By Mark Brousseau
While the Federal Reserve Bank’s latest figures show that electronic payments continue to achieve strong growth, the data also suggests we’re still a long way off from the eagerly-anticipated “checkless” society.
With 28.8 billion checks written in 2010 -- the last year the Federal Reserve researched -- the number of checks written between 2007 and 2010 declined by about 6 percent per year. What’s more, 92 percent of checks are now cleared electronically between U.S. banks, according to the Federal Reserve’s research.
So what should remittance processors make of this data?
“It’s clear that U.S. check volumes continue to decline at a gradual rate,” says Creditron Founder and CEO Wally Vogel, “But checks are not likely to disappear any time soon.” While those might be sobering words from some paper-weary operations managers, they can take heart in the fact that paper deposits – a drag on costs and efficiency – are experiencing a rapid decline as Check 21 emerges as the method of choice for deposits (Vogel points to NACHA figures showing a big drop in Accounts Receivable Check Conversion volumes). “This is bad news for manufacturers of high-volume check encoding equipment, but it’s a great opportunity for providers of Check 21 remote deposit technology. There are many remittance shops that manually process their transactions, or have outdated solutions that don’t support Check 21. With banks continuing to lower their fees for Check 21 deposits, many of these shops will likely look for electronic solutions.”
Vogel notes that Creditron has recently seen strong demand for its Check 21 remote deposit capabilities. “The market is recognizing the value of remittance solutions that offer Check 21 remote deposit, as well as an image-based workflow. Against this backdrop, I think we are well-positioned for success and growth.”
What do you think?
Showing posts with label remittance. Show all posts
Showing posts with label remittance. Show all posts
Wednesday, April 6, 2011
Monday, April 4, 2011
Getting comfy at NACHA Payments
Mark Brousseau
Visitors to 3i Infotech's booth this week at NACHA Payments in Austin, Texas, have a chance to win a limited edition Snuggie bearing the company's logo. Here, I model the Snuggie with Kathy Hamburger, president, North America, and global head of BPO for 3i Infotech.
Ordinarily, I ask for your opinion at the end of these posts. Don't bother -- I already know.
Visitors to 3i Infotech's booth this week at NACHA Payments in Austin, Texas, have a chance to win a limited edition Snuggie bearing the company's logo. Here, I model the Snuggie with Kathy Hamburger, president, North America, and global head of BPO for 3i Infotech.
Ordinarily, I ask for your opinion at the end of these posts. Don't bother -- I already know.
Thursday, February 17, 2011
Will Facebook replace the United States Postal Service?
By Flint Lane of Billtrust
Facebook and the United States Postal Service (USPS) are two organizations that have virtually nothing in common. One is a profitable enterprise that Hollywood is making movies about. The other is a government-run organization losing billions of dollars per year. What, if anything, could they have in common?
I've been thinking a lot lately about what's going to happen with the USPS. It's clear that their business model is broken and without an act of Congress, literally, they'll just continue to lose billions each year. I don't blame the folks that run the USPS, they work hard, but they're stuck with a business model that just doesn't work.
When I do the Billtrust sales pitch for electronic billing, it usually goes something like this: "How much sense does it make for a biller to take an electronic billing feed, print it on paper, put it in an envelope, mail it to me so I can then attach a check and mail it back?" Sounds pretty stupid, right? Well, why are the majority of bills still delivered via the USPS? The answer is actually pretty simple; it's still the only mechanism that can reliably reach everybody.
Below I lay out what a new "electronic post office" has to have in order to replace the USPS and why I think Facebook could easily position themselves for this.
1. Universal Deliverability - Facebook claims 150 millions active US users today and growing rapidly. While certainly not universal, they're certainly getting there with the ability to reach the majority of Americans.
2. Effective Communication Platform - Facebook falls short here quite frankly. Posting a status update is interesting and a great way to stay in touch with friends, but Facebook, in my opinion, has fallen on their face as a communication tool. What Facebook really needs here is a GMail like email interface so that people/businesses could send stuff to your @facebook.com address. Now this certainly would introduce enormous spamming opportunities. Facebook could impose some kind of insignificant email tariff to prevent rampant abuse. I've blogged about this in the past (here). I know most people think they get a lot of paper junk mail, but there is actually an effective tariff in place to limit this, it's called postage. I wouldn't mind receiving some junk email if they went through a system that actually had some controls in place. Charging $0.001 per email wouldn't be unreasonable and would keep out the blatant spammers.
3. Privacy - I don't get myself too worked up about my online privacy because I think the measures that most companies take are far more effective than the offline world. However, there are certainly opportunities for abuse here. I would suggest taking a portion of the tariffs collected from above to pay a third party to monitor privacy on a regular basis.
4. Payments - The majority of mail that people get, that is of any importance, are bills. That's because they require the user to take an action - return a payment. Facebook doesn't have this today but this is not a big effort.
Other have tried to become the universal mailbox. My first company Paytrust did this for bills. Zumbox and EarthClassMail are trying to do this for all other forms of mail. But all three suffer from the chicken and the egg problem. Which is to say that until they have enough users, billers and other mailers don't want to bother enabling electronic delivery to them. And users won't sign up, until they can get a majority of their mail through the channel.
That's why I think Facebook, if they want, is well positioned to do this because they already have the user base. Economically I think it would be a slamdunk. Who else could do this? Maybe Google with GMail but I like Facebook's chances better.
Facebook and the United States Postal Service (USPS) are two organizations that have virtually nothing in common. One is a profitable enterprise that Hollywood is making movies about. The other is a government-run organization losing billions of dollars per year. What, if anything, could they have in common?
I've been thinking a lot lately about what's going to happen with the USPS. It's clear that their business model is broken and without an act of Congress, literally, they'll just continue to lose billions each year. I don't blame the folks that run the USPS, they work hard, but they're stuck with a business model that just doesn't work.
When I do the Billtrust sales pitch for electronic billing, it usually goes something like this: "How much sense does it make for a biller to take an electronic billing feed, print it on paper, put it in an envelope, mail it to me so I can then attach a check and mail it back?" Sounds pretty stupid, right? Well, why are the majority of bills still delivered via the USPS? The answer is actually pretty simple; it's still the only mechanism that can reliably reach everybody.
Below I lay out what a new "electronic post office" has to have in order to replace the USPS and why I think Facebook could easily position themselves for this.
1. Universal Deliverability - Facebook claims 150 millions active US users today and growing rapidly. While certainly not universal, they're certainly getting there with the ability to reach the majority of Americans.
2. Effective Communication Platform - Facebook falls short here quite frankly. Posting a status update is interesting and a great way to stay in touch with friends, but Facebook, in my opinion, has fallen on their face as a communication tool. What Facebook really needs here is a GMail like email interface so that people/businesses could send stuff to your @facebook.com address. Now this certainly would introduce enormous spamming opportunities. Facebook could impose some kind of insignificant email tariff to prevent rampant abuse. I've blogged about this in the past (here). I know most people think they get a lot of paper junk mail, but there is actually an effective tariff in place to limit this, it's called postage. I wouldn't mind receiving some junk email if they went through a system that actually had some controls in place. Charging $0.001 per email wouldn't be unreasonable and would keep out the blatant spammers.
3. Privacy - I don't get myself too worked up about my online privacy because I think the measures that most companies take are far more effective than the offline world. However, there are certainly opportunities for abuse here. I would suggest taking a portion of the tariffs collected from above to pay a third party to monitor privacy on a regular basis.
4. Payments - The majority of mail that people get, that is of any importance, are bills. That's because they require the user to take an action - return a payment. Facebook doesn't have this today but this is not a big effort.
Other have tried to become the universal mailbox. My first company Paytrust did this for bills. Zumbox and EarthClassMail are trying to do this for all other forms of mail. But all three suffer from the chicken and the egg problem. Which is to say that until they have enough users, billers and other mailers don't want to bother enabling electronic delivery to them. And users won't sign up, until they can get a majority of their mail through the channel.
That's why I think Facebook, if they want, is well positioned to do this because they already have the user base. Economically I think it would be a slamdunk. Who else could do this? Maybe Google with GMail but I like Facebook's chances better.
Thursday, December 23, 2010
Municipalities eager to automate RP
Posted by Mark Brousseau
Municipal governments are showing strong interest in purchasing automated remittance solutions, and it appears that the sluggish economy -- and its impact on municipal budgets -- is the primary reason, according to Tony Rapaglia, regional manager for Creditron (trapaglia@creditron.com). Municipalities are looking to automate functions such as tax and utility payment processing, Rapaglia explains, adding that he expects the strong demand to carry over into the new year.
"Especially after the recent elections, municipalities are extremely conscious about the amount of money they are spending on back-office functions such as remittance processing," Rapaglia says. "Many are focused like a laser-bean on cutting costs and improving service to taxpayers. They recognize that they can pass along any savings from more efficient processing to their taxpayers."
So why is remittance processing, in particular, getting so much attention from municipalities?
For starters, Rapaglia notes that automated remittance processing frees up municipal workers to focus on other activities -- which is critical as they look to become more taxpayer-focused and make do with less staff. Automated remittance processing also helps municipalities make deposits much quicker, delivering immediate gains in funds availability. Even greater gains are on tap for those municipalities that deposit items electronically to their banks via Check 21. And municipalities are drawn to the improved security that an automated remittance system provides compared to paper processes. "In an automated environment, less people handle the checks, and there's less opportunity to lose them," Rapaglia explains, noting a recent case where a courier misplaced paper checks.
"Municipal budgets are certainly tight, but more of them are recognizing that they can achieve big savings by spending relatively little money on an automated remittance system," Rapaglia concludes.
Municipal governments are showing strong interest in purchasing automated remittance solutions, and it appears that the sluggish economy -- and its impact on municipal budgets -- is the primary reason, according to Tony Rapaglia, regional manager for Creditron (trapaglia@creditron.com). Municipalities are looking to automate functions such as tax and utility payment processing, Rapaglia explains, adding that he expects the strong demand to carry over into the new year.
"Especially after the recent elections, municipalities are extremely conscious about the amount of money they are spending on back-office functions such as remittance processing," Rapaglia says. "Many are focused like a laser-bean on cutting costs and improving service to taxpayers. They recognize that they can pass along any savings from more efficient processing to their taxpayers."
So why is remittance processing, in particular, getting so much attention from municipalities?
For starters, Rapaglia notes that automated remittance processing frees up municipal workers to focus on other activities -- which is critical as they look to become more taxpayer-focused and make do with less staff. Automated remittance processing also helps municipalities make deposits much quicker, delivering immediate gains in funds availability. Even greater gains are on tap for those municipalities that deposit items electronically to their banks via Check 21. And municipalities are drawn to the improved security that an automated remittance system provides compared to paper processes. "In an automated environment, less people handle the checks, and there's less opportunity to lose them," Rapaglia explains, noting a recent case where a courier misplaced paper checks.
"Municipal budgets are certainly tight, but more of them are recognizing that they can achieve big savings by spending relatively little money on an automated remittance system," Rapaglia concludes.
