{"id":40400,"date":"2022-12-27T07:02:55","date_gmt":"2022-12-27T12:02:55","guid":{"rendered":"https:\/\/centricconsulting.com\/?p=40400"},"modified":"2023-02-07T13:39:30","modified_gmt":"2023-02-07T18:39:30","slug":"evolution-of-meter-to-cash-and-its-impact-on-utilities-and-customers","status":"publish","type":"post","link":"https:\/\/centricconsulting.com\/blog\/evolution-of-meter-to-cash-and-its-impact-on-utilities-and-customers\/","title":{"rendered":"Evolution of Meter-to-Cash and its Impact on Utilities and Customers"},"content":{"rendered":"
Utilities companies are committed to providing their customers with safe, efficient and reliable service. Governed by regulations, policies and procedures, utilities can serve the homes and businesses in their territory that comply with these rules.<\/p>\n
Meter-to-cash is the cyclical lifecycle within which natural gas, electric, water and wastewater organizations operate. The cycle involves starting service, metering, billing, payments and collections. Customer experience<\/a> (CX) expectations evolve with every CX breakthrough in banking, eCommerce and other areas. In this blog, we\u2019ll walk through these lifecycle steps and insights for utilities.<\/strong><\/p>\n Initially, the customer and utility are establishing an ongoing commercial relationship. Who is requesting service, for which location, what services are needed and is payment reasonably secure? No matter which class of customer, channel or set of media is used, utilities companies require these pieces of information to get off on the right foot.<\/strong> Organizations will do the following:<\/p>\n Starting services within the meter-to-cash cycle are rich with process, automation<\/a> and digitization efficiency opportunities. Once the company establishes service, the periodic revenue cycle (metering-billing-payment-collection) begins until the customer voluntarily or involuntarily severs the commercial relationship.<\/strong> For example, if the customer moves or ceases bill payment and has their service disconnected.<\/p>\n Mechanical or digital, a utility meter measures usage-based billing determinants to feed downstream processes. Collection methods have evolved from paper and electronic handheld books to wireless and wired collection schemes that present required measurements monthly, daily or in minutes to support CX and process efficiency.<\/p>\n Each iteration of automated metering moves expectations closer to instantaneous and remote manipulation.<\/p>\n <\/a><\/p>\n Utility companies typically manage billing cyclically or by event with customer information systems (CIS) software. Each commercial-off-the-shelf (COTS) or pseudo-custom solution offers unique benefits.<\/strong> Generally, the CIS enables utility providers to measure, calculate and present bills, communicate with customers, troubleshoot and even proactively identify issues to avoid headaches down the road.<\/p>\n As services become personalized through innovations like onsite generation, storage, community aggregation, micro-grids, affordability-discounting and standby service subscription<\/a>, systems that started when electromechanical induction cumulative meters dominated may require an upgrade. Flexible bill calculation replacement initiatives, such as those to support deregulation, will return to the forefront (e.g., GridX works on top of any customer information system<\/a>).<\/p>\n There are countless payment methods: from cash and checks to debit cards, credit cards, mobile payment solutions and electronic bank transfers, as well as auto-recurring and manual initiation options. Every utility customer begins their customer journey<\/a> somewhere along these two continuums.<\/strong> Customer experience and feedback enable the continued improvement of payment methods and initiation. Payment for services is the goal, but efficiency and reliability improvements deserve attention.<\/p>\n Personally identifiable information (PII) compliance regulations have led most utility companies to enlist specialized third-party aggregators like InvoiceCloud, KUBRA and Fiserv to manage and promote payment efficiency. Providers partner with utilities to optimize payment lifecycles in areas such as:<\/p>\n Collections treatments are a departure from the ideal path of meter-to-cash. Something happens, and the providing company doesn\u2019t receive the expected payment for services.<\/strong> For too long, when utility customers get behind on payments, it\u2019s off to the races to satisfy minimum regulatory requirements to disconnect the customer\u2019s service \u2013 minimizing loss at the first hint of a problem and using the inconvenience of not having utility service as a deterrent to missing payments.<\/p>\n Insights and information with AI\/ML methods can proactively predict risks and intervene to remedy root causes for nonpayment, improving both the bottom line and customer experience. For example, aligning customers\u2019 payment challenges with available federal, state and local assistance programs create win-win results. Or matching demand-side management (DSM) funds to reduce low-income customer usage through education, weatherization and available technology initiatives.<\/p>\nStep 1: Start Service<\/h3>\n
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Step 2: Metering<\/h3>\n
Step 3: Billing<\/h3>\n
Step 4: Payments<\/h3>\n
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Step 5: Collections<\/h3>\n
Commit to Meter-to-Cash Outcomes<\/h2>\n