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E-Statements and the Bottom Line Improve E-Statement Adoption and Cross-Sell Opportunities
E-Statements and the Bottom LineImprove E-Statement Adoption and Cross-Sell Opportunities
LKCS
Today’s Presentation
• E-Statement Adoption
– How do you get your current account holders to sign up for E-Statements? How are other financial institutions succeeding at converting people to E-Statements?
• E-Statement Marketing
– E-Statements save you money, but is their a cost? How are other institutions incorporating marketing campaigns with their e-statements?
E-Statement Adoption - Step 1
• Remove the Barriers– Simple enrollment process
• Online registration a MUST! No paper forms!
• LKCS – account number, last 4 digits of SSN, password, MFA questions (if applicable), disclosure
– Consider home banking single sign-on
• LKCS – multiple home banking providers, click one link and accept disclosure to register
– Easy Opt Out
• LKCS – settings check box to revert to printed statement
– IDEA: One Click E-Mail Marketing Enrollment
E-Statement Adoption – Step 2
• Tout the Benefits – “What’s in it for me?”– Green/Eco-Friendly
• If all U.S. households stopped receiving paper bills and statements, 687,000 TONS of paper would be saved every year.
• 34% of consumers switched to e-statements to reduce their impact on the environment.
• 43% of consumers said they are more likely to do business with companies they perceive to be green.
• 22% said green initiatives cement the bond they have with their bank
• Women are more likely to say that environmental impact is “extremely important” in banking decisions.
Source: Javelin Strategy + Research Green Banking Report
E-Statement Adoption – Step 2
– Safer than Paper Statements
• E-statement data is encrypted through a 128-bit “Secure Sockets Layer”, which is the standard for data encryption on the Internet.
• According to Verisign, “at current computing speeds, a hacker with the time, tools, and motivation to attack using brute force would require a trillion years to break into a session” protected by a 128-bit security certificate.
The user probably would have logged out of their e-statements by then.
E-Statement Adoption – Step 2
– Safer than Paper Statements (continued)
• Encourage people to look for the “lock” symbol in their browser.
• LKCS e-statements are further protected by an Extended Validation Certificate, so you can tell account holders to look for the Green Bar.
• Remind users to protect their account number and password -- that’s the key to e-statement (and home banking) security.
E-Statement Adoption – Step 2
• Additional Benefits:– Faster Delivery than USPS Mail
• E-Statement e-mail notifications typically sent within one day for LKCS clients
– Available from Anywhere with Internet Access
– Instant Access to Account History• At least 6 months and up to 24 months (or longer) for LKCS clients
– FREE
E-Statement Adoption - Step 3
• Wow your users.
– Deliver a premium user experience.
– People know what to expect when they open an envelope. What will they experience online?
Branding
Reformatting
Multiple Document Types
• Are you only delivering monthly/quarterly statements electronically?– Daily Notices (insufficient funds, certificate renewals,
overdraft protection, etc.)– Credit Card Statements– Mortgage Statements– Tax Forms (1099s, 1098s, 5498s, etc.)
• How much more could you save if all of these were provided electronically?
Mobile Users
• Over 31% of U.S. internet users ONLY use mobile devices.
Text Messaging
• Account holders specify notification preferences.
E-Statement Adoption – Step 4
• Pick the Low Hanging Fruit– Start with Home Banking users
– Go after them again and again
– Place e-statement ads within home banking
– Contact them by e-mail with one-click opt-in
• Don’t have current e-mail addresses? ASK FOR THEM at all contact points.
– Some LKCS clients have converted large percentages of online banking users to e-statements.
E-Statement Adoption – Step 5
• Promote, Promote, Promote– E-Statements are the last thing on your account holders’ minds
– Utilize ALL Media: direct mail, web banner ads, e-mail marketing, online banking banners/links, deposit slips, ATM receipts, lobby signage and so on
– Promote E-Statements within Printed Statements – envelope backer ads, statement inserts, statement ads/onserts, etc.
E-Statement Adoption – Step 5
– Raffle drawings DRAMATICALLY improve e-statement registration – triple your sign-up rates by offering a prize (draw from all e-statement users to maintain loyalty)
TIP: How to Generate a Random Value in Excel:
Enter this into a cell:=RANDBETWEEN(bottom,top)
E-Statement Adoption – Step 5
• Employee/Branch Contests and Incentives
• Your front line staff can do the work! Arm them with banners, posters, buttons and opt-in forms. Set up incentives or have branches compete with each other.
• Set up a home banking/e-statement demo kiosk. Have an employee greet people, demonstrate e-statements, and sign them up right on site.
• ASK! Keep asking people to sign up for e-statements. Explain the benefits.
E-Statement Adoption – Step 5
• New Accounts
– Sign account holders up for e-statements when they first open their account! Have them tell you if they don’t want e-statements.
– Design some products to minimize/eliminate fees with e-statements and other e-services.
E-Statement Adoption – Step 5
• Buy the Opt-In If Needed
– Everybody wants something for their effort….
– LKCS’ clients have found that $5 appears to be a magic figure when it comes to enticing e-statement enrollment
– Cash vs. Logoed Product doesn’t seem to matter
– Have incentives available at teller and drive-up windows for instant e-statement opt-in rewards.
E-Statement Adoption – Step 5
• A few ideas in the $5 range:
E-Statement Adoption – Step 6
• Charge for Paper– Remember the old saying…you catch more flies with
honey than with vinegar.
– You won’t make too many friends, but it can work
– More work than you think – policies, core system changes, fee reversals, etc.
E-Statement Adoption – Step 7
• Track the Results– Monitor new e-statement enrollments during
marketing campaigns.• LKCS includes opt-in dates for easy tracking.
– Look for anyone who reverts to printed statements and find out why they switched back.
• Remember you have their e-mail address, so you can ask them.
– Match back account numbers for any targeted campaigns or special offers.
E-Statement Adoption – Step 7
• TIP: Don’t have the marketing budget? Remind management that each person who signs up saves your institution $0.50 or more per month.
• Savings Example: – 2,500 new e-statement users at $.50 per month– Monthly Savings: $1,250.00– Annual Savings: $15,000.00
How much would your CEO give you to spend on a marketing campaign that generates an ongoing $15,000 annual savings?
And that’s only for 2,500 additional people – some LKCS clients have over 60% of account holders on e-statements.
E-Statement Marketing
• Just because you are saving money with e-statements doesn’t mean you should sacrifice all marketing opportunities.
• How are your best account holders going to know about your latest specials and newest products?
On the E-Statement
• Banner Ads– Link to web pages or PDFs
– Appear for all account holders or selectively
On the E-Statement
• Statement Ads/Onserts
Remember Color Doesn’t Cost More
On the Notification
• Custom E-Statement E-Mail Notification
On the Way In
• Integrated Login
E-Statement Management
• How do you check or modify e-statement user settings?
• How many account holders signed up for e-statements during your last marketing promotion?
• How many total e-statement users do you have? Who are they? Who’s not signed up?
• Which e-mail addresses are bouncing back?
• How do you view an account holder’s statement?
And how difficult does this need to be? How easy can it be?
LKCS Reporting
Questions?
• Questions/Comments
Sid HaasVice President of Business Development
Direct [email protected]
Thank You
Thank You!
