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Faylene Bell, CheckFree Jenny Dixon, Sovereign Bank

June 2, 2008

Faylene Bell, CheckFree Jenny Dixon, Sovereign Bank

June 2, 2008

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Faylene Bell

Channel Marketing Manager, Electronic Banking Services CheckFree, now part of Fiserv

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Topics of Discussion

Background on E-bill

Value of E-bill to Financial Institutions

Best Practices

Sovereign Bank Case Study Example

Strategies

Campaign

Results

Questions

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Know Thy Audience

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Background – What is an E-Bill?

The introduction of online bill pay has proven to be a successful strategy for banks to drive customer retention and sticky online behavior.

Another sticky feature launched in ’97 ~ e-bill

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In most cases, consumers no longer receive a paper copy of the bill

Benefits to Consumers:

View and pay monthly bills in one secure environment

One user name and password

E-bills are free

Background – What is an E-Bill?

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Value of E-bills to Financial Institutions

Moving a customer from using bill pay only to receiving at least one e-bill per month results in lower attrition.

Source: Aspen Analytics Value of E-bill Study 10/07

100

120.4

88.8

42.635.3

22.0

0

20

40

60

80

100

120

140

Overall Offline Online Bill Pay E-Bill High E-Bill

* Attrition Index: Overall Population (online and offline combined) = 100

* Significance level of 97.5%.

Customer Attrition Rates

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Electronic Billing and Payment is a Green Technology

If all U.S. Households viewed and paid their bills online, each year it would:

• Save 16.5 million trees

• Reduce toxic wastewater by 13 billion gallons, enough to fill 19,846 swimming pool

• Reduce toxic air pollutants by 3.9 billion pounds of CO2 equivalents (greenhouse gases) akin to having 355,015 fewer cars on the road

Source: Javelin Strategy & Research, 2007

948%Source: Forrester North American Online Finance Survey, 2007

“Why did you stop having paper statements/bills mailed to you?”

It’s better for the environment to go paperless

My provider stopped sending them to me once I enrolled in eBills/eStatements

It’s just as easy to print out the eBill/ eStatement for record keeping purposes

I never used to open my paper statements

I like the ability to save the PDF version on my computer for record keeping

15%

19%

23%

48%

32%

“Why did you stop having paper statements/bills mailed to you?”

It’s better for the environment to go paperless

My provider stopped sending them to me once I enrolled in eBills/eStatements

It’s just as easy to print out the eBill/ eStatement for record keeping purposes

I never used to open my paper statements

I like the ability to save the PDF version on my computer for record keeping

15%

19%

23%

48%

32%

Forrester Research Shows Environmental Concerns Prompting Consumers to Give Up Paper

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E-Bill Marketing Best Practices

Target Audiences

Five user segments to target:

1. Active online bill payers who currently receive at least one e-bill

2. Active online bill payers who currently receive account statements online

3. Active online bill pay users paying, but not receiving, e-bills

4. Bank employees

5. Online banking customers not yet paying bills online

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Current “Environmental E-bill Creative”

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Case Study: Sovereign BankLearn how Sovereign Bank has been successful driving e-bill activations while positioning the environmental impact of going paperless.

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Jenny Dixon

Product Manager, Consumer Online Banking Sovereign Bank

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E-Bill Marketing

E-Bills are:

Easy

Secure

Convenient

BUT…

Financial Institutions and Billers have struggled to succinctly communicate the true value of e-Bills.

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E-Bills Cause Marketing

Environmental ‘theme’ effectively facilitates the education element required to market e-Bills.

Relevant & Compelling

Immediately simplifies concept

Incentive (Altruistic ‘feel good’ factor)

‘Win Win’ scenario

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‘Go Green’ 2007 – Campaign Objectives

Increase adoption of e-Bills

Differentiate e-Bills from BillPay

Promote awareness of the benefits and features of e-Bills

Highlight consumer choices that Sovereign offers

Position Sovereign Bank as environmentally responsible

Establish appetite for environmental cause marketing to Online Banking consumer base

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- E-mail Messages - Online Banking Marketing Tiles

2007 Environmental Campaign

-In Product Messaging

- BillPay Ambassador Network

- Press and Public Relations outreach

Target AudienceActive BillPay customers who didn’t have e-Bills.

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Campaign Press Coverage

Environmental coverage in Time, Money

Circulation of more than 6 million within more than two dozen articles

Joint releases with CheckFree & Sovereign

Byline article in ABA Bank Marketing in March ‘08

Pitched stats about environmental benefits of receiving/paying bills online

Hits in Time, Money, Winnepeg Free Press, Net Banker, Seattle Post-Intelligencer

Sierra Magazine in Fall ‘07

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Campaign Results

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2007 Campaign Results

Campaign yielded nearly 6,000 customers who participated in the campaign

Resulting in over 12,000 new e-bill activations. An average of 2 e-bills were activated per customer.

A lift of 40% e-bill activations over the 2-month timeframe of the campaign

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- Email Messages

Direct Mail

2008 Environmental Campaign

- Environmental Calculator- Marketing Tiles

- Seed Direct Mail

- Podcast

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In Summary

The environmental theme makes e-bills and BillPay education & selling easier and relevant.

The approach highlights the opportunity out there to sell deeper solutions to existing customers as opposed to constantly chasing new ones.

Sovereign and CheckFree have focused on defining clear goals and deploying metrics which clearly capture the dynamics of the activation campaigns.

Through this focus both organizations were able to measure how cross-channel strategies interacted to drive an increase in total customer value.

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Questions?