Nicole Haskins, Vice President, Paymentus
This article is part two of our multi-part series focusing on affordability and how Paymentus is helping organizations address this increasingly difficult challenge facing consumers. In this installment, we offer a look at the role affordability impacts the customer experience beyond the price tag. You can read part one here.
Recently, I had the pleasure of participating in a panel entitled, “Affordability, Ease of Access, and Trust: The Ongoing Reinvention of the Customer Experience”. The discussion centered around the strategies organizations can develop to make affordability a cornerstone of the customer experience.
How Rising Costs Are Impacting All Bill Payers
One of the most glaring statistics that I’ve seen within the past year comes courtesy of PYMNTS.com:
Nearly 60% of Americans do not use AutoPay, largely due to financial constraints
Let’s pause for a second and think about what this really means. An overwhelming majority of consumers are unable to take advantage of the set-it-and-forget-it convenience offered by a free service that ensures bills are paid on time. That means:
- Customers must remember due dates
- Customers must ensure that they have funds available to make a payment
- Organizations must be prepared to send notifications as needed
- Organizations must be prepared to field calls from customers seeking resolutions
- Organizations must be prepared to charge late fees
None of these are ideal—especially when there’s a solution that exists solely to prevent all of this. But it’s within the above bullet points where we get to the heart of why affordability is a concern for all bill payers, not just those living paycheck to paycheck. There’s a lot of action that must be taken on both sides—every month—just to get a bill paid.
Lack of AutoPay usage is just one small sample that proves a larger point. A bill is not just a bill. A payment is not just a payment. There’s a much larger ecosystem impacted every month.
Customers Are Taking Notice of Rising Prices
During the panel discussion, I relayed a story that I know has affected many of my peers. Typically, my bills have fit so tightly within my monthly budget that I don’t really notice them. Yes, they still make a dent in my wallet but it’s always manageable to the point where I make payments without much thought.
However, my most recent bills have certainly grabbed my attention. The price increases I have experienced have been surprising in two ways:
- The rate at which costs are rising
- The fact that costs are rising while nothing about my usage has changed
What once was a “thoughtless” transaction has now turned into a need for investigation. Investigations mean customer calls, stressful conversations, and likely, little resolution. They also mean hearing from customers you may have never heard from before, who may have always paid on time without any fuss but are now grumbling about having to pay their bill.
The Need for Service Commerce to Combat Rising Costs
It is essential that all organizations understand that all customers are impacted by rising costs. It is more than just being able to afford a bill. Paying more today for the same service you received yesterday is going to make people wonder why things are changing.
Under this umbrella, realize that the actions you must take are not simply couched around payment plans or deferring payments. It’s about service commerce.
Service commerce is a dedication to establishing and building relationships with your customers. Think of your favorite restaurant and how it works to keep you coming back. This is the culture organizations must now deploy in an era of rising costs. Here are three service commerce actions your organization can take to improve customer relationships:
Want to see how Paymentus can help your organization best serve its entire customer base? Let’s talk! Our team can share an exclusive demo and show how we can add outsized value to your end-to-end customer experience.
