When it comes to trying to change someone’s behavior, the phrase “carrot or stick” is often evoked. The carrot represents a reward for achieving the desired behavior, and the stick represents a punishment for refusing to do so.
In the last issue, I wrote about utilities that have adopted the stick concept by charging a fee for customers who refuse to sign up for e-billing and insist on receiving a paper bill. Today, let’s look at some carrot approaches that other utilities have used.
One-time credits
Several utilities offer a one-time credit to entice customers to sign up for paperless billing or bank drafts.
The City of Eustis, Florida offers a one-time $25.00 credit for customers who sign up for both ebilling and ACH payments. I really like this approach because it represents not only one less paper bill they have to mail, but also one more customer on bank drafts. And, as we all know, bank drafts are the easiest way to collect payments!
The City of Modesto, California offers two separate one-time $10.00 credits, for a total of $20.00, for customers who are not already participating in ebilling or bank drafts.
Mesa Water District in California offers a $5.00 one-time credit for signing up for paperless billing. They also extended the credit to customers who were already on ebilling, which is a great customer service gesture. They also provide a free reusable water bottle for customers signing up for bank drafts.
Monthly credits
Other utilities offer an ongoing, monthly credit for customers who sign up for paperless billing or bank drafts.
Idaho Falls Utilities in Idaho offers a $1.00 monthly credit for customers who enroll in paperless billing.
The City of Lancaster, Pennsylvania offers a $1.05 monthly credit for customers enrolled in paperless billing. Interestingly, the $1.05 is equivalent to the fee for paying online using an echeck.
Eufaula Water Works in Alabama offers a $1.00 monthly credit to customers who sign up for and remain on both paperless billing and bank drafts.
Pros and cons of one-time vs monthly credits
If you’ve decided to follow the carrot motivation path of offering a credit, should it be a one-time credit or a monthly credit?
If you choose to offer a one-time credit, you can offer a larger credit, which hopefully gets the attention of more customers. However, do you require the customer to remain on paperless billing (or bank drafts, or both) for a minimum amount of time, otherwise they forfeit the credit? Unless your billing software has a way of monitoring that, it seems like a very laborious task to keep up with. Especially if your customers can opt out of e-billing through your website without needing to interact with a customer service representative.
Monthly credits, while much less than a one-time credit, can mount up if your customers remain on paperless billing for several years. Over time, a small monthly credit can end up costing your utility more in the long run than a larger one-time credit.
Sweepstakes
One additional enticement for your customers to participate in paperless billing is a sweepstakes or giveaway of some sort.
The City of Middletown, Ohio offered their customers the opportunity to win one of five $100.00 Visa gift cards for enrolling in paperless billing or bank drafts.
As is the case with Mesa Water District above, I’ve heard of other utilities offering swag with the utility logo as an incentive for customers to sign up for either ebilling or bank drafts.
Are you offering any incentives?
If your utility offers an incentive for paperless billing or bank drafts, I would love to hear from you! Feel free to send me an email describing what you offer.
Is your business office as efficient as possible?
Is your business office operating at peak efficiency? If it’s not, or you’re unsure, please call me at 919-673-4050 or email me at gary@utilityinformationpipeline.com to learn how a business review could help you improve your business office operations.
© 2025 Gary Sanders