E-Statements and the Bottom Line

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You have been looking for ways to cut costs. Statements are a significant operational expense. E-Statements provide large potential savings on a recurring monthly basis.

So how can you increase e-statement enrollment?

And once you get account holders to opt-in for e-statements how do you continue to market to them?

Find out in this presentation.

http://www.lk-cs.com
http://www.youtube.com/lkcsperu
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http://www.slideshare.net/lkcsperu

About LKCS:
LKCS provides financial institutions with marketing, graphic design, commercial printing, mailing, internet development, e-marketing, newsletter production, database and one-to-one marketing, statement processing, e-statements and transpromotional marketing services. Our clients have counted on us for unrivaled experience, excellent quality, competitive pricing and superior service for over four decades.

LKCS -- We do that.

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E-Statements and the Bottom Line

  1. 1. E-Statements and the Bottom Line Improve E-Statement Adoption and Cross-Sell Opportunities
  2. 2. LKCS
  3. 3. Today’s Presentation • E-Statement Adoption – How do you get your current account holders to sign up for E-Statements? How are other financial institutions succeeding at converting people to E-Statements? • E-Statement Marketing – E-Statements save you money, but is their a cost? How are other institutions incorporating marketing campaigns with their e-statements?
  4. 4. E-Statement Adoption - Step 1 • Remove the Barriers – Simple enrollment process • Online registration a MUST! No paper forms! • LKCS – account number, last 4 digits of SSN, password, MFA questions (if applicable), disclosure – Consider home banking single sign-on • LKCS – multiple home banking providers, click one link and accept disclosure to register – Easy Opt Out • LKCS – settings check box to revert to printed statement – IDEA: One Click E-Mail Marketing Enrollment
  5. 5. E-Statement Adoption – Step 2 • Tout the Benefits – “What’s in it for me?” – Green/Eco-Friendly • If all U.S. households stopped receiving paper bills and statements, 687,000 TONS of paper would be saved every year. • 34% of consumers switched to e-statements to reduce their impact on the environment. • 43% of consumers said they are more likely to do business with companies they perceive to be green. • 22% said green initiatives cement the bond they have with their bank • Women are more likely to say that environmental impact is “extremely important” in banking decisions. Source: Javelin Strategy + Research Green Banking Report
  6. 6. E-Statement Adoption – Step 2 – Safer than Paper Statements • E-statement data is encrypted through a 128-bit “Secure Sockets Layer”, which is the standard for data encryption on the Internet. • According to Verisign, “at current computing speeds, a hacker with the time, tools, and motivation to attack using brute force would require a trillion years to break into a session” protected by a 128-bit security certificate. The user probably would have logged out of their e-statements by then. 
  7. 7. E-Statement Adoption – Step 2 – Safer than Paper Statements (continued) • Encourage people to look for the “lock” symbol in their browser. • LKCS e-statements are further protected by an Extended Validation Certificate, so you can tell account holders to look for the Green Bar. • Remind users to protect their account number and password -- that’s the key to e-statement (and home banking) security.
  8. 8. E-Statement Adoption – Step 2 • Additional Benefits: – Faster Delivery than USPS Mail • E-Statement e-mail notifications typically sent within one day for LKCS clients – Available from Anywhere with Internet Access – Instant Access to Account History • At least 6 months and up to 24 months (or longer) for LKCS clients – FREE
  9. 9. E-Statement Adoption - Step 3 • Wow your users. – Deliver a premium user experience. – People know what to expect when they open an envelope. What will they experience online?
  10. 10. Branding
  11. 11. Reformatting
  12. 12. Multiple Document Types • Are you only delivering monthly/quarterly statements electronically? – Daily Notices (insufficient funds, certificate renewals, overdraft protection, etc.) – Credit Card Statements – Mortgage Statements – Tax Forms (1099s, 1098s, 5498s, etc.) • How much more could you save if all of these were provided electronically?
  13. 13. Mobile Users • Over 31% of U.S. internet users ONLY use mobile devices.
  14. 14. Text Messaging • Account holders specify notification preferences.
