Need to exchange that sale item but don't have the receipt?

An ingenious application of the humble transactional email is the electronic retail receipt. How many times have you wanted to exchange a purchase, only to find that the receipt has disappeared into the black hole that is your wallet?

Enter digital retail receipts

Picture yourself at the checkout point in your favourite department store, arms full of January sale items or unwanted Christmas gifts...

Sound crazy?

Not to the big brand stores that are already operating a paperless receipt service. According to the New York Times , you will be offered an electronic receipt when you shop at stores such as Apple, Sears, Kmart, Gap and Banana Republic. And it's not the first time this concept has made headlines. But what's driving this renewed interest in electronic till slips?

For the retailer:

• Going paperless - digital receipts bolster a business's environmental efforts
• Cost reduction - reducing paper and printing costs is a major benefit for margin-sensitive retailers
• Future view - coupled with cellphone payment processes, the digital receipt rounds off a totally mobile, electronic process
• Marketing – perhaps the most attractive benefit is that the retailer now has your email address

For you, the consumer:

• Easy storage – no more wads of paper slips stuck in the zip pocket of your handbag or stuffed into a drawer in your study
• Searchable – no more rifling through said handbag and/or drawer to locate a receipt
• Sendable – bought a gift for a friend who wants to exchange it?
• Easy – send them the digital receipt (make sure there are no embarrassing purchases on the same receipt!)

Of course there are challenges and concerns around queue delays, fraud, data errors and privacy, but none of them compelling enough to offset the obvious benefits. As consumers store more and more of their daily interactions electronically (bills, policies, contracts, payment confirmations, paystubs), it makes perfect sense that retail receipts should follow suit.

And think about the convenience when it comes to filing your tax return. Instead of rifling through the shoebox of till slips, you have a folder in your email application in which you have stored all of your deductible expense receipts. What a relief.

Just remember to back up your email records!

Alison Treadaway
striata.com

Time to stamp out rising postal costs – go paperless!

There has been a great deal written about the decline of the Post Office, while postage costs in the UK rise to a record high. But precious little comment has been made on the impact this is having on British businesses that rely on this service.

Whilst the average punter on the street remains unconcerned and unaware of the costs involved in posting a letter, businesses have seen a 10% increase in cost and a slow, but steady decline in service as indicated in this article by the BBC. A 5 pence increase may have very little impact on a family sending a few letters a month, but to a company sending 50,000 letters a day this amounts to a whopping £800k a year - straight off the bottom line.

Post office wants to revamp at our cost

In today's economic climate, organisations are looking to reduce overheads in order to remain competitive. Yet, the Post Office implements monumental cost increases designed to prop up an institution that has been steadily failing for years. As a forty-something UK resident I can remember when a first class stamp meant guaranteed next day delivery. Indeed, I can also remember what it was like to be proud of our postal service.

Look at the big picture - if the Post Office is getting an extra £2 million a year from your electricity supplier, it won't be long before that increase hits you, the consumer. It makes one think twice about denying your service provider savings of the cost of a stamp by opting to go paperless – suddenly it's not about the supplier benefitting but in fact, you and me - the consumer.

Going paperless is a win-win for business and consumers alike

The eBilling technology that is available today provides consumers with a superior service to the cleft stick and papyrus, as well as to the Royal Mail. Email delivery of bills, statements, insurance documents is faster, more cost effective and provides better marketing opportunities for billers. Businesses can also benefit from paperless processes by reducing their carbon footprint, improving their service and ultimately reducing costs.

The choice is yours - go paperless and save or allow the post office to chew on your bottom line in a desperate attempt for survival.

Eric Darling
striata.com

5 Reasons why PDF will be the saviour of eBilling and eInvoicing

For many years we have written about why PDF for email bills is the ideal process for eBilling and eInvoicing alike. The proof is in the adoption statistics - 'push' email billing solutions produce double or triple the adoption of paperless processes when compared to web portals.

A recent article by renowned eInvoicing commentator Friso de Yong; 7 myths and 7 facts about PDF invoices, ended with this question to readers: "... aren't PDF e-invoices a great starting point for (1) massive adoption of e-invoicing and (2) a transition to more efficient forms of e-invoicing?"

A key point of this argument is that the bulk of eInvoicing (including EIPP) will be done between SME's and that they will most likely utilise PDF as the format and email as the transport layer.

 

Why PDF is the perfect format for eBilling and eInvoicing:

1. PDF is the accepted standard for exchanging documents between different parties

A parallel can quickly be drawn in the eBilling space, (readers should reacquaint themselves with the differences between eInvoicing and eBilling).

