As the world becomes increasingly digital, it’s important for businesses to keep up with the latest trends and technologies. One area where this is particularly important is in bill payment. Nearly nine in ten Americans are now using some form of digital payments, according to McKinsey’s 2022 Digital Payments Consumer Survey. Service providers, such as utility companies, insurance providers, and telecommunications companies, can benefit greatly from digitalizing their bill payment process.
Let’s explore five reasons why service providers should digitalize their bill payment and some of the benefits you can expect to see.
Convenience for customers
One of the primary reasons service providers should digitalize their bill payment process is to provide convenience to their customers. In fact, 84% of consumers cite convenience as the leading reason for using their preferred payment method. By offering digital payment options, such as online or mobile payment, customers can easily and quickly pay their bills from anywhere at any time. This eliminates the need for customers to physically go to a payment center or mail in a check, saving them time and effort. In addition, digital payment options also provide customers with the ability to set up automatic payments, which can ensure that bills are paid on time every month.
Another benefit of digitalizing the bill payment process is the potential upside of eliminating common operating expenses such as the printing of paper bills that would no longer be required once digitized. Additionally, digitizing the experience enables your customers to view and manage their account via digital channels, which could in turn, reduce the number of calls related to billing inquiries and/or payment challenges. Instead, customer service representatives are freed up to manage more complex and higher-touch consumer touchpoints that can drive incremental value and relationship-building opportunities.
Digitizing bill payment can also increase efficiency for service providers. In addition to allowing the accounts receivable team to reduce time spent manually processing payments, digital options speed up processing time and reduce the number of errors when compared to manual processes. Finally, digital payment options can extend further across your service teams as you can look to automate other components of the customer journey as well including account updates, offers and bill reminders.
Digital payment options can also improve security for service providers and their customers. Paper bills and checks can be lost, stolen, or intercepted, which can put sensitive customer information at risk. In fact, 63% of consumers believe digital payments are the most secure as opposed to other forms of payments, including money order, cash or check. Digital payment options leverage other security measures, like encryption, to protect customer information and ensure that payments are secure.
Finally, digitizing bill payment can provide service providers with a competitive advantage. As more businesses move towards digital payment options, service providers that offer digital payment options can stand out in the market. Customers are increasingly looking for businesses that offer digital payment options and may choose service providers that offer these options over those that do not.
While you may be in the early stages of your digital transformation, the upside for service providers to digitalize the bill payment process is vast. It can provide a range of benefits, including enhanced convenience for customers, decreased operating expenses, increased efficiency, improved security, and a competitive edge. As consumers turn to digital channels, having digital options to offer to current and prospective customers will help to improve the experience you provide today and in the future.
Download our 2022 consumer report, The Great Shift in Billpayer Behavior, to discover more about what’s driving consumer behaviors. Find out what support service providers can offer customers to overcome the impact of exhaustion and uncertainty, and to engage with them more effectively.