  15. 15. E-Statement Adoption – Step 4 • Pick the Low Hanging Fruit – Start with Home Banking users – Go after them again and again – Place e-statement ads within home banking – Contact them by e-mail with one-click opt-in • Don’t have current e-mail addresses? ASK FOR THEM at all contact points. – Some LKCS clients have converted large percentages of online banking users to e-statements.
  16. 16. E-Statement Adoption – Step 5 • Promote, Promote, Promote – E-Statements are the last thing on your account holders’ minds – Utilize ALL Media: direct mail, web banner ads, e-mail marketing, online banking banners/links, deposit slips, ATM receipts, lobby signage and so on – Promote E-Statements within Printed Statements – envelope backer ads, statement inserts, statement ads/onserts, etc.
  17. 17. E-Statement Adoption – Step 5 – Raffle drawings DRAMATICALLY improve e-statement registration – triple your sign-up rates by offering a prize (draw from all e-statement users to maintain loyalty) TIP: How to Generate a Random Value in Excel: Enter this into a cell: =RANDBETWEEN(bottom,top)
  18. 18. E-Statement Adoption – Step 5 • Employee/Branch Contests and Incentives • Your front line staff can do the work! Arm them with banners, posters, buttons and opt-in forms. Set up incentives or have branches compete with each other. • Set up a home banking/e-statement demo kiosk. Have an employee greet people, demonstrate e-statements, and sign them up right on site. • ASK! Keep asking people to sign up for e-statements. Explain the benefits.
  19. 19. E-Statement Adoption – Step 5 • New Accounts – Sign account holders up for e-statements when they first open their account! Have them tell you if they don’t want e-statements. – Design some products to minimize/eliminate fees with e-statements and other e-services.
  20. 20. E-Statement Adoption – Step 5 • Buy the Opt-In If Needed – Everybody wants something for their effort…. – LKCS’ clients have found that $5 appears to be a magic figure when it comes to enticing e-statement enrollment – Cash vs. Logoed Product doesn’t seem to matter – Have incentives available at teller and drive-up windows for instant e-statement opt-in rewards.
  21. 21. E-Statement Adoption – Step 5 • A few ideas in the $5 range:
  22. 22. E-Statement Adoption – Step 6 • Charge for Paper – Remember the old saying…you catch more flies with honey than with vinegar. – You won’t make too many friends, but it can work – More work than you think – policies, core system changes, fee reversals, etc.
  23. 23. E-Statement Adoption – Step 7 • Track the Results – Monitor new e-statement enrollments during marketing campaigns. • LKCS includes opt-in dates for easy tracking. – Look for anyone who reverts to printed statements and find out why they switched back. • Remember you have their e-mail address, so you can ask them. – Match back account numbers for any targeted campaigns or special offers.
  24. 24. E-Statement Adoption – Step 7 • TIP: Don’t have the marketing budget? Remind management that each person who signs up saves your institution $0.50 or more per month. • Savings Example: – 2,500 new e-statement users at $.50 per month – Monthly Savings: $1,250.00 – Annual Savings: $15,000.00 How much would your CEO give you to spend on a marketing campaign that generates an ongoing $15,000 annual savings? And that’s only for 2,500 additional people – some LKCS clients have over 60% of account holders on estatements.
  25. 25. E-Statement Marketing • Just because you are saving money with e-statements doesn’t mean you should sacrifice all marketing opportunities. • How are your best account holders going to know about your latest specials and newest products?
  26. 26. On the E-Statement • Banner Ads – Link to web pages or PDFs – Appear for all account holders or selectively
  27. 27. On the E-Statement • Statement Ads/Onserts
  28. 28. Remember Color Doesn’t Cost More
  29. 29. On the Notification • Custom E-Statement E-Mail Notification
  30. 30. On the Way In • Integrated Login
  31. 31. E-Statement Management • How do you check or modify e-statement user settings? • How many account holders signed up for e-statements during your last marketing promotion? • How many total e-statement users do you have? Who are they? Who’s not signed up? • Which e-mail addresses are bouncing back? • How do you view an account holder’s statement? And how difficult does this need to be? How easy can it be?
  32. 32. LKCS Reporting
  33. 33. Questions? • Questions/Comments Sid Haas Vice President of Business Development Direct 815-220-3904 sid.haas@lk-cs.com
  34. 34. Thank You Thank You!

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