# Listen, Care, Share: Ofwat’s latest report on the water industry’s handling of customers during the pandemic Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-31 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: How Water Companies Can Support Customers During COVID-19 Meta Description: Discover how water companies can better support customers financially during the crisis. Insights on age demographics and preferred engagement channels. URL: https://financedigest.com/listen-care-share-ofwats-latest-report-on-the-water-industrys-handling-of-customers-during-the-pandemichtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ta-03282016-i20100713-mg99422-sbi-300909645-1736837962945-compressed.jpg) Ofwat, the non-ministerial government department responsible for regulating the water sector in England and Wales, has published a deep-dive report on customer experiences during the COVID-19 pandemic. Considering the impact of the crisis on people’s finances and wellbeing, the relationship between companies and their customers has never been more crucial – particularly when those companies are providing vital utility services that families simply cannot afford to live without. While the government has taken some positive action when it comes to supporting customers shouldering heavy debt, such as the introduction of [breathing space regulation](https://www.revivemanagement.com/news/coming-up-for-air/) earlier this year, Ofwat’s report outlines some of the unique challenges that customers are facing and asks what more water companies could be doing to support their customers and engage them in a more constructive way. The report goes out of its way to highlight the importance of data segmentation and how crucial it was for water companies to be able to target different demographics among their customer base in a specific and appropriate way. For instance, one of the key findings was that **those with young children were twice as likely to** [face difficulties paying their utility bills](https://www.financedigest.com/explainer-why-europe-faces-climbing-energy-bills.html "Explainer-Why Europe faces climbing energy bills"). So could water [companies change their approach to dealing](https://www.financedigest.com/navigating-a-buoyant-ma-market-does-the-deal-corridor-with-the-us-or-eu-offer-british-companies-the-better-scope-for-growth.html "Navigating a buoyant M&A market: Does the deal corridor with the US or EU offer British companies the better scope for growth?") with households that have children? The [report also breaks financial vulnerability down according](https://www.financedigest.com/worst-flooding-since-1998-leaves-33bn-economic-toll-in-china-according-to-aon-catastrophe-report.html "Worst flooding since 1998 leaves bn economic toll in China, according to Aon catastrophe report") to age. Around **47% of those aged 18-34 were likely to struggle to pay their [household bills](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero") regularly**. That figure goes down to 39% for those aged between 35-54, while only 17% of those aged 55 and over [say they regularly struggle to afford their monthly utility bills](https://www.financedigest.com/brexit-has-added-6-to-britains-food-bills-researchers-say.html "Brexit has added 6% to Britain’s food bills, researchers say"). This tells us that water companies are likely to have higher numbers of the 18-34 demographic in need of financial support, so how can they tailor their [customer experience to engage](https://www.financedigest.com/chatbots-the-secret-weapon-to-customer-engagement.html "Chatbots: The secret weapon to customer engagement?") this generation? Is a phone line enough? How likely is this generation to pick up the phone if they’re experiencing financial difficulty? In **a recent** poll on [customers’ preferred channels of engagement](https://www.financedigest.com/customer-engagement-whos-leading-the-way.html "Customer engagement – who’s leading the way?"), we found that around 60% said they preferred to speak with an agent over the phone when it comes to debt. Whereas, nearly **1 in 5 (18%) said they preferred email**, with around 10% preferring web chat or [SMS as their primary forms of communication](https://www.financedigest.com/solgari-releases-gdpr-mifid-ii-compliant-sms-service-as-part-of-integrated-omni-channel-cloud-communications-platform.html "Solgari releases GDPR & MiFID II Compliant SMS service as part of Integrated Omni-Channel Cloud Communications platform"). In the same poll, we revealed that proactive [engagement with customers](https://www.financedigest.com/5-ways-a-ccm-platform-can-help-improve-customer-engagement-in-insurance.html "5 Ways a CCM platform can help improve customer engagement in insurance") was the number one challenge for companies when it came to managing financial vulnerability, with record-keeping a not too distant second. Speaking on the matter, Tom Pugh, Director at Revive Management, said: “Data plays an essential role in helping organisations to understand and thus handle customer [experience](https://www.financedigest.com/is-your-customer-experience-exceptional.html "IS YOUR CUSTOMER EXPERIENCE EXCEPTIONAL?") when dealing with customer debt. Additionally, organisations should look to adopting an omnichannel, [customer-centric approach](https://www.financedigest.com/putting-data-at-the-heart-of-a-customer-centric-approach.html "Putting data at the heart of a customer-centric approach") to engagement that removes any unnecessary stress from the equation. Vulnerability isn’t a standalone issue, it affects every [step of each customer’s](https://www.financedigest.com/how-do-you-build-customer-loyalty-3-steps-to-follow.html "HOW DO YOU BUILD CUSTOMER LOYALTY? 