Online Billing: To Suppress or Not To Suppress?
Electronic billing or online billing presents opportunities to
significantly reduce the cost of sending bills and receiving
payments. Experts have identified three areas of cost savings:
1. Decrease in postage from paper suppression
2. Decrease in the number of calls to a customer service
organization
3. Decrease in the number of days a sale remains outstanding.
In this article we will explore how to effectively use online
billing to decrease the dollars spent on paper and postage.
In order to save on paper and postage you must encourage the
customer to decline receiving a paper bill. Some companies
rightly ask the question, "Can we legally suppress paper?" A
good question and one in which you should ask the attorney on
staff; however, in most instances you can safely say yes, as
long as the customer has a choice; however, how that choice is
presented will determine how much money the company saves on
paper and postage.
Following are the different categories of choices:
Either Or Would you like... Call Customer Service More Money
Reward
The "either or" choice gives the customer a choice to either
continue receiving a paper statement or enroll in e.billing, but
not both. This choice is presented when the customer first click
on the enroll button. A message comes to the forefront telling
the customer that if they continue and enroll to receive an
e.bill they will no longer receive a paper statement. The
customer must then click the accept button in order to continue.
When the customer clicks accept their bill is electronically
marked and no longer printed.
Pros
This method is excellent for suppressing paper. Customers
understand right up front that the paper will be suppressed. The
most technologically savvy customers have no problem with this
method.
Cons
However, those who are a little timid with technology and don't
want to lose the paper, or have had a bad experience with an
online solution in the past will shy away from this option.
Adoption
You can count on the 30 and under crowd signing up for this
option; however, the 30 and older will be a mixed bag. If you
have run the demographics and find that you have a
technologically advanced population then this option is for you.
Would you like...
"Would you like to discontinue receiving your paper bill?" This
question is usually asked at the end of the enrollment process.
The customer then has the option to choose yes or no. If "yes"
then their bill is marked with a do not print, if "no" then the
customer has access to the bill online and will continue to
receive the paper bill in the mail.
Pros
You give the customer the ultimate flexibility of how to receive
the bill.
Cons
Most customers will answer no. "If the company is going to
offer, I will take both paper and e.Bill." Cost savings is still
a reality but not for the hard numbers of print and postage.
Adoption
Large population of adoption; however, a low rate of cost
savings because customers will generally take both options, "two
is better than one" will be the customers philiosphy.
Call Customer Service
When signing up for e.Bill the customer is told that paper
statement will no longer be sent; however, if they would like to
receive a paper statement they will need to call customer
service.
Pros
You give the customer an opportunity to receive theirpaper bill
as well as the electronic bill. The customer has a sense of
control in that they can contact customer service to get their
paper bill.
Cons
The customer who is skiddish about technology will opt out of
the online billing option simply because the threat of losing
paper.
Adoption
The 30 and under crowd, no problem with adoption. Others will
adopt however the rate of climb will be slow.
More Money
A customer can continue receiving a paper bill if they are
willing to pay for it. Usually companies use this option with a
customer base that does not easily switch to another service.
When using this type of negative campaign customers who want the
paper will call with a not so sweet word or two for your
customer service representative.
Pros
You get a high rate of adoption and save a ton of money.
Cons
A potential to upset the customer base, which if they are a low
churn customer base then, no problem; however, if the customer
base can jump ship quickly they will.
Adoption
High - you will see double digit adoption quickly and invoice
processing costs will go down dramatically.
Reward
A reward makes the customer feel good and makes the company look
good. Rewards can include prize drawings, cash giveaways, or
money off the bill for a few months. Rewards are an excellent
way to increase adoption and decrease costs.
Pros
Your adoption rate goes up at a pretty steady clip and your
customers feel good about your company.
Cons
This will cost a little bit of money up front, but in the online
billing world you have to "spend a little to save a lot.' To
suppress or not to suppress is a question that begs an answer.
Use any of the above techniques to suppress and start saving
invoice processing costs now.