The Hidden Cost of Transactional Thinking

Every industry has them: routine moments that happen millions of times a day. Checkouts, renewal notices, and bill payments occur so frequently that it’s easy to overlook their potential.

For most organizations, these are viewed as purely transactional touchpoints. But experience-led brands see them differently. They recognize them as moments to connect and stand out.

Interestingly, despite billing and payments being among the most universal customer touchpoints, they often remain stuck in a transactional mindset. The next frontier of customer experience isn’t about big initiatives. It begins with improving the everyday transactions that customers rely on most.

Why Billing and Payments Stay Transactional

If billing and payments are such untapped opportunities, why aren’t more organizations taking advantage of them?

The reasons fall into two key categories: operational barriers and behavioral barriers.

1. Operational Barriers

Most payment systems are designed around internal processes and compliance requirements,  not around the customer. In regulated industries like utilities, priorities lean toward compliance and collecting payments, leaving little room for features that feel flexible or human.

2. Behavioral Barriers

When billing feels like an obligation, customers disengage. Limited payment options, rigid due dates, or confusing bills make people feel they have no control. The result is a purely functional interaction that lacks emotional connection. 

The True Cost of Billing & Payment Friction

Treating billing and payments as purely transactional creates friction; the kind that frustrates customers and drives up costs. When bills are confusing or convenient payment options are limited, customers turn to support for help, increasing CSR workloads and resolution times. 

Frustrated customers are more likely to abandon transactions, which impacts an organization’s cash flow. In fact, 70% of customers abandon purchases due to a poor user experience. That in itself is a huge incentive to get it right.

Then there’s the harder-to-measure fallout. When customers aren’t happy with an experience with a company, they talk about it — to their friends and family, and of course on social media. This damages a brand’s reputation and has the potential to erode customer trust. 

The data reinforces just how sensitive these moments are. A payment process that takes 5–10 minutes instead of under five leads to a 28-point drop in the Net Promoter Score (NPS) for utilities. And the impact doesn’t end there. Chartwell research found that 53% of utilities cite “high collections issues” as their greatest billing challenge, further underscoring the cost of friction-filled experiences.

Lessons From Other Industries in Payment Friction

Nearly every sector has struggled to make paying simple and stress-free. Frustrations have become so widespread that, in some industries, regulators and governing bodies have stepped in to protect consumers from poor payment experiences.

Consider the entertainment industry, where hidden fees and complex pricing structures prompted calls for legislation to promote ticketing transparency. Or fitness memberships, where “click-to-cancel” laws now ensure customers can end memberships as easily as they start them. These examples highlight just how universal the problem is and how much opportunity exists for organizations that proactively solve it.

The most successful organizations share one thing in common: they’re making payment friction disappear. 

Turning Everyday Transactions Into Lasting Connections

This blog post kicks off a new multi-part blog series exploring how organizations can turn routine billing and payment interactions into meaningful customer moments. 

Over the coming weeks, we’ll dive into five key strategies to help you make the routine remarkable, starting with your most consistent customer communication: the bill.

Next up: how this often-overlooked touchpoint can become one of your most effective tools for building clarity and connection.