DOCUMENT Magazine - December 2008 - (Page 14)

or transactional businesses, the costs associated with acquiring new customers has traditionally always been a heavy investment for the enterprise and, in the current economic landscape, one that will need to justify the business case. In fact, the cost of acquiring a customer over the phone or in a branch or store rose sharply to $177 and $182, respectively. Now more than ever, organizations must embrace alternate forms of establishing this relationship. Today, the cost of acquiring a customer costs less online than in a store or over the phone, with online acquisitions costing an average of $51. Furthermore, 73% of enterprises indicate that those customers have a lower cost to serve, thus accruing even bigger savings. IT professionals looking for projects that will generate savings can focus on e-delivery of statements, e-invoices, account opening and maintenance and e-transactions of all types — especially advanced ones, such as applying for health insurance and banking online. F h Manage & strategy By Craig Le CLair The Tangible benefiTs of reduced costs should lead to strong migration to e-transactions and online servicing, yet this has not been the case. Adoption for e-delivery of statements and investor communication hovers at less than 10%. Despite being expensive, slow and error-prone, human beings still handle more than 90% of all B2B invoices. The following are key reasons why the movement to e-transactions proceeds at a glacial pace: 3 Adoption programs are weakened due to lack of marketing focus and creativity. Customers need encouragement to change their behaviors in order to be willing to choose the web for their transactions. Punitive programs, such as those charging for paper usage, run the risk of annoying customers and driving them elsewhere. 3 Marketing does not understand what IT can do. Poor understanding of what benefits technology can provide customers and poor insight into potential cost savings keep marketing from aggressively exploiting e-transaction opportunities. 3 Sites with e-transactions support simply provide bad experiences. Too many sites leave the customer or business in a bad state, forcing them to a call center or to print a PDF and consequently bring out a pencil. 3 Consumers do not always connect e-transactions to the environment. While the “green” message gains traction as companies launch sustainability goals, many consumers may not be ready. 3 Enterprises fail to connect Web 2.0 with e-transactions. Web 2.0 technologies promote two-way communication between company and customer and help raise expectations and volumes for real-time transactions even further. Today’s IT infrastructure lacks the fundamentals needed to manage the next generation of e-transactions. Paper documents, faxes and isolated email communications stifle many core business processes. Enterprises require improved infrastructure to achieve stronger integration of inbound and outbound channels. Even more challenging, marketing goals to improve personalization and multichannel delivery require a cross-departmental view. Catching Web Fever The conversion to document-centric web transactions can lower costs for the organization and improve the customer experience

Table of Contents for the Digital Edition of DOCUMENT Magazine - December 2008

DOCUMENT Magazine - December 2008
Ad Index
Editor’s View
BPM: Improving the Way You Process
Research Desk
The Compliance Shadow
Catching Web Fever
Charting a New Course
Reading the New Signal of Data
The Customer Finish
The Converging Money Trail
Fight Disaster
Putting on a Global Face
New Products

DOCUMENT Magazine - December 2008