Foot in the door, but wait, there`s more

"Most companies only get as far as the first step," she says. "This is largely due to the fact that e-billing has always been the responsibility of the financial department. We are seeing a trend where this is moving to the marketing department as they are the communications experts."

Herman Venter, Business Connexion regional executive: Provincial and Local Government, agrees, saying: "[E-billing] can be seen as a marketing function, particularly if e-billing is perceived not just as a billing tool but one for communications. Bringing e-billing to the attention of consumers is certainly a marketing function; doing so can save companies and municipalities considerable sums of money, removing the need to print and distribute physical invoices."

Says John Ziniades, CEO of Consology: "Traditionally, e-billing has been the focus of the IT department, an operational function. The marketing department needs to take this over as part of their strategic marketing functions and present it in a way to wow the customer."

E-BILL: INTERACTIVE AND FLEXIBLE

Veronica Haupt, business development manager at Striata, explains the importance of the interactivity of the e-bill. She says that many companies are realising the added marketing benefits that can be gained from the e-bill`s flexibility. The e-bill is being used to pilot various marketing ideas and strategies, because it provides a cheap and trackable way to explore various marketing possibilities.

"For example," she says, "adverts can be put in the e-bill that are linked to the company Web site. These clicks are then tracked, which can be used to determine whether certain marketing campaigns are successful. Because the cost is so low, it is easy to play around with different techniques and ad placements. Even though paper is used for marketing campaigns as well, this success cannot be definitely measured."

Providing a link to the company`s Web site on the e-bill is a great way of driving Web traffic or, according to Treadaway, "building the online community".

"With e-billing, we are finding that receiving a bill via e-mail and paying it via Internet banking are now joined," explains Ziniades, "because it is done in the same environment these days, not like in the past where we received bills in the post and had to go to the bank to pay them." He also stresses that e-billing and e-banking provide the user with a much more immediate notification of a successful transaction.

PULP FICTION

Despite its numerous advantages, e-billing providers agree that it is not likely it will replace paper in the near future, or possibly ever.

"The introduction of e-billing is a process that will take some time. However, it is highly unlikely that e-billing will ever fully replace paper, in much the same way that the paperless office is simply not viable," explains Venter.

He also points out that although it is a cheap way for business to communicate bills to their clients, the majority of South Africans do not have access to the Internet and e-mail, so an e-billing exercise done via the Internet or even fax is not going to reach them.

"However, that does not mean that government cannot benefit enormously from such systems. Most of the revenue collected by municipalities comes from just 20% of its customers. For example, Ekurhuleni is the biggest industrial zone in the southern hemisphere. Sending e-bills to the businesses in these municipalities is certainly viable. The point is that e-billing is an appropriate solution in any municipality, but must co-exist with traditional billing methods," he says.

HABITUALLY SPEAKING...

ades tells us that often, users will print out their e-bills anyway, as they have become used to having a physical bill they can hold in their hands. "It is quite a grudging process to change over. People are creatures of habit and quite attached to their comfort blankets," he says.

"While it may seem that e-billing will benefit only the privileged (who have computers and Internet access), this is not the case," Venter further explains. "Even the majority of disadvantaged people own a cellphone. If the definition of e-billing is extended to include the ability to receive billing advice on a cellular handset, and to effect payment, almost every South African stands to benefit.

"It`s also something which cannot be forced on customers. It should be up to the individual to decide how they prefer to receive their bill," says Venter.

FROM SECONDARY TO PRIMARY

Treadaway tells us that new companies are choosing to use the e-bill as a default billing method for their client, with a choice to opt out.

"E-billing is traditionally used as a second channel, and paper as default," she says. "Now we see new companies, especially those aimed at the younger professional/student market, have been starting with an e-bill."

She explains that adoption rates are much better if the e-bill is given as a default, but has a lot to do with the type of customer.

"The heritage of print customers still default to paper," she explains. "But if you are a new business, e-bill defaulting is the way to go."

COMMUNICATING TO CLIENTS

"Direct marketing is the best way to go if you`re communicating your e-billing service to customers," says Treadaway. "It is a new service, so it needs to be offered to them in the same way you would any new service. You need a clear call to action."

Treadaway suggests using the lowestcost option (e-mail) first, which also makes sense if you are offering a client billing via e-mail. If you don`t have an e-mail address, other options include SMS and using a call centre, but each gets more and more expensive as you go up the ladder.

"The return on investment of deploying e-billing can be realised a lot faster if you use the cheapest form available," she concludes.