Posted by Bethany Frank on 22 Mar 2016
Technological advances have changed everything from how we prepare food to how we manage finances. Some businesses, however, still rely on billing methods that are fast becoming outdated in a digitally driven world. Below are a few reasons businesses should ditch traditional bill statements and make the switch to electronic bill presentment.
Paper bill statements require businesses to print and mail personal account information to customers. That printed information makes its rounds though a number of postal service departments and employees before arriving in the hands of the right customer. Such lengthy procedures give rise to human error; paper statements can easily get lost or delivered to the wrong recipient. Electronic bill presentment cuts the middle man out of the equation and allows businesses to communicate sensitive account information directly to the customer, thereby reducing the risk of lost statements and mail fraud. Going paperless also makes it easier to maintain consistency, as it enables a business to internally ensure statements are sent at the same time each month without having to rely on a third party. Furthermore, a switch to paperless statements can save customers the stress of maintaining physical records since it is much easier to archive and retrieve electronic statements, as well as more secure.
A Reduced Carbon Footprint
North Americans use the most paper per capita than anyone else; companies in the United States use an average of four million tons of paper annually. Making the switch from traditional statements to electronic statements can help businesses take a step towards greater environmental sustainability. For customers, electronic statements help reduce unwanted clutter and paper waste.
In addition to saving trees, switching to electronic bill statements can save businesses money, time, and other resources. Aside from the paper itself, traditional statements require a hefty and constant supply of printing materials, postage, and effort. Paper statements also require arrangements and regular correspondence with a postal or shipping service. Electronic statements are more cost-effective than paper statements— they can help businesses cut back on recurring monthly expenses and improve bottom lines.
It often takes a whole staff just to print, fold, and mail paper statements month after month. Workflows could span weeks, with little time for other tasks between billing cycles. For some businesses, especially large ones with heavy billing operations, paperless billing could help significantly reduce personnel costs.
Accelerated Operations and Payments
Sending paper statements in the mail is a tedious administrative function that requires plenty of dedicated hours each month. Paper statements require employees to physically print, package, stamp, and address one to every single customer. Paperless billing, on the other hand, streamlines the whole process and gives employees more time to focus on tasks that are pertinent to a business’s core mission.
Electronic statements can accelerate payments from customers in addition to accelerating internal business operations. Much is left up to the customer when paper statements are sent via mail— weeks could go by before the customer ever opens the bill, leaving a lengthy period of time between a business’s request for payment and the actual receipt of funds. Because email is instant and such a regular part of most customers’ daily lives, an electronic statement is likely to be viewed sooner. Customers are also likely to make payments sooner, especially if they are given multiple payment options and empowered to submit payments online.
Sometimes businesses get stuck in their ways, but there are a number of benefits to breaking away from traditional paper statements. Going paperless not only reduces environment impact, but can also help businesses reduce costs, reprioritize workloads, and even improve cash flow by accelerating payments. For customers, electronic statements offer convenience and added layers of security, which could lead to an overall improvement in customer satisfaction. Learn more about electronic bill presentment here.
06 Jun 2017 Blog Referral Partnerships: A Mutually Beneficial Relationship A referral partnership with a technology provider is a cost-effective option for businesses that want to meet their customers’ payment needs.
13 Feb 2017 Blog Infographic: 8 Reasons to Switch to Electronic Payment Processing Billers need to focus on providing a convenient payment experience as consumer demand for digital options increases.