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Latest Findings on Utility Mobile Bill Pay Benchmarking and Consumer Trends
Why Mobile Bill Payment is Thriving and How Utilities are Responding
Eric Leiserson, Sr. Research Analyst
3
Why it is an EXTRAORDINARY TIME to be in the Utility Payments Business!
• Payments is where the money is at!
• Presentment is where opportunities are!
• Card payments are challenging!
• Mobile is inevitable and transformative!
4
Mobile’s Hyper Evolution in Utility Payments
2011: “Mobile bill pay is coming!”
2012: “Mobile bill pay is here, now what?!”
2013: “Mobile bill pay is surging, how are utilities responding and what have we learned?”
2014: “Mobile bill pay is thriving, where do you stand?”
5
Mobile Bill Payments: Entering the Mainstream and Getting Promoted
GEICO’s Maxwell the Pig “Pants and Boots” Commercial
Adopting the Mobile First Mindset
• What are consumers doing with mobile and Mobile Bill Payment
• What are utilities doing with Mobile Bill Payment
• What does this mean to you?
8
2014 is a Watershed Year for Consumer Mobile Usage
• 65% of the US Population has a smartphone
• Mobile Accounts for the Majority of internet usage
• One in two Americans turn to digital devices as their primary method of banking
Sources: U.S. Digital Future in Focus 2014, ComScore, Bank of America and The Financial Brand, 2014
9
How Important are People’s Mobile Phones to Them?
Source: Bank of America and The Financial Brand, 2014
Alcohol; 45%
Choco-late; 34%
Shopping; 22%
TV/Movies;
16%
Sex; 13%
Car; 8%
Take people’s phones away, and here’s what they would give up to get it back
Percent of Mobile Bill Payers Grew by 69%; Numerous Reasons Why
6%8%
16%
27%
% of US Online Households using Mobile Bill Pay
2011 2012 2013Pay at last minute
Anytime access
Not near a computer
Convenient when on the go
Saves time
Easy to do
30%
31%
32%
34%
41%
44%
Why?
2014
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
Paying/Receiving Bills via a Smartphone Has a Positive Impact Customer Satisfaction
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
What effect would paying and receiving bills from a smartphone have on your relationship
with a biller that provided that ability?
Bill Pay Reminders Enhance Customer Satisfaction; 71% More Likely to Activate E-bills
What impact would bill pay reminders have on your customer satisfaction?
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
How Utilities Stack Up; Percents of Mobile Bill Payments by Type of Bill
Insurance
Electricity
Cable or satellite
Cell phone
23%
30%
39%
56%
26%
39%
51%
54%
2014
2013
Please indicate which bills you paid using your mobile phone (Among Smartphone Bill Payers)
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
Utility
Volume of Mobile Bill Payment Transactions by Access Channel and Tender Type
Other app9%
Biller app9%
Bank app13%
Text11%
Biller's mobile site29%
Bank's mobile
site29%
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
Other11%
Prepaid Card9%
Debit card24%
Credit card17%
ACH 39%
Mobile Bill Payment Volume by Access Channel
Mobile Bill Payment Volume by Tender Type
About 40% of Tablet Owners Have Visited a Biller’s Site, Mostly to View or Pay a Bill
No59%
Yes41%
Up from 37% last year and 30% the year before Learn more about service
Marketing offers
Learn about the company
Use online self-service
Contact customer service
Shop
Access bill history
Pay a bill
16%
16%
18%
20%
21%
26%
42%
51%
Among Tablet Owners: Have You Visited a Biller’s site
Reasons for visiting a Biller’s site
Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014
18
Key Mobile Stats Among 70 Utilities Surveyed
43% have mobile optimized websites
26% of utilities have mobile bill payment
32% have alerts
24% have apps (iOS and Android)
Top Business Motivators for the Mobile Channel
Do you see the development of the Mobile Device channel providing a means to:
Increase online self-service
Meet customer demand
Increase paperless
Increase E-Payments
Enhance customer service
72%
74%
82%
84%
93%
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
N=70 utilities
17% of Utility Web Visits Come From Mobile Devices; Top Activity is Billing and Payment
Don't Know
30% +
20% - 25%
10% - 15%
Up to 5%
37%
11%
5%
5%
11%
11%
5%
11%
5%
What do your customers usually do?
Customer care
Review account status
Don't Know
View bills & balances
Bill Payments
5%
16%
21%
26%
26%
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
N=70 utilities
What percent of customers come from mobile devices?
Service Updates and Bill Pay are Top Mobile Priorities for Utilities
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
What are your organization's priorities among these Mobile service options?
N=70 utilities
Market services
Recent activity/usage info
Alerts and Notifications
Communications
Customer Service
eBills
Mobile Bill Pay
Service Updates (outages, etc.)
8%
7%
10%
13%
13%
14%
37%
47%
83% Believe A Consistent User Experience Across Interfaces is Important / Very Important
Biggest Drivers for MBPP Adoption Continues to be Customer Service and Cost Savings
What are the primary drivers for your organization's consideration and/or adoption of Mobile Bill Pay and Presentment?
Matching Tablestakes
Reaching out to new customers
Wave of the future
Customer Acceptance/Adoption
Potential increased eBill Adoption
Potential cost savings
Providing better customer service
9%
22%
38%
55%
67%
70%
94%
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
N=70 utilities
More and More Utilities Believe Mobile Will Influence EBPP and Paperless Adoption Over the Years
Do you think mobile will influence the adoption of electronic Bill Pay and paper statement turn-off?
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
2012 2013 2014
17% 16% 12%
67%49%
49%
17%31% 40% Yes, significant
Some, incremental gains
Potentially in the long run
No, only marginal gains
N=70 utilities
Mobile Influence on Adoption of Paperless E-bills; Results
40 Paired year/year comparisons of participating companies’ paperless e-billing rates and deployed MBPP features
eBills Mobile Bill Pay Alerts and Notifications
17% 17%14%
25% 25%21%
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
Compare to average of 3% increase in e-bill penetration for Billers who do not offer MBPP functionality
+47% +47%+50%
N=128 Billers
Top Business Obstacles Utilities Face to Mobile Deployment—Increasing Concern for Security
Too many Devices/ Operating Systems
Benefits are difficult to quantify
Customer Adoption
Complexity of the task
Security Concerns
Conflicting Priorities
IT Resource Challenge
20%
22%
27%
30%
35%
55%
72%
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
What are the top 3 Obstacles to Mobile deployment and adoption?
N=70 utilities
Lessons Learned from Experience
“The impact of the consumerization of these devices with our customer base with the rapid growth and availability of the devices, and the apps that have been developed for them, the expectations from our customers around usability and features has increased tremendously.”
Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014
(Utility, 1MM+)
27
Taking Action
• Adopt a “Mobile First Mindshift”
• Employ an Omni-Channel Mobile Billing and Payment Strategy
• Track online visits from mobile devices and monitor changing technologies and preferences
• Proactively collaborate with other teams and market experts
Embrace this Extraordinary Time in the Utility Payments Business!
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