Tuesday, November 2, 2010
Doing "Different" Right
Posted by Mark Brousseau
In today's business world, "business as usual" is likely to put you out of business. If you're using the same old marketing strategies today because they brought in business in years past, you're in danger of being pummeled by your competition. In order to keep your customers happy (and happily spending!), explains Maribeth Kuzmeski, you have to get their attention, and that means your typical tried-and-true marketing tactics aren't going to cut it anymore. To beat your competition, she says you have to stand out and find ways to be you—uniquely!
"With all the noise in your clients' and potential clients' daily lives, it certainly hasn't become any easier to attract attention and appeal to your target market," says Kuzmeski, author of the new book ...And the Clients Went Wild! How Savvy Professionals Win All the Business They Want (Wiley, 2010, ISBN: 978-0-470-60176-1, $24.95, www.AndTheClientsWentWild.com). "But for your business to survive, you have to find ways to cut through that noise. Attracting attention often means that you have to step outside of the current norms and stand out."
If you aren't sure where to get started, Kuzmeski suggests taking a cue from other companies that have taken innovation to heart and used it to successfully win and keep customers.
Read on for some innovation inspiration from companies that found ways to make their customers take notice—while sticking with their values:
The Difference Maker: Buc-ee's
The Dared to Be Difference: Banking on bathrooms. Sometimes what your competitors consider to be "unimportant" may just turn out to be the differentiation that gets customers coming back for more. Buc-ee's gas stations—located throughout Texas—have focused their number-one offering on what people dread most about stopping at a gas station: the bathrooms! Each of the 30 locations has incredibly clean, substantially sized bathrooms, along with full-time attendants to keep them in tip-top shape. Buc-ee's built their entire business around the bathrooms—a feature they knew they could use to differentiate their business.
"This is a great example of how looking at things from a different perspective can really pay off," Kuzmeski says. "Instead of focusing on what clients liked about their industry, they chose to plan their strategy around what customers liked the least and improve upon it. Think about what people dislike most about your industry, service, or product offering. What solutions can you offer? It's a great way to differentiate yourself from your competition and to create some buzz in the process!"
The Difference Maker: Odwalla
The Dared to Be Difference: Juicing with a conscience. Juice company Odwalla was founded in Santa Cruz, California, in 1980 by Greg Steltenpohl, Gerry Percy, and Bonnie Bassett. The trio took the idea of selling fruit juices from a business guidebook. They began by squeezing orange juice with a secondhand juicer in a shed in Steltenpohl's backyard. Their plan was to make enough profit to help fund music programs in local schools.
Odwalla was driven by a corporate conscience and a goal of leading the public toward a closer-to-nature way of nourishing their bodies. The juices were very highly rated for taste. But the true success came in the way that they appealed to their customers. The founders hired marketing and advertising experts and created what they called their "Drink Tank"—a group responsible for developing and managing the Odwalla brand. In building the brand, members of the "Drink Tank" focused on authenticity, alignment, clear narrative, and the value of a strong corporate culture.
"With very little advertising, Odwalla differentiated their brand by extolling the benefits of drinking and supporting a 'juice with a conscience,'" says Kuzmeski. "As a result, people cared and followed and bought. Odwalla appealed to their customers' consciences and it paid off. Essentially, they called their customers' consciences to action. But the strength of that call to action led them to success. How strong is your call to action? Do you frequently tell your customers what you want them to do? It can be an incredible way to drive your customers and potential customers to do exactly what you want them to do."
The Difference Maker: Geico
The Dared to Be Difference: Ensuring brand awareness. When you think Geico, what comes to mind? Perhaps their slogan, "Fifteen minutes could save you 15 percent or more...." Or maybe that gecko with the British accent. Or the stack of money with the eyeballs that seems to distract and attract everyone near it. Or those oft-offended cavemen. Or maybe—just maybe—you think of all four! Geico has done a particularly remarkable job at grabbing attention for their insurance products. And they've done it by frequently and consistently distributing their simple and somewhat annoying messages to establish brand awareness.
"For Geico, frequency of their messages has brought them incredible brand awareness," explains Kuzmeski. "You don't have to have millions to spend on TV, radio, and print advertising to achieve the level of recognition Geico has achieved. What Geico has done is simply repeat, over and over, their message to their prospects. Think about what you can do to repeat your marketing messages to your target market. Do you frequently repeat your core benefits or offerings to your prospects? It's a simple tactic that can yield high results."
The Difference Maker: The Australian Government
The Dared to Be Difference: Offering the world's best job. The Australian Government promoted what they described simply as "the best job in the world" with a creative and extremely successful Internet campaign. The position they were advertising was a six-month contract to be caretaker of a series of islands in the Great Barrier Reef. The government released the story through traditional media (Reuters) and then sustained the buzz over an array of online networks including YouTube, Ning, Twitter, and Facebook. The contest's website received one million hits the day after its launch when the campaign's goal had been to receive just 400,000 hits over the course of the year. Furthermore, the program attracted over 34,000 applicants and generated over $70 million worth of global publicity.
"The lesson here is an important one," asserts Kuzmeski. "You have to evoke an emotion in your customers if you want a response from them. Whether it's hope, love, happiness, anger, or even hate, you want them to feel something. When people are passionate about something, they will act on it, tell their friends about it, and get involved. Think about what messages your company can convey that might provoke an intense reaction."
The Difference Maker: Vistaprint
The Dared to Be Difference: Giving it away for free. As a global company, Vistaprint employs more than 1,850 people, and ships to more than 120 countries around the world. The secret to their huge success? Business cards. Vistaprint wanted to offer their customers something that no other printing company did, so they decided that their hallmark would be jaw-dropping value. By offering 250 business cards for free, with a nominal $5.67 shipping and processing charge, they were able to appeal to their target market: cost-conscious small businesses. Today, 66 percent of Vistaprint's business comes from returning customers. In the first quarter of 2010 alone, they acquired 1.4 million new customers—many who started with a free order.
The Difference Maker: The Bargains Group
The Dared to Be Difference: Teaming up for A-level customer service.Jody Steinhauer began The Bargains Group in 1988 from her kitchen table by purchasing a variety of different clothing and reselling it to discount clothing stores. Today, she runs a multi-million-dollar firm with over 4,000 different items for sale, but the most interesting aspect of the company is its employees.
The Bargains Group is a discount wholesaler of promotional business products, family clothing, accessories, gifts, toys, bedding and linens, personal hygiene products, and tradeshow promotional materials. So how exactly does a small firm with only 20 employees manage to make millions every year without offering prices much lower than their competitors? It's simple: They hire the right people. By focusing on hiring fun, vivacious people who believe strongly in the culture of service, they are able to actually service each of their customers personally. They don't even have a voicemail system!
"While a lot of firms advertise how 'different' their people are, or how they focus on service, The Bargains Group actually proves this assertion," says Kuzmeski. "They don't advertise or employ salespeople—yet they manage to make millions of dollars selling their products. Make sure that your staff is a differentiator for your company. There is great value in good customer service. Happy customers will not only stick around, they will also spread the word!"
The Difference Maker: Dillard's Septic Service
The Dared to Be Difference: Doing the dirty work (literally). James Dillard, owner of Dillard's Septic Service in Annapolis, Maryland, runs a business that most others might consider "beneath" them. Yet Dillard earns a six-figure income doing what many of us would call mundane, boring, or downright disgusting. An October 10, 2007, article in USA Today by Del Jones, entitled "A Dirty Job, But Someone Has to Get Rich Doing It," featured Dillard and other business owners who have entered into careers that many others simply would not. And it is a potential avenue for business owners who are looking for a way to generate more income. In fact, in the Forbes 400 list of the wealthiest Americans for 2009, less than glamorous fields and products—including discount tires, roofing, salsa, lumber, and tequila—have produced extraordinary income.
"You might not consider these to be businesses that would create such great wealth," says Kuzmeski. "But all of these business owners found their niche, and, through it, their differentiation. Think about a product or service that you can offer that no one else will. You don't always have to be wracking your brain to come up with a product or service that is better than anything your competitors offer. You can also come up with a product or service that they simply won't offer. Products or services that others are afraid to touch can mean big opportunities for you!"
The Difference Maker: Man Cave
The Dared to Be Difference: "Manning" up before the rest. Who would have thought a Tupperware-type party for men would be a good idea? Cofounders Nick Beste and Kevin Carlow saw the success stories from female-centric companies like Tupperware, Silpada, and Partylite and thought, why not? As a result, they created Man Cave, an in-home party where hosts throw "Meatings" complete with a set of "Man Laws." For years, thousands of companies have demonstrated and sold products to groups of women in their homes. Now Man Cave does it for men. They aren't just the leader in their industry; they ARE the industry—and they anticipate crossing the $3-million mark by November 2010.
"Don't shy away from an idea just because it's never been done before," Kuzmeski explains. "In fact, discovering an untapped market can be like striking gold in this economy. Instead of following trends, you have to be brave enough to be a trendsetter. It can be the gateway to a big idea and a big payoff."
The Difference Maker: Realtor and Inventor Jean Newell
The Dared to Be Difference: Recognizing it's not what you know, it's who you know.
Veteran Realtor Jean Newell had an idea for her fellow real estate agents. She invented a personal utility pouch (PUP)—a multi-zippered mini-pack designed to carry all the technical tools, keys, contracts, and more that a real estate agent needs. Judging by the initial reaction she received, she knew she was on to something that people wanted. Her objective was to get on QVC, but she was turned down by gatekeepers again and again.
So she decided to reach out to her network, which consisted of other agents, buyers, sellers, etc., and ask for their help. She sent out an email requesting help to find a contact person at QVC for her new product and received an overwhelming response. Within a few days, she had 40 emails from people providing contacts at QVC. She created a quick video to show how she would promote the bag and sent it off to QVC. Within two weeks, she was accepted! Since her initial appearance on QVC, Newell has become a sales superstar and media darling.
The Difference Maker: Toy House
The Dared to Be Difference: Advertising curiosity. In Jackson, Michigan, a city and state hit hard by the economy, toy store owner Phil Wrzesinski was struggling to compete against local big box competitors like Toys "R" Us, Target, and Walmart. And then he had an idea. In August 2008 he began running ads on the local radio station that had local DJs wondering what was in the men's bathroom of the store. Droves of customers started coming in to see what actually wasin the men's bathroom. (The product in question, by the way, was a nightlight that projects stars on to the ceiling and walls of a darkened room.) The result? Despite the down economy, Toy House has seen a steady increase in both loyalty and sales ever since!
"Just because your product may be ordinary, it doesn't mean your promotion of it has to be," advises Kuzmeski. "Clever advertising can peak interest, create buzz, and get people talking—exactly what you want at a time like this. Don't be afraid to take risks with your promotion. Show that your company has an edge. It will set you apart from your competitors."
"To beat your competition in today's economy, you have to be offering something that no one else is—be it a unique product, promotion, offer, staff, or culture," says Kuzmeski. "You can't expect to keep customers coming back if you are offering only the status quo. Don't be afraid to take risks, think outside the box, and be a little daring. Not only will you grow your business, you'll find yourself inspired, recharged, and motivated."
What do you think?
In today's business world, "business as usual" is likely to put you out of business. If you're using the same old marketing strategies today because they brought in business in years past, you're in danger of being pummeled by your competition. In order to keep your customers happy (and happily spending!), explains Maribeth Kuzmeski, you have to get their attention, and that means your typical tried-and-true marketing tactics aren't going to cut it anymore. To beat your competition, she says you have to stand out and find ways to be you—uniquely!
