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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. |
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