Case Study of Council Payment Kiosks in the United Kingdom
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Council Payment Kiosks Help To Deliver Cost Efficiencies
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Local Councils traditionally provide payment collection services using over the counter methods which can be costly and time consuming. Many councils, such as Aberdeen City Council are now looking to developing their service by offering self-service facilities for a range of Council payments.
\n\nChallenge
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In December 2012 Aberdeen City Council conducted an internal audit to review the processes within their Customer Service Centre. The scope of the audit was to consider the key processes, Council Tax, Benefits and Parking Permits along with the supplementary review of Floorwalkers in the Main Reception.
\n\nBy interviewing staff and customers and reviewing policies and procedures the team were able to identify areas within the service requiring improvement that would also help resolve issues, such as queues at the main reception, creating additional pressure for advisers and reception staff.
\n\nAs part of the improvement process the council procured two payment kiosks from Cammax Limited through a competitive tender process. These were installed at Marischal College Customer Service Centre
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The two KPIs for the kiosk were:
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Results
\n\nSince installing the two kiosks Aberdeen City Council have taken over £2,500,000 in the first ten month and seen the following service improvements…
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Reduced staff input
\n\nAberdeen City Council hoped that staff input would be reduced by 0.74 FTE (a reduction of 16,500 transactions handled by Tier 2 Customer Service Advisers). The actual input was reduced by 1.32 FTE which exceeded the council’s anticipated benefit by 56%.
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Average queue times
\n\nThe payment kiosks have also had a positive impact on the average queue times for non-payment transactions, reducing overall queue times by one third (31%). This has enabled Customer Service Advisers to devote more time to deal with complicated enquiries such as Council Tax and Benefits without large queues forming.
\n\nPayPoint and Post Office payments
\n\nIt was hoped that the kiosk would lead to a reduction in the number of customers using PayPoint and Post Office to make payments to the council. The council previously paid to up to 46.49 pence for each transaction using these payment methods. PayPoint transactions were reduced by 5% in the first eight months, saving up to £4475 per annum. The kiosk payments also make the payment to the landlord or council tax account the next working day, rather than the three working days provided by PayPoint. This can lead to increased customer satisfaction as they are not affected by payment delays.
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Customer Satisfaction
\n\nOne of the requirements for the kiosks was to increase customer satisfaction. As part of the initial study a survey was carried out, the results showed that 42% would never use a self-service kiosk and 93% were satisfied with length of wait time.
\n\nFollowing the first six months since the installation of the kiosks, 68% of customers had used the kiosk and 98% were satisfied with the length of wait time (an increase in 5%).
\n\nOver nine out of ten customers surveyed also stated that the payment kiosk were a ‘convenient’ or ‘very convenient’ way of making a payment. Nine out of ten customers also found the kiosks ‘easy’ or ‘very easy’ to use and 92% of customers would use the kiosks again.
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Conclusion
\n\nThe installation of payment kiosks at Marischal College Customer Service Centre has been a success, with the vast majority of the project benefits being realised.
\n\nThe payment kiosks have greatly enhanced customer experience at Marischal College Customer Service Centre and may even bring additional revenue to Aberdeen City Council as well as potentially saving money through a reduction of staff numbers (FTE) required at the Customer Service Centre” Craig Farquhar, Project Executive, Aberdeen City Council
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A summary of service benefits include:
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Other councils have also found similar cost savings
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“The benefits of taking this approach now and moving to a self-service kiosk option are:
\n\nIt provides the council with the ability to introduce a payment kiosk, retain a cashier and make an annual saving of £34,000 per year from April 2014 or £170,000 over 5 years
\n\nProvides greater options for the future service delivery when remaining cashier retire
\n\nThe introduction and therefore further increase the efficiency and collection rates of the revenues and benefits team”
\n\nMonica Stephens, Joint Head of Customer Service, West Oxfordshire Council
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\n\nHead Office :Unit 2A Willowbridge Way
\n\nWhitwood Castleford UK.
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