At Billogram, we’ve worked with Novus for several years to research consumer attitudes toward providers of so-called "silent products" — services like electricity, broadband, telecommunications, and insurance.
In our Loyalty Report, we share insights from a large-scale survey where 1,000 Swedish consumers were interviewed about their relationships with service providers in a tougher economic climate.

A weaker economy means more mobile customers

One of the clearest findings is that economic uncertainty puts customer loyalty to the test.
As household budgets shrink, people become more price-conscious.
For example, 56% of survey participants said they had considered switching one or more providers to save money, and more than one in ten had already done so.

Customer Experience: An underrated competitive advantage

Of course, competitive pricing is crucial for attracting and retaining customers in challenging times. But it’s far from the only factor. You can also reduce churn risk by offering a smooth, positive customer experience — something that becomes even more critical when customers are more willing to switch providers. Every frustration point — from unclear invoices to long wait times at customer service — increases the chance that customers start looking elsewhere.

Our survey also suggests that providers have a big opportunity to differentiate themselves:
A majority of customers report that:

• They see no real value in staying loyal to their current providers

• Their providers don’t actively work to retain them

• They feel little or no emotional connection to their providers

Win or lose: 4 key factors that define a great customer experience

What kind of experience do today’s consumers expect? Based on the survey results, four key areas stand out — areas where you have a real opportunity to impress (or disappoint) your customers. Here are the dos and don’ts for each:

1. Transparent pricing and rewards for loyalty

No one wants to feel taken for granted or deceived. Keep in mind that your existing customers also see the attractive offers you extend to new prospects. If the gap between "introductory prices" and regular pricing is too large, frustration can grow, increasing churn risk.

During economic downturns, you need to work even harder to earn and maintain customer trust. For instance, in our survey, 54% of electricity customers said they believe energy companies are taking advantage of the market situation to raise prices.

Do:
Offer your existing customers clear incentives to stay and flexible ways to reduce costs, such as:

• Lower rates in exchange for a longer commitment period

• Attractive bundle deals for customers who combine multiple services

• Bonuses, discounts, or other loyalty rewards triggered after a certain time or spend threshold
  

Don’t:
Raise prices without prior notice or a clear explanation.

2. Relevant offers

Selling more to existing customers is often more profitable than acquiring new ones —
but it must be done with relevance and sensitivity. Otherwise, you risk doing more harm than good.

Do:
Offer products or add-ons that match each customer’s needs and life situation.
Make sure the offers are easy to act on.

Don’t:
Flood your customers with generic sales pitches that feel irrelevant.

3. Seamless payment

For silent products, the invoice is often the main recurring interaction between the customer and provider.
That makes the payment experience a critical part of the overall customer experience.
In fact, 8 out of 10 customers in our survey said that smooth payments are an important factor in staying loyal, and just as many prefer digital invoices over paper ones.

Do:
Offer a flexible selection of digital and automatic payment options like direct debit, digital invoices, and mobile payment apps like Swish.
Make it easy for customers to switch from paper to digital formats.

Don’t:
Assume everyone wants to pay the same way.
And don’t create unnecessary hurdles, like complicated processes to activate direct debit.

4. Accessible customer support

For many silent products, customers rarely need to think about the service—until something goes wrong.
When that happens, fast access to personal support is invaluable.

The same goes for electricity, broadband, and mobile services:
Customers may not notice them when they work, but service interruptions are highly visible and frustrating.
Quick support is crucial for maintaining trust.

Do:
Use digitalization and automation to proactively communicate with customers and enable self-service for simple issues like billing questions.
This frees up customer service teams to focus on complex issues where personal contact makes a difference.

Don’t:
Treat automation as a way to eliminate human contact.
It should be about smarter support, not less support.

CX Guide: Optimize the payment experience to reduce churn

Invoices and payments are a critical—but often overlooked—part of your customers' overall experience with you as a provider. Do your current processes create unnecessary friction that drives churn, or do they exceed customer expectations, boost satisfaction, and strengthen loyalty?

Download our guide, "Reduce Churn with an Optimized Payment Experience" for deeper insights, practical tips, and best practices to turn your billing and payment experience into a true competitive advantage.

Download the CX Guide here.