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An old presentation about electronic bill and payment that still is relevant and has good content if you plan to make EBPP part of your CRM strategy

An old presentation about electronic bill and payment that still is relevant and has good content if you plan to make EBPP part of your CRM strategy

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  • Full Name Full Name Comment goes here.
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  • great work on ESPP
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  • DO you know if any of the solutions mentioned can handle Billing Disputes & Discounts?
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  • very good overview on EBPP. I liked it very much and wish I could have a copy of these slides.

    Ivan
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Electronic Bill & Payment Electronic Bill & Payment Presentation Transcript

  • Electronic Bill Presentment & Payment This is an old EBPP presentation but it provides some basic content to start your research on selecting a solution.
  • Overall Agenda
    • Solutions and Market Overview in the EBPP industry
    • Preliminary Recommended Approach
  • Electronic Bill Presentment & Payment Solutions and Market Overview
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components of a EBPP Solution
    • Basic Foundation
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • What the Market is saying about EBPP?
    • By 2001, the volume of electronic bills will grow to 12 %, which translates to an annual 8 billion repetitive bills presented electronically Gartner Group
    • The companies that are first to issue bills over the Internet will gain a significant competitive advantage , reduce costs, and increase revenue from the Internet customers." Killen & Associates
    • Enterprises that offer EBPP must also offer value-added customer service at the bill site if they expect to build customer loyalty and continued usage. Gartner Group
    • UK and European companies, including Barclays, Scottish Power, Telia (Sweden), Deutsche Telecom, and others, will use the Internet to deliver 40% of their bills and statements within 5 years . Killen & Associates
  • What the Market is saying about EBPP? (cont.)
    • More than a 30 % savings in billing and customer care alone after implementing EBPP. AT&T
    • We have minimal acquisition costs. Customers sign up online . They pay via credit card, which cuts down on bad debts . And customer service costs are much lower. MCI
    • US telcos, will save $180 million from EBPP in the year 2000. By 2005 , this savings will approach $750 million . Killen & Associates
    • The 4.5 % acceptance of EBPP among consumers will jump to 45% if the consumer could manage up to 6 bills at one online site. Yankee Group
    EBPP grew by 150 percent between 1996 and 1997. Gartner Group
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components of a EBPP Solution
    • Basic Foundation
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • What are some of the Benefits?
    • Business customers save an average of 11.5 cents per item due to reduced processing costs *
    • For each customer converted from a check to an electronic payment for a loan, financial institutions report savings of up to $4.11 per payment by eliminating loan coupons and related processing costs *
    • EBPP can help enterprises save substantially through better information analysis - billing and cost centers**
    • Telcos can reduce the cost of billing each customer to $0.40 from $1.25, while bill payment could be cut to $0.10 from $0.50. ***
    • Via EBPP, Telcos can save up to 60% of what they spend on each paper-based bill they mail. ***
    • As more billing data is electronically transmitted, rather than mailed, telcos will benefit from increased traffic over their networks . ***
    • Increase customer loyalty and improve customer retention.
    * Payment Systems, Inc. Study , ** Gartner Group, *** Killen & Associates
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components and Basic Foundation of a EBPP Solution
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • Components of a EBPP Solution
    • Customer Care
      • maintain EBPP activity history
      • expand customer service using chat rooms, email & CTI integration
      • use the EBPP web page as a touch point
      • ability to open a new case
    • Consolidator Integration
      • deliver bill summary and/or detailed information to consolidators such as CheckFree
    • Payment & Posting
      • pay the bill electronically using CheckFree or CyberCash
      • let the users decide how to distribute their bill inside their corporations (using their cost centers)
      • posting refers to taking information about which customers paid, when they paid, and how much they paid, and incorporating this information on a daily basis into a file that can be used to update the accounts receivable system
    • Marketing 1:1
      • use the customer EBPP web page for targeted marketing as a source of additional revenue using online advertising, cross-sell promotions, and affinity programs
  • Components of a EBPP Solution (cont.)
