It's a well-known fact: customers will rarely overlook an invoice. They may feign ignorance, but generally they open them immediately.
For the last few years, marketers have endeavoured to optimise this regular communication with customers by using the billing process as a vehicle for CRM. Special offers, marketing materials and corporate announcements have since crept into our bank statements, retail invoices and, eventually, into the dustbin. However, Electronic Bill Presentation and Payment (EBPP) is set to make these largely unreliable mailings a thing of the past.
"The driving force behind EBPP is the opportunity for CRM on an unprecedented scale," says Heath Turner, Sales and Marketing Manager of The E-mail Corporation in Johannesburg. "It is all about using the content of the billing invoice to create a customer conversation and an ongoing relationship that builds loyalty."
For many suppliers, an invoice or statement is the most regular means of communication with customers, and in some cases, it can be the only form of communication. With EBPP, companies can leverage the investment that is already being made in sending out invoices, thereby maximising each customer interaction.
"For example, we all receive flyers in the post along with our bank statements," says Turner, "but how many of us actually read them? They are mostly general flyers, and are not targeted to our specific interests and needs."
EBPP, on the other hand, allows for profiled marketing messages to be included in each mail.
"My bank, for example, can see that I have financed my car through them, but that I have not yet taken out a home loan. They can then include a marketing message along with my statement, informing me of the low interest rates available on home loans," says Turner. "Billing is thus transformed into a dynamic, personalised and strategic point of customer contact."
The introduction of EBPP also results in a reduction in telephonic-based customer service due to the self-service nature of the online environment. It reduces customer care costs by providing anytime, anywhere access to electronic account management functionality.
Additional benefits include: a reduction in debtors days as a result of a significantly faster bill payment cycle; a decrease in expenses related to payment errors; and the competitive advantage companies gain from enhancing customer loyalty and satisfaction.
"EBPP can be leveraged as a powerful vehicle for marketing," says Turner. "Unburdened by the costs and lead times of ground billing, EBPP allows marketers to launch campaigns quickly and change course just as fast if needed. Companies cannot afford to overlook EBPP as a highly progressive and effective CRM tool."
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