Economic Considerations

Electronic Document Delivery (eDD) is one of a few Internet-based services with a measurable ROI and cost savings. The concept is simple. Eliminate paper, achieve a cost savings. Each document delivered electronically can save the institution 50 percent or more as compared to the traditional paper production and delivery cost.

Reduced Paper Cost

The obvious economic consideration for eDD is the reduction in printing and postal mail costs for customer communication, especially with recurring high-volume applications. Studies show that the average monthly cost of delivering statements and bills by postal mail is up to $1.25/item, which translates into a significant cost saving by going electronic.

Lower Customer Support Cost

The average cost of a call to a customer support representative (CSR) costs the organization $8 to $15, which is driving organizations to pursue more cost-effective options for providing customer support. eDD, and by association electronic access to customer information, is key to this initiative. Organizations are deploying new solutions for allowing customers to access their information on demand (self-service), which not only reduces costs to the organization but leads to higher customer satisfaction.

By providing customer service representatives (CSRs) instant access to the actual documents delivered to the customer, the time it takes to answer questions, settle disputes, reproduce and deliver a document can be reduced. Giving customers access to self-care functions from the web, such as direct access to historical documents, will reduce calls to the call center. Providing proactive alerts, notices and other information via email and/or wireless device can further reduce call center volume. These factors will add substantially to the cost savings a company will realize.

Reduced Days Sales Outstanding

The Electronic Bill Presentment & Payment initiative has led to a positive impact on bill collection. By providing consumers streamlined solutions to pay their bills right from their desktop and options for setting up automatic recurring payments for regular bills, the Days Sales Outstanding time on bill payment has been significantly reduced.

Reduced Payment Cost

Electronic Bill Payment is the natural progression for consumers from the days of writing paper checks. Because of this, the cost savings from eliminating “lock box” check transactions has been passed directly on to the organization. The cost of processing electronic payments is significantly lower than the cost for processing paper checks and should be considered in the return-on-investment analysis for electronic billing.