1. How to Enhance Your Payment Experience for Improved Customer Satisfaction Utility Payment Conference – October 18, 2017
Dylies King
Manager, Customer Accounting
Metropolitan Utilities District
Barbara Zickler
Regional Sales Director
Paymentus Corporation

2. Changing Times 20th Century Sole providers
Limited interaction between customer and utility
Bill sent, payment received
Satisfaction drivers: reliability and cost
21st Century
Competition
Two-way communication
More opportunities for interaction
Satisfaction drivers: reliability, cost, security, and customer experience
Significant Landscape Changes

3. Changing Expectations
The New Norm – What Customers Now Expect:
Omni-channel technology
Mobile solutions that allow instant bill access and analysis
Bi-directional communication capabilities
Self-service for bill payment, new customer activities, notification preferences and energy control choices
Proactive notifications
Tips for managing and reducing energy consumption
SECURITY!

4. Improving Customer Experience
Customers want the same experience/options they have when paying their other bills
Offer more ways to pay
Give them more options to see their e-bill
Make the user experience simple and straightforward
Require fewer steps to make a payment and see an e-bill
Understand the customer’s preference regarding notifications

5. Electronic Payment Security
Breaches – from malicious hacking, malware, and social engineering attacks – have gone up a mind-boggling 500% in the last four years.
229 days is the median length of an attack before detection.
Cost of a Breach is $145 per record.

6. Key PCI Requirements PCI 3.0/3.1 (2015)
Better define the Cardholder Data Environment
Encourages the use of network segmentation
Annual penetration testing
Written responsible party agreements between merchants and service providers
Expanded Self Assessment Questionnaires (SAQ)

7. Key PCI Requirements PCI 3.2 (2017) Expanded existing requirements
Added the PCI DSS Supplemental Designated Entities Validation (DESV) criteria as an appendix
Focus on security controls being continuously enforced, not just an annual exercise
Service providers need to detect and report on failures of critical security control systems
Service providers must perform penetration testing every 6 months (previously 12 months)
Adds multi-factor authentication as a requirement for any personnel with administrative access to the systems handling card data

8. PCI Compliance Expensive
Cost to Get Compliant
Level 1: ~ $2.9m
Level 2: ~ $1.2m
Level 3 & 4: up to $200k
*Source: TrustNet

10. Reduce your PCI Footprint
Use network segmentation to isolate your payment data
Removes non-compliant networks, servers and workstations out of the scope of PCI
Lowers cost of PCI assessment
Reduces the risk of breach

11. Reduce your PCI Footprint
Use an enhanced service provider
Handles the full customer experience and all aspects of payment acceptance and security
100% hosted; payment data is completely removed from your network
Feature-rich customer engagement
Shift risk and liability away from your business and on to your provider.

12. Metropolitan Utilities District Omaha, Nebraska
Fifth largest public gas utility in the United States
Serves gas and water to customers in Omaha and nine surrounding communities
Our mission is to provide safe, reliable, and cost-effective natural gas and water services to our community.
Our History –
In 1889 the first water treatment plant was built near the Missouri River by a private company
In 1918 the City of Omaha assigned operation of the gas system to the Water District.
On March 3, 1921 the name was changed to Metropolitan Utilities District
By The Numbers –
Natural Gas Customers Served 227,106
Water Customers Served 211,623
Water Hydrants Maintained 26,974
Miles of Water Main 2,904
Miles of Gas Main 2,807
Employees 852

13. Receivable Redesign Team
Timeline
June 2013
SAP Conversion
Spring 2014
Strategic Plan
January 2015
Receivable Redesign Team

14. Receivable Overview
Our receivable system had slowly evolved over time to accommodate new forms and methods of payments.
It worked as designed but when we really examined the process we found room for improvement.
This realization, combined with new Payment Card Industry (PCI) requirements led to a complete redesign of our receivable process.
A main portion of the redesign was to upgrade the existing payment systems.
The main goals of the upgrade were:
Improving efficiency
Enhancing security
Optimizing costs

15. Cost Per Transaction

16. 3rd Party Payment Platform
Request for Proposals
Sent 13 requests with 7 replies
3 companies made in-person presentations
** Be specific with IT requests
Decision Factors
Offered the best value for a complete solution
Could interface with our existing website and IVR
Implementation
Selected service provider in June 2015
Started physical implementation in January 2016

17. Payment Kiosks
June two bill pay kiosks were added to the lobby of the main office and one was installed in the breezeway of our other location.
Benefits –
Replaced ½ full time employee
Works with Wi-Fi (not hard-wired)
3rd party web-based system so credit card or checking information is not saved on MUD servers
Can process checks via ACH transactions
Will accept cash if tellers are busy (no change)

18. SAP Cash Desk
In August 2016, MUD implemented SAP Cash Desk to replace the existing cashiering software. The original software was a 3rdparty system with several issues.
Benefits –
Cash Desk is a module in SAP
Real time updates
No “delivery” problems or issues with the transport that had previously transferred date to SAP
Customized to meet cashiers’ needs and business practices
Scanning Checks for Deposit

19. Interactive Voice Response (IVR)
Metropolitan Utilities District
The new IVR payment system was implemented in November We worked thru several issues in the beginning, like not being able to receive international calls and address verification failure, but the work has paid off.
Benefits –
Customer Service Clerks do not take credit card or bank account number over the phone
No dedicated servers to secure sensitive data
Liability for PCI security transferred to 3rd party
Invisible to Customers
22,500 payments received equaling $306,000 since Go Live

20. Customer Service Benefits –
Gained 5 full time CSRs that were previously dedicated to taking payments on payment computers
PCI compliant –CSRs do not have access to credit card information
No longer Isolating Credit Card Payment calls
Overall less phone calls
(VDI) –Poor Call Quality with previous system
Cons –
Customer does not have a live person
Migration to Multimedia Container Format (MCF)

21. Website Upgrade
MUD’s new website, went up January 1st2017. The new “My Account” feature has replaced the original bill pay option which was outdated and the source of many customer complaints.
Original Login and Bill Pay Option

22. Website Upgrade
Current Login and Bill Pay Option

23. Website Upgrade Benefits –
Customers can now pay online with a check in addition to a credit card
Card or bank account numbers can be stored for future use.
Customers can update personal information such as phone number or addresses.
It is possible for customers to start, stop or transfer service.
Overall, less calls to the call center.
Cons –
Each customer had to create a new login
The cost of recurring credit card payments

24. Receivables Today X X X X X X X
Service Provider X X X X

25. Next Steps Customer Experience Surveys and journey mapping
2 hour appointment windows
Invoice Redesign
Outbound campaigns for disconnection notices, appointment reminders, and outages
Recurring on-line payments

26. Future of Payments
We are quickly moving towards a cashless and cardless economy
Between biometric authentication and tokenization, the payment process will soon be 1-click or no-click
Predictive analytics will be used to identify delinquencies and potential disconnects before they happen
Posting and settlement will occur in real time
The internet of things will turn everything from your TV to your refrigerator into a payment channel
Voice-based payments are here and soon to be everywhere (pay your energy bill by talking to your watch, car, etc.)

27. Metropolitan Utilities District Paymentus Corporation
Questions?
Dylies King
Metropolitan Utilities District
Manager, Customer Accounting
Barbara Zickler
Paymentus Corporation
Regional Sales Director