    • Data Extraction & Storage
      • rule definition to extract data from legacy billing file formats
      • storage months of billing data online
    • Customer Profile
      • ability to maintain the customer profiles for the presentation of the bill
    • Composition & Content
      • personalization rules for web content used with billing data
    • Tracking
      • monitor and manage EBPP activities from log on date, time to retrieval history
    • Notification & Presentment
      • present bill in the web site
      • email to notify customers and present bill via email not just in the web
    • Security
      • encrypted data and passwords using SSL (secure sockets layer)
  • EBPP Basic Foundation
    • Open: connect and integrate with any RDBMS systems, customer care applications, e-mail servers, and legacy billing systems
    • Standards: SOA, SSL, HTTP, HTML, POP3, Java, and OFX, XML, CORBA, COM and MIME
    • Scalable: N Tier, fully distributed architecture
    • Easy to deploy and manage: off-the-shelf package, GUI tools
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components and Basic Foundation of a EBPP Solution
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • EBPP PLAYERS
  • Who is who?
    • edocs - strong package used in many telcos, utilities, and finance institutions - was one of the top 3 choices in an InformationWeek Study
    • Just In Time - used by ATT in United States, strong player pushing for standards
    • BlueGill - was one of the top 3 choices in an InformationWeek Study
    • Cygent - offers EBPP and OSS solutions for ebusiness and telcos
    • Info Directions - provides EBPP and customer care products
    • ITDS - provides EBPP and customer care products
    • Checkfree - offers payment transactions, provides bill consolidation & payment services to large billers, consumers, and financial institutions, it has partnerships with many EBPP packages
    • Cybercash - offers payment transactions
    • Exchange - new group backed up by major financial institutions
    • Transpoint - backed up by Microsoft, was one of the top 3 choices in an InformationWeek Study. Competes with Checkfree.
    • billserv.com - provides bill consolidation & payment services to medium size billers, consumers, and financial institutions, it has partnerships with many EBPP packages
    • Broadvision & NetDynamics - offer ebusiness solutions and tools
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components and Basic Foundation of a EBPP Solution
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • EBPP Standards
    • Three Models
      • Open Financial Exchange (OFX-Pres)
        • The OFX standard defines two fundamental capabilities for billing: Communications of sign-up information from consolidator to biller; and communication of bill summary information from biller to consolidator. OFX does not define standards for the look of bills . It only provides a "control channel" for information about bills.
      • Integrion's GOLD
        • Integrion is an independent, for-profit company owned by 18 financial institutions, plus Visa U.S.A. and IBM. Its GOLD specification deals primarily with the payments and transactions for belonging to financial institutions . GOLD is a range of messages and transactions of banking functions for the financial institutions to communicate with end-users.
      • Microsoft's Biller Integration System (BIS)
        • Microsoft/First Data Corp (MSFDC) is a bill presentment model that supports OFX for payment information, and BIS for the bill presentation. The BIS has two primary functions that are exclusive to MSFDC: It only works with Microsoft tools to create E-bills, and it will only exchange data between an MSFDC biller site and the financial service center.
    Source: Gartner Group
  • EBPP Standards (cont.)
    • None of these standards are widely used - market still needs to mature Gartner Group
    • Of the three standards addressed here, the only one that offers promise for the success of EBPP is the version of OFX that deals with presentment . Gartner Group
    • When choosing an EBPP application, billers should pick a product that allows the bill to be sent through an open system that enables users to access bills on any venue. Gartner Group
    • OFX as an open standard: backed by Just in Time Solutions, a bill presentment software and server vendor; Intuit, a financial management software company; and AT&T, a telecommunications company.
    • EBPP is among the more immature market segments we've ever tested. InformationWeek EBPP Product Study, 1998
    Source: Gartner Group
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components and Basic Foundation of a EBPP Solution
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • EBPP Strategies
    • Identifying how the EBPP and Customer Care process fits into the business model and what value it will bring to the enterprise
      • EBPP is a touch point to the customer
      • develop an in-house strategy for converting from paper to EBPP
      • how this fit into an overall E-Business plan
      • evaluate in-house IT resources to maintain the EBPP web site
      • determine what is needed to build and/or support round-the-clock billing, payment and customer service with an E-mail response Web site and Call Center
      • buying or outsourcing the EBPP activity
      • need to determine what customers do you want to use EBPP and if these customers are willing to change the way they do business, i.e., what's in it for them?
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components and Basic Foundation of a EBPP Solution
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • EBPP and Customer Care
    • By 2001, organizations that do not offer effective channels for electronic billing, as well as customer contact centers, will not meet consumer expectations . They will find themselves losing out to the competition and battling increasing costs *
    • To build loyalty and take advantage of one-to-one marketing and cross-selling opportunities, billers must enhance their sites with interactive customer service functions.
    • Offer value-added information-based services that can offer a biller true competitive advantages, such as - personal analysis of telephone usage or sorting call records for business billing purposes.
