With increased competition, shorter contract periods, and the ease with which customers can churn, it’s never been more important to get the customer relationship off on the right foot. But the first bill can often be a point of frustration and confusion in the customer lifecycle. Laura Broers looks at why this is, and what can be done to transform the first bill from a CX blackspot into a loyalty-generating experience.
First bills are often confusing and frustrating for customers. This confusion means the relationship does not always get off to a good start, and customers may even call the contact center to get their questions answered or to express their frustration, driving up costs for the CSP. One of Calvi’s customers, for example, used to handle an average of 1 million calls per year just about proration.
The first bill sets the stage for the relationship you have with your customers. So, one bad interaction can be extremely costly.
Focusing specifically on the first bill, and being mindful of common areas of potential confusion, means the CSP can design a better first-bill experience, helping their customers navigate new products, price plans and offers with ease. This can pay dividends by getting the relationship started on the right foot, boosting satisfaction, and avoiding the need to call the contact center or account manager.
The first thing CSPs should do is provide clear explanations of charges and, if applicable, why the charge in the first month is different to subsequent months (or expected charges). The bill may be different because of proration, the need to pay certain charges in advance, or because of one-off, upfront charges (such as for CPE). Some Calvi customers have overcome the potential confusion by showing the charges in a calendar format, for example, in order to visualize the concept of proration.
In the first month of usage the customer is also likely to have a lot of questions about what they’re entitled to, how they monitor their usage, and how they can set up alerts or personalize their billing experience. No matter how efficient customer service reps were in explaining these things at onboarding, customers often forget and then will call the contact center or account manager for clarification or explanation. CSPs can avoid the cost of handling these calls, and simultaneously boost customer satisfaction, by providing an informative video covering frequently asked questions.
The video should continue the warm tone of marketing into the billing experience, thanking the customer for their business. It should cover what to do if there is an error – such as the wrong name, address or title, or the wrong credit card details. Ideally, the CSP should provide self-service tools along with an explanation as to how customers can make simple corrections themselves. The video should likewise explain how the customer can tailor their own information, sign up for alerts or set usage caps. Calvi research, for example, showed that calls to care (service desk) decreased by 36% after a well personalized introductory video was sent to customers.
CSPs can measure the success or failure of their first bills by monitoring whether there’s a reduction in customers prematurely churning or ringing the call center with enquiries or complaints. They should close the loop with the call center and account managers and address any issues that are stimulating inquiries in subsequent iterations of the first bill, analyzing progressive improvements and how they impact on key performance indicators (KPIs).
Importantly, CSPs should be aware that a ‘first bill’ is no longer just at the beginning of the customer relationship, but each time a customer renews their service package, opts into a new offer or adds new services. The support offered with the next bill needs to be tailored to the change that’s been made – for example, explaining the specific new product or offer - while thanking the customer for their business. It’s also vital that the CSP takes the opportunity to acknowledge their loyalty and the longevity of the relationship.
The first bill does not have to be a cause of stress and frustration. If designed well it can be used to complete the onboarding process and ensure that the customer understands vital information. It can set a positive tone for the future relationship by thanking the customer for their business and explaining how they can access help if they need it. This does not have to be expensive – visual information such as calendars and videos can really come into their own to talk the customer through the process even more efficiently, but also more cost-effectively, than a CSR.
At Calvi we don’t just help you make today’s bills clearer and more understandable we help you position for what’s coming tomorrow. To find out more about the future of the bill, or to talk to our bill consultant, please reach out!
Laura Broers is Calvi’s Marketing and Communications Specialist, joining Calvi after completing a degree in communications. With her passion for improving the billing experience, Laura is great at putting herself in the customers’ shoes to help CSPs think about how they can improve their billing communications.
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