Billing and Payment Options Enhance Satisfaction. Marc Schroeder Director, Product Marketing Biller Solutions

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1 Billing and Payment Options Enhance Satisfaction Marc Schroeder Director, Product Marketing Biller Solutions

2 Consumers satisfaction have high expectations drives revenue about how they interact with the world around them. In this session, we will discuss: How consumers are receiving and paying their bills Why they are using different methods How you can take advantage of these trends to increase satisfaction and reduce consumer attrition They expect these experiences when it comes to viewing and paying bills, and want the ability to view and pay bills wherever, whenever and however they choose. 2

3 Consumers Use Several Ways to Pay Bills 90% of households use more than one payment method % 14 % 21 % 25 % Average Number of Payment Methods Remains High /month % 10 % 22 million households change how they pay bills from one month to the next as needed 3

4 Millennials and Payments Diversity: They Pay in Every Way Payments service usage in the past 30 days Percent of users in past month All Other Millennials 57% 64% 50% 61% 49% 62% 48% 57% 18% 54% 13% 37% 8% 29% Online bill pay (via online banking) Account-toaccount transfers Electronic bills Biller s website to pay bill Mobile bill pay (via mobile banking) Financial organization P2P payment service A digital wallet Expectations & Experiences Consumer Payments Fiserv 2017 Survey question to all qualified respondents: In the past 30 days, approximately how many times have you or your household used the following services? [Choice of 9 options.] 4

5 Online and Mobile Delivery and Funding Methods in the Mix Percent of Online Households Using Payment Method or Funding Type Last Month Online biller's site Auto-debit checking account Check Via a mobile phone Online bank's website Debit card Credit card In person biller or check cashing store In person retailer's location Calling biller 13% 13% 22% 46% 42% 37% 35% 33% 62% 61% 5

6 Consumers Use Different Methods for Different Reasons Biller Sites Speed Mail Reminders Auto-Pay Set it Forget it Bank Sites Consolidation and Control Mobile Anytime, Anywhere Access Walk-In Immediate Confirmation Cards Debit: Like a check Credit: Rewards Phone Late Payments Source: Seventh Annual Billing Household Survey, Fiserv Inc. 6

7 High Expectations for Real-Time Payments What matters to consumers? 76 % Say real-time payment delivery is at least somewhat important Younger consumers are most likely to say real-time is important 93% of Millennials 85% of Gen Xers 7 Survey question to all qualified respondents: How important is it to you that payments you make are delivered in real-time (that is, within a few seconds)?

8 Digital Channels Comprise Majority of Bill Payments Percentage of bills paid 59 % through either a financial organization s or a biller s online or mobile bill pay service Expectations & Experiences Consumer Payments 8 Survey question to all qualified respondents: Please estimate the number of bills you paid using each of the following ways last month. [Choice of 9 options.]

9 Mobile Bill Pay Growing Rapidly 42% 33% 27% 16% 8% Source: Consumer Billing Preferences,

10 Growth in Mobile Due to Ease of Payment and Convenience Benefits of using mobile bill pay Easy to do 43% Convenient when I am on the go 41% Saves time 40% When I m not near a computer 35% Like the anytime access 34% When I need to pay last minute 33% Source: Consumer Billing Preferences,

11 Financial Institutions vs. Biller Direct: Many Similarities in Rationale for Bill Pay Service Usage 26 % 24 % 33 % 28 % Why people pay the way they do 22 % 31 % NA 30 % Financial Institution Security Payment gets there quickly Pay multiple bills at once More control over timing Biller Direct 50 % 43 % 40 % 33 % 47 % 40 % 36 % 30 % Convenience Saves cost, less hassle than mail Less clutter and paper Speed Expectations & Experiences Consumer Payments Survey question to those who use financial organization s online or mobile bill pay service or their biller s website or app: For which of these reasons do you pay some of your bills in the following ways? Select the top five reasons. 11

12 Offering Billing and Payment Options Likely to Increase Consumer Satisfaction with the Biller Do more options increase consumer satisfaction? 69% Yes Should small billers such as municipal providers offer the same billing and payment options as large companies? 79 % YES Source: Consumer Billing Preferences,

13 Billing and Payment on a Smartphone Creates Positive Impact on Biller Satisfaction Effect of receiving and paying bills through a smartphone on satisfaction with biller providing that ability: No Impact 61% Increase 34% Decrease 5% Size of positive impact: 34% Increase minus 5% Decrease equals Net 29% positive impact Source: Consumer Billing Preferences,

14 Receiving e-bills Improves Consumer Satisfaction and Loyalty to Biller Do e-bill recipients feel that receiving bills electronically has: Increased satisfaction with biller? 70% Increased satisfaction 29% No difference 1% Decreased satisfaction 69% Net (% inc - % dec) Made it less likely to switch to a competitor? 49% Less likely to switch 46% No difference 5% More likely to switch 44% Net (% less - % more) Source: Consumer Billing Preferences,

15 Offering Emergency Payment Creates a Positive Impact on Biller Satisfaction* Impact of biller offering emergency bill payment on satisfaction with the biller: * In 2016, 36% of consumers made an emergency payment Increase 54% No Change 45% Decrease 1% Size of positive impact: 54% Increase minus 1% Decrease equals Net 53% positive impact Source: Consumer Billing Preferences,

16 Emergency Bill Payments through Bank Would Enhance Biller and Bank Satisfaction Impact of biller allowing emergency bill payments through a bank s online bill pay service on satisfaction with: Biller Size of positive impact: 54% Increase minus 1% Decrease equals Net 53% positive impact Bank Size of positive impact: 64% Increase minus 1% Decrease equals Net 63% positive impact Source: Consumer Billing Preferences,

17 Consumers Want Alerts; Would Enhance Satisfaction with Bank/Biller Interested in receiving reminders that your bills are due Yes, 73% Impact of receiving reminders on satisfaction with bank or biller More positive, 80% Not sure, 16% No, 11% No difference, 19% More negative, 1% Net (% yes - % no) = 62% Net (% more positive - % more negative) = 79% Source: Consumer Billing Preferences,

18 Majority Expend Medium-to-High Effort in Receiving and Paying Bills; Down from Last Year 32% 27% 15% 19% 7% High effort (19%) down from 30% last year Low Effort Low-Med Effort Med Effort Med-High Effort High Effort Source: Consumer Billing Preferences,

19 Summary Consumers use multiple methods Consumers are worried about Consumers consider bill pay a big effort Solutions to increase consumer satisfaction Mobile bill pay Convenience Not having enough money Tracking bill payments Offer multiple billing and payment options Biller Direct Confirmations when payments clear Bank Bill Pay Better financial management Possibility of late payments Security of how they receive and pay bills All the paper and clutter Amount of time spent Capability to receive and/or pay bills via a smartphone Deliver e-bills Offer expedited payments Provide reminders that bills are due All statics and information provided by Fiserv Insights: Consumer Billing Preferences,

20 Connect With Me Marc Schroeder