Secure Email Billing Dramatically Improving Your Customer Interaction Experience Presented by : Mike Wright Chief Executive Officer
Timing: 1 pm: Session 1: Research About Striata Example 3 pm: Break 3:15am: Session 2 ebilling Value Proposition Driving Adoption CPS Energy Case Study 5 pm: Break 5:15am: Session 3 Demo s Adoption Techniques Additional Considerations 7 pm Conclusion
Real Timing: 1 pm: Session 1: Research About Striata Example 2 pm: Break 2:15am: Session 2 ebilling Value Proposition Driving Adoption CPS Energy Case Study 3 pm: Break 3:15am: Session 3 Demo s Adoption Techniques Additional Considerations 4 pm Conclusion
Research (shows people want email bills)
2003 TowerGroup Report
2005 Forrester Research Where consumers want to view their Statements and Bills Bank aggregation 6% Biller website 16% Other 2% Email 76% Cathy Graeber Forrester Every time we ve asked consumers this question Where do you want to receive your bills? only 6% of consumers pick the bank. And over 75% say they d prefer email delivery. Source: Bank Technology News
2006 Chartwell Guide to Bill Presentment and Payment " Perhaps no other billing product shows as much promise as email based bill presentment and payment. Though still in its infancy, the technology promises to give customers the convenience of a bill delivered to them (to the email in box rather than the mailbox) with the efficiency of Internet bill payment through secure email delivery."
Email in the USA Over 75% of US Adults are now online The proportion of adults who are now online at home has risen to 70% Average hours per week = 9 172 million people (May 2006)
Striata Overview Leading ebilling company
South African Client References
South African Client References
Success Stories Standard Bank converted over 600,000 documents per month to email MultiChoice already at 40% penetration of their statement recipients used for price increase letters and suspension notifications as well CPS Energy Consolidated Residential and Business Whitby Hydro 10% adoption in month 1 Vodacom 300,000 documents in 18 months Cell C signing up thousands per week Striata has the knowledge and expertise to drive user adoption
Why they bought from us Were spending lots of money on postage In some cases they d built an online version They weren t getting the adoption they thought they would They started spending increasing amounts on marketing Their ROI on current projects became meaningless They needed a demonstrable short term win They had a small % of their customers email addresses We promised an ROI and adoption with a money back guarantee
What we do
Utility Demo Double click on the secure HTML attachment to view the ebill Email is digitally signed to authenticate the sender Marketing Opportunity CAN SPAM information
Utility Demo Customized Header Enter Zip Code
Utility Demo Link to online copy of back page of bill Billing information Payment from within the email just 1 click required (ACH, Credit Card and Debit Card)
Utility Demo
Utility Demo Payment Confirmation Marketing Opportunity
Session 2
ebilling Value Proposition
Electronic Messaging Goals The goals of any outbound or inbound Electronic Communication project are: 1. Proactive communication 2. Instant delivery and / or receipt 3. Reduced cost (70% to 90%) 4. Improved process efficiencies 5. Reduced manual intervention 6. Improved marketing capabilities 7. Automated data capturing 8. Improved cash flow / Reduced DSO 9. Increased customer self service 10. Improved customer satisfaction
PUSH & PULL Complimentary Approaches PUSH Secure email No upfront registration required Low acquisition cost Delivery No website visit needed Known shared secret One click to open Document familiarity One click to pay Remains encrypted Personalized marketing High paper turn off Document consolidation Links to additional online self service if required PULL Secure Website Marketing required High acquisition cost Change in behavior Fast Internet speed Upfront registration Username & password Website login Publicly accessible Multi page process View not familiar Downloaded doc not secure Very small paper turn off Phishing potential Plateau'd adoption
Why DELIVER (PUSH) secure email documents Where does your customer process their information today? Their INBOX This is where you should deliver ALL your customer communication Why is it the most positive customer experience? 1. The customer does not have to DO anything 2. The information is DELIVERED (no linking to a website) 3. It takes just ONE CLICK to open and view the content 4. The information in the encrypted email is: 100% PERSONALIZED is viewable OFFLINE MORE SECURE than paper or online 5. The customer has multiple options: File, Save, Print, Forward, Pay (if applicable)
What ADDED VALUE can be provided? COST SAVINGS Significant paper cost savings Fewer customer service calls Cheaper, more effective marketing PAYMENT: NO pre registration Pre populated ONE CLICK payment convenience More SECURE than website submission INSTANT form submission: Personalised submission QUICK no website pages to load Intelligent response routing EMAIL REPLIES: Automated responses Intelligent routing, storage, escalation & reporting More COST EFFECTIVE than incoming calls
Driving Adoption
ebilling Goals & Challenges Goals Paper turn off Instant delivery Reduced DSO Personalized marketing Recipient visibility Improved customer satisfaction Challenges Registration Paper turn off Website usage Call Centre calls Scheduled payments Difficult to personalize marketing
