| B2C eBilling has failed. In its many guises (Electronic | | | | are once again beginning to take the issue of |
| Billing, EBPP, EIPP, Paperless Billing), ebilling has been | | | | electronic communication in general and ebilling in |
| around for many years now, yet adoption rates | | | | particular, seriously. eBilling is starting to receive |
| continue to fall dismally short of expectations. The | | | | top-level, board-room attention. However this time, |
| replacement of environmentally damaging paper bills | | | | they're taking into account the customer's basic |
| with convenient electronic bills, has achieved adoption | | | | requirements for adopting ebilling: simplicity, |
| rates of no more than 10% to 15% across industries, | | | | ease-of-use and security. |
| despite the claimed benefits for the environment, | | | | These findings are confirmed by analysts. In a 2008 |
| business and consumers. | | | | paper entitled "Pulling The Plug On Paper |
| Why is something so obviously beneficial so | | | | Statements", Emmett Higdon of Forrester writes: |
| problematic? What is it going to take to get | | | | "While customers are willing to go paperless, |
| consumers to engage in an electronic billing | | | | Forrester believes they will not take the initiative to |
| relationship that turns off paper, saves costs and | | | | eliminate paper. Customers have had the option to |
| improves service delivery? How do we get | | | | turn off paper for several years now. Few do. |
| consumers to "Go Green"? | | | | Further, we have found that: |
| Globally, high-volume billers have spent millions | | | | - 84% of consumers still receive paper statements |
| implementing online billing portals, as an evolutionary | | | | - 70% can be convinced to give up paper for |
| way in which consumers and corporates can view | | | | electronic |
| and pay their recurring bills and invoices. There have | | | | - 35% would turn off paper if eStatement printing |
| been very few success stories, however. In the UK, | | | | was easy |
| almost 13 billion items of B2C paper mail items are still | | | | - 33% would turn off paper if saving it locally was |
| mailed every year, at a postage cost of | | | | easy |
| £1.8bn - that's 270 million items every single | | | | Customers have shown that they are ready to |
| week. Clearly ebilling has not met its promises and | | | | abandon paper. They just need a push." |
| this lack of expected results has harmed the | | | | There are several ways for billers to ensure that a |
| perception of the concept for many. | | | | large percentage of customers migrate to ebilling. |
| What if it was not the concept that was at fault but | | | | There should be no upfront customer registration, |
| the model? | | | | and no need for a customer to visit a website. |
| A recent Jupiter Media report shows that over 95% | | | | Customers should not require more than a dial-up |
| of all users' time spent connected to the Internet is | | | | connection, and should not have to remember a |
| on handling email. Email continues to be the | | | | username and password. The ebill should look the |
| communication medium of choice, yet most billers are | | | | same as the paper bill that customers are used to, |
| focused on Internet website presentment. Traditional | | | | and they should be able to view and pay it online in |
| online billing portals, whilst straight-forward to | | | | under 30 seconds, or save it and pay it later. |
| implement for the biller, lack the key prerequisites of | | | | So, the answer is to change the model. Instead of |
| simplicity and ease-of-use for the customer. | | | | trying to change customer behaviour, simply |
| Remembering a complex, system-generated | | | | participate in their daily routine, by sending their ebill |
| username and password, keying these in without | | | | to their inbox. Email billing has a fundamental |
| error and then navigating through a maze of web | | | | advantage in that the biller can control the adoption |
| pages to find the relevant ebill has kept would-be | | | | rates and rollout. All that is required is the customer's |
| users of online billing away in their droves. This model | | | | email address. |
| of insisting that recipients must fetch their billing data | | | | As long as you are expecting your customers to |
| is akin to the postal service asking us to collect our | | | | proactively do something to turn off paper, it's simply |
| letters and mail from various warehouses around the | | | | not going to happen! Make participation easy and |
| country. | | | | adoption rates will increase to the benefit of both |
| Security fears, such as Phishing and Identity Theft, | | | | your business and your customers. After all, the |
| are still hindering online portals. In addition, marketers | | | | benefits of electronic billing are significant: |
| are having difficulty effectively communicating the | | | | - Instant bill delivery, instead of the typical 3 - 5 day |
| benefits to the consumer. Consumers have | | | | print and mail cycle; |
| responded to this user unfriendly use of technology | | | | - Up to 80% saving on presentment and fulfillment; |
| by shunning all incentives to enrol in any ebilling | | | | - Quicker payment and reduced DSO (Days Sales |
| program. It is evident that offering an incentive, | | | | Outstanding); |
| equivalent to the savings achieved with ebilling, is | | | | - Customer behaviour visibility through detailed email |
| insufficient to compensate the user for the | | | | tracking; |
| inconvenience of collecting their bill from an online | | | | - Lowest possible cost of payment processing; |
| portal. | | | | - Fewer payment exceptions.eBilling can still deliver - |
| As pressure to cut operational costs mounts in the | | | | the key is in the delivery of the bills. |
| growing financial turmoil, there are signs that billers | | | | |