Echo Logo

Billing trends leading to loss of customer trust

From the Knowledge Centre

Echo's latest consumer research reveals that poor billing practices and pushing direct debit arrangements, leads to consumers losing trust in businesses...

One in seven customers are paying more than necessary due to being placed on a non preferential tariff or being pushed into direct debit arrangements that lead to a build up of credit. That's what a representative sample of 1,000 UK adults told us recently.

This new research adds further fuel to the fire of other similar reports, with the Daily Mail reporting last year that around eight million households on fixed direct debits for energy were thought to be owed money, for example.

And, given that two thirds or people are thought to be paying their monthly bills by direct debit, this upward trend could be eroding both relationships and trust between consumers and their service providers.

This is not the only billing issue that is negatively affecting customer trust - poor customer engagement is also compounding the problem. More than two thirds of people receive no communication from their service provider before a bill lands whilst one in five opened a higher than expected bill with no warning. Just one in ten consumers told us they'd received a communication that enabled them to better plan their finances.

The billing blunders don't end there. 14% of consumers told us they'd recently received an inaccurate bill, and 7% continued to receive bills, or experience billing issues, even after they had terminated a contract.

"While direct debits can be more convenient for customers and help mitigate late payments for businesses, a transparent and open approach is definately needed."

Nigel Baker, managing director, Echo Managed Services

There are many things that can lead to customer concerns around a business' transparency and ethical stance. Overcharging, making credits difficult to recover, not putting customers on the cheapest available tariff, pushing unrealistic payment plans and not warning customers they've spent much more than usual, all have their part to play. It doesn't take much to erode customer trust, and once gone, it can be difficult to get back.

In fact, one in seven customers told us they'd definitely switch supplier if they encountered billing issues, and were not prepared to give a business a second chance.

I

Share this article

More in the Knowledge centre

More News

News

Echo holds summer of support event for its teams

For the past six weeks, Echo has been holding a remote summer of support event for its employees across three…

Read
News

Echo Managed Services strengthens its board as Aptumo grows

Echo Managed Services, the UK water sector service and software specialist, is building on the success of its new Aptumo…

Read
News

Introducing Echo's 2020 CCMA UK National Contact Centre Award Finalists

Two Echo Managed Services employees have been named as finalists in the 2020 CCMA UK National Contact Centre Awards...

Read
News

West Midlands community hub scoops Customer Satisfaction Innovation award

Echo & South Staffs Water win customer satisfaction award from the Institute of Customer Service.

Read

More Billing & Customer Information Software

News

Echo Managed Services strengthens its board as Aptumo grows

Echo Managed Services, the UK water sector service and software specialist, is building on the success of its new Aptumo…

Read
News

Aptumo adds four new hires to bolster its product team

Billing software business continues to expand as utility sector interest grows

Read
News

Quarter of water customers let down by poor response to billing problems

More than 7 million households have had a negative water billing experience...

Read
News

Half of water customers don’t understand their bill

Almost 13.5 million households struggle to understand billing jargon.

Read

Choose how you want to get in touch with us

Pick up the phone and call us...

0845 12 12 122

Call

...or simply email us for a quick response.

ask@echo-ms.com

Send email