Mrkt510 - Fiserv Case Analysis

Candido Vazquez

MRKT510

Professor Faircloth

Fiserv Case Analysis

Define the Problem

What strategic recommendations should Fiserv provide to billers to take specific actions to increase their e-billing adoption?

Decision Factors

1. Recommend the use of an incentive strategy. Billers provide customers with a reward for switching to e-billing only.

1. Assumes billers will offer a relatively inexpensive incentive that will save billers more money in the long term.

1. Recommend billers provide e-billing services to all their customers for free.

1. Billers decide how long they want to offer e-billing for free before ending the service.
2. Assumes that billers will continue to provide paper bills until customer decides to go paperless.

Regardless of the strategic recommendation, Fiserv must emphasize the importance of educating the customer on the benefits of e-billing for both parties (biller and customer) and the undeniable benefit for the environment.

Relevant Information

E-billing Opportunities

Of the 118 million households in the United States in March 2009, 86 million were considered “online” (connected to the internet)…

• As society becomes more connected, more people are using the internet. The fact that about 73% of Americans have internet connectivity makes them all potential e-billing users.
• Fiserv has to use this data point to convince billers that e-billing will be the future standard.

Processing and sending each of these paper bills cost an average of $1.25 per bill and billers saved up to 45 percent per bill for consumers who no longer received the paper bill. Furthermore, a comparison of sample consumers who received paper bills versus a similar sample of consumers who used e-billing showed the latter made 10 to 20 percent fewer calls to customer service…

• Regardless of the chosen alternative, Fiserv has to demonstrate to billers the benefits that e-billing provides to their bottom-line. Billers must understand that e-billing is more than just saving on money not sending out paper bills to customers.
•  According revenue model for billers, Fiserv estimates that companies can save up to $3.00 per year on customer service per customer regardless if the customer continues to receive paper bills.
• This supports alternative 2. Billers could offer e-billing for free, send paper bills and still save 0.70 cents per customer.

Billers also saw e-billing as an opportunity to enhance their environmental practices. One energy company reported that, after converting 130,000 consumers to e-billing, it was able to save thirty-one tons of paper (the equivalent of 753 trees).