Promoting Electronic Payments - Mike Radice


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Promoting Electronic Payments - Mike Radice

  1. 1. Increasing Resident Use of Electronic Payments Michael Radice NWP Services Corporation April 24 th , 2008
  2. 2. What are we talking about really? <ul><li>It is about what you can do to ensure your electronic payment program gets USED by residents! </li></ul><ul><li>To truly drive successful adoption of an electronic payments platform smart multifamily companies … </li></ul>
  3. 3. Know why it is important to your organization <ul><ul><li>Doesn’t it have everything to do with your organization’s financial success? </li></ul></ul><ul><ul><li>What can you expect from the right service, one that is widely accepted? </li></ul></ul><ul><ul><ul><li>“ Good” funds faster </li></ul></ul></ul><ul><ul><ul><li>Accelerate cash flow </li></ul></ul></ul><ul><ul><ul><li>Create efficiencies allowing your staff to focus on leasing activities </li></ul></ul></ul><ul><ul><ul><li>Reduce the cost of processing payments </li></ul></ul></ul><ul><ul><ul><li>Increased resident satisfaction </li></ul></ul></ul>
  4. 4. Understand why some fail to gain adoption <ul><ul><li>“ You can lead a horse to water…” </li></ul></ul><ul><ul><ul><li>Poor planning, execution and follow thru, from top-down </li></ul></ul></ul><ul><ul><ul><li>Mis-matched needs </li></ul></ul></ul><ul><ul><ul><li>Frontline execution – staff doesn’t see value and won’t promote </li></ul></ul></ul><ul><ul><ul><li>Transaction fees to resident stifle program </li></ul></ul></ul>
  5. 5. Consider consumer trends <ul><ul><li>Knowing consumer trends will help you serve your market </li></ul></ul><ul><ul><ul><li>Residents search, find, compare, communicate, and reserve all online </li></ul></ul></ul><ul><ul><ul><li>The ability to pay online is expected </li></ul></ul></ul><ul><ul><ul><ul><li>78% percent of renters have a computer in their apartment, and 85 percent of those have Internet service 1 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Renters use the Internet seven days a week at home & high-speed service is a deciding factor in selecting an apartment home 1 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>63 million online households pay at least one bill online and over 75% (or 47.9M) of those pay directly at a billers website 2 </li></ul></ul></ul></ul>1 Source: NMHC Apartment Renter Technology Study – Feb 2007 2 Source: Harris Interactive/Marketing Workshop national online consumer survey sponsored by CheckFree - Feb 2008
  6. 6. Consider consumer trends, con’t. <ul><ul><li>Statistics support the behavior (payments thru the ACH Network) </li></ul></ul><ul><ul><ul><li>13.9 billion transactions worth more than $28.8 TRILLION were sent via the ACH network in 2007 (13% increase over 2006) 3 </li></ul></ul></ul><ul><ul><ul><li>24% were ARC transactions and 27.18% were WEB-based ACH transactions 3 </li></ul></ul></ul><ul><ul><ul><li>By 2010 it is estimated that ACH transaction volume will reach 25 billion with worth over $50 TRILLION 3 </li></ul></ul></ul>3 Source: NACHA – 2008
  7. 7. Recognize key fundamentals play a large role in driving consumer adoption <ul><ul><li>Offer residents the following and adoption & recurring use will follow: </li></ul></ul><ul><ul><ul><li>Access and convenience to pay where and when they want </li></ul></ul></ul><ul><ul><ul><li>Choice and flexibility in how they want to pay </li></ul></ul></ul><ul><ul><ul><li>Control over amount, and scheduling same-day and future payments </li></ul></ul></ul><ul><ul><ul><li>Cost ; none, just ask any top bank </li></ul></ul></ul><ul><ul><ul><li>Ease of use for staff and residents alike </li></ul></ul></ul><ul><ul><ul><li>Security and reliability </li></ul></ul></ul>
  8. 8. Best Practices for ensuring adoption <ul><ul><li>Embrace change management </li></ul></ul><ul><ul><li>Assign a clear, internal leader and “champion” </li></ul></ul><ul><ul><li>Know your resident </li></ul></ul><ul><ul><li>Formulate the right strategy for your business </li></ul></ul><ul><ul><li>Deploy a flexible service that offers choice, convenience, reliability and security </li></ul></ul><ul><ul><li>Set realistic goals and TEST; pilot programs are key </li></ul></ul>
