Improving the way your business engages customers with their billing statements can significantly influence customer payment behavior. It's no longer just about sending a bill; it's about strategically designing a seamless, digital experience that encourages prompt payments and improves customer satisfaction.
Let’s consider two scenarios. In the first, a customer receives a bill in the mail, writes a check, and drops it off at the post office, hoping it arrives on time. In the second, the customer receives the same bill with a QR code they scan, instantly taking them to a secure online portal where they can make a payment in seconds. The second option is not only more convenient but also more secure and efficient.
This is The Future of Billing—and It’s Happening Now
According to a recent report, “The State of Online Payments”, Mobile devices lead the way, with 65% of consumers using them to settle bills, while 54% have opted for online portals provided by their billers. Banking portals are also popular, with 40% of users relying on them for payments.
Traditional payment methods such as phone calls, mailing checks, or paying in person are becoming less common, with only a quarter of consumers choosing these options. Even industries like healthcare and consumer finance, which historically depended on paper-based billing, are now adopting digital-first approaches.
The Value of Going Digital for Business
Transitioning to digital payments isn't just about convenience for the customer—it also has significant financial benefits for your business.
When you offer digital payment options, you:
Reduce operational costs: Eliminating or minimizing paper statements can cut your billing expenses significantly.
Improve cash flow: By making it easier for customers to pay on time, you can reduce Days Sales Outstanding (DSO) and enhance cash flow.
Increase employee productivity: Automating payment processes reduces the volume of payment-related phone queries, freeing up your customer service team to focus on more strategic tasks.
So, how can you optimize your digital billing strategy to influence customer payment behavior? The key lies in leveraging your billing statement as a communication tool that promotes digital adoption.
Why the Billing Statement Matters
Even in the digital age, traditional billing statements still play an important role. For customers who prefer print, a well-designed statement can be a powerful vehicle for encouraging digital engagement. According to a USPS study, recipients of transactional mail spend an average of 2-3 minutes reviewing it—compared to just 15-20 seconds for email. This provides a unique opportunity to capture their attention and guide them toward digital options.
Here’s how you can use billing statements to influence payment behavior:
1. Promote Digital Payments with Strategic Messaging
Billing statements are more than just invoices; they are prime real estate for driving action. Include clear, compelling calls to action that encourage customers to register for digital billing or pay online. For customers already signed up for digital services, use the space to remind them of the benefits of paying electronically—whether it’s through your customer portal or mobile app.
Customers are more likely to engage with personalized messages, so tailor your messaging based on their past payment behavior. Highlighting convenience, security, and speed can motivate customers to switch to digital payments.
2. Incorporate QR Codes for Seamless Payment
QR codes have become ubiquitous since the pandemic, making them an easy tool to help customers transition from paper to digital. With a quick scan, customers can be directed to your payment portal, eDelivery opt-in page, or even an autopay enrollment form.
According to a study by Statista, In 2022, approximately 89 million smartphone users in the United States scanned a QR code on their mobile devices, up by 26 percent compared to 2020, making it an effective way to bridge the gap between print and digital. Including a QR code on your paper billing statement not only drives digital adoption but also simplifies the payment process for those who may be resistant to change.
3. Educate Customers on the Benefits of Digital Payments
Many customers stick with paper bills simply because they’re unaware of the advantages of going digital.
Use your billing statement to educate them on the benefits of eDelivery and digital payments.
Security: Digital billing comes with advanced encryption and security measures that traditional mail cannot offer.
Sustainability: Reducing paper usage by switching to digital billing saves trees and cuts down on emissions from transportation.
Convenience: Self-service options and autopay significantly reduce the likelihood of late payments, while minimizing the need for customer support.
The Future is Digital: Get Started Today
The transition to digital billing isn’t just a trend; it’s becoming a necessity for businesses that want to stay competitive. By partnering with a Customer Communications Management (CCM) provider like DataOceans, you can seamlessly manage your billing strategy and unlock the full potential of digital payment behavior.
Ready to influence your customer payment behavior and improve your bottom line?
