Customer loyalty on the increase for Direct Debit payers

New research from Bacs Payment Schemes Limited (Bacs) shows customer loyalty is rising for Direct Debit customers, with an increase in the number of bill payers saying they are less likely to switch suppliers if they’ve committed to this payment method.

The Bacs Family Finance Tracker revealed that those agreeing they’d be unlikely to move if they paid by Direct Debit had risen from 38% in 2009 to 44% in 2010 – only 26% said payment method wasn’t a factor in changing providers.

Graham Callaghan, Bacs’ energy sector manager, said: “Our research has shown that 79% of customers have a positive attitude to Direct Debit, as well as being less likely to look at moving away from their existing provider – that’s an opportunity for energy companies to increase their retention, especially during a period where competition between suppliers and tariffs is so keen.

“The wealth of comparison sites now available makes it much easier for a customer to find the intelligence that prompts them to switch providers but Direct Debit is a useful tool for those looking to keep their customer base intact.

“We know that 63% of consumers prefer to pay all or most of their bills by Direct Debit, so it seems it should take little effort to encourage existing customers to move away from other, more expensive and time consuming payment methods,” said Callaghan.

For more information on how to successfully increase Direct Debit sign up, please contact Graham by email: graham.callaghan@bacs.co.uk.

For more information about Direct Debit or Bacs, please visit www.bacs.co.uk.