Billing & Payment Options: Driving Customers Paperless

Billing & Payment Options: Driving Customers Paperless
In the past 5 to 10 years, billing and bill payment options have grown tremendously. The emergence of the internet and the extent to which it has infiltrated our everyday lives has been the greatest contributing factor to this change. The world of bill presentment has gone from paper bills delivered via snail mail to email, mobile phone and website/portal delivery. Along with billing, payment options have grown as well. Gone are the days of paying in person or my mail via check or money order. Now, most transactions are done online via check, debit or credit card or electronic funds transfer. In just these last 5 to 10 years, these changes in billing and payment options have changed the way both businesses and individuals handle their bills.
While there has been a tremendous amount of resistance to this change in billing and bill payment, most consumers are now beginning to open their minds to the options. The benefits of online bill payment are now widely understood by consumers. According to a recent study conducted by the Marketing Workshop and Harris Interactive, four out of five households with internet access now use online banking services. And according to Forrester Research, the total number of U.S. online bill payment households will increase from 48 million to 63 million over the next 5 years. It seems that consumer adoption is becoming the real driving force in pushing companies to adopt Electronic Bill Presentment and Payment (EBPP) programs. Historically, many businesses have dragged their feet at the idea, but with customers pushing for increased efficiency and ease of bill payment, those companies had no other option.

The mobile banking services market is quickly becoming the next step in eBilling. It is expected to grow 10 times by 2011. Most of this growth is anticipated to take place in China, India and Western Europe, but there is still some expected growth in the US market. Therefore, many companies are arming themselves with the mobile bill payment tools they need to service their international customers in the short-run and their US customers as they slowly move toward mobile banking.

EBPP - Slow Going

Recently, The Ascent Group conducted research into billing and payment practices. They found that most companies are adopting some form of EBPP functionality. However adoption is the real problem. An average of 5.8% adoption rate for eBilling (of total bills issued) and 6.9% adoption rate for epayment (of total payments received). While transaction volume is still quite low, the number of businesses paying through the internet has doubled since 2004.

Studies show that most customers still prefer to pay their bills with paper check via the US Postal Service. This includes both business customers and individual consumers. And many still prefer to pay face to face. For many businesses, this research would be just the evidence they need to stick with their current paper billing system. But, this is not a very forward-thinking approach. For businesses that are looking to the future, adding an eBilling system is an obvious choice.

Three Questions Every Utility Company Should Ask Themselves

1. How can I use my billing process to promote my customer relationship? By providing a reliable bill delivery and payment solution that is secure and provides functionality that enhances the customer’s bill payment experience, a utility company can improve customer loyalty and their brand in the marketplace. In a survey conducted by Fiserv in 2008, 27 percent of online billing consumers reported an improved relationship with their utility company due to the online billing experience, and 30% said that it decreased their likelihood to change providers.

Studies show that nearly 50% of customer service inquiries are related to billing and payment. The customer’s ability to drill down into their bill with the click of a button and to receive automatic bill analysis reports gives the customer the control at their fingertips to answer their billing questions without having to contact customer service. This provides the customer with a more user-friendly billing option, while providing the billing company with a cost savings opportunity in their customer service operational expense.

2. How can I provide my customers with billing options while maintaining control of my billing systems? Since billing is really not the number one concern for most utility companies, it is important that any billing software be easy for the utility company as well as for the end user. The main priority will be to find a good balance by providing their customers with top-notch payment options without having to surrender control over their payment system, without having to sacrifice the ease of their bill processing by partnering with a provider that they can trust to handle all of the details of their billing and payment system for them.

3. What channels do I need to support to provide the best online payment options for my customers? Customers want options. And it is no different will bill payment. Customers want to have options as to how they can pay their bill so they can choose the option that best fits their needs. Understanding your customers and their processes would be the best way to know what options to provide. But, without that information, the best thing to do is to provide several different options. Some examples include online bill payment, mobile phone bill payment, traditional walk-in and US mail bill payment, etc. Your customers will appreciate the options and are more likely to pay their bills efficiently if they are given the option that works best for their business.

