Paper statements--asset or liability?(extra credit)

Although the recent increase in postal rates may be driving organizations to step up the migration to electronic documents and delivery channels in place of paper statements, they may want to consider the full range of advantages that paper documents offer before investing in the time and money that comes with such a major change. Chief among these advantages is that paper continues to be the customer's preference, even in these days of instantaneous electronic communication.

Reports show an overwhelming majority of consumers--80-90%--still prefer to receive statements in the mail and also pay bills with a paper check. Convincing customers otherwise can be costly in terms of promotion and in fielding customer queries about using a new electronic system. The shift from paper to electronic documents means a considerable outlay of funds, and this can quickly eat up any savings realized on the cost of postage.

Additionally, billings and statements are often the main points of contact between a financial professional and their customers. Statements--unlike other forms of mail--are always opened, most often read and commonly kept on file, making them worth their weight in marketing advantages. Today's technologies make it possible to differentiate communications based on different member categories, such as high-balance accounts, and personalize the content to target specific groups for cross-selling and up-selling new and additional services.

Getting More Mileage From Paper Statements

With the postal rate increase and slow adoption of electronic presentment and payment, organizations may feel that they are caught between a rock and a hard place. However, organizations can make the most of production dollars by using statements as marketing vehicles. In many cases, a carefully designed and personalized statement can be combined with, or can replace, a separate marketing mailing. E-statements may someday provide significant cost advantages, hut until member adoption is more widely accepted, it is wise to look at the many advantages of issuing statements via POP--plain old paper.

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Utilizing digital printers and advanced database systems, the ability to produce one-to-one documents that perform well beyond generic "junk mail" is within reach of any size organization. Selective data mining and thoughtful document composition make it possible to produce statements that command dramatically improved customer response for winning marketing campaigns. Rather than viewing printed statements as an expense to be avoided, an organization should leverage its investment and realize the full promise of document personalization and one-to-one marketing.