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1,000 UK households share their views on water bills and water billing processes.
1,000 UK households share their views on water bills and water billing processes.
While most people in the UK can relate to the financial pressures the cost-of-living crisis is causing, Gen Z is particularly feeling the strain.
Generally, younger people have a lower level of financial resilience as they are more likely to have lower paid, entry-level jobs and have less put aside in savings. Our recent research indicates that bill payers aged 16-25 years old are 84% more likely than the national average to have encountered affordability issues with water bills in the past year. While the cost-of-living crisis shows no signs of immediate improvement, water companies can help to make a difference.
Even though the challenges bill payers are facing are universal, only 26% of Gen Z reported being offered access to debt advice by their water company. This is unfortunate, as this demographic is likely to describe their situation as improving when support is readily available to them.
Effective communication – like signposting the support that’s available and how to access it - is essential to building trust and maintaining strong relationships with all customers, so a comprehensive communications strategy should include a variety of channels and styles of engagement to connect with customers who have different preferences or needs.
Gen Z bill payers, for example, are likely to access information via digital platforms like mobile apps or online portals. However, like many of their older counterparts, they still feel more comfortable speaking to someone directly when they have a financial or sensitive issue to address.
Along with offering a familiar channel, using the right ‘tone of voice’ also helps messages to land with customers. Complex jargon should be avoided at all costs in favour of clear, simple language that conveys a message without any fuss.
Water companies have access to valuable data which, if used effectively, can help to improve the customer experience. Simple analysis can identify those who may be starting to struggle with their payments, prompting proactive interventions by the water company to offer support before a situation gets out-of-hand.
Without impacting agents’ workloads, an automated text message reminder when a payment is due, or a simple ‘heads up’ before a bill is about to land, could give customers the breathing space they need to contact their water supplier if they think they may be at risk of missing a payment.
Customers who work flexible or unpredictable hours may struggle to find the time to make payments using some of the more traditional methods. Our research shows that 65% of Gen Z bill payers prefer to manage everything online so offering a variety of ways to make payments – including digital platforms – could be what they need to help them stay in control.
While a few simple pointers on budgeting techniques could help some customers prioritise their spending, others might benefit from understanding more about the variety of payment options that are available to them.
To some, paying their water bill by direct debit may feel like an arrangement that challenges the flexibility they need to balance their budget. However, presenting it as a way to break costs down into smaller, manageable chunks could make it a more positive option. Likewise, a payment plan built around the customer’s own situation gives them control over their outgoings and could be the hassle-free experience they need to give them confidence in an automated arrangement.
For many years, water companies have been raising their profile among customers by having a visible presence within local communities. In our research, a sense of trust in the intentions and performance of their suppliers showed as an important element in the relationship between Gen Z and any supplier they use, so by actively participating in community events and initiatives, water companies can position themselves as a partner who is invested in the wellbeing of the community they serve.
Ofwat’s methodology for PR24 encourages water companies to look to innovation to improve the quality of customer service. To ensure they’re offering a level of service their customer take for granted from other suppliers or retailers, water companies should consider making greater use of technology.
Agile, customer-centric billing software centralises the process and means that customer service agents can view all information within one system, allowing them to resolve issues quickly and efficiently. It makes providing accurate bills that are designed to suit the customer’s needs easier and can draw on data collected by the wider network to offer advice on consumption and how usage habits could be affecting their outgoings.
By adapting quickly to changing economic circumstances that may be cause some customers to struggle to pay their bills, water companies can play a key role in supporting Gen Z through the ongoing cost of living crisis. Investing in technology that helps them to deliver exceptional customer service proactively will help them to empower young bill payers to make smart money decisions by providing adequate support, personalised communications, and offering budget-friendly payment plans.