Utility companies will benefit from adding an eBilling system because their customer loyalty will increase due to the increase in options provided to them in paying their bill. While many utility companies are concerned with their ability to provide a robust eBilling solution while still maintaining their internal billing efficiency, the best way to achieve a win-win for everyone is to partner with a trusted provider who can maintain their eBilling system for the utility company. This will allow the utility company to provide options to their customers without sacrificing any operational efficiency.

Optimizing Billing and Payment to Deepen Customer Relationships

Most utility companies are finding that the end consumer wants options as to how they will pay their bill. They want more convenient options that give them more control and the ability to choose how they want to pay their bills. Most consumers have increased their usage of online bill payment and this has created an opportunity for utility companies to capitalize on this changing customer behavior. The utility companies that adopt an eBilling philosophy will be able to increase cash flows due to more efficient bill payment and reduce costs as paper consumption will drop tremendously.

Companies can use the opportunity that online bill payment presents to communicate with their customers. Every time a customer visits their website, they can promote their online bill payment program. Every time an eBill is sent to a customer, a promotion or new service can be easily communicated with little to no expense to the utility company. eBilling can help the company to strengthen their brand recognition while providing them with a readily available avenue to advertise products and services.

Using a Telemanagement System to get the Most From Your Telephone System

Now that you have verified that the system is working properly, you will want to verify your internal telephone usage. You probably think this is silly – you already know your usage. Well, you might be surprised. Many businesses find that they have an abundance of unused seats throughout their organization. Most businesses are able to save quite a bit by removing these unused seats from their current spend. This cost savings can be fairly significant even in the short term as this cost savings encompasses the service for the seat itself, the phone hardware, and potentially server space. You don’t want to pass up this significant cost savings opportunity.

Since you now have a handle on the quality of your VoIP service as well as your seat usage, you will now want to be sure to manage how your phone system is being used. A countless number of schools, corporations, government offices, financial institutions, insurance companies, etc. have found and addressed employee misuse of phone systems. By integrating a call management system into your day-to-day phone management, you are able to identify call patterns that are out of the ordinary. You might find extensions placing excessive long distance calls or you might find extensions that are dialing 900 numbers on the company’s dime. By eliminating this activity, businesses have really been able to reap the financial rewards.

By properly managing your VoIP phone system, you will see immediate cost savings, both operationally and on your monthly phone bill. It is important to be thorough. Be sure to monitor quality of service, seat usage, and actual extension activity to have a complete picture of your telephony activity. By properly managing all of these components with a call management system, you will save your company both time and money in the short run and in the long run.

Managing Your VoIP Telephone System

There are many factors involved with managing a VoIP telephone system. You must verify that the system is working properly. You must verify seat usage and need. And finally, you must monitor ongoing activity to verify that the system is used properly to identify potential areas for improvement.

Since VoIP systems have emerged onto the market, there have been concerns regarding the quality of their service. Dropped calls and shaky connections seemed to be a mainstay in the early days of VoIP technology. While the technology has improved since then, there is still the potential for connection issues and it is best for a service provider to have a handle on these issues before they receive a complaint from their customers. Equally, it is important for the customer to be alerted when a problem arises so that there is no interruption in service and therefore no interruption in output.

Luckily, there is software on the market known as VoIP Quality Management Software that is designed specifically to fit this need. It monitors the call activity on your VoIP system and reports back any issues or errors in service. This software can prevent a minor connectivity issue from becoming a much more serious situation. This software is often times deployed in conjunction with a telemanagement system.

Push vs. Pull Billing Strategy

Businesses need to understand that customers are looking to them to make their online experience easier. It is up to the business providing the eBilling to provide the most user-friendly and beneficial eBilling software available. Rather than simply offering a place to pay your bills, many companies are turning to eBilling software that pushes your billing information out to you on a monthly basis rather than pulling you into their website. Equally, many businesses are turning to eBilling solutions that provide analysis tools that will push graphic representations of specific areas of your bill that you believe need further analysis. This takes even more of the responsibility off of the customer by providing them with the bill analysis that, historically, would have been done in-house.

It is pretty much a no-brainer these days that eBilling needs to be integrated in any business’s billing platform. But, the key to driving adoption and really seeing the benefits of eBilling is to provide your customers with an eBilling solution that makes their lives easier. By providing emailed bills and analytics software to each of your customers, you make their eBilling experience better and encourage wide-spread adoption.