PDF is the perfect format for bills, statements and other documents that can be dematerialised and delivered over email. It provides the option of password security (see Striata's view on No registration, shared secret usage) that is far superior to "secured with spit", a process that the Post Office still seems to think is a good idea.

2. PDF provides multiple layers for both presentation and data

PDFs can include a data layer or an embedded data file with relative ease - this way, the recipient can extract the data into their accounting system or open it in their favourite tool for editing and manipulation.

PDF technology also allows the embedded data to be extracted from the PDF, combined with user input and then reposted back to a server for processing. This is the same process that facilitates 'One-Click' bill payment directly from within the email or mobile bill, which has also been proven to speed up payments and reduce debtors days.

3. Delivering PDF documents by email helps drive paperless adoption

eBilling adoption rates have long disappointed the supporters of paperless processes. While enthusiasts have registered at eBilling portals, many refuse to turn off their paper safety net. Reasons for this behaviour range from "my accountant needs it" to "I like to have a copy in my filing system". Delivering a PDF document by email allows it to be forwarded immediately and electronically saved and backed up and yes - it can also be printed, if required. This makes the transition to a paperless environment less daunting.

4. Secure PDF processes can facilitate portal registration

Striata is often approached by companies with online portals that are languishing in the mid teens for user adoption. No matter how much marketing the company has applied; where there is a registration process and 'pull' back to a web portal, customer adoption plateaus well short of the anticipated numbers. We've proven time and time again that using a secure PDF process can facilitate portal registration through trusted links.

We do believe that there is a requirement for an online portal, as some customers like to have a history or archive of their documents in one place. In fact, the rise of the consolidator portal is testament to this requirement.

5. eConsent splash pages can streamline the on-boarding process

PDF documents also lend themselves to accepting and storing electronic consent. This is often a key hurdle in the go-paperless process. Multiple layers in the PDF allow the user to be presented with a 'splash' page that requires their consent before viewing the actual document. In this way, the requesting, gaining and storing of the electronic consent is all handled as part of a seamless customer experience, that drives the high adoption rates e-billing managers around the world are battling to achieve.

 

The answer to the question?

So in answer to Friso's question "... aren't PDF e-invoices a great starting point for (1) massive adoption of e-invoicing and (2) a transition to more efficient forms of e-invoicing?"

I say YES! I agree.

Michael Wright
striata.com

Can Asia lead the eStatement adoption evolution?

I was speaking to a group of banking people from fast-developing countries like Indonesia, India and Pakistan at a conference in Singapore last month. Their views on eBilling and eStatements were very similar - adoption rates for going paperless are still very low and they place the blame on low internet penetration. As a result, some banks are postponing eBilling implementation until there is a clear shift in the market towards paperless initiatives.

Recently however, Asia seems to leapfrog the West when it comes to technology adoption – consider mobile phone penetration compared to land-lines. This got me thinking whether the same will happen with eBilling? It seems very likely that Asia could lead the world in eBilling and eStatement adoption as the internet penetration explodes…

Default new customers to eStatements

The Asian banking market isn’t as saturated as it is in developed countries, so there isn’t the same legacy of paper billing to contend with. The massive growth in new banking customers however, provides a great opportunity for bankers to default them to eStatements.

Psychology also plays a role - Maslow’s Hierarchy of Needs (the premise that people must have their basic needs like food and shelter before they seek other things like luxuries and self-growth) works with modern day services too.

What comes first as a person starts earning enough money to enjoy more of the modern conveniences, such as mobile phones, computers, scooters, bank accounts and credit cards? What is the most accessible trapping of modern life? The answer is clearly internet access and an email address. Email provides vital connectivity and it’s generally free, thanks to Gmail, Hotmail and Yahoo.

Email is the common denominator

The question is: How many people registering for a new bank-account, taking out a credit card or using a post-paid mobile phone service already have an email address? Logically, it’s a huge proportion!

And whilst it’s certainly true that many developing countries have relatively low Internet penetration – e.g. 7% in India and 12% in Indonesia – they also have huge populations, so these percentages translate to 81 million and 30 million connections respectively. With the right strategy in place, banks can drive eBilling adoption to this connected group and realise ROI within a matter of weeks.

