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, 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
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
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
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

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

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.