1 Lori Beck, Director, Product Management Nikki Lappin Remittance Processing Supervisor Mobile...
-
Upload
phyllis-moody -
Category
Documents
-
view
215 -
download
1
Transcript of 1 Lori Beck, Director, Product Management Nikki Lappin Remittance Processing Supervisor Mobile...
1
Lori Beck,Director, Product Management
Nikki LappinRemittance Processing Supervisor
Mobile Payments: Giving Customers More Choice and Ease of Payment Using Text Messaging
Utility Payment Conference
2
Agenda
1. Payment Vendor Solution
2. Northwestern Energy Overview
3. Pay by Text Implementation and Results
4. Marketing and Best Practices
5. Next Steps
3
Bil
ler
Dir
ect
Dat
a C
ente
rs
Payment Solutions
© 2010 Western Union Holdings, Inc. All Rights Reserved. All trademarks, service marks, and trade names referenced in this material are the property of their respective owners.
Consumer Utility
Posting
Funding
Reporting
Noting
Real-Time or Batch
Payment Type
Payment Channel
Web
Ban
kin
g
On
e-T
ime
On
e-T
ime
& R
ecu
rrin
g
4
Money Mind Set Index
Quarterly study first created in Q4 2008 to understand and longitudinally track how current economic conditions affect consumer behaviors and emotional mindset regarding bill payment, debt, and personal finance issues
Online quantitative survey
3,000 targeted respondents based on representative proportions of geography, gender, age, income and ethnicity as compared to the overall US population
Plan now for Gen Y payment preferences1
Gen Y’ers prefer less costly self-service channels like online banking, ATMs and mobile banking
2 in 5 Gen Y consumers have already tried mobile banking
Mobile banking security less of a concern
More likely to carry unlimited wireless phone plans
More likely to own a Smartphone (Smartphone owners are
the stickiest mobile bankers)
4
1Gen Y Mobile Banking, by Javelin Strategy & Research, April, 2009
5
Text Messaging
SMS (Short Message Service) is most commonly referred to as Text Messaging
Text messaging allows a message to be transmitted from one cell phone to another
As of March 2010, 74% of the U.S population has a mobile phone
The number of smart phones (iPhone, Droid, Blackberry) are up from 20 to 27% of the mobile population. Smart phone users are heavy users of text messaging.
6
Text Messaging, Web Browsing and Downloading by Segment
9%
16%
29%
14%
17%
35%
80%
17%
30%
46%
20%
27%
63%
92%
58%
66%
75%
80%
81%
87%
91%
0% 20% 40% 60% 80% 100%
All consumers
More than $100K
Mobile bankers in the last 90 days
Gen Y
Hispanic/Latino
Smartphone
iPhone
Percent of Consumers
Text messaging (SMS)
Browse web pages
Downloading applications
Q45: Which of the following mobile phone features do you use? (Select all that apply)
July 2009, n= 89, 375, 478, 487, 1,498, 3,000Base: All consumers with mobile.
© 2010 Javelin Strategy & Research
Text Messaging is the most common use across all consumers
7
Text Message and Data Plans
The number of consumers signing up for unlimited plans is increasing
54%
3%
13%
21%
38%
6%
15%
17%
25%
0% 10% 20% 30% 40% 50% 60%
Under contract, with neither unlimited data or text
Unlimited data only
Unlimited text only
None, I use a prepaid/disposable phone
Both unlimited data and text
Percent of Consumers
20092008
Q22: What type of wireless plan (data and text) do you currently use? (Select one only)
July 2009, March 2008, n= 3,000, 2,314Base: All consumers with mobile.
© 2010 Javelin Strategy & Research
N/A
8
How Bill Payment is Changing
Consumer enrolls via branded IVR or Internet site – no sensitive information is transmitted via text
Biller provides service provider a customer (MAM) file containing customer account number, due date and amount owed
Text Message can be sent a configurable number of days before due date
Consumer replies to the text message to pay their bill
Pay by Text services allow consumers to easily initiate their payment using their phone's text messaging service based on payment information entered online
9
Pay by Text Consumer Experience
Consumer enrolls via IVR or Internet
Consumer enters cell phone numberand email address (optional) into IVR or Internet
Consumer enters payment information into IVR or Internet
Consumer receives text message on cell phone when payment is due
Consumer replies to text message to complete payment
10
Participating Carriers
When the consumer enrolls in the Pay by Text service, a verification is done on the mobile number to confirm the carrier. If the carrier is supported, the plan is saved to the database.
11
Pay by Text Sample Messages
Enrollment Complete
Bill Alert. Welcome, you are enrolled. Txt STOP to end, HELP for info or 866-316-3360. Msg freq dpnds on accnt setngs. Std msg chrgs apply..
STOP
Bill Alert. 866-316-3360. You will no longer receive any messages from WU to your phone..
Payment Due
Bill Alert.NWE bill $XXX.XX+$X.XX fee due. Rply YES NWE to cnfrm processing as u specified. 866-316-3360 if dont recve cnfrm msg.Txt STOP 2 end.
