The Game of Billing & Payments “Would You Rather”
By Samantha Sassorossi
Marketing Data Analyst
The term “data analyst” is a very specific way of saying art and science. The science of the numbers is only made powerful through the artful interpretation of what they mean and how they can be applied for future use.
As everyone knows, “art” is far from black and white. In the world of billing and payments, there are foundational elements that can deliver 95% of the answer to an organization’s goals or challenges. It’s that last 5% that lives in the gray area of interpretation, and is so often driven by a strategic business decision or customer expectation. This is where a greater understanding of the various paths one can take can inform a seemingly binary choice between two options—hence our game of Would You Rather.
Recently, I had the pleasure of presenting on this topic and leading a live, interactive game of Would You Rather with several of our clients. There were no wrong answers, only data-driven key considerations that all organizations must take into account when considering their billing and payment priorities.
What Is the Data Telling Us About Today’s Bill Pay Experience?
To understand where we want to go, we must first assess where we currently are as an industry. An upcoming report from Paymentus and PYMNTS Intelligence highlights a few takeaways to inform our discussions:
Fact: More than half of all consumers now prefer paying bills via your app or website over any other channel.
This is a positive shift toward self-service that reduces operational burdens and increases payment speed—but more work is to be done.
Fact: Boomers are the most loyal and stable customer base, while Gen Z and Millennials are mobile-first and expectant of an Amazon-like experience.
The consumer base with the longest bill-paying road ahead of it is the most expectant one that you will serve.
Fact: Cost wins the customer but the billing experience is often the largest determinant in whether they remain loyal or churn.
More customer choice means more customer power. If the experience falls short, a majority of consumers will simply move onto the next service provider (or withhold payments completely).
These are just three facts within the larger report, but they take into account some of the most important factors for which service providers must solve:
- Offering modern payment channels and methods
- Focusing on meeting the expectations of a younger demographic or cementing the behaviors of a more anchored customer base
- Building an experience that matches the initial expectations that were set when a customer was won
With that in mind, let’s play!
Would You Rather…Expand Capabilities or Increase Digital Adoption?
More payment methods or more users—that is the question. Let’s look at each from a scientific perspective:
Goal: Capturing the 1 in 4 consumers who say their preferred payment method or channel is not currently available.
Solution: Integrate and add modern channels such as Apple Pay®, Google PayTM, PayPal, and Venmo; introduce 24/7 interactive voice response; offer in-store cash payments at Walmart, CVS, Walgreens, and other leading retailers.
Impact: Solidify the revenue from the 25% of consumers whose needs are currently being unmet, while reducing checkout friction for younger consumers.
Goal: Maximize your current offerings to drive the usage of more cost-efficient payment methods, particularly AutoPay.
Solution: Develop targeted marketing campaigns to drive the awareness and usage of your preferred payment methods.
Impact: Reduce costs to serve while cementing steady monthly cash flow for your organization.
As you can expect, the answers to this question were mixed. Some felt that expanding their capabilities would naturally increase adoption due to the optionality. Others felt that it was essential to maximize the current setup before introducing change. The easiest answer depends on your current setup. If your payment mix is inefficient to the point of impacting your bottom line, increasing digital adoption should be step one. Paymentus even offers a strategic marketing team for that purpose, at no cost to clients.
Would You Rather…Acquire New Digital Users Or Target Existing Ones?
Convert cash- or paper-based payers into digital, or push digital users into even friendlier channels? It’s a tougher choice than it seems.
Goal: Reduce inefficiencies by driving cash and check-paying customers into adopting digital methods, particularly among older bill payers who may be less familiar with digital means of payment.
Solution: Promote the convenience and efficiency of digital payments.
Impact: Reduce costs, increase security, gain greater intelligence, and eliminate manual processes associated with cash and checks.
Goal: Push active digital users into more premium and cost-effective billing and payment options including AutoPay and paperless eBilling.
Solution: Develop digital marketing campaigns to drive the benefits of AutoPay and eBilling, especially through channels that speak to digital natives such as social media.
Impact: Lock in predictable revenue and billing costs, while reducing the possibility of late payments.
This is tougher than it seems on the surface. While there’s no question that a digital payment is more desirable than a manual payment, an automated payment is the gold standard. There are many reasons a manual payer may be beholden to this payment type. Digital users, however, are already familiar with the system and its benefits. Asking them to move from a one-time payment to AutoPay is more of a one-step move, whereas a manual payer must first change their habits completely.
For this reason, many participants selected path B as the most viable option in the near-term. However, maximizing your digital usage as a whole is a worthwhile goal for any organization. By definition, an AutoPay user is a digital user. If you want to drive AutoPay adoption, you’re going to need to convert customers in some manner; it’s just a matter of effort level.
Success Starts With a Goal
There’s an old marketing adage that says, “If you’re speaking to everyone, you’re speaking to no one.” Similarly, if you’re trying to accomplish everything, you’ll likely accomplish very little. It’s easy to look at each path and want to do it all. That’s neither art nor science—it’s a recipe for middling results.
The advice I shared with the group is to pick a path and commit. That starts with a firm understanding of your data and what it’s telling you. As always, Paymentus stands ready to help you make more of your data and bring the solutions to life.
Ready to stop guessing when it comes to taking action? Paymentus is here to help. Let us show you a better path forward with our best-in-class solution suite. Our team will be happy to host an exclusive demo where you can learn more about the solution and our complimentary strategic marketing services. Contact us today to get the conversation started.
