WindowPayn Consulting, LLC

Contact: Reducing the time and cost of getting Paid!

Reducing time and cost of getting paid!

• What we do• Background• Reducing time and cost of getting paid

– Customer Contact– Payment Process– Opportunities for Savings– Demonstration– Cost Perspective

• Billing• Payment

• Conclusion

WindowPayn Consulting - OverviewWhat we do?

– Customer Contact Business Process Consulting• Clients challenged to strengthen their customer

contacts/relationships call on us to:

WindowPayn Consulting - EngagementsSeminars, Assessment, Strategic Planning, Tactical Implementation, Coaching

WindowPayn Consulting - Customer Contact Expertise1. Increasing sales force effectiveness2. Reduce the time and cost of getting paid

“When you start with an honest and diligent effort to determine the truth of your situation, the right decisions often become self-evident.” - Excerpt from Good To Great.

WindowPayn Consulting’s disciplined process ensures an honest and diligent effort to make the best decision!• Define the environment and decision to be made• Identify the important criteria for the process and the result• Consider all possible solutions• Calculate the consequences of these solutions and the likelihood of satisfying the• Choose the best option• Release the process through implementation and dissonance resolution

WindowPayn Consulting - Experience• More than 15 years, involved in the sales and marketing of information and communication

technology solutions.– Companies: AT&T, EDS, MCI and SkyTel Wireless– Clients: broad spectrum of small, medium and global companies in a variety of industries like Aetna,

Mobil/Exxon, Dun & Bradstreet, Gannett, etc.– Responsibilities: account executive, industry consultant, sales support manager, branch manager and

business development executive, general manager/director – alternate distribution channels– Highlights: AT&T Divestiture, systems integration joint venture , MCI rapid growth and business

expansion, introduction of one of the original wireless messaging networks• An additional 15 years, focused on managing businesses focused on delivering contact,

EBPP and receivables management solutions.– Companies: National Credit Management Corporation, Accelerated Payment Systems, NCO Group,

NCO ePayments, ClearTran, Bank of New York Mellon and WindowPayn Consulting– Clients: large billers like lending institutions (MBNA/Bank of America, US Bank, Capital One, and

more), utilities (Baltimore Gas and Electric, AEP, LA Department of Water and Power, Consolidated Edison and more), insurance companies (Fireman’s Fund, Bristol West, and more), media, telecommunications/cable companies, and more.

– Responsibilities: C-level executive management, sales management, merger/acquisitions integration, and business process consulting

– Highlights: leading one of the first electronic bill payment companies providing ACH and card payment acceptance tools and services pioneering many of the practices used today; receivables/contact management industry consolidation and business integration, and working with a variety of companies to implement sales and EBPP best practices

• Education – Bachelor’s degree in psychology; Master of Business Administration

Billing and Payment – Frequent Contact

Source: Rethinking the Sales Force by Neil Rackham and John DeVincentis

By Nature – Confrontational Relationship

Phases of a SaleRecognition of

needsEvaluation of

optionsResolution of

concerns Purchase Implementation Follow-up/

billing and payment contacts

Billing and Payment Process … more than administration!!

Maximize Customer Reciprocal Value

Customer SatisfactionThe difference between the value

that a customer gets from a product and service, and what it takes for the customer to get it.

Client ProfitabilityThe price that the business receives from the products/services sold minus the cost of customer acquisition, goods sold and

client retention; plus/minus the time value of money.

More than getting paid!

Billing and payment > Intrinsic Value• Build value proposition:

• Intrinsic Value - belonging to a business by its very nature• Extrinsic Value - not inherent; not a basic part or quality

• Billing and payment processes with –• Simplicity• Security• Integrity

PrincipleStructure and AccountabilitySales/service organization structure

Core competency leverage and supplementResource responsibility and focus

Empowerment

PeopleMotivation and Measurement

Sales ReportingPerformance Management/Development

Sales/Marketing Program EffectivenessChannel Effectiveness

PurposeCommunication

Defined missionTwo – Way message clarity

Target market identification/valuationContact Programs - Sales/Billing/Payment

Billing and payment > Extrinsic Value• Build value proposition:

• Intrinsic Value - belonging to a business by its very nature• Extrinsic Value - not inherent; not a basic part or quality

Likeability – You are attractive and easy to do business with.

