E-bills Linked to Timely Payments and Reduced Costs, According to Study
A study of Con Edison customers has shown that offering electronic bills (e-bills) through online banking or the company’s website can lead to enhanced cash flow and reduced customer care costs. Con Edison provides electric, gas and steam service to customers in New York City and Westchester County, New York. The study, conducted by AccuData on behalf of Fiserv, shows that customers who receive e-bills via a financial institution or the Con Edison website are more likely to make on-time payments, and utilise online self-service rather than costly customer service calls.
The study analysed two million customer records with a focus on three customer segments:
The research compared the three groups’ customer service channel use and payment timing. The study found that e-bill use had correlations with:
In addition to payment and customer service habits, the study identified demographic and psychographic characteristics of each of the major billing and payment usage segments. This includes electronic, paper and in-person channels. The findings validate the need to offer a broad range of billing and payment methods, as different customer segments gravitated toward different payment types.