Successful Paperless Billing StrategiesCS Week Conference 39

Maxine Jones

Manager of Customer Business Solutions

Representing Dominion Virginia Power

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• One of the nation's largest producers and transporters of energy

• Portfolio of about 23,600 megawatts of generation

• Operates one of the nation’s largest natural gas storage systems

• Serves retail energy customers in 10 states

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Where we are• What is eBill• Current state• 5-year view

How we’ve grown• How we increased adoption• Marketing strategies

What we learned• Lessons learned• Best practices

Next steps• Expanding enrollment

Agenda

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Benefits of eBill

• Email notifications to view/pay bill

• Free same-day payments

• Email payment reminder three days before due date

• 12 months of bill history

Our paperless billing program: eBill

Where we are

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Current state

• 915K+ enrolled

• 37% adoption

• 52% enrollment increase

since 2010

42.5% residentialTotal: 205,043Avg. call time: 11 min

Tho

usa

nd

s

0

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014

Total eBill Enrollments

591K

751K670K

837K915K

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How we increased eBill adoption - 1

• Consistent promotions via multiple low-cost channels

eBill 2012 2013 2014

Adoption rate 31% 34% 37%

Totalpromotions

6 25 35

Prize campaigns/Sweepstakes

3 12 14

Channels Web, bills,intranet, events, envelopes,

Social media, online ads, email, website, envelopes, bill messages, bill inserts, customer newsletter, employee newsletter, phone system

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How we increased eBill adoption - 2

• Partnership with Corporate Communications

• Three-part strategy

− Relationship-building

− Retention

− Re-enrollments

• Profile of an eBill customer

−Binary logistic regression analysis

• Two-way conversations

−Engagement through social media

• Targeting new audiences

−Small commercial accounts

−Regions

−Second page of bill letter

• Enrollment Options

−Choose self service portal or financial institution

Small Commercial Email

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Strategy 1: Relationship-building

eBill: Retention & New Enrollments

• Sweepstakes: Vacation giveaway

−Research: Trips motivate customers

−12% increase in total enrollments from 2012-2013

−Both new and existing eBill customers eligible

• Customer Appreciation

−Online self-service portal

−Social media

Strategy 2: Retention

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eBill: Re-enrollments• Drops

−87% of drops final accounts

−Opportunity to re-enroll: 13%

• Encourage Re-enrollments

−Every other month: “Re-enroll and win” email campaigns (1-4% lift)

−Sweepstakes increase urgency

• Analysis

– Customers tend to drop between 6-9 months

– 6-month thank-you email emphasizes benefits of eBill

Re-enroll and Win Email

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Strategy 3: Re-enrollments

Encouraged customers to enroll in eBill for a chance to win several “summer cookout” prizesResponse rate: 2.2%

Customers who enrolled in eBill received a $5 gift card to the restaurant of their choice.Response rate: 14%

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Effective Email Campaigns: 3 Examples

Customers who recently opted-out of eBill could re-enroll for a chance to win one of two $100 gift cards.Response rate: 6.6%

The ‘Fast, Easy, Done’ vacation promotion ran from July to Dec. 2013.

Result: 10% increase in enrollments from same time period the year prior.

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The ‘Fast, Easy, Done’ Sweepstakes

Email

Postcard

In November 2014, the eBill promotion focused on giving customers a jumpstart on the holidays. All available channels were utilized, including direct mail, email, social media, web, etc.

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‘Jumpstart Your Holiday Shopping’ Promo

Postcard

Using page 2 of the paper bill to target specific customer segments resulted in consistent lift at a low cost.

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Bill letter: Big returns, low cost

Survey of new eBill customers: bill is the second-most common channel they hear about eBill, after the company website.

Effective use of the bill letter:1. Diminishing returns: Customers should only receive the bill letter

once every three months, not every month.2. Metrics and baselines: Establish a baseline first to effectively

measure metrics and tailor marketing efforts.3. Targeted sends: Targeting segments or specific regions reveals

most effective areas to market the program.

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Overview: Lessons Learned

Most effective marketing strategies:

• Continual promotions with fresh content

• Short-term, seasonal campaigns better than longer

• Prize promotions create urgency

• Utilize all available channels (mass email, website, social media, bill)

• Customer-centric social media posts and messaging (questions, surveys)

Overview: Best Practices

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• Customer surveys

−Using feedback to redesign eBill and address problems

−Three data points: amount, due date, account number

−Payment reminder 3 days before due date

• Evaluate campaigns with metrics

• Clear focus: Avoid mixed messaging

Next steps

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Next steps

• Goal: 1 million enrollments

• Expand eligibility for enrollments

• Simplify enrollment at turn-on

Contact information

Maxine Jones

804.771.3995

maxine.jones@dom.com

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Dominion Virginia Power @DomVApower www.dom.com

Dakota Electric Association

Successful Paperless Billing

Presented by Sherie WutschkeCIS/Billing Manager

Dakota Electric Association

About Dakota Electric Association

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• Not-for-profit electric distribution cooperative

• 103,035 members

• 1.9 billion kWh sold annually

• $194 million in revenue

• 2nd largest cooperative for size in MN

• Top 25 cooperatives for size nationally

• Growth: 27% in 15 years

Best Practices in Promoting Paperless Billing

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Telephone

Thank you for calling and inquiring about Dakota

Electric’s QuikPay program…I would be very happy to assist you with signing up for our online

billing option.

…I would also like to mention that Dakota Electric offers online

billing to help simplify your life. Is this

something you would be interested in today?

