Utility Companies: How to Switch Customers to Paperless Bills

Efficient billing processes are crucial for utility company operations. Every month, companies must generate paper bills, print them, insert pages into envelopes, and mail the bills to customers. Despite spiraling costs, paper bills remain an important component of an organization's revenue collection and cash flow strategies. Converting more customers to a paperless alternative is a priority for most utility companies, but making progress towards the goal isn't easy. 

The key to switching more customers to paperless lies in giving customers something they perceive as a better solution than paper bills. A strategy that includes an option for Cubby Paperless can make a difference.

Why Won't They Switch?

Consumers cling to paper utility bills because of a mix of habit, trust, and convenience. Many people continue to favor paper because it's a physical reminder that demands attention every month. They see the bill, they remember to pay it, and it becomes part of their routine. 

There's an element of trust with physical bills. For some, paper bills feel more reliable—they're hard to ignore when they arrive in the mail, and customers can store and access them without a computer or internet connection. Customers don't need to remember usernames and passwords, or deal with two-factor authentication just to view a paper bill from their electric, water, gas, phone, cable, or internet provider.

Stories of data breaches and cyber threats only reinforce these concerns, making the shift to digital feel risky. 

Once you have a customer's attention, the next step is easing their transition. Offer simplicity in the switch—whether it's a one-click opt-in or easy, step-by-step instructions. Back these efforts with incentives that speak to the customer's immediate benefits. Breaking through their established habits requires both ease and enticement.

Things to Do if You're Serious About Paperless Conversion

Some utility companies have found innovative ways to drive paperless conversions, ensuring that customers see the benefits clearly and feel motivated to make the switch. These methods combine creativity with practicality to change customer habits. 

One proven method includes contests and sweepstakes. Motivating customers through financial rewards also yields results. On the flip side, some companies have implemented penalties for continuing with paper bills. Be cautious with this approach, however. Limited time trials can encourage reluctant customers to switch to paperless billing by lowering the perceived risk. By the time the trial period ends, most customers will have adapted and won't ask to go back to paper. Feature restriction can also be an effective tool.

By employing these innovative methods, utility companies can accelerate their transition to paperless billing, leading to substantial financial and environmental benefits.

Identifying and targeting the customers most likely to switch to paperless bills can be effective. Begin by analyzing your customer data. Look for those who regularly engage with digital platforms, such as those who pay bills online, subscribe to your to online newsletter, or regularly open your emails. These users already display a comfort and familiarity with digital interactions, making them prime targets for paperless billing. It makes sense to spend more effort to convert these customers first, leaving the people entrenched in their old routines for later. 

One Last Barrier to Overcome

Surveys have shown that consumers dislike the hassle of managing their bills over multiple websites. They don't like having to remember login IDs and passwords for dozens of sites. Customers spend little time thinking about their relationships with utility companies. That includes reviewing and paying their bills. It annoys them when circumstances like forgotten passwords or two-factor authentication force them to pay more attention. If it adds to an already cluttered digital life, why should they enroll in paperless billing?

Cubby Paperless has done research. We found plenty of evidence that a good number of customers welcome a billing choice that allows them to consolidate their bills from multiple utilities with a single site. With Cubby, they need a single set of login credentials, and they don't need to navigate each utility provider's website separately.

The way to wean customers away from paper bills is to make the bill review and payment process easier for them–by considering all their company relationships, not just the one they have with your organization. All the incentives, penalties, or environmental pleas won't have much impact if customers can't see a reasonable benefit to switching. By now, traditional tactics have converted all the customers you can convince with these methods. Offering something new and desired, like Cubby Paperless, will allow utility companies to break the stall and make progress towards their paperless adoption goals.