"With all the noise in your clients' and potential clients' daily lives, it certainly hasn't become any easier to attract attention and appeal to your target market," says Kuzmeski, author of the new book ...And the Clients Went Wild! How Savvy Professionals Win All the Business They Want (Wiley, 2010, ISBN: 978-0-470-60176-1, $24.95, www.AndTheClientsWentWild.com). "But for your business to survive, you have to find ways to cut through that noise. Attracting attention often means that you have to step outside of the current norms and stand out."
If you aren't sure where to get started, Kuzmeski suggests taking a cue from other companies that have taken innovation to heart and used it to successfully win and keep customers.
Read on for some innovation inspiration from companies that found ways to make their customers take notice—while sticking with their values:
The Difference Maker: Buc-ee's
The Dared to Be Difference: Banking on bathrooms. Sometimes what your competitors consider to be "unimportant" may just turn out to be the differentiation that gets customers coming back for more. Buc-ee's gas stations—located throughout Texas—have focused their number-one offering on what people dread most about stopping at a gas station: the bathrooms! Each of the 30 locations has incredibly clean, substantially sized bathrooms, along with full-time attendants to keep them in tip-top shape. Buc-ee's built their entire business around the bathrooms—a feature they knew they could use to differentiate their business.
"This is a great example of how looking at things from a different perspective can really pay off," Kuzmeski says. "Instead of focusing on what clients liked about their industry, they chose to plan their strategy around what customers liked the least and improve upon it. Think about what people dislike most about your industry, service, or product offering. What solutions can you offer? It's a great way to differentiate yourself from your competition and to create some buzz in the process!"
The Difference Maker: Odwalla
The Dared to Be Difference: Juicing with a conscience. Juice company Odwalla was founded in Santa Cruz, California, in 1980 by Greg Steltenpohl, Gerry Percy, and Bonnie Bassett. The trio took the idea of selling fruit juices from a business guidebook. They began by squeezing orange juice with a secondhand juicer in a shed in Steltenpohl's backyard. Their plan was to make enough profit to help fund music programs in local schools.
Odwalla was driven by a corporate conscience and a goal of leading the public toward a closer-to-nature way of nourishing their bodies. The juices were very highly rated for taste. But the true success came in the way that they appealed to their customers. The founders hired marketing and advertising experts and created what they called their "Drink Tank"—a group responsible for developing and managing the Odwalla brand. In building the brand, members of the "Drink Tank" focused on authenticity, alignment, clear narrative, and the value of a strong corporate culture.
"With very little advertising, Odwalla differentiated their brand by extolling the benefits of drinking and supporting a 'juice with a conscience,'" says Kuzmeski. "As a result, people cared and followed and bought. Odwalla appealed to their customers' consciences and it paid off. Essentially, they called their customers' consciences to action. But the strength of that call to action led them to success. How strong is your call to action? Do you frequently tell your customers what you want them to do? It can be an incredible way to drive your customers and potential customers to do exactly what you want them to do."
The Difference Maker: Geico
The Dared to Be Difference: Ensuring brand awareness. When you think Geico, what comes to mind? Perhaps their slogan, "Fifteen minutes could save you 15 percent or more...." Or maybe that gecko with the British accent. Or the stack of money with the eyeballs that seems to distract and attract everyone near it. Or those oft-offended cavemen. Or maybe—just maybe—you think of all four! Geico has done a particularly remarkable job at grabbing attention for their insurance products. And they've done it by frequently and consistently distributing their simple and somewhat annoying messages to establish brand awareness.
"For Geico, frequency of their messages has brought them incredible brand awareness," explains Kuzmeski. "You don't have to have millions to spend on TV, radio, and print advertising to achieve the level of recognition Geico has achieved. What Geico has done is simply repeat, over and over, their message to their prospects. Think about what you can do to repeat your marketing messages to your target market. Do you frequently repeat your core benefits or offerings to your prospects? It's a simple tactic that can yield high results."
The Difference Maker: The Australian Government
The Dared to Be Difference: Offering the world's best job. The Australian Government promoted what they described simply as "the best job in the world" with a creative and extremely successful Internet campaign. The position they were advertising was a six-month contract to be caretaker of a series of islands in the Great Barrier Reef. The government released the story through traditional media (Reuters) and then sustained the buzz over an array of online networks including YouTube, Ning, Twitter, and Facebook. The contest's website received one million hits the day after its launch when the campaign's goal had been to receive just 400,000 hits over the course of the year. Furthermore, the program attracted over 34,000 applicants and generated over $70 million worth of global publicity.
"The lesson here is an important one," asserts Kuzmeski. "You have to evoke an emotion in your customers if you want a response from them. Whether it's hope, love, happiness, anger, or even hate, you want them to feel something. When people are passionate about something, they will act on it, tell their friends about it, and get involved. Think about what messages your company can convey that might provoke an intense reaction."
The Difference Maker: Vistaprint
The Dared to Be Difference: Giving it away for free. As a global company, Vistaprint employs more than 1,850 people, and ships to more than 120 countries around the world. The secret to their huge success? Business cards. Vistaprint wanted to offer their customers something that no other printing company did, so they decided that their hallmark would be jaw-dropping value. By offering 250 business cards for free, with a nominal $5.67 shipping and processing charge, they were able to appeal to their target market: cost-conscious small businesses. Today, 66 percent of Vistaprint's business comes from returning customers. In the first quarter of 2010 alone, they acquired 1.4 million new customers—many who started with a free order.
The Difference Maker: The Bargains Group
The Dared to Be Difference: Teaming up for A-level customer service.Jody Steinhauer began The Bargains Group in 1988 from her kitchen table by purchasing a variety of different clothing and reselling it to discount clothing stores. Today, she runs a multi-million-dollar firm with over 4,000 different items for sale, but the most interesting aspect of the company is its employees.
The Bargains Group is a discount wholesaler of promotional business products, family clothing, accessories, gifts, toys, bedding and linens, personal hygiene products, and tradeshow promotional materials. So how exactly does a small firm with only 20 employees manage to make millions every year without offering prices much lower than their competitors? It's simple: They hire the right people. By focusing on hiring fun, vivacious people who believe strongly in the culture of service, they are able to actually service each of their customers personally. They don't even have a voicemail system!
"While a lot of firms advertise how 'different' their people are, or how they focus on service, The Bargains Group actually proves this assertion," says Kuzmeski. "They don't advertise or employ salespeople—yet they manage to make millions of dollars selling their products. Make sure that your staff is a differentiator for your company. There is great value in good customer service. Happy customers will not only stick around, they will also spread the word!"
The Difference Maker: Dillard's Septic Service
The Dared to Be Difference: Doing the dirty work (literally). James Dillard, owner of Dillard's Septic Service in Annapolis, Maryland, runs a business that most others might consider "beneath" them. Yet Dillard earns a six-figure income doing what many of us would call mundane, boring, or downright disgusting. An October 10, 2007, article in USA Today by Del Jones, entitled "A Dirty Job, But Someone Has to Get Rich Doing It," featured Dillard and other business owners who have entered into careers that many others simply would not. And it is a potential avenue for business owners who are looking for a way to generate more income. In fact, in the Forbes 400 list of the wealthiest Americans for 2009, less than glamorous fields and products—including discount tires, roofing, salsa, lumber, and tequila—have produced extraordinary income.
"You might not consider these to be businesses that would create such great wealth," says Kuzmeski. "But all of these business owners found their niche, and, through it, their differentiation. Think about a product or service that you can offer that no one else will. You don't always have to be wracking your brain to come up with a product or service that is better than anything your competitors offer. You can also come up with a product or service that they simply won't offer. Products or services that others are afraid to touch can mean big opportunities for you!"
The Difference Maker: Man Cave
The Dared to Be Difference: "Manning" up before the rest. Who would have thought a Tupperware-type party for men would be a good idea? Cofounders Nick Beste and Kevin Carlow saw the success stories from female-centric companies like Tupperware, Silpada, and Partylite and thought, why not? As a result, they created Man Cave, an in-home party where hosts throw "Meatings" complete with a set of "Man Laws." For years, thousands of companies have demonstrated and sold products to groups of women in their homes. Now Man Cave does it for men. They aren't just the leader in their industry; they ARE the industry—and they anticipate crossing the $3-million mark by November 2010.
"Don't shy away from an idea just because it's never been done before," Kuzmeski explains. "In fact, discovering an untapped market can be like striking gold in this economy. Instead of following trends, you have to be brave enough to be a trendsetter. It can be the gateway to a big idea and a big payoff."
The Difference Maker: Realtor and Inventor Jean Newell
The Dared to Be Difference: Recognizing it's not what you know, it's who you know.
Veteran Realtor Jean Newell had an idea for her fellow real estate agents. She invented a personal utility pouch (PUP)—a multi-zippered mini-pack designed to carry all the technical tools, keys, contracts, and more that a real estate agent needs. Judging by the initial reaction she received, she knew she was on to something that people wanted. Her objective was to get on QVC, but she was turned down by gatekeepers again and again.
So she decided to reach out to her network, which consisted of other agents, buyers, sellers, etc., and ask for their help. She sent out an email requesting help to find a contact person at QVC for her new product and received an overwhelming response. Within a few days, she had 40 emails from people providing contacts at QVC. She created a quick video to show how she would promote the bag and sent it off to QVC. Within two weeks, she was accepted! Since her initial appearance on QVC, Newell has become a sales superstar and media darling.
The Difference Maker: Toy House
The Dared to Be Difference: Advertising curiosity. In Jackson, Michigan, a city and state hit hard by the economy, toy store owner Phil Wrzesinski was struggling to compete against local big box competitors like Toys "R" Us, Target, and Walmart. And then he had an idea. In August 2008 he began running ads on the local radio station that had local DJs wondering what was in the men's bathroom of the store. Droves of customers started coming in to see what actually wasin the men's bathroom. (The product in question, by the way, was a nightlight that projects stars on to the ceiling and walls of a darkened room.) The result? Despite the down economy, Toy House has seen a steady increase in both loyalty and sales ever since!
"Just because your product may be ordinary, it doesn't mean your promotion of it has to be," advises Kuzmeski. "Clever advertising can peak interest, create buzz, and get people talking—exactly what you want at a time like this. Don't be afraid to take risks with your promotion. Show that your company has an edge. It will set you apart from your competitors."
"To beat your competition in today's economy, you have to be offering something that no one else is—be it a unique product, promotion, offer, staff, or culture," says Kuzmeski. "You can't expect to keep customers coming back if you are offering only the status quo. Don't be afraid to take risks, think outside the box, and be a little daring. Not only will you grow your business, you'll find yourself inspired, recharged, and motivated."
What do you think?
Monday, October 25, 2010
Hey, America: TMI!
Posted by Mark Brousseau
A new national survey reveals half of Americans who use social networking sites have seen people divulge too much personal information, yet more than a quarter of Americans (28 percent) who use these sites admit that they rarely think about what could happen if they share too much personal information online.
Additionally, more than four in ten Americans (44 percent) are concerned that the personal information they share online is being used against them, and more than one in five (21 percent) Americans who use social networking sites believe that their personal information has been accessed by people who take advantage of weak privacy settings on social networking sites.