Billers have struggled to drive ADOPTION Why are PULL ebilling Adoption rates so low? Adoption is the victim of customer inertia Customers must visit a website to register They must choose & remember a username / password Should have high speed access 8 to 12 clicks! Lack of familiarity Can only download an unencrypted copy of bill Open to Phishing Scams
The FUNDAMENTALS Email addresses = ADOPTION NO registration NO marketing costs ONE click Presentment DELIVERY ONE click Payment All mail clients All computers All connection types Pay as you send Existing file output
Shifting the Adoption Paradigm Secure PUSH Presentment & Payment strategies to drive significant customer adoption: 1. Remove the need for the customer to register 2. Deliver bills directly into the customer s inbox 3. Enable one click payment without visiting a website 4. Collect email addresses at every customer touch point 5. New customers ~ never send paper at all 6. Existing customers ~ encourage paper truncation 7. Personalize all aspects of the bill & associated marketing 8. Leverage direct customer self service functionality
The SOLUTION No customer registration No choosing & remembering usernames & passwords No fast internet speed required ONE click to open Looks exactly like the paper bill ONE click to pay PERSONALIZED marketing Automated paper turn off Added SECURITY Offline viewing Call sorting Graphing
The Opportunities for UTILITIES Secure Email Bill Presentment & Payment Residential bills Business consolidated bills (data file) Striata BillPay Bill stuffers Regulatory information Collection notices with payment Debit Order / Autopay applications About to go past due reminders Electronic marketing Outage notifications
What does the Customer want? Delivery! Electronic copy of invoices in secure format Minimum number of clicks Summary, graphing & sorting functionality Consolidation and data upload format Dispute functionality Simple & immediate payment process Ability to log a service call Everything on a silver platter (customers don t like to think)
CASE STUDY Commercial / Business Accounts Secure E mail Bill Presentment & Payment
Intro to CPS Energy Who are they? San Antonio, Texas Nation s largest municipally owned electric and natural gas utility 600,000+ electric customers 300,000+ natural gas customers
Why Secure E mail EBPP? No registration Digital replica of the paper bill/s No choosing & remembering username & passwords No website visit Securely encrypted attachment Imbedded, downloadable data file Personalizable marketing opportunities = Simple, Secure, Convenient ebilling
Project Details Phase 1 Business / Commercial customers Securely encrypted, navigable PDF: Document type acceptance / known format Inbox penetration 128 bit encryption Perfect printing Multi bills w/summary Imbedded, up loadable data file Striata BillPay payment from within the PDF Bill stuffers
Payment No pre registration, One click, Directly from within the email bill Access the API/Batch interface for real time validation, processing and confirmation Pop up & email confirmation w/ marketing opportunities Daily AR automated file and settlement Remember payment details for future use Support for ACH, credit or debit card Online reporting, research, and payment management tool Third Party payment consolidation Web based tool for CSR payment initiation
Introductory E mail
E mail Body
Shared Secret
Secure PDF Pages
The Actual Bills
Results to date Go live July 2006 Very few queries Good acceptance No delivery issues Account managers signing up business customers Over 2 000 business accounts migrating per month = Happy customers
Future Phases In e mail customer surveys Aggressive paper turn off Residential billing Delinquent accounts Remember your payment information Enhanced electronic bill stuffers Autopay applications Credit & debit cards
Session 3
Demo s
Demos 1. Secure PDF B2C focus Adobe Reader only Navigable (pages) Striata BillPay Datafile 128 RC4 encryption 2. Encrypted package B2C & B2B focus Striata Reader (58kb) Highly compressed Navigable (Like a website) Sorting Datafile 168 bit 3DES or 256 bit AES
Adoption Techniques
Gathering your Customers Email Addresses Proven methodologies No hard cost Year 1: 25% Year 2: 25% Year 3: 15% 3 Customer Groups: Existing customers have email addresses Existing customers do not have email addresses New customers All touch points: walk in, contact centre, paper bill, IVR, account managers, partners, website. Option: Outsourced email database management Automated introductory email
Turning off the Paper Bill One of the primary goals of EBPP Digital replica of the paper bill Familiarity is the key Opt in vs. Opt out options Its much easier than you think
Opt in vs. Opt out Once you have auditable confirmation that the secure email bill is being opened and used, you have two options: Opt in: Ask the customer if you can turn off their paper. This can be done in the body of the email bill or in a separate email. A button is embedded in the email so that turning off the paper bill is just one easy click. This can also be incentivized through discounting, sweepstakes or a 'save a tree' campaign. For this option you can expect a paper turn off rate of 5% to 15%. Opt out: Turn off the paper bill automatically after a certain period of time. Give the customer the option to turn it back on should they so choose. Our experience has shown that at most 10% of customer will opt to turn their paper bill back on, giving you an effective paper turn off rate of over 90%. Whitby Hydro project paper suppression of over 90%. It is important to note that when surveyed, customer acceptance of the two options above were identical, the difference for you the biller is however massive.