    • Value-added bill presentment is more satisfying to the customer, as well as a competitive advantage for possible cross-selling, up-selling and data mining for the enterprise.
    • Enterprises should view their bill presentment site as a customer-care service and a "touch point” for their organization
    * Gartner Group (1999)
  • Agenda
    • What the Market is saying about EBPP?
    • What are some of the Benefits?
    • Components and Basic Foundation of a EBPP Solution
    • Packages
    • Standards
    • Strategies
    • Customer Care
    • Investment Figures
  • EBPP Investment Figures
    • EBPP off-the-self packages : average price is $250,000 but it could vary from $50,000 to $500,000.
    • Implementation and Integration (translate billing data and integrate the EBPP web site into the enterprise): it ranges from $4 to up to $20 for systems integration for every $1 spend on software.
      • Expect to spend $150,000 to translate their bill formats, $1,000 to $1,500 to design a template and then $0.30 per transaction.
      • Add-on customer service enhancements increase costs for each additional service.
      • It is recommended that businesses use a phased approach to initiating an E-billing presentation piece.
    Source: Gartner Group
  • Direct Billing vs Outsourcing
    • Benefits :
      • Control over gathered information from customer
      • Biller branding and logo placement
      • Control over privacy
      • Advantages of browser technology for "offline" viewing
      • Payment is made directly through biller's bank
    • Challenges :
      • Converting data stream into HTML format
      • Entering into template
      • Cost of hosting and maintaining own site
      • Setting up and maintaining payment services
    • Benefits :
      • Concentrator retains billing details
      • Customer sees bill summary only
      • Concentrator hosts and maintains billing Web site
      • Payment is made through concentrator's bank
    • Challenges :
      • Eliminates biller/customer loyalty
      • Reduces float advantage
      • Third-party branding opportunity
      • Privacy conflict with customer
  • Direct Billing vs Outsourcing
    • Cost for Direct Billing
      • Package, Implementation, EBPP Web Site maintenance
    • Cost for Outsourcing
      • Implementation
      • Monthly 100,000 customers at .30 cents (average) transaction cost over 5 years: $1.8M
    Source: Gartner Group (1999)
  • High Level Functionality 1-5
    • Capability to present current and last 3 bills (image or image-like) through Internet, including call detail resentment and capability to sort call detail by date & time, terminating number, terminating city and amount. This capability must include customer notification via e-mail when a new bill has been generated.
  • High Level Functionality 2-5
    • Allow the customer to print or download the invoice into a text file.
    • Capability to optionally send bills to customers via e-mail, allowing customers to subscribe to this service.
    • Capability to accept customer payment including payment to multiple bill accounts in the same transaction.
  • High Level Functionality 3-5
    • Capability to receive customer requirements and inquiries and take actions including:
      • Adjustments
      • Refunds
      • Payment re-assignment
      • Notify payment made through electronic transfer to Payment department
      • Dispute for unknown calls
      • Fraud suspicion
      • Obtain legal invoice copy
      • Inquiry to un-billed calls
      • Service block/n-bloc request
      • Inquiry customer billing structure
      • Change billing structure and offers
      • This function should include to option to attach files when customer is submitting a request.
  • High Level Functionality 4-5
    • Support residential and business customers including all services
    • Capability to generate marketing campaigns including 1 to 1 and generic
    • Capability to receive potential customers applications
    • Capability to allow current customers to apply for new services
    • Other documents presentment, including letter of agreement and bill receipt proof
    • Capability to record and analyze customer behavior and preferences on the Site
  • High Level Functionality 5-5
    • Scalable to include new functions
    • Security module including access and privilege levels
    • Return receipt via e-mail when customer receives invoice or invoice notification
    • General information module
    • CTI Integration
    • Call Center Integration
    • High availability (7 X 24)
  • Recommended Packages
    • Checkfree - offers payment transactions, provides bill consolidation & payment services to large billers, consumers, and financial institutions, it has partnerships with many EBPP packages
    • Transpoint - backed up by Microsoft, was one of the top 3 choices in an InformationWeek Study. Competes with Checkfree.
    • edocs - strong package used in many telcos, utilities, and finance institutions - was one of the top 3 choices in an InformationWeek Study
    • Just In Time - used by ATT in United States, strong player pushing for standards
    • BlueGill - was one of the top 3 choices in an InformationWeek Study
  • End of Presentation This is an old EBPP presentation but it provides some basic content to start your research on selecting a solution.