As we continue our Reduced Cost to Serve series, it’s time to discuss the closest touchpoint between you and your customers: the payment experience.
The payment experience is where your customers physically interact with your payment offerings—ideally through digital means—to view and pay their bills, and manage their accounts. Not only can this experience raise customer satisfaction and ensure that your customers pay on time, it is also a crucial element in saving thousands per month in payment processing costs.
That is why the user experience and user interface (UI) are considered the third pillar of our five pillars of superior savings support.
The Cost of Outdated, Limited Payment Channels
Average processing cost of paper-based payment
It’s ironic to think of collecting payments as a drain on revenue but for organizations offering outdated and limited payment methods and channels, it’s exactly that. Consider that the cost of processing paper-based payments can range from $2-4 per check. This does not include the possibility of human error in depositing checks, or even ensuring that the checks received are backed by fully funded accounts.
Agent-assisted payments are another potential revenue leak. Customer service representatives are an invaluable resource when it comes to cementing long-lasting customer relationships, but time spent processing payments can prove costly—especially as it prevents them from addressing pressing concerns such as outages, service requests, or account questions. This is in addition to the cost of fully staffing call centers and branch offices, which can be hundreds of thousands depending on the size of your organization.
How the User Experience Drives Cost Savings
First and foremost, digital, self-serve payment options cost a fraction of paper-based or agent-assisted payments. A customer paying through AutoPay costs almost nothing to serve and offers the benefit of monthly on-time payments. But that’s the ideal. Nearly 60% of Americans do not use AutoPay due to financial concerns. This is a group that is unlikely to convert, necessitating alternative payment options.
The best-case scenario is one where your user experience is loaded with payment options that include digital wallets such as PayPal, Venmo, Apple Pay, and Google Pay, as well as major credit and debit cards. This should also include convenient cash options that do not rely on customers having to visit your offices, such as cash payments being accepted at local retail stores.
But having an abundance of payment methods must be complemented by having easy-to-use digital self-serve payment channels. Web and mobile channels are fairly obvious options, but what about chatbots or interactive voice response (IVR)? Can your customers make their payments anywhere, at any time, without having to contact customer service? If the answer is no, your payment platform is costing you in terms of money, satisfaction, and on-time payments.
Your User Interface Matters
Offering a wide range of payment methods and channels is table stakes to optimize your savings, but it must be supported by a modern and intuitive UI. Imagine that you’re a customer who likes to pay online using their credit card each month. One day you’re out of the house and realize you need to make that payment by phone. If the mobile experience necessitates more clicks or doesn’t offer saved payment information, there’s a good chance you’ll put off making your payment until you’re at home—potentially inviting the risk of forgetting to make the payment altogether.
Whether it’s an IVR with clear options, a chatbot that can provide relevant account information, or a text with a payment link, the opportunities to simplify the bill payment experience are boundless. Steve Jobs once said, “Simple can be harder than complex. You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” The good news is that Paymentus has already overcome the complexity, leaving your organization with a simplified UI across any and every payment channel.
Cost Savings Are Just the Start
What can modernized UE and UI mean for your organization? For one leading utility, it led to a 97% uplift in AutoPay usage and a 106% increase in online payments—easily the most cost effective payment options available today. With 1.1 million customers, the savings experienced by transitioning customers from agent-assisted channel to self-serve options has been immense.
The immediate uplift in these numbers should spell out one other thing: the utility gave its customers something they absolutely wanted. It’s safe to say that their satisfaction grew thanks to this expansion, likely driving more on-time payments and the prioritization of their bills.
Is your user experience draining your revenue? Let’s talk! Our billing and payment experts can share a demo to show how your organization can expand its payment methods and channels, and drive the self-serve options vital to savings.
