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EBPP: The Time is Now
12.01.2006 (energypulse) It’s no surprise that more and more consumers are purchasing products on the Internet. Toys. Clothing. Music. Even groceries. People are becoming ever more dependent on the Web for information about products and services, so why shouldn’t utility providers provide the same kind of service?
Electronic Bill Presentment and Payment (EBPP) services give customers the choice to view and pay their bills online. This puts billing information in a consumer’s hand when they want it, how they want it, with greater functionality and interactivity than with a traditional printed bill. It’s no secret that EBPP technology can save a company time and money on printing, mailing costs and manual dispute costs, not to mention a faster turnaround. So, shouldn’t utility companies be rushing to offer this service to their customers?
While EBPP services have advanced rapidly in recent years – especially improving upon user interfaces of the earlier networks – an electronic billing system still needs to integrate seamlessly with a traditional paper billing system. Utility companies have already made an investment in the computer hardware and software needed for traditional billing and many feel as if they don’t need to spend additional money and resources on an online billing option.
There’s also the fact that a report by the Pew Internet and American Life Project found that almost one-quarter of adults in the United States have never used the Internet. Throw in the general unwillingness to pay for items online by those that do have Internet access – thanks in part to the recent media focus on identity theft – and it’s no wonder that many utility providers don’t feel that EBPP is a necessity.
However, the benefits of having an electronic presentment technology available far outweigh the negatives. Online transactions help reduce, if not eliminate, printing and mailing costs while allowing customer service representatives to instantly manage customer information online and speed service interactions. Effective customer relationship management in online billing requires tools that help data flow easily from the CIS system, through document creation facilities, and on to the electronic presentation of the bill. This creates less manual intervention, which saves money and minimizes opportunities for errors.
But perhaps the greatest advantage an online billing solution provides is the level of customer satisfaction this technology can generate. EBPP technology gives customers direct control over the timing and amount of the payment. And just as the utility company saves time and money with an EBPP solution, so too do the customers. Online billing eliminates the costs of checks, envelopes and postage, which might seem like only a small savings, but as we all know, those costs can add up. Customers also are able to access billing information at any time of day, eliminating the stress associated with getting a traditional payment to the post office in time to avoid a missed deadline resulting in additional charges. In addition, links to additional information not available on paper bills enables utilities to deliver value-added services, such as use analysis, Frequently Asked Questions and what-if scenario planning.
With the idea of customer communication management – a personalized approach to communication, geared around providing the information customers want – gaining prominence in the marketplace, the atmosphere is ripe for the adoption of new EBPP technologies. However, utilities should take special care when choosing an EBPP vendor. Ideal providers will offer a total billing solution that integrates smoothly with your existing paper billing system and includes e-billing, payment capabilities, document creation and delivery functionality either through their own capabilities or via partnerships. This more personalized approach addresses today’s customers’ specific needs and resources.
A utility company also should look to vendors that offer electronic presentment technology as a seamless component of a broader billing solution, thereby increasing flexibility, improving customer service, providing a faster turnaround and reducing total cost. The time is now for utilities to adopt this technology. Consumers are becoming increasingly Internet savvy and it is time for utilities to offer a billing solution that online customers have come not only to want, but to expect.