could have been avoided, or when the issue becomes a headache to resolve, businesses fall into ill-favour with customers.
Other billing issues include customers not being put on the most cost-effective or appropriate tariffs to suit their needs affecting up to 15 per cent of consumers.
This, plus an increasing lack of transparent and proactive communication, puts businesses in dangerous territory when it comes to customer satisfaction and trust.
The cost of billing shortfalls and mishaps
Getting billing wrong is costly for businesses on two fronts. Firstly, it can result in hefty fines from industry watchdogs, as Vodafone discovered when it was fined 4.6m by Ofcom for failing to treat customers fairly and breaching industry billing rules.
Secondly, and more worryingly, it can lead to a loss of custom, with up to 45 per cent of consumers considering switching to a competitor, and one in seven saying they would switch without hesitation, if faced with a poor billing service. The long-term impact of this, of lost business and the erosion of trust, comes at a much higher price than just the imposed fines.
When bills are inaccurate, it is costly to customers forcing a growing number into arrears. Last year, our report found that more than a third of payments made late were as a result of a billing problem (including inaccurate and overly-complicated bills).
Driving your own customers into debt shatters trust, weakens loyalty, creates animosity and heightens frustrations. This is the last thing any business wants in an ever-competitive marketplace.
Four ways to improve billing and customer experience
Businesses that address where they’re going wrong and work to improve billing practices will significantly improve the customer experience. Here’s how they can do it:
(1) Ditch the jargon clearer bills now
Using technical terms and industry jargon only serves to confuse consumers and complicate the payment process. Our most recent report found that bills arent getting any easier to understand for the majority of customers this is something that businesses need to address fast or they risk losing out on a valuable customer touchpoint.
(2) Opening lines of communication is crucial
The lines of communication must always be open so that customers have access to knowledgeable and empathetic staff who are on-hand to help with a billing query or issue. Customers who wish to, should be able to pick up the telephone and speak to a real person, rather than just an automated service. There is real value in the human touch. Businesses that offer this will likely restore customer trust, strengthen loyalty and build rapport.?