That's according to the 2010 Lawyers.com Social Networking Survey.
“The Lawyers.com Social Networking Survey reveals a clear disconnect between the privacy concerns of users and their actual behaviors and disclosures on social networking sites,” said Carol Eversen, vice president of Marketing at LexisNexis. “Nearly every week we hear about the negative consequences resulting from inappropriate disclosures and uses of personal information on social networking sites, however the data suggests that Americans are not taking the necessary steps to protect themselves.”
More than half of Americans who use social networking sites have seen people divulge too much personal information online. In fact, the majority of Americans who use social networking sites admit that they have posted their first and last name (69 percent), photos of themselves (67 percent), or an email address (51 percent) on a social networking site. In addition, survey respondents have also shared the following details on a social networking site:
•Travel plans (16 percent)
•Cell phone numbers (7 percent)
•Home address (4 percent)
Determining how much is too much is still a struggle for many people. Nearly half of Americans (46 percent) agree that sometimes it is hard to figure out what information to share and what to keep private.
As many Americans struggle with what type of personal information to post online and keep private, they also seldom think about the consequences of sharing personal information online. More than a quarter of Americans (28 percent) admit they rarely think about what could happen if they shared too much personal information online.
A quarter of Americans (25 percent) who use social networking sites say that they have seen people “misrepresent” themselves (e.g., posted incorrect information and created fake profiles) and alarmingly, more than one in ten Americans (14 percent) who use social networking sites say that they have received communication from strangers as a result of sharing information on a social networking site.
Other backlash from using social networking sites includes:
•Someone posting unflattering pictures of them (11 percent)
•Having personal relationships with family or friends affected from revealing too much information (7 percent)
•Being scolded or yelled at for information they’ve posted (6 percent)
Surprisingly, 38 percent of Americans agree that people who share too much of their personal information online deserve to have their information used inappropriately.
Three-quarters of Americans (76 percent) worry that the privacy settings on social networking sites are not adequately protecting their personal information. In addition, more than four in ten Americans (43 percent) admit that they typically just click “agree” without reading the entire terms and conditions on social networking sites.
Meanwhile, many believe that their personal information may already be in the wrong hands. More than four in ten Americans (44 percent) are concerned that the personal information they share online is being used against them, and one in five Americans (21 percent) who use social networking sites believe that their personal information has been accessed by people who take advantage of weak privacy settings on social networking sites.
What do you think?
A new national survey reveals half of Americans who use social networking sites have seen people divulge too much personal information, yet more than a quarter of Americans (28 percent) who use these sites admit that they rarely think about what could happen if they share too much personal information online.
Additionally, more than four in ten Americans (44 percent) are concerned that the personal information they share online is being used against them, and more than one in five (21 percent) Americans who use social networking sites believe that their personal information has been accessed by people who take advantage of weak privacy settings on social networking sites.
That's according to the 2010 Lawyers.com Social Networking Survey.
“The Lawyers.com Social Networking Survey reveals a clear disconnect between the privacy concerns of users and their actual behaviors and disclosures on social networking sites,” said Carol Eversen, vice president of Marketing at LexisNexis. “Nearly every week we hear about the negative consequences resulting from inappropriate disclosures and uses of personal information on social networking sites, however the data suggests that Americans are not taking the necessary steps to protect themselves.”
More than half of Americans who use social networking sites have seen people divulge too much personal information online. In fact, the majority of Americans who use social networking sites admit that they have posted their first and last name (69 percent), photos of themselves (67 percent), or an email address (51 percent) on a social networking site. In addition, survey respondents have also shared the following details on a social networking site:
•Travel plans (16 percent)
•Cell phone numbers (7 percent)
•Home address (4 percent)
Determining how much is too much is still a struggle for many people. Nearly half of Americans (46 percent) agree that sometimes it is hard to figure out what information to share and what to keep private.
As many Americans struggle with what type of personal information to post online and keep private, they also seldom think about the consequences of sharing personal information online. More than a quarter of Americans (28 percent) admit they rarely think about what could happen if they shared too much personal information online.
A quarter of Americans (25 percent) who use social networking sites say that they have seen people “misrepresent” themselves (e.g., posted incorrect information and created fake profiles) and alarmingly, more than one in ten Americans (14 percent) who use social networking sites say that they have received communication from strangers as a result of sharing information on a social networking site.
Other backlash from using social networking sites includes:
•Someone posting unflattering pictures of them (11 percent)
•Having personal relationships with family or friends affected from revealing too much information (7 percent)
•Being scolded or yelled at for information they’ve posted (6 percent)
Surprisingly, 38 percent of Americans agree that people who share too much of their personal information online deserve to have their information used inappropriately.
Three-quarters of Americans (76 percent) worry that the privacy settings on social networking sites are not adequately protecting their personal information. In addition, more than four in ten Americans (43 percent) admit that they typically just click “agree” without reading the entire terms and conditions on social networking sites.
Meanwhile, many believe that their personal information may already be in the wrong hands. More than four in ten Americans (44 percent) are concerned that the personal information they share online is being used against them, and one in five Americans (21 percent) who use social networking sites believe that their personal information has been accessed by people who take advantage of weak privacy settings on social networking sites.
What do you think?
Tuesday, September 14, 2010
4 Reasons Government Entities may adopt Integrated Payments Hubs
Posted by Mark Brousseau
If you think your operations budgets are tight, try managing payments processing for a government entity. Badly stung by declining tax revenues, most state, county and municipal governments have squeezed their operations budgets dry. And it couldn't have come at a worse time for government operations managers: like their counterparts in the private sector, governments are struggling with how best to adapt their operations to declining check volumes and emerging payments channels.
Leilani Doyle (ldoyle@usdataworks.com), product manager at Houston-based US Dataworks (www.usdataworks.com), believes government entities may find a solution in so-called enterprise payments hubs (or integrated payments hubs), which consolidate paper-based and electronic payments into a single platform, in turn, streamlining processing and eliminating operations silos.
About one-quarter (22.2 percent) of all government entities that responded to a recent IAPP-TAWPI survey indicated that they have implemented an enterprise payments hub to consolidate paper and electronic payments. The responses from state revenue agencies nearly mirror the overall findings for this question, with 21.4 percent indicating that they have implemented an enterprise payments hub. Non-revenue state agencies and county government entities have made a little more progress in this area, with 33 percent of (non-revenue) state agencies indicating that they have implemented an enterprise payments hub, and 40 percent of county government entities (by far the highest adoption rate among the groups tracked) stating that they have implemented an enterprise payments hub.
Doyle says 4 factors could drive faster growth of enterprise payments hubs among governments:
1. Declining paper volumes. As government agencies achieve success with electronic payments, their existing paper-centric infrastructure becomes obsolete. "Paper will not go away any time soon, but there's no need to maintain equipment and applications designed to manage large volumes of paper payments," Doyle explains. "Moving forward, government entities will need an integrated payments platform that can scale up or down as needed. This type of payments processing platform operates like a utility that can be easily adjusted to changing payment types and volumes."
2. Focus on serving constituents. Implementing an integrated payments hub enables government entities to provide better service to their constituents, Doyle explains. Research can be performed from a single location. Posting is more accurate. And check images can be retrieved instantly.
3. Push to reduce bank fees and operations costs. With an integrated payments hub, government entities can consolidate their bank deposit files, putting them in a stronger position for negotiating bank fees. Inside government operations, an integrated payments hub helps government entities increase overall staff productivity by not requiring them to learn different applications for processing each payment type. Similarly, reports for staffing and efficiency can be produced from a single system, streamlining the generation of Key Performance Indicators each agency must produce.
4. Lower capital expenditures and ongoing costs. With the emergence of enterprise payments solutions that offer a Software-as-a-Service (SaaS) or hosted delivery model, government agencies can replace their aging systems with little to no upfront cost. This is a creative way to allow agencies without the budgeted dollars to replace antiquated legacy systems, Doyle says. "SaaS services also provide an added layer of security and compliance protection, starting with PCI compliance and SAS-70. This can significantly reduce risks and audit costs for government agencies." What’s more, leveraging a SaaS or hosted delivery model means government entities can offload the management of their IT infrastructure. This not only saves money, but also allows government entities to better focus on their core competency -- serving taxpayers. And this may be the biggest benefit of all.
It's for these reasons that Doyle thinks government entities may adopt integrated payments hubs.
What do you think?
If you think your operations budgets are tight, try managing payments processing for a government entity. Badly stung by declining tax revenues, most state, county and municipal governments have squeezed their operations budgets dry. And it couldn't have come at a worse time for government operations managers: like their counterparts in the private sector, governments are struggling with how best to adapt their operations to declining check volumes and emerging payments channels.
Leilani Doyle (ldoyle@usdataworks.com), product manager at Houston-based US Dataworks (www.usdataworks.com), believes government entities may find a solution in so-called enterprise payments hubs (or integrated payments hubs), which consolidate paper-based and electronic payments into a single platform, in turn, streamlining processing and eliminating operations silos.
About one-quarter (22.2 percent) of all government entities that responded to a recent IAPP-TAWPI survey indicated that they have implemented an enterprise payments hub to consolidate paper and electronic payments. The responses from state revenue agencies nearly mirror the overall findings for this question, with 21.4 percent indicating that they have implemented an enterprise payments hub. Non-revenue state agencies and county government entities have made a little more progress in this area, with 33 percent of (non-revenue) state agencies indicating that they have implemented an enterprise payments hub, and 40 percent of county government entities (by far the highest adoption rate among the groups tracked) stating that they have implemented an enterprise payments hub.
Doyle says 4 factors could drive faster growth of enterprise payments hubs among governments:
1. Declining paper volumes. As government agencies achieve success with electronic payments, their existing paper-centric infrastructure becomes obsolete. "Paper will not go away any time soon, but there's no need to maintain equipment and applications designed to manage large volumes of paper payments," Doyle explains. "Moving forward, government entities will need an integrated payments platform that can scale up or down as needed. This type of payments processing platform operates like a utility that can be easily adjusted to changing payment types and volumes."
2. Focus on serving constituents. Implementing an integrated payments hub enables government entities to provide better service to their constituents, Doyle explains. Research can be performed from a single location. Posting is more accurate. And check images can be retrieved instantly.
3. Push to reduce bank fees and operations costs. With an integrated payments hub, government entities can consolidate their bank deposit files, putting them in a stronger position for negotiating bank fees. Inside government operations, an integrated payments hub helps government entities increase overall staff productivity by not requiring them to learn different applications for processing each payment type. Similarly, reports for staffing and efficiency can be produced from a single system, streamlining the generation of Key Performance Indicators each agency must produce.
4. Lower capital expenditures and ongoing costs. With the emergence of enterprise payments solutions that offer a Software-as-a-Service (SaaS) or hosted delivery model, government agencies can replace their aging systems with little to no upfront cost. This is a creative way to allow agencies without the budgeted dollars to replace antiquated legacy systems, Doyle says. "SaaS services also provide an added layer of security and compliance protection, starting with PCI compliance and SAS-70. This can significantly reduce risks and audit costs for government agencies." What’s more, leveraging a SaaS or hosted delivery model means government entities can offload the management of their IT infrastructure. This not only saves money, but also allows government entities to better focus on their core competency -- serving taxpayers. And this may be the biggest benefit of all.
