If you are considering moving your business towards electronic billing, check out the industry specific e-billing options on the market, talk to an e-billing specialist and get the ball rolling.
By Dan Paradis
Let’s get right to the point. We all want to save on the operational costs of our businesses. We search high and low for places to save. We negotiate with vendors, pay invoices early, cancel unused services, and ensure our trucks and equipment are running efficiently. When times are tough, many business owners go as far as to cut down on marketing, look at payroll or outsource job functions. In a market space as competitive as the waste handling industry, we need to find every advantage. So why are some businesses still paying substantial dollars to send paper bills to their customers, when technology has existed for years to wipe this cost off the books with electronic billing? The answer may be more simple than it seems.
In this article, I will look at the reasons the majority of businesses have made the switch to electronic billing (e-billing), and the reasons some are still reluctant to make the jump. I will address both the benefits and the challenges associated with making the switch, in an effort to help in your decision-making process. Whether you have been taking advantage of e-billing for years, or are just now considering making the move, there is something here for you.
Cost
The number one reason most businesses have made the switch to e-billing is cost. Plain and simple, e-billing costs far less than printing and mailing bills. In fact, in my research for this article, every business owner I interviewed but one gave cost as their top reason for moving to e-billing. The one business owner who gave a different answer gave concern for the environment as their top reason (I will get back to this). It should not go unsaid that he followed this reason closely with, “and it costs less”. For certain, there is a substantial cost associated with physical paper billing. Labor costs for every step of the process, the cost of paper card stock, print costs and mailing costs are all major factors. So, the question is, why are some companies still sending paper bills? For many business owners who have been around since before the technology existed, paper billing is simply the way billing was done. Many have not made the switch because their previous system of paper billing is working for them. You know the saying, “If it ain’t broke….” Surely, paper billing has been a crucial touchpoint in business to consumer relationships for decades and is still commonplace in many industries. Paper billing statements have provided easy-to-view payment reminders, could be filed for record keeping, and could be used as a marketing touchpoint for communication between businesses and their customers.
However, electronic billing can do all of this and more—for a fraction of the cost. Let’s look at the benefits of electronic billing for both businesses and their customers:
E-billing reduces costs. Period. E-billing saves your company money, time and resources. For many waste handling businesses, the work of paper billing fulfillment can take one to multiple employees with little time for anything else. Paper billing requires a supply of paper, printing materials, postage and labor. Paper billing also requires a relationship with a postal or shipping company, a middle player that we can easily cut from the scenario. For most businesses, paperless billing will reduce operational costs significantly.
Operational efficiency. Electronic (paperless) billing streamlines the administrative processes required to collect receivables, thus freeing employees to focus on other tasks. Far too much of the receivables timeline falls in the lap (or in the trash) of the customer when sending paper bills through the mail. Customers may not notice your bill in a pile of mail or take a long time to open it. This can create a long period of time between the sending of the bill and the actual receipt of the payment. In 2020, e-mail is a large part of all our daily lives, and it is instantaneous. An electronic bill e-mailed to a customer is more likely to be viewed in a timely manner and paid quickly through a variety of payment options. E-billing can thus improve cash flow by speeding payments into your accounts.
Reduction in waste. It is simple, less paper waste. Even with the advances in technology of the last 20 years, paper waste is still a growing problem. Switching to e-billing can help your business lower its carbon footprint, and help your customers clear away the unwanted clutter of paper bills in their homes.
Security. E-billing statements enable businesses to send information directly to their end customer, instead of their paper bill being passed through the hands of a great number of people. This reduces the risk of lost bills, bills ending up in the wrong place or in the wrong hands. Additionally, customers are able to log into their accounts with a unique username and password and view not only the details of their current bill, but also in many cases their entire payment history.
Customer experience. I hate opening paper bills; I hate seeing them in the mailbox. When I ask my seven-year-old daughter to get the mail, she says to me, “It’s probably just bills Dad.” She’s right. Why add to that feeling? At this point, most of us are used to paying for services online. There is a feeling of dread or at least annoyance that comes over most Americans when we get bills in the mail. That feeling generally does not carry over to paying them online. As a matter of fact, many feel a sense of accomplishment logging into their own account and knowing that their bill is paid immediately. Customers even have the option to sign up for autopay. We now have the ability to provide a truly worry-free scenario. Providing convenient payment options is a key to long-term customer satisfaction.
How to Make the Switch
Now that we have discussed the benefits of switching to electronic billing, let’s talk about the best practice for executing the switch. In interviews of both end customers and my own billing staff, the most common stress point identified was the switchover. For starters, making changes to any major business operation can be scary. So, make a plan of attack to ensure that this is a smooth transition to electronic billing. Paperless billing is going to save you money, but only if you can sell it to your customers. Think of e-billing as a product:
As a business, you need to convince your customers that e-billing is right for them. Remember that you do not have to make this transition all at once. Consider incorporating electronic billing in stages. Not all of your customers will be convinced right away. It will be up to you to communicate the end user benefits to your customers. Try to communicate these frequently and through as many channels as possible. Send postcards or enveloped letters with a personal touch if you can. Put inserts into your paper bills. Keep the message simple. Tell your customers that you are now offering paperless billing and tell them why. Most importantly, tell your customers why electronic billing will benefit them.
Run a marketing campaign. It will likely take more than one shot to convince a customer that e-billing is right for them. Send multiple notifications. Explain the benefits we discussed above.
Give an incentive to switchover. Get creative! offer a discount on a billing cycle to switch, tell customers how much waste they can save in a year on their own just by switching. In short, give them a good reason to switch.
Back to that customer experience idea. Choose a software that is easy for your customers to use and navigate. Read software reviews. Partner with industry specific bill pay software. Partnering with a company who understands your business and is there to support you and your customers will make an enormous difference in the entire experience. Inform your customers. Include step-by-step instructions on how to log in and pay their bill.
Get Started
The benefits of making the switch to e-billing are evident and will have an immediate impact on both your business and your customers. Making the jump to e-billing does require some groundwork but does not have to happen overnight. If you are considering moving your business toward electronic billing, I encourage you to check out the industry specific e-billing options on the market, talk to an e-billing specialist and get the ball rolling. | WA
Dan Paradis is a Sales and Marketing Manager with TrashFlow (Waterbury Center, VT), a leader in waste handling software for more than 30 years, focusing on saving their customers time and money. Dan can be reached at (800) 855-1212 or e-mail [email protected].