Solving Payment Challenges in a Growing City

Cities are growing, and with them, the complexity of managing payments and customer interactions for utilities. In Hendersonville, TN, population growth highlighted a recurring issue: increasing late payments and an overwhelming number of customer service calls related to billing and usage.

At the same time, Pew Research, VertexOne  highlights significant gaps in digital literacy. While many customers understand basic security concepts like secure passwords and cookies, fewer recognize tools like two-factor authentication or understand digital privacy policies. These gaps create barriers to fully adopting digital payment solutions. 

Yet, Hendersonville turned these challenges into an opportunity. By implementing smarter digital tools, they successfully increased on-time payments, reduced customer service calls, and built a system designed for future growth.

 

 

The Growing Payment Problem: Manual Processes and Missed Deadlines

As Hendersonville’s population grew, so did the strain on their payment and billing systems. Outdated manual processes slowed down payment collection, while a lack of self-service tools forced customers to rely heavily on customer service teams for routine inquiries.
 

Missed payment deadlines became a recurring issue, creating financial uncertainty and adding pressure to administrative teams. Staff spent hours addressing payment-related service calls, leaving little time for proactive improvements or addressing complex customer concerns.

Scaling up wasn’t just about efficiency—it was about building trust and simplifying payments for customers.

 

A Smarter Approach: Streamlining Payments with Digital Solutions

When Hendersonville’s customer portal was discontinued, they saw an opportunity to rebuild their payment and billing systems from the ground up. Their focus was clear: simplify payments, reduce delays, and empower customers.

They implemented automated billing reminders to keep customers informed of payment deadlines and made self-service tools available for easy online payments. Real-time notifications provided clarity on billing cycles, water usage, and account status.

For customers unfamiliar with digital tools, Hendersonville prioritized clear onboarding guides, proactive communication, and access to support for those who needed assistance.

This wasn’t just about adopting technology—it was about building a payment experience that worked for everyone.

 

The Results: Increased On-Time Payments and Fewer Service Calls

The impact of Hendersonville’s digital transformation was immediate and measurable. On-time payments increased significantly, driven by automated reminders and easier access to payment tools. Customers could check billing information, track water usage, and complete payments independently, reducing the need for service calls.

Customer service teams reported fewer inquiries about payments and billing, freeing up staff time for more complex issues. In fact, administrative staff reclaimed over 30 hours per week previously spent on routine payment-related calls.

This wasn’t just about reducing workload—it was about creating a smoother, more predictable payment cycle for both customers and staff.

 

Understanding the Digital Literacy Challenge: Bridging Knowledge Gaps 

Hendersonville’s success hinged on ensuring their digital tools were accessible to everyone, regardless of digital literacy levels. Pew Research reveals important gaps: Improving Payments and Reduce Service Calls with Digital Solutions
 

While younger adults and college graduates adapt quickly to digital platforms, older adults and those with less digital exposure often face barriers. Only 26% of adults over 65 can identify two-factor authentication, compared to 68% of younger adults.

To bridge these gaps, Hendersonville invested in customer education. Step-by-step tutorials guided customers through the payment process, while ongoing support was available for those who needed it. Clear and proactive communication about billing policies and data security helped build trust in the new systems.

 

Lessons Learned: Building Payment Systems That Work for Everyone

Hendersonville’s journey offers clear lessons for other utilities facing similar challenges with payments and billing systems:

First, reliable digital tools make a measurable difference. Automated reminders and self-service portals reduce delays and improve on-time payment rates. Second, customer education is essential. Tutorials, clear communication, and hybrid support options help bridge digital literacy gaps. Third, communication drives trust. Real-time updates and transparent billing practices reduce customer uncertainty and prevent unnecessary service calls. Finally, scalability must always be part of the plan. Digital systems should grow alongside community demands, avoiding the pitfalls of short-term fixes.

 

Looking Ahead: Hendersonville’s Plan for Continued Success

Digital transformation isn’t a one-time achievement—it’s an ongoing strategy. Hendersonville understands that sustained improvement requires continuous monitoring, feedback, and adaptation. Future plans include expanding access through self-service kiosks, leveraging analytics to predict customer needs, and refining digital systems based on customer feedback. These efforts ensure Hendersonville remains resilient and responsive as demands grow.  Empowering Customer Autonomy and Saving Staff Time in Hendersonville, TN - Feature Image

 

Smarter Payments, Stronger Communities

Hendersonville didn’t just adopt new systems—they redefined their approach to payments and customer service. By increasing on-time payments, reducing customer service calls, and improving communication, they created a system that benefits both staff and customers.

These aren’t isolated wins—they’re part of a larger strategy to build trust, reduce friction, and prepare for long-term growth. For utilities facing similar challenges, the lesson is clear: digital solutions aren’t just convenient—they’re essential for ensuring reliable payments, efficient service, and satisfied customers.

Learn how Hendersonville achieved higher on-time payments, fewer service calls, and a better experience for their customers in our case study. 
Leveraging Digital Channels To Drive Utility Customer Engagement