It's for these reasons that Doyle thinks government entities may adopt integrated payments hubs.
What do you think?
Monday, August 30, 2010
6 Questions to Ask When Shopping for a Remittance Solution
By Mark Brousseau
Buying a remittance processing solution has never been easy. But the combination of emerging payment and clearing channels, expanding systems integration requirements, and new customer service demands has made the process more confusing than ever.
To add some clarity, Wally Vogel (wvogel@creditron.com), founder and CEO of Creditron, Inc. (www.creditron) offers the following six questions to ask a prospective remittance solutions vendors.
1. How much opening and pre-sorting is required before scanning incoming remittance work?
Bearing in mind that there are often several steps required to move from unopened mail to stacks of clean sorted documents, which some remittance solutions require, Vogel suggests looking at the remittance solution in the context of the end-to-end operation. "Look for a vendor that can integrate with an efficient mail opening system and handle a variety of transaction type without requiring pre-sorting," Vogel advises.
2. What about payments that are made in person or over the web?
The mix of payments has changed and will continue to change, and spending money on a solution that only handles mail payments no longer makes sense, Vogel says. "A remittance platform worth investing in should have fully integrated cashiering, web payments, and credit card payments, with consolidated deposits, accounting updates, and reports," Vogel says.
3. Have you successfully interfaced with our ERP/accounting system/billing system/content management software before?
This is an area of potential hidden costs and problems if not addressed upfront, Vogel warns. "You have a significant investment in your information systems, and front end capture points such as remittance processing need to work seamlessly or the result will be unexpected integration work by your IS group, or worse, unforeseen problems with your data down the road," Vogel says.
4. Have you successfully implemented Check 21 Image Cash Letter with our bank before?
This is another potential problem if your remittance vendor and bank are not on the same page, Vogel says. "Don’t get caught in between. Use a vendor that has already proven that they can work with your bank, or if your bank does not have a process and certification in place for working with third party vendors consider using another bank for image cash letter services and having the funds swept to your main bank on a daily basis," Vogel recommends.
5. Is this a fully proven and tested solution or will there be any customized code?
Unless you want to be a beta tester, you should choose a vendor that has completely standardized and proven code that can be configured to your needs through parameters. "Even a small block of customized code can cause problems with reliability or integrity, and make later updates problematic and expensive," Vogel explains. "Choose a vendor with a standard codebase and an easy method to upgrade to the latest revision."
6. Are you a Microsoft Certified partner?
"If you are putting wiring in your house, you insist on a licensed electrician. If you want legal advice, you look for a lawyer that has passed the bar. Similarly, if you are choosing a remittance software provider to work in the Microsoft Windows environment, you should insist in a Microsoft Certified Partner," Vogel says. "This ensures that you are dealing with a professional and qualified organization which has made the investment in certifying their people and products before asking you to make an investment in their solutions."
Do you have any tips you can share?
Buying a remittance processing solution has never been easy. But the combination of emerging payment and clearing channels, expanding systems integration requirements, and new customer service demands has made the process more confusing than ever.
To add some clarity, Wally Vogel (wvogel@creditron.com), founder and CEO of Creditron, Inc. (www.creditron) offers the following six questions to ask a prospective remittance solutions vendors.
1. How much opening and pre-sorting is required before scanning incoming remittance work?
Bearing in mind that there are often several steps required to move from unopened mail to stacks of clean sorted documents, which some remittance solutions require, Vogel suggests looking at the remittance solution in the context of the end-to-end operation. "Look for a vendor that can integrate with an efficient mail opening system and handle a variety of transaction type without requiring pre-sorting," Vogel advises.
2. What about payments that are made in person or over the web?
The mix of payments has changed and will continue to change, and spending money on a solution that only handles mail payments no longer makes sense, Vogel says. "A remittance platform worth investing in should have fully integrated cashiering, web payments, and credit card payments, with consolidated deposits, accounting updates, and reports," Vogel says.
3. Have you successfully interfaced with our ERP/accounting system/billing system/content management software before?
This is an area of potential hidden costs and problems if not addressed upfront, Vogel warns. "You have a significant investment in your information systems, and front end capture points such as remittance processing need to work seamlessly or the result will be unexpected integration work by your IS group, or worse, unforeseen problems with your data down the road," Vogel says.
4. Have you successfully implemented Check 21 Image Cash Letter with our bank before?
This is another potential problem if your remittance vendor and bank are not on the same page, Vogel says. "Don’t get caught in between. Use a vendor that has already proven that they can work with your bank, or if your bank does not have a process and certification in place for working with third party vendors consider using another bank for image cash letter services and having the funds swept to your main bank on a daily basis," Vogel recommends.
5. Is this a fully proven and tested solution or will there be any customized code?
Unless you want to be a beta tester, you should choose a vendor that has completely standardized and proven code that can be configured to your needs through parameters. "Even a small block of customized code can cause problems with reliability or integrity, and make later updates problematic and expensive," Vogel explains. "Choose a vendor with a standard codebase and an easy method to upgrade to the latest revision."
6. Are you a Microsoft Certified partner?
"If you are putting wiring in your house, you insist on a licensed electrician. If you want legal advice, you look for a lawyer that has passed the bar. Similarly, if you are choosing a remittance software provider to work in the Microsoft Windows environment, you should insist in a Microsoft Certified Partner," Vogel says. "This ensures that you are dealing with a professional and qualified organization which has made the investment in certifying their people and products before asking you to make an investment in their solutions."
Do you have any tips you can share?
Monday, April 26, 2010
TAWPI @ NACHA Payments
eGistics Chairman and CEO Bob Lund, also chairman of the TAWPI board of directors, greets Tonya Gregoire of IAPP and Billy Terrell of eGistics this evening at the NACHA Payments conference in Seattle.
Wednesday, February 24, 2010
Not All Municipalities Outsourcing
By Mark Brousseau
While payments processing outsourcing has gained traction among government entities during the economic downturn, it's still not for everyone. A case in point: the Apache County Tax Collector (Arizona), which recently implemented a solution to automate the processing of its tax payments.
"We never really considered outsourcing," explains Apache County Tax Collector Chief Deputy Sandy Klinchock. She believes that in-house processing provides more control and better quality.
Known as the longest county in the country, Apache County runs 211 miles from the Utah border to just south of Alpine, Arizona. Two-thirds of the population, and over one-half of the land area, belongs to the Navajo Nation, the largest Native American tribe. Currently comprised of 70,000 residents, Apache County is growing : new subdivisions have been approved, permanent jobs are being created, and the county is investing in the services required for an expanding population.
With the Apache County Tax Collector committed to keeping its payments processing in-house, it knew it needed a solution for automating its tax processing. Previously, three employees processed the county's roughly 68,000 tax payments in about a three-week window. By automating, the county also hoped to streamline its deposits to improve funds availability and working capital management.
"We wanted to become more efficient, while enhancing our service to constituents," Klinchock says.
In late 2009, the Apache County Tax Collector implemented an image-enabled remittance processing solution from Creditron. The system includes a 3000t check scanner from NCR, courtesy and legal amount recognition (CAR/LAR), and the ability to deposit funds electronically via Check 21.
The Apache County Tax Collector selected Creditron based on its implementation of a system at nearby Navajo County, and on its willingness to meet the county's fast installation schedule; the Apache County Tax Collector went into production a few weeks after signing its Creditron contract. Navajo County handles back-end tax accounting on behalf of the Apache County Tax Collector.
As a result of automating its tax processing, and depositing funds electronically, Apache County Tax Collector now gets all of its funds to the bank the same day they are processed. In its old manual environment, it took the county two to three days to turn around its deposits. "Now, we can keep our money invested for a longer period of time," Klinchock says. "We also have a clearer picture of how much money we have in the bank, and whether we have to pull from investments to pay warrants."
The county also is able to make electronic deposits for all eight of its departments. And depositing funds electronically eliminated daily courier runs to the bank, which cost the county $350 a month. Additionally, there are fewer calls from customers asking why their check hasn't cleared sooner.
With results like these, Klinchock is surprised that so many government entities are outsourcing their payments processing. "If they take some of these arguments to their board, I think they will find a receptive audience," she says. "When our board heard about the benefits, they were all for it."
Creditron Founder and CEO Wally Vogel adds that the experience of the Apache County Tax Collector shows that government entities don't have to outsource to reduce costs or gain efficiencies.
While payments processing outsourcing has gained traction among government entities during the economic downturn, it's still not for everyone. A case in point: the Apache County Tax Collector (Arizona), which recently implemented a solution to automate the processing of its tax payments.
"We never really considered outsourcing," explains Apache County Tax Collector Chief Deputy Sandy Klinchock. She believes that in-house processing provides more control and better quality.
Known as the longest county in the country, Apache County runs 211 miles from the Utah border to just south of Alpine, Arizona. Two-thirds of the population, and over one-half of the land area, belongs to the Navajo Nation, the largest Native American tribe. Currently comprised of 70,000 residents, Apache County is growing : new subdivisions have been approved, permanent jobs are being created, and the county is investing in the services required for an expanding population.
With the Apache County Tax Collector committed to keeping its payments processing in-house, it knew it needed a solution for automating its tax processing. Previously, three employees processed the county's roughly 68,000 tax payments in about a three-week window. By automating, the county also hoped to streamline its deposits to improve funds availability and working capital management.
"We wanted to become more efficient, while enhancing our service to constituents," Klinchock says.
In late 2009, the Apache County Tax Collector implemented an image-enabled remittance processing solution from Creditron. The system includes a 3000t check scanner from NCR, courtesy and legal amount recognition (CAR/LAR), and the ability to deposit funds electronically via Check 21.
The Apache County Tax Collector selected Creditron based on its implementation of a system at nearby Navajo County, and on its willingness to meet the county's fast installation schedule; the Apache County Tax Collector went into production a few weeks after signing its Creditron contract. Navajo County handles back-end tax accounting on behalf of the Apache County Tax Collector.
As a result of automating its tax processing, and depositing funds electronically, Apache County Tax Collector now gets all of its funds to the bank the same day they are processed. In its old manual environment, it took the county two to three days to turn around its deposits. "Now, we can keep our money invested for a longer period of time," Klinchock says. "We also have a clearer picture of how much money we have in the bank, and whether we have to pull from investments to pay warrants."
The county also is able to make electronic deposits for all eight of its departments. And depositing funds electronically eliminated daily courier runs to the bank, which cost the county $350 a month. Additionally, there are fewer calls from customers asking why their check hasn't cleared sooner.
With results like these, Klinchock is surprised that so many government entities are outsourcing their payments processing. "If they take some of these arguments to their board, I think they will find a receptive audience," she says. "When our board heard about the benefits, they were all for it."
Creditron Founder and CEO Wally Vogel adds that the experience of the Apache County Tax Collector shows that government entities don't have to outsource to reduce costs or gain efficiencies.