  9. 9. Best Practices for ensuring adoption, con’t. <ul><ul><li>Make it easy and reliable (for residents and staff) </li></ul></ul><ul><ul><li>Educate and train your organization completely (objectives, goals and desired outcomes) </li></ul></ul><ul><ul><li>Promote, Promote, Promote </li></ul></ul><ul><ul><li>Communicate consistently and frequently </li></ul></ul><ul><ul><li>Create value for the resident and your on-site staff </li></ul></ul><ul><ul><li>Listen and have a feedback mechanism </li></ul></ul>
  10. 10. The Future of electronic payments <ul><ul><li>EBPP: Combination of electronic bill presentment and payment </li></ul></ul><ul><ul><ul><li>Options: Push or Pull – sending a bill to customers via email or direct to website </li></ul></ul></ul><ul><ul><ul><li>“ When users can easily view & pay a bill electronically,   it usually speeds up the payment of the bill.  Research indicates that nearly 20 % of customers receiving eBills in an easy manner pay the bill on the day they receive it”* </li></ul></ul></ul><ul><ul><li>Pay by text message </li></ul></ul><ul><ul><li>Pay by cell phone </li></ul></ul><ul><ul><li>SpeedPass technology </li></ul></ul><ul><ul><li>Full service kiosks in leasing office </li></ul></ul><ul><ul><li>A word of caution – keep in mind your needs! </li></ul></ul><ul><ul><li>* Source: Billing and Payment Profiles and Best Practices Study: The Ascent Group Inc. May 07 </li></ul></ul>
  11. 11. Questions to consider <ul><li>Question: How important is it that payment tools are integrated into some other aspects of their workflow (i.e. PMS or in initial leasing transaction)? </li></ul><ul><li>Question: Is there ever going to be a role for property owners to collect payments for other billers through onsite kiosks? </li></ul><ul><li>Question: What can/should be done to make the payment process transparent to renters, and to provide them with historical access to their data? </li></ul><ul><li>Question: Can you make the case about rental payments by looking at how firms use electronic payments in a b-to-b context? </li></ul>
  12. 12. In summary <ul><ul><li>The best ways to drive adoption of your e-payment program… </li></ul></ul><ul><ul><ul><li>Know why it is important to your organization </li></ul></ul></ul><ul><ul><ul><li>Understand why some fail to gain adoption </li></ul></ul></ul><ul><ul><ul><li>Consider consumer trends </li></ul></ul></ul><ul><ul><ul><li>Resident preference cannot be overlooked </li></ul></ul></ul><ul><ul><ul><li>Turn to best practices from those who have gone through it </li></ul></ul></ul><ul><ul><ul><li>The future is now </li></ul></ul></ul>
  13. 13. Case Study #1 <ul><li>Mid-size owner/manager </li></ul><ul><li>Implemented all communities </li></ul><ul><li>Single PMS system </li></ul><ul><li>Payments Mix </li></ul><ul><ul><li>Online ACH property website </li></ul></ul><ul><ul><li>On-site check scanners </li></ul></ul><ul><ul><li>Credit Card </li></ul></ul><ul><ul><li>Points to note: </li></ul></ul><ul><ul><ul><li>30-days after deploying online; 655% increase </li></ul></ul></ul><ul><ul><ul><li>Consistent promo drove online use </li></ul></ul></ul><ul><ul><ul><li>Began check scanning in month 5; 637% increase within 30-days </li></ul></ul></ul><ul><ul><ul><li>Processing 100% of payments electronically (10,000+/month) </li></ul></ul></ul>
  14. 14. Case Study #2 <ul><li>Large owner/manager </li></ul><ul><li>Implemented portion of properties </li></ul><ul><li>Multiple PMS systems </li></ul><ul><li>Payments Mix </li></ul><ul><ul><li>Online ACH property website </li></ul></ul><ul><ul><li>On-site check scanners </li></ul></ul><ul><ul><li>Points to note: </li></ul></ul><ul><ul><ul><li>30-days after deploying online; 577% increase </li></ul></ul></ul><ul><ul><ul><li>Champion changed mid-rollout creating delay </li></ul></ul></ul><ul><ul><ul><li>Scaled 8 month deployment of scanners until Month 11 </li></ul></ul></ul>