Credibility – You know what you are talking about.

Dependability – They trust that you will deliver on your promise.

The Enterprise Through the Window of Billing and Payments

What systems do you have in place today?

Benefits of EBPP for the Enterprise

Areas of Opportunity:

Reduce billing and payment processor costs and where appropriate generate revenue

Eliminate labor-intensive functions associated with the collection and processing of payments

Automate updating of AR systems delivering key data across the enterprise

Strengthening control and consistency of EBBP across the business

Accelerating cash flow

Enable multiple bill delivery and payment options (web, call center, IVR, mobile, etc.)

Leveraging marketing and cross sell opportunities through the billing and payment contacts

Facilitating regulatory compliance

EBPP Consulting Benefit (Example)

Company – • 10,000 bills/month• Average bill =$250Annual Savings –

100% of bills mailed out Migrate 50% to email = $52,298

20% of payments made to a call center … credit card Migrate 25% of bill/payments to automated recurring ACH = $33,200

20% of payments made to a call center … ACH Migrate 25% of calls through IVR = $10,500

10% of payments made on a credit card Migrate 25% to pinless debit = $15,200

Ensure proper allocation of costs debit vs. credit card 25% of payments billed as debit card= $6,400

Savings75%

EBPP Consulting Benefit (Example)

Additional valuable EBPP opportunities Enhanced automating exception/adjustment handling and reconciliation Outbound collection calls to automated voice programs Payment strategies including charging convenience fees And more

ePayment Solutions - Demonstration

Demonstration – Online Resources option – Enterprise ePayment Solution

• Service Overview– http://www.orcc.com/products/ebanking/payment_cm/paymtAdvDemo.asp

• Demonstration– http://demo.princetonecom.com/PaymentAdvantage/

» Account number - 002-8954675» http://demo.princetonecom.com/PaymentAdvantage2008/index.html

• Focus– Payment data entry – phone, web– Convenience fee– Reporting and administration– Multiple divisions

– PayPal option – very basic solution to get started.• Service Overview• https://merchant.paypal.com/cgi-bin/marketingweb?cmd=_render-content&content_

ID=merchant/wp_standard– Biller Services (Beta)

• Similar to PayPal with email push solution.

eMail Bill Costs

Cost Savings                  

  Unit Monthly Extended   Savings at various adoption rates

  Pricing Volume Dollars   10% 20% 30% 40% 50%

Total pages       2          

Services Pricing:                