Friday, August 7, 2009
Hidden Benefits of Outsourcing
When most organizations consider outsourcing, Mike Smith of SourceCorp says the most obvious benefits come to mind:
... Cost containment through labor savings
... Increased accountability
... Leveraging the provider's extensive investment in technology, methodologies and people
... Reassignment and better management of in-house labor
Smith says more savvy organizations recognize that there are a myriad of less obvious, but just as vital, benefits, including:
... Reduction of overall management burden
... Access to specialized skills and industry best practices
... Improved credibility and images by associating with superior providers
... Increased flexibility to meet changing business requirements
... Improved internal management
... Increased security
"Given the capabilities present in today's marketplace, major outsourcing firms offer extremely high levels of security that oftentimes outperform those of the organizations seeking to engage their services," Smith says, adding that usually security is a perceived risk to outsourcing, but is not in actuality.
What do you think? Post your comments below.
... Cost containment through labor savings
... Increased accountability
... Leveraging the provider's extensive investment in technology, methodologies and people
... Reassignment and better management of in-house labor
Smith says more savvy organizations recognize that there are a myriad of less obvious, but just as vital, benefits, including:
... Reduction of overall management burden
... Access to specialized skills and industry best practices
... Improved credibility and images by associating with superior providers
... Increased flexibility to meet changing business requirements
... Improved internal management
... Increased security
"Given the capabilities present in today's marketplace, major outsourcing firms offer extremely high levels of security that oftentimes outperform those of the organizations seeking to engage their services," Smith says, adding that usually security is a perceived risk to outsourcing, but is not in actuality.
What do you think? Post your comments below.
Wednesday, May 27, 2009
You Get What You Pay For -- Even With Remittance Solutions
By Mark Brousseau
When making a purchase, everyone like to "get the best deal." In these difficult economic times, with costs being carefully scrutinized, that is more true then ever.
So, when it comes to remittance solutions, what is the best deal, and what is the true cost?
"A neighbor and I replaced our roof shingles at about the same time last summer," recalls Wally Vogel, president of Purepay Receivables Automation (wvogel@pure-pay.com). "My neighbor proudly told me that he paid half the price to his roofer for the same job. 'The roofers are all the same,' he said. Right? When I heard this I felt that maybe I should have obtained more quotes (I did get two), or shopped around more. But this spring when my neighbor had water leaking into his house in three places, and was unable to track down the company that did his roof, I felt sorry for him. But I also felt better about the value I received for my money. The lowest price does not always represent the best value."
What's true for roofers is also true for remittance processing solution providers, Vogel cautions. "They are not all the same, and choosing the wrong one can be an expensive error," he says. "Saving some money upfront won't seem like such a good idea when your system is down, or you have errors and inefficiencies keeping your organization from making your deposit deadlines."
Vogel says users need to ensure that they are getting a solution that will truly meet their needs, before they consider the price. "Missing features could result in extra manual keying and sorting, which will reduce the time savings of the solution," Vogel explains. "A poor user interface could result in operator errors which are expensive to correct and can cause customer service issues. And a cheaper scanner could jam more, have poor image quality and a lower read rate, resulting in less throughput and more errors."
There are other hidden costs as well. Some of these may be obvious, such as higher costs for maintenance, Vogel says. Others may not come to light for a year or two, when it's time to change a step in the process. "This is when users discover that they need to pay more for custom changes that wouldn't be necessary with a more flexible remittance solution," he says.
When making a purchase, everyone like to "get the best deal." In these difficult economic times, with costs being carefully scrutinized, that is more true then ever.
So, when it comes to remittance solutions, what is the best deal, and what is the true cost?
"A neighbor and I replaced our roof shingles at about the same time last summer," recalls Wally Vogel, president of Purepay Receivables Automation (wvogel@pure-pay.com). "My neighbor proudly told me that he paid half the price to his roofer for the same job. 'The roofers are all the same,' he said. Right? When I heard this I felt that maybe I should have obtained more quotes (I did get two), or shopped around more. But this spring when my neighbor had water leaking into his house in three places, and was unable to track down the company that did his roof, I felt sorry for him. But I also felt better about the value I received for my money. The lowest price does not always represent the best value."
What's true for roofers is also true for remittance processing solution providers, Vogel cautions. "They are not all the same, and choosing the wrong one can be an expensive error," he says. "Saving some money upfront won't seem like such a good idea when your system is down, or you have errors and inefficiencies keeping your organization from making your deposit deadlines."
Vogel says users need to ensure that they are getting a solution that will truly meet their needs, before they consider the price. "Missing features could result in extra manual keying and sorting, which will reduce the time savings of the solution," Vogel explains. "A poor user interface could result in operator errors which are expensive to correct and can cause customer service issues. And a cheaper scanner could jam more, have poor image quality and a lower read rate, resulting in less throughput and more errors."
There are other hidden costs as well. Some of these may be obvious, such as higher costs for maintenance, Vogel says. Others may not come to light for a year or two, when it's time to change a step in the process. "This is when users discover that they need to pay more for custom changes that wouldn't be necessary with a more flexible remittance solution," he says.
Another hidden cost is the time and effort required by a biller's staff, and its IT department, to implement the solution. "Purchasing a less expensive system which takes twice as long to implement, or purchasing from a company which does not have efficient project management in coordinating the interfaces, testing, and training required will result in internal costs that could well exceed the savings when compared to a truly turnkey solution from an organization with a professional implementation and delivery model," Vogel says.
So, when seeking the best value in a remittance solution, Vogel recommends that billers look beyond the sticker price and consider:
... a full set of time saving features (e.g. no need to sort multis from singles, MICR match for check only, account number reading for consolidator checks, ICR roping of long lists)
... ease of use and user interface (e.g. one key zoom, color coding, easy to read fonts)
... quality of the scanner hardware
... maintenance costs
... costs for future changes and upgrades
... time to complete implementation
... quality of project management from vendor
... expectation of your IT involvement
"Taking these and other factors into consideration will help ensure that you truly obtain the best value and that you will be satisfied with your remittance solution in the long run," Vogel says. "Checking references, talking to others about their experience with the vendor, and visiting other client sites is a great way to assess what you can expect from a vendor and what type of value they will deliver over the long term."
"I have heard some say that remittance solutions are commodity items and that they just want the lowest price," Vogel concludes. "If anyone still believes that, I say let's talk. We can meet at my neighbor's house. But you might have to bring a bucket if it's a rainy day."
Tuesday, March 31, 2009
Protecting Yourself from Escalating Network Threats
Posted by Mark Brousseau
While firms are cutting costs anyway they can, security professionals running IT departments are unwilling to let budgets compromise their ability to fend off malware, spam and denial of service attacks with good reason.
The volume, severity and sophistication of attacks have never been greater, and an integrated security suite that includes a firewall, intrusion detection system, network access control and spam filtering has never been more important.
As much as 85 percent of malicious computer code reaching companies’ computers is now coming from Websites, according to research. Google recently found that the number of infected pages returned by web searches increased from 0.3 per cent to 1.3 per cent within just 12 months.
Yet IT departments are being pressured in the down economy to trim cost yet maintain network integrity, essentially, doing more with less.
And while most organizations have web filtering, most have not set it up to cope with fast-moving content. Websites and online services, including social networking sites and user generated content, have now overtaken both spam e-mail and removable media, such as disks or USB drives, as the main way malware is spread to PCs.
The threat is made more serious still, because conventional IT security measures are not well placed to protect against web-based “attack vectors“. The vast majority of businesses have yet to take any steps to protect themselves against web-based malware. Standard desktop anti-malware scanners are only a partial answer as they are generally too slow to prevent malicious code reaching the host PC.
And Gartner estimates that just 15 percent of U.S. and European Union companies run malware filtering of any kind for web content, although as many as 70 percent run URL (address) filtering, to block access to sites containing unsuitable content. As a solution, Secpoint offers Secpoint Protector 5.5 UTM with Anti Spam, Grey Listing, Antivirus, Web Filter and Intrusion Prevention. The solution is designed to operate independently from an end-user’s network, without putting any additional processor strain on it. In fact, you can even link two units or more to protect data centers and larger networks in real-time.
What do you think? Post your comments below.
While firms are cutting costs anyway they can, security professionals running IT departments are unwilling to let budgets compromise their ability to fend off malware, spam and denial of service attacks with good reason.
The volume, severity and sophistication of attacks have never been greater, and an integrated security suite that includes a firewall, intrusion detection system, network access control and spam filtering has never been more important.
As much as 85 percent of malicious computer code reaching companies’ computers is now coming from Websites, according to research. Google recently found that the number of infected pages returned by web searches increased from 0.3 per cent to 1.3 per cent within just 12 months.
Yet IT departments are being pressured in the down economy to trim cost yet maintain network integrity, essentially, doing more with less.
And while most organizations have web filtering, most have not set it up to cope with fast-moving content. Websites and online services, including social networking sites and user generated content, have now overtaken both spam e-mail and removable media, such as disks or USB drives, as the main way malware is spread to PCs.
The threat is made more serious still, because conventional IT security measures are not well placed to protect against web-based “attack vectors“. The vast majority of businesses have yet to take any steps to protect themselves against web-based malware. Standard desktop anti-malware scanners are only a partial answer as they are generally too slow to prevent malicious code reaching the host PC.
And Gartner estimates that just 15 percent of U.S. and European Union companies run malware filtering of any kind for web content, although as many as 70 percent run URL (address) filtering, to block access to sites containing unsuitable content. As a solution, Secpoint offers Secpoint Protector 5.5 UTM with Anti Spam, Grey Listing, Antivirus, Web Filter and Intrusion Prevention. The solution is designed to operate independently from an end-user’s network, without putting any additional processor strain on it. In fact, you can even link two units or more to protect data centers and larger networks in real-time.
What do you think? Post your comments below.
Wednesday, February 11, 2009
Cost Reduction Driving Solutions Sales
By Mark Brousseau
The current economy is creating additional impetus for expense reduction and service improvement, says Bob Lund (rlund@egisticsinc.com), chairman and CEO of Dallas-based eGistics, Inc., and vice chairman of the TAWPI Board of Directors.
“Every solution that you are going to install has to have a cost reduction element associated with it,” Lund told me. “Increasing functionality without improving productivity isn’t going to get you there.”
What do you think? Post your comment below.
The current economy is creating additional impetus for expense reduction and service improvement, says Bob Lund (rlund@egisticsinc.com), chairman and CEO of Dallas-based eGistics, Inc., and vice chairman of the TAWPI Board of Directors.
“Every solution that you are going to install has to have a cost reduction element associated with it,” Lund told me. “Increasing functionality without improving productivity isn’t going to get you there.”
What do you think? Post your comment below.
Tuesday, February 3, 2009
USPS Talking Points
By Mark Brousseau
The remittance space is buzzing about the Postmaster General's recent request to Congress to lift the requirement that the postal service deliver mail six days a week. There is concern from many corners about the potential impact this move would have on the industry.
To help head-off potential public relations issues, USPS prepared the Talking Points below for its staff to use when discussing the Postmaster General's plan. These were passed along by an industry observer.
RECOMMENDED TALKING AND MESSAGE POINTS
PMG TESTIMONY
UPDATED
29 JAN. 09; 2 P.M.
Confirm Testimony
Postmaster General Jack Potter testified Wednesday before a Senate subcommittee on the financial health of the Postal Service. His remarks were candid and he presented options for working our way through the current economic downturn. Potter stressed that the priority would be relief from the prepayment of retiree health benefits.
