EMPOWERING CUSTOMERS WITH BILLING, PAYMENT & USAGE ALERTS

Transcription

1 EMPOWERING CUSTOMERS WITH BILLING, PAYMENT & USAGE ALERTS CS Week 2014

2 3 Big Questions 1. How do you drive win/win relationships? 2. How profitable are your alerts? 3. How well are you positioned to move UP ahead of your industry? 2

3 Win/Win vs. Lose/Lose Customer Relationships Win/Win Customer Relationship Loyal Deeper Relationship Low Cost to Serve Lose/Lose Customer Relationship Disloyal Costly Time Consuming 3

4 How Many Win/Win Customers Do You Have? Win/Win Customer Relationship Loyal Deeper Relationship Low Cost to Serve 30% Lose/Lose customers Delinquent / Paper Bill - $100 Walk-In / Paper Bill - $5 One-time epay / Paper Bill - $0.75 Call Center / Paper Bill - $5 Check / Paper Bill - $1 5% 9% 6% 10% 40% Source: ACI Value Model, BlueFlame Consulting, Aite Group, Crone Consulting LLC, Chartwell, MBA 4

5 Driving Win/Win Customer Behavior Win/Win Customer Relationship Loyal Deeper Relationship Low Cost to Serve Bill Payment Engine Virtual Collection Agents Integrated Marketing Delinquent / Paper Bill Walk-In / Paper Bill 50+% Omni-Channel Integration Interactive Bill Presentment One-time epay / Paper Bill Call Center / Paper Bill Intelligent Alerts Check / Paper Bill 5

6 Increasing Value Over Time Leaders Average $15 million in annual benefit Annual Value $15MM $10MM $5MM OmniChannel Integration Integrated Marketing Total Value Interactive Bill Presentment Intelligent Alerts Bill Payment Engine Time Virtual Collections Future Value Any to Any Payments Instantaneous Offers Source: ACI Value Model, BlueFlame Consulting, Aite Group, Crone Consulting LLC, Chartwell, MBA 6

7 3 Big Questions 1. How do you drive win/win relationships? 2. How profitable are your alerts? 3. How well are you positioned to move UP ahead of your industry? 7

8 How profitable are your alerts? Relationship deepening Convenience Optimize usage Cross-sell Up-sell Cost deflection Paper bill suppression Call center deflection Error prevention Optimize usage 8

9 Millions of Online U.S. Adults Percent of Consumers Today's customers demand actionable info NOW! Millions who received financial alerts (both SMS or ) Percent who received an SMS or alert in the past 12 months Percent who received an alert in past 12 months Percent who received an SMS alert in the past 12 months % 90% 80% 70% 97% value alerts Why the gap? % 37% 39% 29% 34% 36% 28% 18% 10% % 50% 40% 30% 20% 10% 0% Actual Forecast 2013 Javelin Strategy & Research 9

10 What s Wrong With This Alert? 10

11 7 Key Considerations for Alerts 1. Which customer segment? 2. What type of message are you sending? 3. What should you already know about your customer? a) Account status b) Transaction history c) Preferred method of contact d) Preferred time of contact e) Interest in topic 4. Cost to send alert 5. Opt in/opt out 6. Regulatory restrictions 7. How alert fits into overall customer journey 11

12 Alerts Drive Paper Bill Suppression The paper statements serve as a reminder that I need to pay the bill It's convenient to have a paper statement handy when I need to review my finances 36% 42% Reminder Review Bills Paper statements help me feel more in control of my finances 24% It's inconvenient to print out bills if-when I need them for processing paperwork I use the paper statements to enter data into my personal finance management tools I am worried if I will be able to view older-archived bills online if I shut off paper statements I forgot to turn off the paper statements when I started receiving bills online It feels safer because I don't always trust my bank to keep accurate records I worry about access to archived bills in case I switch to a new bank or a new provider I tried to shut off paper statements but the process was too complicated 11% 10% 9% 8% 8% 7% 14% Set up that way 4% Other, please specify 5% 0% 10% 20% 30% 40% 50% % of Consumers who receive both electronic and paper bills Source: Javelin Strategy & Research survey of consumers who receive bill online as well as by mail 12

13 Drive Paper Suppression & Drive Profits Objective: Increase bill suppression from 30% to 45% Forecasted Cost Savings:$1 MM (annual) Source: ACI Value Model, BlueFlame Consulting, Aite Group, Crone Consulting 13

14 % of Financial Managers Alerts Drive Customer Self-Service 60% 50% 40% How do you typically respond to financial alerts on your immediate financial status? 30% 20% 10% Use alerts Do not use alerts 0% Source: Javelin Strategy & Research 14

15 3 Big Questions 1. How do you drive win/win relationships? 2. How profitable are your alerts? 3. How well are you positioned to move UP ahead of your industry? 15

16 How well are you positioned to move UP ahead of utility industry? Anyone anywhere anytime: omni-channel Real-time replaces legacy Any to any processing in single network reduces time & cost Move UP ahead of utility industry 16

17 Matrix for Ranking Alerts Ranking: 1 5 (1: Lowest, 5: Highest score) Alert Type Risk to Customer Relationship Reward Customer Sat Reward Customer Loyalty Reward Cost Savings Priority for utility High usage Bill due Payment confirmation Card expiring Up-selling higher profit services Cross-selling new services High Medium Lower Source: Javelin Strategy & Research 17

18 Matrix for Ranking Alerts Ranking: 1 5 (1: Lowest, 5: Highest score) Alert Type Risk to Customer Relationship Reward Customer Sat Reward Customer Loyalty Reward Cost Savings Priority for utility High usage Bill due Payment confirmation Card expiring Up-selling higher profit services Cross-selling new services Source: Javelin Strategy & Research 18

19 Thank You! Phil Spradlin (717)