Forget the device, it’s about the experience
In the highly competitive wireless provider market, customer loyalty remains a significant challenge. Carriers continue to seek new ways to increase customer satisfaction and renewals, primarily by advertising devices, coverage areas and pricing. However, loyalty is often won or lost through day-to-day interactions.
Managing customer experiences in the age of social networks and online reviews has become more challenging. Today’s customers are empowered and their voices are amplified. Whether they are delighted or frustrated, customers can broadcast positive – or destructive – messages to the masses via your very own network and the mobile device you provided. It’s time to look beyond phone selection and discover the factors that truly define the customer experience and increase retention.
Billing and payments are key drivers of customer satisfaction, retention and engagement. In recent years, many industries have begun to view bill presentment and payment collection as more than just an administrative function, leveraging bills and statements to improve customer communications through better design and broader distribution channels. Today, the strategic value of billing and payments continues to grow as consumer technologies enable new presentment and payment options.
J.D. Power discovered that billing and payment factors can account for more than 20% of customer satisfaction scores for various industries. According to WPA Opinion Research, highly satisfied customers contribute 2.6 times more revenue than somewhat satisfied customers and 17 times more revenue than dissatisfied customers. According to a new study from Fiserv, the majority of consumers experience a medium-to-high amount of effort when receiving and paying their bills, indicating that carriers need to make billing and payment features easier for customers to locate and use.
Carriers can employ the following billing and payment strategies and tactics to improve customer satisfaction and retain the customers they worked so hard to secure.
Provide multiple billing and payment channels
More than 15 million households switch their bill payment methods each month, typically to meet a payment due date or to manage the availability of their funds. Clearly choice is important as Fiserv found 43% of consumers said that the availability of multiple billing and payment options has a positive impact on their satisfaction with a biller, and 74% expect multiple billing and payment options today.
Remind, alert and make emergency payments easy
No one intends to pay their bills late. However, 36% have paid a bill after its due date in the last 12 months. Sixty-six million households are interested in bill due alerts to prevent late payments and the associated fees. Automated systems can send these reminders to grow customer loyalty without incurring expensive person-hours.
When a payment is nearly late, consumers want multiple options for making urgent, same-day payments. A significant 74% expect these emergency payment options today. Consumers prefer to make urgent, same-day payments through a website (46%), over the phone (41%), via a financial institution website (30%) or by walking in a payment (29%).
Offer robust mobile payment options
Most carriers offer mobile payment options, but savvy consumers demand an entirely seamless experience among devices. Twenty-seven percent of online households have made a bill payment using an app or mobile optimized browser, an increase of 69% compared to last year. This surge in mobile bill payment makes this payment method a must-have option.
Keep pushing toward e-bill delivery
Wireless carriers have been offering paperless billing for a long time now, and it’s resonating with customers. This is especially true for customers who receive paperless e-bills at their financial institution. Fifty-one percent of consumers said that viewing paperless bills and paying electronically at their bank or credit union site increased their satisfaction with their biller, and 33% said it increases loyalty.
Offer no-password, one-time Web payment options
Twenty-eight percent of consumers prefer a nonregistered payment option. In addition to easing concerns about storing personal information on your site, a guest checkout option speeds payments and alleviates password fatigue. Nonregistered checkout popularity has risen from 7% in 2013, to 28% in 2014. It can also reduce late payments and prevent customers from turning to higher-cost channels.
Fiserv found a fourfold increase in usage of guest checkout options among consumers who paid a bill at a biller’s site. The top reasons for using the popular option include the desire to only pay once (46%), that registering takes too much time (40%) and that the consumer didn’t want another user name and password to manage (34%).
The consumer billing and payment experience remains strongly connected to satisfaction. Consumers expect to receive and pay bills in more ways than ever before, and service providers need to keep up. The stakes are high. Carriers that embrace the growing demand for outstanding billing and payment experiences will be rewarded with customer loyalty.
Eric Leiserson is a senior research analyst at Fiserv. He has authored several white papers and case studies on consumer behavior and attitudes with respect to banking, billing and payment and mobile practices. In addition, he has conducted numerous primary research projects and webinars in the areas of social media, mobile bill-pay usage, consumer segmentation, longitudinal surveys, Web usability and focus groups.
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