"The conversion was greater than we could ever have expected"

A Perfect Combination for Happier Customers and Strengthened Liquidity

GodEl, known for fair agreements and good customer relationships, already had Kivra as an established invoicing channel. When the opportunity to offer automatic payments through Kivra’s direct debit was presented, it was a natural step to test it.

Kivra is now our single largest invoicing channel. Being able to offer automatic payments to a large part of our customer base in one go was a no-brainer, says Björn Björnson, Head of Business Development at GodEl.

Challenges with Traditional Payments

Traditional direct debit payments are often perceived as complicated and lacking in control, especially when amounts vary, like with electricity bills. GodEl therefore welcomed an alternative that could simplify the process and offer increased transparency.

Beyond the customer perspective, liquidity is a key issue for electricity companies. The gap between purchasing electricity and receiving customer payments can be up to 45 days, requiring a stable cash flow. The lower reminder rate for automatic payments (around 1%) compared to other payment methods (about 10%) was therefore a strong driving force.

Impressive Results – Far Beyond Expectations

Just four months after introducing Kivra’s direct debit, GodEl saw a remarkable increase: 68% more customers have activated direct debit. This conversion has greatly exceeded internal expectations.

Already in the first days when we saw how big the conversion was, it really surpassed everyone’s expectations. I was responsible for this internally at GodEl, so I say nothing – I just smile, says Björn.

The results indicate a strong pent-up demand among customers for a simpler and more transparent solution for automatic payments. Customers have easily been able to activate the service directly in the Kivra flow, and campaigns with push notifications in the app have helped quickly maximize the number of customers choosing direct debit.

Less Administration, Happier Customers

A tangible effect of the implementation is a reduction in support cases related to payments. Fewer reminders mean fewer calls to customer service, which eases administration and leads to a better customer experience.

Payment reminders and collection cases are the toughest issues a customer service can have, explains Björn. Any way to make things easier for the customer is positive for us. In a competitive industry, a smooth payment process is crucial to maintaining customer satisfaction.

A Smart Future Strategy

GodEl sees Kivra’s direct debit as an important part of its strategy to secure the future. By offering smooth and secure payment solutions, GodEl proactively works to maintain a strong position in the market.

There is a larger target group for the service than previously assumed. Simplicity and control over payments are crucial for the customer experience, Björn concludes.