Billing customers is relatively straightforward. Whether by mail or electronic delivery, all organizations that collect from customers run their internal or outsourced solutions for getting bills into their customer’s hands. Though many of these methods are showing their age, they still perform their primary function.
However, many customer communication strategies lack a complete collection of modern payment methods. Failing to recognize changing consumer preferences about bill paying can be a costly mistake. Organizations risk lowered customer satisfaction and diminishing market share by forcing customers into undesirable payment scenarios.
Besides the value of giving customers what they want, electronic payment acceptance is a huge customer engagement opportunity unmatched by paper checks or financial institution bill-paying services. To educate, inform, or connect with their clientele, organizations can direct customers to branded portals where they pay their bills. While at the site customers can refer to frequently asked questions, watch videos that explain their bills, start conversations with the company via chat, or get exposed to news and information about more products and services.
Many Bases to Cover
There is no single electronic bill payment method preferred by consumers. 90% of them routinely use more than one payment method and want the freedom to choose. The average household uses 3.6 different bill-pay methods including biller websites, financial institution bill-pay services, mobile, checks, or by phone. The disparity in desired payment methods makes it even more difficult for companies to manage the processes in-house.
Mobile device payment is the fastest-growing segment. 42% of smart phone users reported paying with their devices in 2015. The statistic is on the rise.
Industries relying on subscriptions or recurring billing may appeal to their customer base and improve cash flow by offering payment by text. Whether using text messages as payment due date reminders or to collect the payments, communicating by text means reaching customers immediately, even when they are away from home. When customers pay a bill through text messages, they needn’t remember login names and passwords. Customers set up all security and verification methods in advance. They merely make their payments on the go as soon as the text message arrives. They do not have to worry about forgetting to pay or experiencing late charges.
Another trend worth noting is migration away from bill-paying services offered by consumer banks. Some bill payers are drifting back towards biller websites. This migration matches consumer desire for speedy payment posting. Most online bill payers want their payments posted the same day or the next. Delays caused by dealing with a third party are unacceptable. This is good news for billers, as they regain control of the customer interaction.
Biller Strategies for Payment Processing
- Offer a variety of integrated payment methods.
- Partner with outside service providers to coordinate bill presentment with payment processing.
- Recognize the growing interest in mobile payment methods and be sure customers can easily pay with their mobile devices.
- Take advantage of opportunities for engagement as customers view and pay their bills.
The old days of receiving checks in the mail are mostly gone, though organizations must still support some check-writing customers. Erased is the notion that companies can get by with offering only a few payment methods. Those that choose not to upgrade their payment processing abilities will be seen as out of touch and old fashioned.