E-billing: Understanding the adoption barriers

Garin Toren, Striata
19 May 2010
00:00

2. Enrollment

Marketing campaigns that drive consumers to register online are expensive, have very low (and then diminishing) returns and often savings are outweighed by the initial set up costs. For consumers, each website represents a separate, unique sign-up process. In addition, username and password requirements vary widely (e.g. password must be at least 8 letters and include numbers). Therefore, the enrollment experience is many times less convenient than simply doing nothing and continuing to receive a paper envelope.

3. Multiple Biller sites

Consumers do not want to visit numerous different websites, remember multiple usernames/passwords and navigate a different path to view each bill. In addition, true household bill consolidation does not exist, thus expecting consumers to turn off paper by offering website presentment will not see paper suppression exceed 20%.

4. Convenience

Current online bill presentment offerings require consumers to proactively fetch their bills and statements from websites. In all instances, it takes at least 6 clicks, and often up to 15 clicks to retrieve the relevant bill. This process requires reasonably web savvy navigation. Overall, it takes at least 5 times longer to fetch a document online than it takes to open a paper envelope.

The litmus test: if 99% of recipients cannot access their electronic bill quicker than it takes to open an envelope, your customer experience will fail.

5. Presentment vs. payment

Electronic payment is now common practice. There are two models that dominate:

a) Payment at the biller's website - known as Biller Direct

b) Payment through Internet banking

Currently in the US, electronic payments are evenly split between these two models. Industry analysts agree that into the future internet banking payments will dominate. In mature e-payment geographies such as Canada and the UK, this model is utilized almost 100% of the time. While this is great for "bill payment," it creates a significant problem for "bill presentment" and is not a viable solution for all other types of electronic document delivery such as policies, contracts and marketing.

Pages

Follow Telecom Asia Sport!
Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.