Contact Center Solutions Featured Article

Fiserv Study Supports Value of Electronic Billing and Payment Processes

August 13, 2009

Fiserv, Inc., a global provider of financial services technology solutions, has announced a new study that confirms electronic billing and payment has a positive impact on customer satisfaction, retention and profitability.


A comprehensive study conducted by Aspen Marketing Services on behalf of Fiserv, it is the first of its kind to quantify the impact of different billing and payment channels on an organization’s customer relationships and key business drivers. 
 
The study evaluated data from 8 million Qwest Communications residential customers over an 18-month period. Analysis, which concluded in April of 2009, found the most significant linkage between billing and business benefits among early tenure customers – or those who had been with the company for less than 28 months.

“This study clearly demonstrates that the benefits of viewing and paying bills online extend beyond cost reduction,” said Jardon Bouska, division president, Biller Solutions, Fiserv, in a statement.

According to study findings, customers who receive paperless electronic bills at a company website or at a financial institution website – or those who use recurring payments – are more profitable for the billing organization.

Early-tenure users data demonstrated electronic bill users were 12.5 percent less likely to leave, 35 percent more likely to pay bills on time and purchase 20 percent more products than paper bill users; automatic, recurring payment users were 14 percent less likely to leave and 86 percent more likely to pay their bills on time; and users who combine electronic billing with recurring payments are more loyal and more profitable.

“Billing and payment channels can be leveraged as valuable touch points that strengthen customer relationships and promote on-time payment,” added Bouska. “Fiserv is committed to working with industry leaders to not only provide consumers with the ability to receive and pay bills through a variety of channels, but also to help encourage customers to utilize preferred transaction methods such as recurring online payments and e-bills. These preferred methods have been shown to benefit both parties.”

When looking at cost, the study validated the importance of delivering electronic billing not only through the company’s website, but also through financial institution sites. The study found 74 percent of customer who receive an electronic bill at a bank site pay using a deduction from their bank account; and 40 percent of customers who receive bills at a company site use a credit card to make payment.

The findings of this study will lend considerable value to Fiserv as the company delivers the technology necessary for a number of organizations to conduct electronic billing and payment options. Fiserv announced earlier this month an enhanced Mobile Money & Mobile Money FastTrack financial service. This customized banking interface for several mobile devices will help the company to capitalize on the growing use of and demand for mobile banking solutions. 
 

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Susan J. Campbell is a contributing editor for ContactCenterSolutions and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Tim Gray



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