WHEN THERE ARE LIMITED FUNDS AND A NEED TO PAY MULTIPLE SERVICE PROVIDERS , CONSUMERS FACE HARD DECISIONS .
1 . MENTAL HEALTH The toll of economic and social pressures on consumers ’ mental health and dayto-day lives is revealed in the report .
Seven out of 10 consumers ( 70 %) say being treated poorly by their provider affects their mental health while almost eight out of 10 ( 79 %) say they expect more support from their provider during periods of financial uncertainty .
These stats are just the tip of the iceberg . They represent a consistent trend seen throughout our report and highlight the impact that the company-customer relationships can have on a CSP ’ s bottom line .
For example , 40 % of consumers feel they are treated negatively by service providers when they are behind on their bills : and 87 % of those who feel this way are less likely to purchase additional products or services , with 78 % indicating that they are more likely to consider changing service providers .
The report finds those CSPs that take consumers ’ mental health into account and respond with an empathetic approach to engagement during today ’ s cost of living crisis , are well-positioned to address late bill payers ’ pain points to the benefit of both parties .
2 . FINANCIAL WORRIES A clear red flag to service providers stands out in the report . More consumers are having difficulty keeping up with their bills . Three in five ( 60 %) say they have either fallen behind on bills in the last 12 months or expect to do so in the near future , compared to 47 % in 2022 .
What ’ s more , almost three quarters ( 74 %) say they are currently struggling to manage competing financial obligations . The number of those who say their financial priorities have changed often or very often in the last 12 months also grew to 50 % in 2023 from 43 % in 2022 .
COMMUNICATIONS SERVICE PROVIDERS
A key takeaway ? Financial insecurity compounded by fears about future risk is a day-to-day reality for many of CSPs ’ customers . And there are some clear indications of how this is increasingly affecting their behavior . For example , 80 % admit they find it difficult to make quick and effective financial decisions , up from 66 % in 2022 .
3 . SCARCITY MINDSET More generally , the confluence of actual and perceived lack of financial resources speaks to another real challenge facing consumers : a scarcity mindset .
A scarcity mindset is when perceived or real resource limitations , perhaps around time or money , inhibit a person ' s ability to effectively make decisions and prioritize .
In other words , actual money worries and the perception of more financial struggles to come can impede the ability of some consumers to make decisions that are in their own best interests .
This mindset can lead consumers to make suboptimal choices . Case in point : the report reveals 85 % of those who are behind on payments are more likely to avoid direct contact with their service providers , while 80 % are more likely to avoid opening or acting on digital messages .
Unchecked , this state of mind can have negative impacts for both consumers and the service providers they deal with . Like missing out on great offers that save money , enhance the service , and build in loyalty and revenues . Or conversely facing disconnects , past-due bills sent to collections , and “ firing ” customers .
4 . DIGITAL AND DECISION FATIGUE Compounding this is the fact that consumers are also facing the need to adapt to the “ always on ” digitalized world .
This reality is worsening as we continue to become even more connected online . In fact , consumers who say they feel overwhelmed and anxious when they receive messages and notifications from service providers , skyrocketed from 48 % in 2022 to 71 % in 2023 : a jump of 48 % in one year .
WHEN THERE ARE LIMITED FUNDS AND A NEED TO PAY MULTIPLE SERVICE PROVIDERS , CONSUMERS FACE HARD DECISIONS .
Overall , 90 % of consumers are typically positive about interacting with service providers digitally . However , 40 % will try and speak with a human if the digital experience is time-consuming or difficult . More than two-thirds ( 68 %) say the number one reason they stop interacting with their provider digitally is because their needs aren ’ t being met .
Digital fatigue , multiplied by incessant general demands on customers ’ time , appears to be generating another type of exhaustion : decision fatigue . This occurs when people experience cognitive overload that impedes their ability to effectively evaluate and make decisions .
When there are limited funds and a need to pay multiple service providers , consumers face hard decisions . According to our research , the top three factors that most influence which bills consumers prioritize are the availability of flexible payment options ( 69 %), the risk of losing access to a product or service ( 65 %), and late fees ( 55 %).
To pay down a bill or prioritize payments , the report finds consumers will make a partial payment ( 65 %); seek ways to lower the cost of their services ( 50 %); reach out to their service provider for support ( 50 %); and look into digital tools like payment arrangements or extensions ( 46 %). It is also important to note that one-in-five ( 21 %) say they won ’ t make a payment until they can pay in full .
Service or account suspensions also influenced consumers ’ decisions . Of the billpayers surveyed , 45 % have experienced a service or account suspension in the last two years with around half ( 52 %) saying they are now more likely to keep up with bill payments .
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