Presentation Only: Case Study for Implementing Successful eBilling Strategies

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Case Study for Implementing Successful eBilling Strategies

Presented by:

Jim Flynn – Plymouth Rock Assurance

Barrie Arnold – Striata

Lori Beck – Western Union Payments

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Key Topics

Industry research & consumer behavior

How Plymouth Rock’s PUSH eBilling solution works

Plymouth Rock’s eBilling experience

Plymouth Rock & eBills

Results

Challenges

Future plans

Wrap up and questions

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Is eBilling just a Payment Solution?

How are you managing:Phishing / Identity Theft Threats

PCI Compliance

NACHA Compliance

Email Security & Deliverability

Website Security

Customer Preferences

Create a specialist team with a dedicated budgetOR

Outsource it to the experts

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Key Considerations for eBilling

3 critical components to Electronic Billing & Payments:

1. Technology– Secure, robust, scalable– Can your technology be used across the enterprise?

2. Strategy– Enrollment & adoption– Provide consumer payment choices– Payment cycle reduction – Marketing

3. Ongoing Services– Adoption– Email address collection– Email deliverability (avoiding spam filters)– Tracking & reporting

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Group Question #1

Is your company using eBilling today?

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Forrester Research: Feb 2010

• Less than half of US online adults with insurance use online self-service

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Forrester Research Continued: Key Findings

Difficulty with login is a major issueIf delivery of documents doesn’t happen on a regular basis, users tend to struggle more with remembering how to “access” their online profiles.

Low adoption is consistent across generationsThere is only a 14% gap between online Gen Y’ers (ages 18 to 29) and Seniors (65 plus) who have not used online self-service.

Adoption needs a formal strategy & toolbox of tacticsCustomer behavior won’t change overnight. A comprehensive list of tactics and getting buy-in / participation from all departments is necessary to foster real change in customer behavior & adoption rates.

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Consumer Billing Preferences: InfoTrends

“The Future of Electronic Bill Presentment & Payment in North America, InfoTrends, 2010”

Email inbox is overwhelmingly the consumer’s

eDelivery preference

Email inbox is overwhelmingly the consumer’s

eDelivery preference

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Gen Y: Prefers to Receive Bills Through Email Versus Paper StatementsSource: Q1 2011 Western Union® Payments Money Mindset Index

Q47: How would you prefer to receive your bill statements?

Percent of Consumers

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Consumers Are Moving Toward Electronic Channels Source: Q1 2011 Western Union® Payments Money Mindset Index

Q11: In the last 6 months, have your bill payment practices changed in any of the following ways?

Percent of Consumers

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Reasons for Bill Payment Behavior Changes

Aite Group Survey of 4,696 U.S. consumers, July 2010

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Group Question #2

Plymouth Rock has found that customers now expect eBilling and more electronic payment options.

Have you seen similar changes in customer behavior and preference?

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eBill Adoption Rates are GrowingSource: eBilling Benchmarking Study, NACHA CEBP and Blueflame Consulting, January 2010

Overall, 82% of participants report increasing adoption of eBills with the fastest growth among Insurance over the past two years.

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eBilling Benefits CustomersSource: eBilling Benchmarking Study, NACHA CEBP and Blueflame Consulting, January 2010

Billers rate the following benefits for customers in moving from paper to electronic billing statements.

In order, with most compelling first:

• Convenience – viewing and clicking to pay in one step• Increased ease of use• Can pay bills at the last minute• Can pay bills directly through their bank• Saves postage and handling• No more stacks of paper and clutter• Electronic bills are more secure than bills in mail

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Group Question #3

If you’re using eBilling, what adoption rates have you achieved?

