What should your customer service policy include?

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Happy New Year!

Let me start by wishing you and yours a Happy New Year for 2017! 2017 marks the 6th anniversary of the Utility Information Pipeline and I look forward to another year of offering insights into how your utility can operate more efficiently and better serve your customers. As always, if you have suggestions or ideas of a topic for me to cover, please email me!

Last issue

The last Utility Information Pipeline included the results from a poll asking if reader’s utilities have a formal customer service policy. It went on to explain why I believe having one is important. I promised this issue would address what should be included in a customer service policy.

Elements of a formal customer service policy

Let’s take a look at some key items that should be included in a customer service policy…

Application for service

For starters, your customer service policy should include what is required of a customer applying for service. What forms of ID do they need to provide? Are they required to pay a security deposit or an application fee?

Security deposits

If you do require a security deposit for new customers, the amount of the deposit should be plainly stated in your customer service policy, as should any nuances in how the security deposit is determined.

Do you charge a different deposit for renters than homeowners? Do you perform a credit check to determine the amount of the customer’s deposit? Do you retain the deposit until the customer leaves or do you refund it for good credit customers? All of these should be clearly defined in your customer service policy.

Rates and fees

Your rates and fees should also be set forth in your customer service policy. In addition to rates for the services you provide, your customer service policy should also include any fees, such as returned check fees or any other fees you charge.

And, of course, be sure to update your customer service policy each time your rates and fees change.

Due dates and disconnection for non-payment

The section most often referred to in many customer service policies is the one dealing with late payments and disconnection for non-payment. Be sure your policy clearly states how the due date is determined and how much the late fee will be if not paid on time.

If your utility cuts off for non-payment, your policy should also accurately describe when an account is subject to disconnection and how the cut-off fee is charged.

Payment options

How many ways can your customers pay their bill? Do you charge a convenience fee for credit card payments? Can your customers pay their bill online? What must your customers do to sign up for bank drafts? All of these questions should be answered by your customer service policy.

Budget billing

Does your utility offer budget billing? If you do, your customer service policy should explain the details of how the monthly payment is calculated and the requirements for customers to sign up for budget billing.

Disputed billings

Your customer service policy should outline what options are available to customers who believe their bill was incorrectly calculated. It should also describe the details if you offer leak adjustments or summer sewer adjustments.

Do you have a formal customer service policy?

If your office needs assistance developing or updating your customer service policy, give me a call at 919-232-2320 or e-mail me at gsanders@edmundsgovtech.com to learn how a business review can help.

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