Utility payments have transformed over the last two decades, evolving from paper bills and mailed checks to fully digitized billing and payment experiences. But while utilities modernized quickly, customer expectations evolved even faster.
“Good” may have once been acceptable, but today’s customers expect far more from utilities.
When good isn’t good enough
Most utility customers aren’t angry. But, they’re not impressed either. When asked how they would rate their overall utility billing and payment experience, 45% rate it as Good. When consumers expect seamless, personalized experiences in every aspect of their lives, good isn't going to create meaningful engagement or differentiation.
Then there’s approximately one-third of customers who rate their experiences as Fair, Poor, or Very Poor. This cohort is particularly problematic for utilities because billing is traditionally a low-engagement touchpoint, where negative experiences are more memorable than positive ones.
Customers may only think about their utility once a month, but when they do, the experience matters more than ever.
Customers can’t trust what they don’t understand
Confusing bills lead to more than just frustrated customers. When customers don’t understand why bills have changed, what they owe, or when payment is due, support calls increase and payments are delayed, placing additional strain on operations. Over time, the customer-biller bond erodes. This may seem like an outlier situation rather than a red flag for utilities, but recent customer experience (CX) research didn’t confirm that.
- Approximately 43% of utility customers are confused by charges and fees
- Approximately 41% of utility customers are confused by usage details
- Only 27% strongly understand charges
- Only 28% strongly trust the accuracy of the bill
Billing clarity isn’t a user experience enhancement anymore. It’s a trust strategy. When bills are easier to understand, utilities can minimize:
- Support burden
- Avoidable call volume
- Payment delays
- Distrust during rate changes
Compliance is critical for regulated industries like utilities, but customer comprehension shouldn’t be an afterthought. Utilities should optimize bills for both ease of understanding and compliance, so customers can quickly understand what they owe, why it changed and what actions they may need to take.
Modern billing experiences must do more than process payments
It’s not that customers don’t appreciate the improved payment functionality provided by their utility providers. They do and it shows through the 83% who feel informed, in control and confident when managing and paying their utility bills. It’s just that they want that and more.
They’re looking for reassurance, flexibility and proactive support, but not all are getting it. Only 47% feel they have flexibility in how and when they pay. Seventeen percent still feel stressed, frustrated, or confused when describing how the payment tools and options available to them make them feel and 58% of customers who may need assistance programs are either unaware of or unable to access them.
These needs can be met through proactive alerts when a bill is due or through notifications letting them know their bill will be higher than usual. For customers in need of support, embedded assistance messaging and flexible payment plans are dignified ways to inform them of available programs so they don’t have to initiate outreach.
The future of utility CX isn’t just frictionless, it’s confidence-building.
The real barrier to innovation isn’t technology
Surprisingly, trust, not technology, will be the biggest determinant of the adoption of next-gen payment experiences. Almost half of customers are open to using digital wallets, AutoPay and AI-assisted payments and a further 25% are neutral. That means almost 75% of customers are open or could be persuaded to use new payment solutions.
But this doesn’t necessarily translate to adoption. While 76% of customers trust their utility’s payment security, just 63% trust their utility with their personal data. This trust gap will narrow only when customers feel safe, informed and in control. Only then will more customers be open to adopting new payment experiences more widely.
Digital transformation was the foundation. Trust is the differentiator.
Utilities have already built the digital infrastructure. The next competitive advantage is creating billing and payment experiences that customers trust, understand and navigate with confidence.
The utilities that lead in the next era of CX won’t simply process payments efficiently. They’ll turn every billing and payment interaction into an opportunity to strengthen trust.
Want the full picture?
Discover how utilities can turn billing and payment interactions into trust-building experiences. See how it's done.