A. 0 – 5%?

B. 6 – 10%?

C. 11 – 15%

D. 15 – 20%

E. 20%+

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Traditional Challenges to eBilling

1. Customer indifference: Doing nothing is the path of least resistance

2. Forced enrollment: The registration process is the biggest deterrent

3. Log-in challenges: Trying to remember each log-in process

4. Is it really more convenient: Fetching my bill from a website is less convenient than receiving it

5. Mobile matters: Can I view it (securely) on my phone or tablet?

6. All customers are not equal: Individuals have different needs to commercial customers

The key is understanding the customer

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The Keys to Achieving Critical Mass

Security, Ease of Use & Convenience

Eliminate proactive enrollment – KEY FACTOR

No choosing / remembering of username / password

Collect customer’s email address at account activation or all other touch points

Send bill / policy as a secure PDF attachment via email:1. One click to open, One click to decrypt

2. Looks identical to paper document, all detail included

3. One click to pay (no website to visit)

4. Expanded payment options

5. Personalized marketing opportunities

3 clicks to decrypt, view & pay without linking to a portal

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Delivering Opt-in Email eliminates ‘enrollment apathy’

Customers receive a branded,

authenticated email invitation

Customers receive a branded,

authenticated email invitation

1-click to sign-up No complex

online registration

1-click to sign-up No complex

online registration

Sample PDF docattached to intro

email

Sample PDF docattached to intro

email

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Customer receives encrypted PDF Bill via email

Exact replica of paper document attached as a

secure PDF

Exact replica of paper document attached as a

secure PDF

Authentication box for increased

customer security

Authentication box for increased

customer security

Clear, intuitive instructions on decrypting PDF

Clear, intuitive instructions on decrypting PDF

Personalizable marketing real estate

Personalizable marketing real estate

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No username / password to look-up or remember

Customer enters ‘shared secret’ to access PDF bill –

e.g. zip code

Customer enters ‘shared secret’ to access PDF bill –

e.g. zip code

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1-click payments made directly from within PDF bill

Instant payment

directly from within the

Secure PDF bill

Instant payment

directly from within the

Secure PDF bill

Payment details can be partially pre-populated for increased

security & convenience

Payment details can be partially pre-populated for increased

security & convenience

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Secure, convenient viewing on computer or mobile device

PDF is identical to paper version

PDF is identical to paper version

View, print & save PDF documentOFFLINE

View, print & save PDF documentOFFLINE

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Promotions in transactional

emails have high click-through rate

Promotions in transactional

emails have high click-through rate

Payment confirmation

email reduces call center

volume

Payment confirmation

email reduces call center

volume

Payment Confirmation – marketing opportunity

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Plymouth Rock Overview

Multiple operating companies

Approximately 500,000 policies in force

Western Union client since 2005

Striata client since 2007

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Plymouth Rock & eBills

Primarily conceived as a customer satisfaction measureMYLES program “Make Your Life Easier Services”

Customer value

Innovative New and different

Getting an email is easy and convenient

Time to market considerationsFaster solution than building an Internet portal

Cost savingsNew business/renewal policy packages - $2.85 (1x / year)

Policy change packages - $0.86 (2x / year)

Invoices - $0.59 (4x / year)

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Results

No fee option for consumers Card & ACH payment options

Since 2009, eBill payments have doubled

One division is at 23% adoption, another is at 17%

eBills result in electronic channel lift5%+ Internet payment lift since implementing eBills

Consumers report satisfactionMore convenient to electronically file PDF

Seamless integration between Western Union & Striata

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Challenges

Internal buy-in: Marketing was skeptical of ‘PUSH’The solution required CEO approval

Perceived expense of the eBillClean process that offered a lot of capabilities

Multiple divisions required a well-coordinated implementation

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Next Steps

Capitalize on security of a push solution vs. traditional links

Recently implemented a discount to premium upon enrollment

Recently completed email append campaign

Continue to gather email addresses

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Take aways from Plymouth Rock’s Solution

Uniqueness of the solutionCustomers aren't forced to log-in to a portal

Greater customer convenienceEasy to view, pay, print, and save

Improved marketing capabilities

Increased security Especially in light of recent data breaches & phishing scams

Ease of implementation

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Questions?

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Contact Information

Jim Flynn:[email protected]

Barrie Arnold:[email protected]

Lori Beck:[email protected]