3 STEPS TO FOLLOW") experience – it is bigger than just a single interaction with a single business. Gathering [data based on your customer](https://www.financedigest.com/manchester-arts-centre-the-lowry-selects-logpoints-siem-technology-to-safeguard-customer-data.html "Manchester arts centre The Lowry selects LogPoint’s SIEM technology to safeguard customer data") will help your organisation to build their profile so that when necessary; you are contacting the right customer through the right channel at the right time. This last year has taken its toll on people financially and mentally, so anything that companies can do to [improve the customer journey](https://www.financedigest.com/how-artificial-intelligence-can-help-improvethe-customer-journey-in-insurance.html "How Artificial Intelligence can help improve the customer journey in Insurance") should be welcomed with open arms and actioned as soon as possible. Organisations that can adapt their contact strategies efficiently will be the ones that are more likely to [retain](https://www.financedigest.com/retaining-insurance-customers-in-a-post-pandemic-environment.html "Retaining insurance customers in a post-pandemic environment") their customers.” The Ofwat [report also breaks down some of the support](https://www.financedigest.com/local-government-business-support-getting-worse-report-shows-as-70-of-uk-firms-say-its-not-good-enough.html "Local government business support getting worse, report shows, as 70% of UK firms say it’s not good enough") customers are currently being offered from water companies and England and Wales. Alarmingly, **only 3% of [customers say they have received financial support from their water company](https://www.financedigest.com/disconnected-customers-are-one-of-the-biggest-problems-facing-financial-companies.html "Disconnected customers are one of the biggest problems facing financial companies") during the pandemic**, including those with the lowest household income. Sadly, this pushes [customers to seek financial](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") support elsewhere, with more than **35% using credit cards, overdrafts and short term loans to pay their utility bills**. Not only is this making the debt situation in England and Wales worse, it’s also a huge [missed opportunity for the water](https://www.financedigest.com/a-missed-opportunity-research-reveals-that-while-small-finance-accounting-businesses-view-themselves-as-cost-savvy-most-arent-switching-water-suppliers-or-other-services.html "A missed opportunity: research reveals that while small finance & accounting businesses view themselves as cost-savvy, most aren’t switching water suppliers, or other services") companies themselves. Instead of pushing people away into other forms of debt, which makes it less likely they’ll be able to make [future payments](https://www.financedigest.com/the-future-of-biometrics-in-payments.html "The Future of Biometrics in Payments") on time, water companies should be wrapping their arms around customers and directing them to more constructive ways of repaying what they owe based on their individual circumstances. In other words, they [need to be _proactive_ if they wish to close the debt gap and retain customers](https://www.financedigest.com/stay-ahead-of-the-curve-and-meet-your-customers-payments-needs.html "STAY AHEAD OF THE CURVE AND MEET YOUR CUSTOMERS PAYMENTS NEEDS") long-term. As one [customer](https://www.financedigest.com/uks-nationwide-to-pay-340-million-pounds-to-customers-after-profit-leap.html "UK’s Nationwide to pay 340 million pounds to customers after profit leap") comments in the report, _“I just felt it was a monthly bill which you had to pay and there was no flexibility in the amount you pay. If they hadn’t called me I would have been waiting a long [time](https://www.financedigest.com/the-psd2-deadline-extension-why-you-need-it-and-how-best-to-use-your-additional-time.html "The PSD2 deadline extension: why you need it and how best to use your additional time") to receive the support I needed.”_ Utility companies, such as those in the water sector, are slowly beginning to realise that a problem shared is a problem halved, and by reaching out a hand and meeting customers half-way, they stand a much better chance of recouping money owed without negatively [impacting their customers](https://www.financedigest.com/the-fca-is-taking-immediate-action-on-customer-vulnerability-but-how-does-this-impact-advisers.html "The FCA is taking immediate action on customer vulnerability; but how does this impact advisers?"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---