leveraging e-delivery to maximize e-payments jeff mckenzie - vice president, integrated solutions...
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Leveraging e-Delivery to Maximize e-PaymentsJeff McKenzie - Vice President, Integrated SolutionsNeopost USA
Comprehensive Research in Multi-Channel Customer Communication
• Future of Multi-Channel Transactional Communications (InfoTrends 2010 & 2013)
• Simplifying CCM Whitepaper (Neopost/Infotrends 2013)• Market research from ReD Associates (2012 – 2013)• 10 years of R&D in the CCM & multi-channel space
Bill Payment Methods
2/3 of consumers still pay by check
Delivery Channel Most Used
Consumer continue to receive bills via
USPS
Why?
Convenience• #1 reason consumers choose a channel is
convenience.
Influence of “Early Adopters” on the market
• Inconvenience themselves to adopt new technology
• Most e-delivery initiatives plateau around +/- 20%
Majority of Consumers …adopt technology when it becomes
more convenient than the alternative
20% - 30% of population
How Convenient is Paper?
• Consider what you must do to receive a bill or statement in the mail…
• How difficult is it to open and review?
• Now consider the alternative you provide to your customers…
• Payment via website1. Receive physical bill2. Log on to computer3. Navigate to website4. Enter user name5. Enter password6. Navigate to current statement7. Review8. Navigate to “pay my bill”9. Enter additional data10. Confirm payment amount11. Submit
Comparison
• Payment via mail1. Receive physical bill2. Open3. Review4. Write check5. Mail
Additional Barriers:• Phishing – email links alternative• Remembering User Name/Password• Security concerns
Preference - Paper Checks
Uses of Paper Checks to Pay Bills0
10
20
30
40
50
60
70
Todayin 1 yearin 3 years
Consumers want to move away from paper
checks…
How do you capitalize on this consumer preference?
• Customer receiving physical bill are more likely to pay with a physical check.
• Customers who suppress paper are more likely to pay electronically.
• PAYMENT TECHNOLOGIES ARE NOT THE PROBLEM
• Suppress paper = Electronic payment
Top Reasons for Paper Bill
Must Resolve
What are the alternatives to paper?
Biller Website
Consolidator Website
Email Attachment
Mobile App
Text/SMSMobile Website
Mobile Tablet App
Digital Mailbox
Non-Bank Consolidators
Highly Accepted Technologies
Early Adopter Technology
Paper Alternatives
Biller Direct/Self Service Portal Consolidator Website eMail w/ Attachment
Presentment - Channel growth (CAGR)
Web presentment declines at the same
rate as physical
Mobile and email growing at 32%
Website (biller direct & consolidator)
49% said that fetching their bill on a biller’s website is not a good alternative to paper
61% of consumers said remembering multiple different usernames & passwords is a barrier to paperless adoption
Barriers to going paperless
Consumer Delivery Preference
Customers rank their
top choices
e-mail channel preference
HOW DO YOU LIKE TO USE THE EMAIL CHANNEL? (PROVIDERS)
HOW WOULD YOU LIKE PROVIERS TO USE THE EMAIL CHANNEL? (CONSUMERS)
Bill Payment through email Attachment
70%
Useful
Is e-mail w/ attachment the answer?
• It’s Convenient…– It’s already mobile – no difference between devices
– It’s been adopted – smartphones are used more to read email than make phone calls
– It’s a replication of physical mail – no change in behavior
– It’s preferred - % of consumers who prefer to receive bill via email
Final Note
• Web portal solutions are critical to an overall strategy• Increasing paper suppression rates will drive e-payment
adoption• Solution is simple…make electronic as convenient as paper.
Trends 2014 2016 2018 2020 10% per year increase in surpressionpaper surpression 23% 28% 33% 40%e-payment 40% 48% 57% 69%
58% 58% 58% 58%
Shift 2014 2016 2018 2020 20% per year increase in surpressionpaper surpression 23% 32% 45% 63%e-payment 40% 56% 78% 100%
58% 58% 58% 58%
Focus on paper suppression to increase e-payment adoptions
REFERENCE
Smartphone Owners Are more likely to use their device for email than for making
phone calls
Source: Adobe 2013 Digital Publishing Report
Shopping
Research restaurants
Photo management
Reading news
Playing games
Listening to music
Making phone calls
20%
20%
24%
26%
37%
48%
52%
58%
78%
79%
Smartphone owners
Research travel
Research restaurants
Watching movies/TV
Shopping
Listening to music
Reading news
Reading books
Playing games
30%
30%
42%
44%
46%
50%
59%
61%
Tablet owners
Q: For which of the following do you typically use a tablet/smartphone?
72%
67%