Steps to achieving your adoption goal:

In order to capitalize on this opportunity and improve eStatement adoption, follow these simple steps:

• Ask your customers for their email addresses at every touch-point.
• Make ‘email address’ a mandatory field on all application forms.
• Send out an eWelcome Pack – useful numbers, branch locations etc. via email to every new email address/customer you have; include lifecycle messaging in your online strategy.
• Make eStatements the default for all new accounts and use transactional messaging to further reduce paper communications.

The same processes will work in mature markets too, but developing markets have more ‘low-hanging fruit’ - a large number of new bank accounts.

Don’t let low Internet penetration figures delay the drive for eStatements – maximize returns with a clear focus and robust paperless adoption strategy.

And if you’re not sure how to develop that strategy, then give us a call.

Check the small print, you assume all the risk!

Have you ever wondered why customers resist signing up for eBilling and auto pay? Primarily they ask "What's in it for me?"

Assuring customers that it is safe to switch to paperless billing and payments should be a pre-requisite, surely? Apparently not, as I found out this week.

Do you read the small print or Terms & Conditions for every website before signing up to use their online services? You probably should.

When I tried to enroll at Verizon's online portal this week, I read through its Terms & Conditions and was stunned by what was there - especially coming from a $100 billion telecoms giant that (apparently) places so much emphasis on providing the best possible service to its 94 million customers.

Here are the Terms & Conditions that Verizon forces customers to agree to (copied word for word from their website):

"Online Billing
To the extent you utilize Verizon online services, you acknowledge and agree that Verizon makes no guarantee that communications or transactions conducted online will be absolutely secure. You further acknowledge and agree that there may be system failure that may limit your ability to use the online services. You agree to assume all risk and liability arising from your use of Verizon online services, including the risk of breach in the security of the communications or transactions you conduct with Verizon online. You understand and agree that Verizon online services are provided "as is," without warranty of any kind, whether expressed or implied, including, without limitation, the implied warranties of merchantability, fitness for a particular purpose or otherwise."

And it gets better!

Even if you agree to these ridiculous terms, here's what you're up against when deciding whether or not to sign up for Automatic Bill Payment - which is by far their preferred method of receiving / taking payment from you.

Please carefully read the Terms and Conditions for the Automatic Bill Payment (ABP) option:
By enrolling in, using, or paying for Verizon service by ABP, you agree to these terms and conditions:
4.1. I understand and agree that Verizon is not liable for erroneous bill statements or incorrect debits/charges.
4.2. If a billing error occurs, Verizon is responsible for correcting, if and when, I notify Verizon of the error.

Then I got over-charged…

To make matters worse, Verizon did actually make a mistake on my account, to the tune of a $250 over-charge. Having spoken to no less than 4 different call center agents, I was told the only way its "billing system" could resolve the issue, was for me to pay the full amount, including its error and then have Verizon credit my account.

The point of this blog post is not to highlight Verizon's shortcomings, nor the lengths its lawyers have gone to in order to protect the company from lawsuits, but it does raise one incredibly important question….

How difficult are you really making it for customers to go paperless?

Speak to a Striata Adoption Expert today to find out the right way to transition customers from paper mail.

Barrie Arnold
striata.com

When customers just won’t adopt

During the course of my business travels, I have been lucky enough to meet many different people from different cultures and a variety of Telco's, utilities, financial institutions and government departments around Asia. Some already have an eBilling platform in place (often a web-portal) and some are still investigating the option of developing/implementing one. But they all seem to have one thing in common - when I ask them about paper turn-off rates, either current or projected, they all look rather sheepish and start mumbling about "early days still" and "consumer adoption difficulties…"

The goal is to save money!

Let's get this clear from the start – The goal of any eBilling project is to save money! It may be sold as environmentally friendly and in some cases as a convenience tool, but organisations do this to save money. Total eBilling costs are typically 50%-80% lower than traditional mail. In the current, difficult economic climate, you'd assume that a detailed ROI analysis is done before any eBilling project kicks off - cost of project divided by savings on paper/postage.

Yet for in-house developed web-portals, I regularly see paper turn-off targets set at 3% for the first year, and even 5% over 3 years! In other words, a full-blown web-portal with detailed security and firewalls is being developed and implemented, yet 95% of the customer-base won't use it within the first 3 years. Well, there's nothing like setting your sights low…! And just how does that ROI analysis stack up? Lots of development costs today, in return for 3-5% paper-turn off over 3 years. It just doesn't add up.

When I mention that we have clients around the world, both in developed and developing countries, that have achieved 17% paper turn-off in 18 months and 60%+ paper turn-off over 5 years, that sheepish look returns with comments like "But it's different here in our country." Well, the fact is that it isn't different.

