In this dynamic, competitive customer-driven environment, smart businesses are placing an increased emphasis on using their one—and sometimes only—regular form of customer interaction as a valuable chance to accomplish a multitude of mission critical functions. Business-to-consumer billing is evolving from an invoice to a clear, concise communication tool as companies realize it affords them the chance to retain customers, drive new revenue through existing customers and employ their documents as a brand loyalty vehicle.

To make this happen, companies are completely reinventing their approach to the billing process. No longer the sole domain of accounting and finance departments, statements, invoices and other critical business documents are being heavily influenced by marketing and creative staff. Advances in technology are making it easier to design more complex, customized documents that can be used as dynamic, focused marketing tools.

The Invoice Evolution

Today, ongoing business communications should be an integral part of a company’s ability to achieve the following marketing goals:

1. A vehicle for retaining customers

Billing documents can enhance customer retention by serving as the basic tool for regularly scheduled client communication. They can meet expectations for timely, accurate information while assuring customers their needs are understood by the company and that their business is appreciated and respected. By articulating a company’s values and culture, billing statements can support public relations efforts. For example, a rural electric cooperative could allow non-profit groups and schools to post community service announcements on their electric bills selectively based on address and zip code; the cooperative would target messages to each member’s household pertaining to the schools that serve their respective neighborhoods. This would help the cooperative strengthen its image as a member service organization committed to the communities it serves.

2. A chance to increase revenue per customer

Rapid advances in database technology are now making the long-touted goal of one-to-one marketing more of a reality than ever before. And every monthly billing statement offers a ready-made marketing pipeline for customers that can strategically target various customer demographics. Targeted messages allow businesses to promote new products, time-sensitive specials and incentives to increase the company’s value to its customers.

Companies succeed in shifting the focus from price to benefits by targeting high probability interest items and by providing tailored products to each individual based on research of customer buying practices. This philosophy allows companies to focus efforts on their best customers. As demonstrated on the graph below, companies should spend the most time developing offers for the top two demographics most likely to respond, allowing for stronger relationships to be developed.

A recent example is a bank that is developing variable marketing messages to promote a new CD offering based on the dollar value of the CD coming due. A CD maturing with a value of $5,000 would receive a marketing message to role over to a new CD with an interest rate of three percent, while a CD maturing with a value of $10,000 or more could receive a marketing message to role over to a new CD with an interest rate of four percent. The marketing messages, driven and approved by the marketing department, vary based on data elements in combination with a database to trigger a start and end time.

3. An opportunity to strengthen the brand

Companies can also drive significant brand recognition and loyalty with a high quality document that meets the following three basic customer expectations:

Statements should be easy to understand and logically convey the important information. Customers should be able to easily follow the format of the bill and be able to quickly find key information such as totals, due dates, and account information. Much like marketing a special offer, the same principals apply to focusing attention on this critical information.

Statements should be factually accurate and delivered in a timely fashion. Customers will associate trust with accuracy. The ability to consistently deliver an accurate billing document will enhance a company’s ability to market to that customer. This credibility will enhance the company’s ability to create a perception of value for their products and offers with its customers.

Statements should convey a positive image of the company. Customers associate a high-quality document with a high-quality company. Accuracy, clarity and consistency will build this trust with customers and improve the perception of the company offers as thoughtful and respectful efforts to benefit the customers.

A Bottom-Line Initiative

Of course each new advance requires a certain commitment to maintain the program. Market competition is driving companies to find new and upgraded methods to distinguish themselves with their customers and deepen their relationship. New programs offer greatly expanded opportunities to market new services and increase a business’s revenue per customer. As the possibilities for one-to-one marketing expand through improved technology, companies can take this challenge on internally or outsource to a trusted service provider. But the bottom line is every company will achieve positive benefits from taking advantage of the free marketing potential ongoing business documents provide to capitalize on its customers’ true business potential.