HELP
Help: Bill Alert. For info 866-316-3360. Msg Freqncy dpnds on accnt sttngs. Msg&data rates may apply. Text STOP to end.
12
Pay by Text Reporting
Pay by Text enrollments
and payments are available
for viewing along with all of
your other payments
through our current
reporting tools
Sample Report
13
Non-Utility Case Study
50% of PBT consumers using the Extranet shifted to the Internet as their channel preference.
For those receiving notifications, the Internet is the primary channel used for payment.
ACH adoption is greater than other payment types.
Enrollment Findings
Almost 6000 consumers have signed up
By Payment Type
ACH: 2746
Credit Card: 1919
ATM: 1277
By Channel
Internet: 4546
IVR:
A large number of consumers are using this as an alerting process and then going to the IVR or Internet to pay
Pilot launched in May of 2009
Marketing used: CSR fact sheet and Internet messaging
Data shown is through September of 2010
14
Agenda
1. Payment Vendor Solution
2. Northwestern Energy Overview
3. Pay by Text Implementation and Results
4. Marketing and Best Practices
5. Next Steps
15
Northwestern Energy Overview
15
Service Population395,500 electric customers
265,200 gas customers
Customer accounts 492,079
Number of bills 6.1M annual bills and notifications
Revenue $971M
Billing frequency Monthly
16
Northwestern Energy Payment Goals
Provide additional self service payment options (targeting the younger generation)
Experience (We wanted to gain experience while we had the opportunity with SMS, we felt that by doing this project we could gain experience using a smaller carrier list. We feel that this option will grow and more carriers will be added).
We had a great deal of concern about Verizon not being a carrier but felt it was best to move forward with smaller carriers
Reduce mail payments which reduces costs
We believe the more mail costs increase the more electronic payments will increase
With reduced mail payments and increased electronic payments we believe when we need to purchase knew equipment that our cost for replacement will be much lower
Over the past 5 years NorthWestern Energy has seen a yearly 2% decrease in mail payments and an increase with electronic payments
16
17
Agenda
1. Payment Vendor Solution
2. Northwestern Energy Overview
3. Pay by Text Implementation and Results
4. Marketing and Best Practices
5. Next Steps
18
Implementation Process
18
Launched on 7/29
IVR and Internet were modified to include Pay by Text enrollment
Product certified with wireless carriers so no 3rd parties were involved in implementation
Thoroughly tested with employee enrollments during UAT cycle
Added same day online banking payment option
Added American Express as a payment type
19
Northwestern Energy Pay by Text Data
The payment type preference is ACH.
Channel with most adoption is IVR.
There is not enough data to show consumer trends and behavior changes.
19
Payment Types Enrollment Findings
All payment types available on the IVR and Internet are available through Pay by Text
ACH
Credit Card
ATM
By Payment Type
ACH: 112
Credit Card: 49
ATM: 4
By Channel
Internet: 21
IVR: 144
20
Agenda
1. Payment Vendor Solution
2. Northwestern Energy Overview
3. Pay by Text Implementation and Results
4. Marketing and Best Practices
5. Next Steps
21
Available Marketing Touchpoints
Envelope Messaging
Web Messaging Email Messaging
Statement Messaging
“Say goodbye to envelopes and stamps! With our web and phone bill payment options, paying your ABC Company bill is quick and easy. Press 4 now to be transferred to our automated payment system or go to www.abccompany.com and select ‘Pay My Bill’.”
IVR Messaging
22
Best Practices
Employees were encouraged to enroll
Where an email address is available, each new enrollee also receives a confirmation enrollment email in addition to the text message
Notify consumers in multiple ways about new offering. We have utilized the following marketing options to date:
Statement Messaging
Web Banner
CSR Promotion
22
23
Future Marketing Campaign
A new campaign has been created
Use existing consumer communication touch points:
Web Banner
Statement Messaging
Payments Brochure
Newsletter Article
CSR Q&A Flyers/Posters
23
24
Agenda
1. Payment Vendor Solution
2. Northwestern Energy Overview
3. Pay by Text Implementation and Results
4. Marketing and Best Practices
5. Next Steps
25
Next Steps
Add Verizon as a supported carrier
Continue marketing to increase adoption
Research additional mobile channels
26
Pay by Text Benefits Summary
Additional self-service payment channel
Convenient option for consumers on the go
Simple enrollment process
Easy for consumers to use
Cutting edge service
27
©2010 Western Union Holdings, Inc. The WESTERN UNION name, logo and related trademarks and service marks, owned by Western Union Holdings, Inc., are registered and/or used in the U.S. and many foreign countries. This material is confidential and is proprietary to Western Union and is not to be reproduced, disclosed, or used except in accordance with program license or other written authorization of Western Union. Any use, copying, manipulation, or reproduction of Western Union trademarks, logos, or material created by Western Union, its subsidiaries, affiliates or its business units, in whole or in part in any medium for any purpose whatsoever, is strictly prohibited without the prior written permission of Western Union. This information piece shall not be considered an offer, final terms shall be reflected in the Agreement signed by both parties.
Thank you!
Lori Beck
Western Union Global Business Payments
212-361-5655
Nikki Lappin
Northwestern Energy
406-497-3210