Best Practices in Promoting Paperless Billing

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Bill MessagesTired of getting all that unwanted mail? Wish all the paper on your counter would go away? Simplify your life — visit dakotaelectric.comand sign up for QuikPay online billing today!

Check out Dakota Electric’s newly updated website at dakotaelectric.com, where you can view and pay your bill online, schedule various services, get information on valuable rebates and more.

Visit dakotaelectric.com for online chat, social media links, QuikPay online billing, outage information, the daily conservation gauge and more. And announcing a new mobile version for your convenience!

Best Practices in Promoting Paperless Billing

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Bill Inserts

Best Practices in Promoting Paperless Billing

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www.dakotaelectric.com

Best Practices in Promoting Paperless Billing

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Promoting Paperless Billing

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Remittance Envelope

About Our Membership

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• 103,035 Members

• Not a Typical Rural Electric Cooperative• Suburban• Mid-Upper Class• Professional• Educated• Environmentally Friendly

Member demographics have changed significantly over the last 20 to 30 years.

Incentives

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Cash Prize Drawing

o Targeted AudienceCurrent EFT ParticipantsCurrent Budget Billing

participantsLetterSign up for online billing$100 cash prize awarded

SUCCESS!

Incentives

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Ease of Use

o Listen to the MemberMember driven changesEasy access to log inHyperlinks in body of emailEasy print options

Incentives

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Ease of Use

o Listen to the MemberMember driven changesEasy access to log inHyperlinks in body of emailEasy print options

Incentives

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Choices

o Notification & Reminder Optionso Relationship with 3rd Party

Consolidatorso Mobile

Launched in August 2014

Incentives

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Choices

o Notification & Reminder Optionso Relationship with 3rd Party

Consolidatorso Mobile

Launched in August 2014

Incentives

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Incentive Program for Employees

o $1 for Every Online Billing Sign Up Incentive only offered to MSRsCIS Tracks SalesContact good for 1 year

o Incentive DisbursementMonthly Top Earner

$175

It all adds up!

Incentives

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Online Billing Sales Made by MSRs

It all adds up!

Year Sales Made Top Earnings

2002 923 $197

2003 1077 $344

2004 1472 $386

2005 2328 $573

2006 2665 $645

2007 2476 $505

2008 2340 $252

2009 3884 $318

2010 3131 $347

2011 3359 $337

2012 3413 $367

2013 3938 $421

2014 4578 $447

o Sales Made Originated from a Telephone Contact

2010 2011 2012 2013 2014

New Enrollments

4700 4775 4698 5325 6621

% Sold By MSR

67% 70% 73% 74% 69%

MSRs Average

70% of all Sales

Proven Success

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o 103,035 Memberso Over 26,000 Members Currently

ParticipatingQuikPay Only

o 26% Adoption Rateo Additional 9,000 through Consolidator

Online Billing

Proven Success

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o Tracking Started 2006Rolled Out to Members March 2002

0

10000

20000

30000

40000

50000

60000

2006 2008 2010 2012 2014

Year # Participating

2006 15,777

2007 19,086

2008 22,736

2009 26,817

2010 31,233

2011 35,621

2012 41,872

2013 47,173

2014 53,049

Average Over 4,500 New Enrollments Per Year

Proven Success

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o DEA Offered Online Billing Before DemandDEA rolled out the QuikPay program

before it was the norm in the utility industry in MN

o QuikPay Offered on Every Call Taken by MSRCoaching Incentive Lead Tracking

“Push” and “Pull”

Proven Success

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oBilling Options Important to Member SatisfactionoDEA Offers a Wide Variety of Billing OptionsOnline Billing (QuikPay)No fee to participateProvides a choice to the member of how

they stay in contact with us

Survey Results

Proven Success

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o Rolled Out August 2014o Average 385 Mobile Payments Per Month

Mobile

Aug Sep Oct Nov Dec Jan Feb

361 346 403 384 350 416 440

2,700

Payments Made with a Mobile Device

Dakota Electric Association

Sherie WutschkeCIS/Billing Manager

Dakota Electric Association

Nova Scotia Power’s strategy for electronic bill adoption

GOING PAPERLESS!

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The evolution of e-bill at NS Power

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50,503

67,243

80,647

99,660

120,905

144,400148,674

0.0%

11.0%

14.0%

17.0%

21.0%

25.0%

29.0%

30.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

20000

40000

60000

80000

100000

120000

140000

160000

2008 2009 2010 2011 2012 2013 2014 2015

Tota

l nu

mb

er

of

cust

om

ers

Historical Growth

Customer Enrolled

% Ebill Customers

1. Start with a platform you can build from

2. Make the switch easy and offer more features

3. Build customer confidence in it’s capabilities

4. Ensure it’s easy to use and hassle free

5. Increase adoption through an integrated e-bill & payment solution

6. Leverage your customer service team & employees at your Utility

7. It’s an evolving strategy – keep it relevant & ongoing

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Key strategies for adoption success

Bill messages & newsletters

Website promotion & tutorial videos

Customer incentives – contest draws, go green

Call Center contests, incentives & aligned KPI’s

Sign up of internal employees

Changed the default from paper to electronic

Targeted campaigns to convert customers

Integrate experience into MyAccount/self service

Offer enhanced features only to electronic customers

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What worked for us?

Continue to focus on it - don’t stop

Evolve your platforms using customer feedback

Integrate sign up with all customer touch points (Outage portals, Customer satisfaction surveys )

Charge for paper or discount for e-bill transactions

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Where do we go next ?