New research reveals the evolving role of service providers in 2023

What customers expect from their service providers and how to meet changing needs

Published: 2023 Author: Symend Reading time: 6 minutes

Key Takeaways

Customer expectations for service providers have fundamentally shifted post-pandemic
Digital-first experiences are now table stakes, not differentiators
Customers expect providers to be financial wellness partners, not just billing entities
Proactive communication and personalized support drive loyalty and retention

The role of service providers—from utilities and telecommunications to financial services—has undergone a dramatic transformation. New research reveals that customers no longer view their service providers as passive billing entities. Instead, they expect active partnerships that support their financial wellbeing and adapt to their individual circumstances.

The Shift from Transactional to Relational

Traditionally, the service provider-customer relationship was simple and transactional: provide service, send bill, receive payment, repeat. But 2023 research shows this model no longer meets customer expectations.

Today's customers expect:

Proactive Support: Anticipating needs before they become problems
Personalized Engagement: Communications and offers tailored to individual circumstances
Financial Partnership: Support in managing costs and maintaining service affordability
Seamless Digital Experiences: Easy self-service across all touchpoints
Empathetic Understanding: Recognition of life circumstances that affect payment ability

Key Research Findings

Digital Expectations Have Become Universal

Research shows that 87% of customers now expect to manage their entire service relationship digitally if they choose to. This includes:

Viewing and paying bills online or via mobile app
Updating account information without calling
Setting up payment plans or arrangements independently
Receiving and responding to communications via their preferred channels
Accessing usage data and account history in real-time

Notably, this expectation crosses all demographic groups. While younger customers (18-34) are slightly more likely to prefer digital-only interactions (92%), even customers over 65 now expect robust digital options (78%).

Financial Stress is the New Normal

Perhaps the most significant finding: 64% of customers report experiencing financial stress that affects their ability to pay bills on time. This isn't limited to low-income customers—financial anxiety spans all income levels.

What customers want from providers during financial stress:

Early Communication: 73% want providers to reach out proactively when they anticipate difficulty paying
Flexible Payment Options: 81% value the ability to adjust payment dates or amounts
No-Judgment Support: 89% are more loyal to providers who treat them with dignity during hardship
Clear Information: 76% want transparent information about late fees, disconnection policies, and assistance programs

Personalization Drives Loyalty

The research reveals a clear correlation between personalized engagement and customer loyalty:

Customers receiving personalized communications are 2.3x more likely to remain with their provider
82% of customers say they feel more valued when communications reflect their specific situation
Personalized payment options increase on-time payment rates by 27%
Customers who feel "understood" by their provider spend 18% more over their lifetime

Proactive Communication Prevents Problems

Traditional reactive communication—only reaching out after a payment is missed—no longer suffices. Customers expect and respond better to proactive engagement:

68% of customers want payment reminders before bills are due
Usage alerts that help avoid unexpectedly high bills increase satisfaction by 34%
Proactive outreach about assistance programs reduces delinquency by 41%
Customers who receive proactive communication rate their provider 4.2 stars vs 2.8 for reactive-only providers

The Financial Wellness Partnership Model

The most successful service providers in 2023 have adopted what researchers call the "Financial Wellness Partnership" model—positioning themselves as allies in customers' overall financial health.

Core Elements of the Partnership Model

Budget-Friendly Tools: Providers offer calculators, alerts, and recommendations that help customers manage costs within their overall budget.

Flexible Payment Arrangements: Rather than rigid due dates, providers work with customers to align billing cycles with their cash flow patterns.

Proactive Problem-Solving: When usage patterns or payment behaviors suggest potential issues, providers reach out to help before accounts become delinquent.

Transparent Pricing: Clear, understandable billing without hidden fees or surprise charges.

Hardship Support: Accessible programs for customers facing temporary financial challenges, positioned as normal and shame-free.

Channel Preferences and Omnichannel Expectations

The research provides clear insights into how customers want to interact with their service providers:

SMS/Text Messaging

Preferred for: Payment reminders, usage alerts, brief updates
Adoption rate: 71% of customers want SMS option
Key advantage: Immediate delivery, high read rates (98% within 3 minutes)

Mobile Apps

Preferred for: Account management, detailed information, payment
Adoption rate: 64% actively use provider apps
Key advantage: Comprehensive self-service, real-time data

Email

Preferred for: Detailed communications, statements, receipts
Adoption rate: 83% want email option
Key advantage: Permanent record, ability to review at leisure

Phone

Preferred for: Complex issues, disputes, payment arrangements
Adoption rate: 58% still value phone access
Key advantage: Personalized problem-solving, immediate clarification

Critically, 79% of customers expect a seamless experience across all channels—able to start a conversation via text, continue it in the app, and finish with a phone call without repeating information.

The Empathy Gap

One of the most striking research findings is what researchers call the "empathy gap"—a disconnect between how providers think they're treating customers and how customers feel treated.

91% of providers believe they treat customers empathetically
Only 44% of customers agree they're treated with empathy
This gap is largest when customers face payment difficulties

Closing this empathy gap requires:

Training staff to recognize and respond to financial stress signals
Eliminating language that implies judgment or blame
Making assistance programs genuinely accessible, not buried in fine print
Measuring success not just by collections, but by customer wellbeing

Implementing the New Provider Role

For service providers looking to meet these evolving expectations, the research suggests a clear roadmap:

1. Invest in Digital Infrastructure

Ensure robust self-service capabilities across web, mobile, and messaging platforms. Make every interaction possible online that doesn't absolutely require human touch.

2. Develop Behavioral Segmentation

Move beyond demographic segmentation to understand behavioral patterns, financial circumstances, and communication preferences for each customer.

3. Train for Empathy

Equip all customer-facing staff with training on financial stress, empathetic communication, and solution-focused problem-solving.

4. Simplify Payment Flexibility

Make payment arrangements, extensions, and plan modifications easy to access and implement without jumping through hoops.

5. Measure What Matters

Track not just collections and retention, but customer satisfaction, financial health outcomes, and relationship strength.

Conclusion

The research is unequivocal: the service provider role has evolved from simple vendor to financial wellness partner. Customers expect personalized, proactive, empathetic engagement that supports their overall financial wellbeing. Providers who embrace this evolution will see not just better payment outcomes, but stronger customer relationships, higher lifetime value, and genuine competitive differentiation in an increasingly commoditized market.

The question for service providers isn't whether to adapt to these new expectations—it's how quickly they can implement the changes customers are already demanding.