... Potter’s testimony has been posted on usps.com
Customers First
The Postal Service remains committed to providing the American people with quality, affordable service -- despite the current economic situation. Any decision made to help alleviate our financial situation starts with how it might affect our customers, the American people. We will continue to look at ways to cut costs and improve efficiencies within our system in order to guarantee to deliver the reliable, trusted service our customers have come to expect. In the past year the Postal Service has taken very aggressive cost-cutting actions, including the following:
... Halted construction of new postal facilities;
... Worked with National Association of Letter Carriers to permit a new interim agreement to enable quickly evaluating and adjusting letter carrier routes to reflect diminished volume;
... Frozen the salaries of all Postal Service officers and executives;
... Reducing authorized staffing levels at Postal headquarters by 15 percent;
... Reducing authorized staffing levels in the regional offices by 19 percent;
... Slashed travel and meeting budgets to take advantage of video conferencing technology; and,
... Consolidated some duplicative mail processing operations.
Health Care Relief a Priority
The Postal Service's first option is to restructure the prepayment of future retiree health care costs. We are the only government agency that is required to fully fund all projected retiree health care costs. Nonetheless, the Postal Service remains committed to meeting this obligation but a modified schedule of payments would allow the Postal Service to focus on current financial needs during this crisis. This change would neither increase the health benefit premiums paid by current or future Postal Service retirees, nor would it affect their benefits. Neither proposal would involve tax subsidies.
... Potter asked that the payment schedule for funding be adjusted.
... Modifying the schedule of payments would allow the Postal Service to focus on current financial needs during the economic crisis.
... This change would not increase the health benefit premiums paid by current or future Postal Service retirees.
... This proposal would not involve tax subsidies.
5 Day Delivery
Americans have come to trust and count on delivery six days a week. If the Postal Service is not allowed to postpone retiree health care benefits for at least the next two years, we would look at a temporary solution of limiting delivery to five days a week. This would come only during those periods of the year when mail volume is at its lowest and would be infrequent at best.
... This is a consideration only. No final decision has been made.
... We have no immediate plans to halt our current operating, processing or delivery procedures and systems.
... Our priority remains on working with Congress to change our contribution schedule for the retiree health benefit fund.
... No decisions have been made as to what day we may consider as the “non-delivery” day.
... Business will proceed as it always does. Service, delivery and, especially, work at BSNs continue as it is today.
... It is business as usual for the Postal Service.
What do you think of this? Post your comment below.
The remittance space is buzzing about the Postmaster General's recent request to Congress to lift the requirement that the postal service deliver mail six days a week. There is concern from many corners about the potential impact this move would have on the industry.
To help head-off potential public relations issues, USPS prepared the Talking Points below for its staff to use when discussing the Postmaster General's plan. These were passed along by an industry observer.
RECOMMENDED TALKING AND MESSAGE POINTS
PMG TESTIMONY
UPDATED
29 JAN. 09; 2 P.M.
Confirm Testimony
Postmaster General Jack Potter testified Wednesday before a Senate subcommittee on the financial health of the Postal Service. His remarks were candid and he presented options for working our way through the current economic downturn. Potter stressed that the priority would be relief from the prepayment of retiree health benefits.
... Potter’s testimony has been posted on usps.com
Customers First
The Postal Service remains committed to providing the American people with quality, affordable service -- despite the current economic situation. Any decision made to help alleviate our financial situation starts with how it might affect our customers, the American people. We will continue to look at ways to cut costs and improve efficiencies within our system in order to guarantee to deliver the reliable, trusted service our customers have come to expect. In the past year the Postal Service has taken very aggressive cost-cutting actions, including the following:
... Halted construction of new postal facilities;
... Worked with National Association of Letter Carriers to permit a new interim agreement to enable quickly evaluating and adjusting letter carrier routes to reflect diminished volume;
... Frozen the salaries of all Postal Service officers and executives;
... Reducing authorized staffing levels at Postal headquarters by 15 percent;
... Reducing authorized staffing levels in the regional offices by 19 percent;
... Slashed travel and meeting budgets to take advantage of video conferencing technology; and,
... Consolidated some duplicative mail processing operations.
Health Care Relief a Priority
The Postal Service's first option is to restructure the prepayment of future retiree health care costs. We are the only government agency that is required to fully fund all projected retiree health care costs. Nonetheless, the Postal Service remains committed to meeting this obligation but a modified schedule of payments would allow the Postal Service to focus on current financial needs during this crisis. This change would neither increase the health benefit premiums paid by current or future Postal Service retirees, nor would it affect their benefits. Neither proposal would involve tax subsidies.
... Potter asked that the payment schedule for funding be adjusted.
... Modifying the schedule of payments would allow the Postal Service to focus on current financial needs during the economic crisis.
... This change would not increase the health benefit premiums paid by current or future Postal Service retirees.
... This proposal would not involve tax subsidies.
5 Day Delivery
Americans have come to trust and count on delivery six days a week. If the Postal Service is not allowed to postpone retiree health care benefits for at least the next two years, we would look at a temporary solution of limiting delivery to five days a week. This would come only during those periods of the year when mail volume is at its lowest and would be infrequent at best.
... This is a consideration only. No final decision has been made.
... We have no immediate plans to halt our current operating, processing or delivery procedures and systems.
... Our priority remains on working with Congress to change our contribution schedule for the retiree health benefit fund.
... No decisions have been made as to what day we may consider as the “non-delivery” day.
... Business will proceed as it always does. Service, delivery and, especially, work at BSNs continue as it is today.
... It is business as usual for the Postal Service.
What do you think of this? Post your comment below.
The Economic Upside
By Mark Brousseau
The current economic downturn has created a renewed focus on cash, and prudent cash management. And like any other economic situation, this trend has a downside and an upside when it comes to solutions sales in the payments space, says Wally Vogel, president of Toronto-based Purepay Receivables Automation (wvogel@pure-pay.com).
“We have seen mixed results in our customer base as a result of the new reality,” Vogel told me.
“One the downside, uncertainty is delaying projects and purchases,” Vogel said. “These deals are not dead by any means, but they are not moving ahead either.” Vogel calls this ‘purchase paralysis.’ “The delays we are seeing now are moving out sales that we have spent months developing. It is frustrating to have them stall as they near the finish line.”
Not only does this stymie payments solutions providers like Purepay, it also frustrates the organizations that can’t do anything but maintain the status quo, Vogel noted.
But there is an upside to the current economic situation. Vogel says Purepay is seeing some of its clients take advantage of the current environment to improve their technology infrastructure and gain a competitive advantage over their more conservative peers. “These clients are reducing costs, expanding their service offerings, and winning business,” he said.
“With the primary goal of prudent cash management, automating and enhancing the payment processing technology platform, and expanding rather than contracting business, is an effective way to achieve positive results,” Vogel said. “Organizations that invest in their payments infrastructure now are on an upward vector and will grow and thrive, despite the economy.”
As for the rest of 2009, Vogel expects to see even more of a stratification of the winners and losers in the payments space, and an increased focus by users on offerings that deliver immediate benefits. “Any investment of capital will be, and should be scrutinized to ensure that there is a solid business case, clear costs savings, and that it creates a competitive advantage,” Vogel said.
What do you think? Post your comment below.
The current economic downturn has created a renewed focus on cash, and prudent cash management. And like any other economic situation, this trend has a downside and an upside when it comes to solutions sales in the payments space, says Wally Vogel, president of Toronto-based Purepay Receivables Automation (wvogel@pure-pay.com).
“We have seen mixed results in our customer base as a result of the new reality,” Vogel told me.
“One the downside, uncertainty is delaying projects and purchases,” Vogel said. “These deals are not dead by any means, but they are not moving ahead either.” Vogel calls this ‘purchase paralysis.’ “The delays we are seeing now are moving out sales that we have spent months developing. It is frustrating to have them stall as they near the finish line.”
Not only does this stymie payments solutions providers like Purepay, it also frustrates the organizations that can’t do anything but maintain the status quo, Vogel noted.
But there is an upside to the current economic situation. Vogel says Purepay is seeing some of its clients take advantage of the current environment to improve their technology infrastructure and gain a competitive advantage over their more conservative peers. “These clients are reducing costs, expanding their service offerings, and winning business,” he said.
“With the primary goal of prudent cash management, automating and enhancing the payment processing technology platform, and expanding rather than contracting business, is an effective way to achieve positive results,” Vogel said. “Organizations that invest in their payments infrastructure now are on an upward vector and will grow and thrive, despite the economy.”
As for the rest of 2009, Vogel expects to see even more of a stratification of the winners and losers in the payments space, and an increased focus by users on offerings that deliver immediate benefits. “Any investment of capital will be, and should be scrutinized to ensure that there is a solid business case, clear costs savings, and that it creates a competitive advantage,” Vogel said.
What do you think? Post your comment below.
Thursday, January 29, 2009
Healthcare Payments Automation and the New President
By Mark Brousseau
During his campaign for office, Barack Obama outlined a healthcare plan promising to “lower health care costs by $2,500 for a typical family by investing in health information technology, prevention and care coordination.”
The economic stimulus package currently being debated in Congress reportedly includes $20 billion for healthcare IT. The Committee on Ways & Means reportedly stated the IT funds would be used to establish standards, payment incentives and privacy protections to encourage the widespread adoption of healthcare IT.
According to a discussion draft from the House Appropriations Committee, the $20 billion is intended to “cut red tape, prevent medical mistakes, provide better care to patients and help reduce healthcare costs by billions of dollars each year by introducing cost-saving efficiencies.”
Dwayne L. McAfee, president and CEO, Payformance Corporation, believes the Obama administration will support initiatives to further automate healthcare payments. More specifically, McAfee anticipates the following:
... A continued commitment to the electronic standards first established by the HIPAA legislation of 1996. He expects that the new administration will support the final rule recently published for transition from Version 4010A1 to Version 5010 of the HIPAA Transactions and Code Sets.
... A continued emphasis on efficient delivery of appropriate healthcare services without administrative burden. McAfee expects efforts aimed at effective information exchange to further reduce administrative overhead.
... A continued commitment to build on the automation foundations in place today. McAfee expects support for accelerated adoption of electronic payments and remittance advices. Furthermore, he expects initiatives aimed at making claim settlement data visible and easily accessible.
McAfee also is optimistic that the new administration will continue support for expanded payer/provider connectivity and efficiency with regard to claim settlement communications.
What do you think? Post your comment below.
During his campaign for office, Barack Obama outlined a healthcare plan promising to “lower health care costs by $2,500 for a typical family by investing in health information technology, prevention and care coordination.”
The economic stimulus package currently being debated in Congress reportedly includes $20 billion for healthcare IT. The Committee on Ways & Means reportedly stated the IT funds would be used to establish standards, payment incentives and privacy protections to encourage the widespread adoption of healthcare IT.
According to a discussion draft from the House Appropriations Committee, the $20 billion is intended to “cut red tape, prevent medical mistakes, provide better care to patients and help reduce healthcare costs by billions of dollars each year by introducing cost-saving efficiencies.”
Dwayne L. McAfee, president and CEO, Payformance Corporation, believes the Obama administration will support initiatives to further automate healthcare payments. More specifically, McAfee anticipates the following:
... A continued commitment to the electronic standards first established by the HIPAA legislation of 1996. He expects that the new administration will support the final rule recently published for transition from Version 4010A1 to Version 5010 of the HIPAA Transactions and Code Sets.
