Energy/Utilities
26% reduction in late payments through behavioral rewards.
We built a points-based loyalty system for a regional utility provider that rewards energy-saving behavior, timely payments, and paperless billing - reducing late payments by 26% and cutting call center volume by 19%.
Client
A regional utility provider
Industry
Energy/Utilities
Timeline
10 weeks
Team Size
3 engineers + 1 designer
Impact
Late payment reduction
Paperless billing adoption
Call center reduction
Late payment reduction: Decrease in late payments within eight months of program launch across 180,000 accounts.
Paperless billing adoption: Paperless billing enrollment nearly doubled after loyalty incentives were added.
Call center reduction: Reduction in billing-related call center inquiries as customers used the self-service portal.
The Challenge
Late payments cost the utility $3.2M annually in collection efforts, disconnection/reconnection labor, and bad debt write-offs across 180,000 residential accounts.
Only 34% of customers had enrolled in paperless billing despite five email campaigns, keeping print and mail costs at $1.1M per year.
Customer satisfaction scores (J.D. Power) had declined for two consecutive years, with the most common complaint being 'no reason to stay' when competitors offered signup bonuses.
What We Built
Built a points engine that rewards five key behaviors: on-time payment (automatic monthly points), consecutive on-time streaks (multiplier bonuses), paperless billing enrollment (one-time bonus), energy usage reduction vs. prior month (variable points), and referrals.
Created a rewards marketplace where points redeem for bill credits, smart home devices (Nest thermostats, smart plugs), and local business gift cards - with the bill credit option driving the highest redemption rate.
Developed a usage insights dashboard that shows customers their consumption trends, compares them to similar households, and suggests specific actions ('switching to LED bulbs could save you 12 points/month') tied to loyalty rewards.
Related Work
Utility loyalty programs reward behaviors that benefit both the company and the customer: timely payments reduce collections costs, paperless billing cuts print expenses, and energy-saving actions lower grid demand. Points redeem for bill credits, smart home devices, or partner rewards. The economics work because reduced late payments and lower operational costs fund the reward pool.
Next Step
One call with a founder. No sales team, no follow-up sequence. If we can't help, we'll say so.