Direct Debit training to help utility firms cut payment problems

New modules offer sector extra tools for training staff in Direct Debit best practice

With the trend for switching suppliers continuing apace and consumers on the hunt for better financial deals in the current economic climate, utility companies need to be doing all they can to hang on to their customers. As well as offering competitive prices, this means ensuring customer service levels are at their absolute best and that the payment collection process runs smoothly.

Research (1) from Bacs Payment Schemes Limited (Bacs), the company behind Direct Debit, shows that over two thirds of people (76%) who have experienced a problem with a Direct Debit bill payment blame the organisation collecting the money. Of these individuals, over half (56 per cent) said they were more likely to switch supplier as a result of the experience, where they cited that there was a choice of provider.

And unfortunately, the utility sector is regarded as one of the worst performing markets when it came to issues surrounding this popular form of payment. Bacs data shows that 46% of all Direct Debit problems in 2008 were connected to household bills. Of this number, and where consumers deemed the originator to be at fault, 28% of all issues were said to be with a utility company.

To help utility companies minimise the chance of Direct Debit problems and reduce associated customer churn, Bacs has created a series of new online training courses. Providing customer service representatives with all the information they’ll ever need about Direct Debit, each course takes less than 30 minutes to complete and helps educate staff about this popular financial tool while training them in best practice. Building on some basic training materials already available, the three new Direct Debit courses now available to purchase are:

1. Introduction to Direct Debit: This module is designed for call centre employees who sign customers up to Direct Debit and have to handle any subsequent questions. It arms staff with all the facts they need to promote the benefits of Direct Debit and resolve or act on any queries raised.
2. Working with Direct Debit: Suitable for employees who work in billing and payment collection departments, this module teaches individuals how to handle more complicated queries such as resolving unpaid Direct Debits and indemnity claims.
3. Managing Direct Debit: This is the perfect training programme for employees and senior management representatives who have overall responsibility for Direct Debit collections and need to have an in-depth understanding of fundamental processes and procedures. The course explains the Direct Debit process from end-to-end exploring topics including AUDDIS (Automated Direct Debit Instruction Service) and Paperless Direct Debit. It also provides concise information about the responsibilities of Direct Debit Service Users operating within the parameters of the scheme.

Michael Chambers, managing director of Bacs, said: “Direct Debit is the preferred collection method for many organisations across the UK, regardless of sector. But it’s not always easy for a company to be sure that its customer service teams know everything they should about automated payments. For example, can call centre staff explain the difference between a Direct Debit and a Standing Order? Do they know what the Direct Debit Guarantee is and how it works? And does the billing department know its ADDACS from its ARUDD?

“While these may seem like simple questions that won’t necessarily have an impact on a company’s bottom line, the opposite is true. Our research clearly shows that customers are more likely to switch supplier if they have experienced a problem with Direct Debit. At a time when retaining customers is critical and bill payments are top of mind for consumers, utility companies need to do everything they can to stay ahead of the game and ensure staff are delivering the highest levels of customer care right across the board.”

Each employee that completes a Direct Debit training course will receive a personal certificate signed by the managing director of Bacs in recognition of their understanding of Direct Debit.

As well as the three main courses now available, Bacs also has two additional e-learning packages which have been in place for some time:

• Introduction to Paperless Direct Debit – this 30 minute course covers everything an organisation needs to know when moving to Paperless Direct Debit. Now mandatory, but free of charge for new Paperless Direct Debit service users, the course is also available for existing Paperless Direct Debit providers to buy should they need to provide a refresher course for their staff.
• The Great Balloon Race – a fun, free diagnostic quiz to identify how much staff know about Direct Debit and importantly identify any skills gap. Participants try to fly a hot air balloon from London to Sydney answering questions about Direct Debit to complete each stage of the race.

For more information about Direct Debit training and how it could help your organisation, as well as contact details for companies that can provide accredited training courses, please go to: www.bacs.co.uk/training

Notes:

(1) Statistics originated from Direct Debit problems research conducted in October 2008. Research was prepared by Bacs in conjunction with Accord Research Consultancy and involved a large scale survey of a representative profile of GB adults to ascertain Direct Debit problem penetration in the GB. A mixture of 1000 telephone and 400 online interviews were conducted between late October and mid November 2008.