Additional Considerations
Payment NO pre registration Directly from within the email bill Remember payment details Auto debit application One click Credit or debit card Instant and email confirmation Web confirmation Daily AR automated file Multiple marketing opportunities
Deliverability Essential to any e project Know the result BEFORE you send Beware: ISP blocking Email client handling (Junk mail) Spam filters Content filters Domain blacklisting Image blocking New email clients (Outlook 2007) Future trends Complex & ever changing
Deliverability Methods or improving deliverability Recipients Database Opt in lists Clean database Authentication and accreditation Digital signatures Sender Authentication (SPF, Sender ID, Domain Keys, DKIM) Greylisting & tarpitting techniques Accreditation (Bonded Sender, Habeas Mark, ) Blacklists GoodMail +USPS EPM Content scanning Correctly formatted emails ECT Act / CAN Spam compliance / local regulatory compliance Recipients Whitelisting at mailbox level There is not one standard implementation to increase deliverability because each server has different spam prevention rules. A combination of all the methods has the best results.
Deliverability
Deliverability
Deliverability
Deliverability
Why a Secure email Bill is Unphishable Push and not Pull Multiple layers of personalization Digital Signature & EPM Partial account number data Offline authentication Offline viewing & navigation No publicly accessible location No website entry Actual bill / statement content No funds transfer capability / other bill payment
Personalized Marketing Informative Up sell / Cross sell Pre populated offers with submission Options: Existing stuffers Attachments in bill messages New real estate Payment confirmation page & email Message store Business if & then rule engine Web interface for material management Walk throughs No cost
Regulatory Requirements South Africa Tax Invoices SARS requirements 128 bit encryption Archiving 5 years ECT Act permission marketing Data protection USA Can Spam act Privacy laws European Union Data privacy SEPA Financial payments in Europe
Conclusion
What is the VALUE? COST SAVINGS Significant paper cost savings Fewer customer service calls Cheaper, more effective marketing PAYMENT: NO pre registration Pre populated ONE CLICK payment convenience More SECURE than website submission INSTANT form submission: Personalized submission QUICK no website pages to load Intelligent response routing EMAIL REPLIES: Automated responses Intelligent routing, storage, escalation & reporting More COST EFFECTIVE than incoming calls
The BENEFITS are dramatic The customer experience is TRULY improved: DELIVERY is same day RECEIPT is same day 75% 85% are read within 24 hours DELIVERY COSTS are cut by 65% to 85% PAYMENT is up to 30% QUICKER (Improved DSO) RESPONSES can be taken instantly, collated and routed effectively Marketing messages are PERSONALIZABLE at NO COST The customer ONLY receives RELEVANT offers Marketing REAL ESTATE is EFFECTIVE There is NO LIMIT to how often the offers can be changed TOTAL PERSONIZATION is fully automated Marketing messages are delivered at the time of your choosing Responses are accurately tracked & reported
The only things you need to remember Email works No registration opt out Gather email addresses at every touch point JUST DO IT
Q & A Thank you for your time today Mike Wright Tel: +27 11 530 9600 Mike.Wright@striata.com www.striata.com