Beyond the technology, there needs to be a coherent adoption strategy

These results haven't been achieved due to some psychological propensity to eBilling inherent in certain nations or customer-bases, Striata has achieved these results, because it has 10 years of eBilling experience and has learnt from all the mistakes that in-house project teams are about to make. We understand that beyond the technology of eBilling, there needs to be a coherent adoption strategy across the organisation, supported by analytic tools that identify who is and isn't receiving and reading eBills. Cloud technology means that all this is available with minimal up-front investment and implementation timescales of weeks, not months.

It's about starting with the right ROI in mind

eBilling is a specialist area spanning technology, methodology and consumer psychology. And like any other specialist area, if you don't have the full skill-set in-house, it pays to call in the specialists. I mean, I'm sure you could fix your own car's broken gearbox if you spent enough time studying up on it, but isn't it quicker and ultimately cheaper to send it to a garage?

So the next time you're reviewing your eBilling capabilities go over your ROI calculations again. And ask yourself just what is your target paper turn-off rate for this year? If it isn't into double digits, give me a call…

Keith Russell
Sales Director - Asia Pacific
www.striata.com

Why 82.639% of Internet Bankers will not turn off Paper Statements

I love internet banking, I really do. Outside of email and general internet access it has to be the one application that has truly changed the way we interact with an organization. We actively avoid branches and even ATM usage is a grudge action. With the advent of mobile banking and iPhone ® applications, we now have everything we need, exactly when we need it.













Source Pew Internet 2009©

So if this is the case, then why is it that 75% to 95% of Internet Bankers still receive every paper statement and document that they did before the internet?

The answer is astoundingly straight forward – there is simply no incentive / compelling reason for them not to.

From a Jan 2010 Javelin report: “At least 7 out of 10 consumers receive paper statements – and a significant number are “double-dippers” who receive both paper and electronic statements.”

Every major bank has tried in vain to compel, entice & incentivize their customers to give up paper. Considering that 75% of North Americaninternet users are below the age of 55, and just on 90% of that group have home broadband access, the answer must lie in the customer experience.

Before we talk customer experience, let’s look at what I refer to as the“incentive disconnect”. For the customer, a once-off incentive of $10 may just be enough to get 30% of them to agree to turn off their paper statement. The current average hard cost (printing, envelope, postage) of mailing one paper bank statement is approximately US $0.50. By including marketing costs, a customer would need to be paperless for 24months for the bank to break even. So, financially, this is not a feasible option.

The consumer experience examined:
Today, with Internet banking, consumers can download PDF versions of their statements easily and quickly. This brings us back to our burning question – if this easy option exists, then why do more than 80% of US consumers still receive paper statements?

The answer comes down to 4 reasons:

1. Current convenience: "I don’t have to do anything to get my bank statement"
2. It’s an effort: The consumer has to act in order to turn off the paper. In most cases, the action required is a multi-step website navigation process – find the correct webpage within internet banking, navigate through very intimidating legal language and check multiple boxes (each with its own legal warning of some kind). All this to save the bank some money? Ask yourself, who would actually do this? The answer – only 5% to 10% of extremely tech savvy consumers will.
3. Keeping records: Consumers have been educated to keep their bank statements. Even though banks do offer a multi-year history online, most feel that it’s simpler to just file them (in many instances, unopened) when they arrive.
4. No incentive: There is no real compelling reason why consumers will elect to go paperless. ‘Why should I when I can have the best of both?”

My prediction is that unless financial institutions change their current paperless strategies dramatically, the number of consumers who will opt for electronic statements only, will plateau at less than 20% and even that will take another 3 years of aggressive promotion.

So what will work for the consumer? Logically it has to be a strategy that includes all of the following elements :

• The consumer does not have to do anything to go paperless.


• Going paperless is more convenient than not. The proof – will it take me less or more time to open my electronic statement than the paper one? (If it’s more than 5 seconds, it’s too long.)


• Their statement is delivered to them - they do not have to go and find it and it can be read with just a single click.


• It is delivered in such a way that it can be opened and read both on a computer and mobile device, without any technical knowledge, special software etc.


• It must be more secure than paper delivery and can be saved securely with just one click.

This might sound like an impossible scenario, but today, solutions exist and are very much available. Three of the top ten global banks, have deployed a secure electronic document delivery approach, with evidence of consumer paperless adoption rates exceeding 50%!


In conclusion – until financial institutions adopt secure electronic document delivery , paper statement suppression will remain an elusive goal.

Garin Toren
Chief Operating Officer
www.striata.com