View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Dashboards
  2. Deals
August 31, 2009updated 04 Apr 2017 4:17pm

Online billing yields big benefits

Advantages to be gained in terms of higher customer retention and increased profits from the adoption of electronic billing (e-billing) and online bill payments have been yet again confirmed by a study undertaken by financial technology vendor Fiserv.Conducted for Fiserv by research firm Aspen Marketing Services, the study evaluated data from 8 million residential customers of US telecommunications company Quest Communications over an 18-month period, with analysis concluded in April 2009.Based on its findings Aspen found that the analysis found the most significant linkage between billing and business benefits were among early tenure customers those who had been customers for less than 28 months.Specifically, among early-tenure customers: E-bill users are 12.5 percent less likely to leave, are 35 percent more likely to pay their bills on time and purchase 20 percent more products than paper bill users; Automatic, recurring payment users are 14 percent less likely to leave and 86 percent more likely to pay their bills on time; and Users who combine e-bill with recurring payment are more loyal and more profitable than other customer segments.From a cost perspective, the study validated the importance of delivering e-bills not only via an organisations own website, but also via financial institution sites

By EPI editorial

Advantages to be gained in terms of higher customer retention and increased profits from the adoption of electronic billing (e-billing) and online bill payments have been yet again confirmed by a study undertaken by financial technology vendor Fiserv.

Conducted for Fiserv by research firm Aspen Marketing Services, the study evaluated data from 8 million residential customers of US telecommunications company Quest Communications over an 18-month period, with analysis concluded in April 2009.

Based on its findings Aspen found that the analysis found the most significant linkage between billing and business benefits were among early tenure customers – those who had been customers for less than 28 months.

Specifically, among early-tenure customers:

• E-bill users are 12.5 percent less likely to leave, are 35 percent more likely to pay their bills on time and purchase 20 percent more products than paper bill users;

• Automatic, recurring payment users are 14 percent less likely to leave and 86 percent more likely to pay their bills on time; and

• Users who combine e-bill with recurring payment are more loyal and more profitable than other customer segments.

From a cost perspective, the study validated the importance of delivering e-bills not only via an organisation’s own website, but also via financial institution sites. This, explained Fiserv, is because where a bill is received impacts payment method.

For example, among Quest customers studied 74 percent who receive an e-bill at a bank site pay using an electronic deduction from their bank account, a low-cost form of payment. Of customers that receive bills at the company site, 40 percent pay using a credit or debit card-funded payment, a higher cost method of payment.

Based on Aspen’s findings, over 70 percent of customers that receive a paper bill will pay with a paper cheque. According to data quoted by Fiserv the cost of a paper bill presentment is $0.45 per bill compared with $0.15 per e-bill presentment via a bank’s or organisation’s website.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Electronic Payments International