Data Processing $ 0.0100 10,000 $ 100.00   $ 10 $ 20 $ 30 $ 40 $ 50

Laser Printing $ 0.0270 10,000 $ 270.00   $ 27 $ 54 $ 81 $ 108 $ 135

Inserting 1st page $ 0.0300 10,000 $ 300.00 1 $ 30 $ 60 $ 90 $ 120 $ 150

Inserting Addl Pages $ 0.0100 10,000 $ 100.00 1 $ 10 $ 20 $ 30 $ 40 $ 50

Extra Inserts (brochures, etc.)         $ - $ - $ - $ - $ -

Hand Inserting (9x12) $ 0.3000 1 $ 0.30   $ 0 $ 0 $ 0 $ 0 $ 0

Archiving $ 200.00 1 $ 200.00   $ 200 $ 200 $ 200 $ 200 $ 200

          $ - $ - $ - $ - $ -

          $ - $ - $ - $ - $ -

Materials Pricing:         $ - $ - $ - $ - $ -

Offset Forms (95%) $ 0.0194 9,500 $ 184.30 1 $ 18 $ 37 $ 55 $ 74 $ 92

Plain Paper (5%) $ 0.0086 5,000 $ 43.00 1 $ 4 $ 9 $ 13 $ 17 $ 22

#10 Envelopes $ 0.0182 10,000 $ 181.60   $ 18 $ 36 $ 54 $ 73 $ 91

#9 BRE $ 0.0217 10,000 $ 217.30   $ 22 $ 43 $ 65 $ 87 $ 109

9x12 $ 0.3000 18 $ 5.40   $ 1 $ 1 $ 2 $ 2 $ 3

Other custom materials         $ - $ - $ - $ - $ -

collateral inserts         $ - $ - $ - $ - $ -

          $ - $ - $ - $ - $ -

Postage: $ 0.3600 10,000 $ 3,600.00   $ 360 $ 720 $ 1,080 $ 1,440 $ 1,800

9 x 12 $ 0.8000 18 $ 14.40   $ 1 $ 3 $ 4 $ 6 $ 7

          $ - $ - $ - $ - $ -

Payment Handling:         $ - $ - $ - $ - $ -

Lockbox payment processing $ 0.3500 10,000 $ 3,500.00   $ 350 $ 700 $ 1,050 $ 1,400 $ 1,750

Check deposit fees?         $ - $ - $ - $ - $ -

Check clearing fees?         $ - $ - $ - $ - $ -

          $ - $ - $ - $ - $ -

          $ - $ - $ - $ - $ -

          $ 872 $ 1,743 $ 2,615 $ 3,487 $ 4,358

                   

Total Approximate Cost     $ 8,716.30   $ 10,460 $ 20,919 $ 31,379 $ 41,838 $ 52,298

Per Piece   $ 0.78 $ 0.872   Annual Potential Savings

Apply industry best

practices!!

ePayment Costs

• Payment Gateway

– Installation

• $0 to $5000

– # of users/departments

– Volume

– Customization

– Recurring (minimums may apply)

• $.25 - $.50 per transaction processed

• Other volume related fees (mailing letters/emails, returns, etc.

• Processor Fees

– ACH/Check - $.25

– Private label debit card - $.25 to $.50

– Pinless debit – $.75 (if applicable)

– Visa/Mastercard debit card – 1.60% + $.25 to $.50

– Visa/Mastercard commercial credit card – 2.25% + $.25 to $.50

– Visa/Mastercard credit card – 2.40% + $.25 to $.50

– American Express – 3.25% + $.25 to $.50

Cost of a $250 payment : ACH = $.75; Visa/Mastercard credit card – $7.00

Savings89%

Apply industry best

practices!!

Conclusion• The EBPP savings seem to be “self-evident”?!?!?!?!?

– Emailing … 75%!!!!– ACH vs. Credit Card …. 89%

• Why haven’t we done it?

• Lets get it done!– Assess– RFP or recommendation– Decision– Project Management– Ensuring results

Did not know there were solutions.

Too busy doing to be researching.

How would we manage the

implementation?!?

Will Customers really change?

The Opportunity is Yours!!We start

We wait

It Costs You

Did not know there were solutions.

Too busy doing to be researching.

How would we manage the

implementation?!?

Will Customers really change?

Unit Monthly Extended SavingsSavings Opportunity Pricing Volume Dollars 25%Services Pricing: $ 0.10 10,000 $ 970 $ 242.58 Materials Pricing: $ 0.06 10,000 $ 632 $ 157.90 Postage: $ 0.36 10,000 $ 3,614 $ 903.60 Total Cost: $ 5,216 Email Bill Savings (25%) $ 1,304 Emailed Bills paid via web Savings (25%) $ 0.25 10,000 $ 2,500 $ 625

Internal CostDecision Process $ 40 Define the environment 40 $ 1,604 Identify the important criteria 20 $ 802 Consider all possible solutions 40 $ 1,604 Calculate the consequences 10 $ 401 Choose the best option 10 $ 401 Release the process 40 $ 1,604 Total internal cost $ 6,417

Expertise Bonus 2 $ 12,833 Self-Evident … Yea, but! 3 $ 5,787

Invest in Reciprocal Customer Value, Today!!!