... A continued emphasis on efficient delivery of appropriate healthcare services without administrative burden. McAfee expects efforts aimed at effective information exchange to further reduce administrative overhead.
... A continued commitment to build on the automation foundations in place today. McAfee expects support for accelerated adoption of electronic payments and remittance advices. Furthermore, he expects initiatives aimed at making claim settlement data visible and easily accessible.
McAfee also is optimistic that the new administration will continue support for expanded payer/provider connectivity and efficiency with regard to claim settlement communications.
What do you think? Post your comment below.
Fee to Pay by Mail?
Posted by Mark Brousseau
Some billers are taking more aggressive measures to get customers to pay bills electronically. Take a look at this article from The Beaumont Enterprise in Texas.
Jan. 11--Paying for cable television in Southeast Texas just got more expensive for some customers of Time Warner Cable.
That doesn't refer to just the bill for whatever level of service a customer might have. The act of paying for it by mail is what got more expensive.
Time Warner apparently wants to encourage its customers to pay their bill online, which means people need an Internet connection and have an established online banking capability.
If you don't, as of Jan. 1, your bills will cost 99 cents more to pay.
On the other hand, if you pay online, your bill would be 99 cents less.
"People are moving away from paper bills," said Gary Underwood, Time Warner spokesman. "It's a trend. It's not just our industry."
Jane Walker of Beaumont said she already pays online, but wants the paper statement every month to make certain she's not being charged more than she deserves.
"I pay my bills timely," she said. "For a company the size of Time Warner to charge people 99 cents to send a bill is horrendous."
Walker wrote a letter to The Enterprise in protest of Time Warner's new "Go Green" program, which is how the cable giant is framing the charge. The company said the initiative will reduce paper waste and help to "save the environment."
Walker isn't so certain of Time Warner's motives.
"I would ask them to explain to me why," she said. "They know there are people who can't say no. Isn't it enough to pay our bills timely? It makes me angry that they can do this. Isn't there anyone who oversees this?"
Time Warner enjoys something like an unregulated monopoly in many areas of Southeast Texas, unlike Entergy Texas and AT&T. Neither the electric company nor the telephone company charges customers to send pay by mail.
"Entergy has no plans to charge," spokeswoman Debi Derrick said. "We give our customers a choice. Any new charge would likely require Public Utility Commission approval."
AT&T spokesman Dan Feldstein said: "We do not charge customers who elect to have paper billing."
Wanda Luke of Port Neches said she's been paying her bills online for the last 18 months and she likes the convenience of it.
"It's worked out wonderful for me. Friends had a good level of comfort with online banking. I can look at the complete bill and I can even get more detail, like with my American Express bill," she said.
However, Luke said she didn't realize Time Warner would charge people 99 cents if they still wanted the paper bill in the mail.
"I'm thinking only about how much I can save," she said.
If all of Time Warner's customers in Southeast Texas -- numbering perhaps 100,000 -- paid the 99-cent charge, that's about $99,000 per month just to pay the bill.
Underwood said people also can pay at Time Warner's kiosks, 1420 Calder Ave., Beaumont; and 602 N. U.S. 69, Nederland. To avoid the 99-cent charge, a customer still needs online banking capability.
For those who might want another option, the Yellow Pages -- still available in print version in the free telephone book supplied by AT&T -- has plenty of listings under "satellite and cable TV equipment."
Some billers are taking more aggressive measures to get customers to pay bills electronically. Take a look at this article from The Beaumont Enterprise in Texas.
Jan. 11--Paying for cable television in Southeast Texas just got more expensive for some customers of Time Warner Cable.
That doesn't refer to just the bill for whatever level of service a customer might have. The act of paying for it by mail is what got more expensive.
Time Warner apparently wants to encourage its customers to pay their bill online, which means people need an Internet connection and have an established online banking capability.
If you don't, as of Jan. 1, your bills will cost 99 cents more to pay.
On the other hand, if you pay online, your bill would be 99 cents less.
"People are moving away from paper bills," said Gary Underwood, Time Warner spokesman. "It's a trend. It's not just our industry."
Jane Walker of Beaumont said she already pays online, but wants the paper statement every month to make certain she's not being charged more than she deserves.
"I pay my bills timely," she said. "For a company the size of Time Warner to charge people 99 cents to send a bill is horrendous."
Walker wrote a letter to The Enterprise in protest of Time Warner's new "Go Green" program, which is how the cable giant is framing the charge. The company said the initiative will reduce paper waste and help to "save the environment."
Walker isn't so certain of Time Warner's motives.
"I would ask them to explain to me why," she said. "They know there are people who can't say no. Isn't it enough to pay our bills timely? It makes me angry that they can do this. Isn't there anyone who oversees this?"
Time Warner enjoys something like an unregulated monopoly in many areas of Southeast Texas, unlike Entergy Texas and AT&T. Neither the electric company nor the telephone company charges customers to send pay by mail.
"Entergy has no plans to charge," spokeswoman Debi Derrick said. "We give our customers a choice. Any new charge would likely require Public Utility Commission approval."
AT&T spokesman Dan Feldstein said: "We do not charge customers who elect to have paper billing."
Wanda Luke of Port Neches said she's been paying her bills online for the last 18 months and she likes the convenience of it.
"It's worked out wonderful for me. Friends had a good level of comfort with online banking. I can look at the complete bill and I can even get more detail, like with my American Express bill," she said.
However, Luke said she didn't realize Time Warner would charge people 99 cents if they still wanted the paper bill in the mail.
"I'm thinking only about how much I can save," she said.
If all of Time Warner's customers in Southeast Texas -- numbering perhaps 100,000 -- paid the 99-cent charge, that's about $99,000 per month just to pay the bill.
Underwood said people also can pay at Time Warner's kiosks, 1420 Calder Ave., Beaumont; and 602 N. U.S. 69, Nederland. To avoid the 99-cent charge, a customer still needs online banking capability.
For those who might want another option, the Yellow Pages -- still available in print version in the free telephone book supplied by AT&T -- has plenty of listings under "satellite and cable TV equipment."
Mail Days May Be Cut
Posted by Mark Brousseau
Below is an article from the Associated Press on the Postmaster General's request to Congress to lift the requirement that the agency deliver mail six days a week.
Postmaster General: Mail days may need to be cut
By RANDOLPH E. SCHMID
The Associated Press
Thursday, January 29, 2009; 2:41 AM
WASHINGTON -- Massive deficits could force the post office to cut out one day of mail delivery, the postmaster general told Congress on Wednesday, in asking lawmakers to lift the requirement that the agency deliver mail six days a week. If the change happens, that doesn't necessarily mean an end to Saturday mail delivery. Previous post office studies have looked at the possibility of skipping some other day when mail flow is light, such as Tuesday.
Faced with dwindling mail volume and rising costs, the post office was $2.8 billion in the red last year. "If current trends continue, we could experience a net loss of $6 billion or more this fiscal year," Postmaster General John E. Potter said in testimony for a Senate Homeland Security and Governmental Affairs subcommittee.
Total mail volume was 202 billion items last year, over 9 billion less than the year before, the largest single volume drop in history.
And, despite annual rate increases, Potter said 2009 could be the first year since 1946 that the actual amount of money collected by the post office declines.
"It is possible that the cost of six-day delivery may simply prove to be unaffordable," Potter said. "I reluctantly request that Congress remove the annual appropriation bill rider, first added in 1983, that requires the Postal Service to deliver mail six days each week."
"The ability to suspend delivery on the lightest delivery days, for example, could save dollars in both our delivery and our processing and distribution networks. I do not make this request lightly, but I am forced to consider every option given the severity of our challenge," Potter said.
That doesn't mean it would happen right away, he noted, adding that the agency is working to cut costs and any final decision on changing delivery would have to be made by the postal governing board.
If it did become necessary to go to five-day delivery, Potter said, "we would do this by suspending delivery on the lightest volume days."
The Postal Service raised the issue of cutting back on days of service last fall in a study it issued. At that time the agency said the six-day rule should be eliminated, giving the post office, "the flexibility to meet future needs for delivery frequency.
A study done by George Mason University last year for the independent Postal Regulatory Commission estimated that going from six-day to five-day delivery would save the post office more than $1.9 billion annually, while a Postal Service study estimated the saving at $3.5 billion.
The next postal rate increase is scheduled for May, with the amount to be announced next month. Under current rules that would be limited to the amount of the increase in last year's consumer price index, 3.8 percent. That would round to a 2-cent increase in the current 42-cent first class rate.
The agency could request a larger increase because of the special circumstances, but Potter believes that would be counterproductive by causing mail volume to fall even more.
Dan G. Blair, chairman of the Postal Regulatory Commission, noted in his testimony that cutting service could also carry the risk of loss of mail volume. He suggested Congress review both delivery and restrictions it imposed on the closing of small and rural post offices.
The post office's problem is twofold, Potter explained.
"A revolution in the way people communicate has structurally changed the way America uses the mail," with a shift from first-class letters to the Internet for personal communications, billings, payments, statements and business correspondence.
To some extent that was made up for my growth in standard mail _ largely advertising _ but the economic meltdown has resulted in a drop there also.
Potter also asked that Congress ease the requirement that it make advance payments into a fund to cover future health benefits for retirees. Last year the post office was required to put $5.6 billion into the fund.
"We are in uncharted waters," Potter said. "But we do know that mail volume and revenue _ and with them the health of the mail system _ are dependent on the length and depth of the current economic recession."
He proposed easing the retirement pre-funding for eight years, while promising that the agency will cover the premiums for retirement health insurance.
At the same hearing the General Accounting Office agreed that the post office is facing an urgent need for help to preserve its financial strength. But the GAO suggested easing the pre-funding requirement for only two years, with Congress to determine the need for more relief later.
Potter noted that the agency has cut costs by $1 billion per year since 2002, reduced its work force by 120,000, halted construction of new facilities except in emergencies, frozen executive salaries and is in the process of reducing its headquarters work force by 15 percent.
Below is an article from the Associated Press on the Postmaster General's request to Congress to lift the requirement that the agency deliver mail six days a week.
Postmaster General: Mail days may need to be cut
By RANDOLPH E. SCHMID
The Associated Press
Thursday, January 29, 2009; 2:41 AM
WASHINGTON -- Massive deficits could force the post office to cut out one day of mail delivery, the postmaster general told Congress on Wednesday, in asking lawmakers to lift the requirement that the agency deliver mail six days a week. If the change happens, that doesn't necessarily mean an end to Saturday mail delivery. Previous post office studies have looked at the possibility of skipping some other day when mail flow is light, such as Tuesday.
Faced with dwindling mail volume and rising costs, the post office was $2.8 billion in the red last year. "If current trends continue, we could experience a net loss of $6 billion or more this fiscal year," Postmaster General John E. Potter said in testimony for a Senate Homeland Security and Governmental Affairs subcommittee.
Total mail volume was 202 billion items last year, over 9 billion less than the year before, the largest single volume drop in history.
And, despite annual rate increases, Potter said 2009 could be the first year since 1946 that the actual amount of money collected by the post office declines.
"It is possible that the cost of six-day delivery may simply prove to be unaffordable," Potter said. "I reluctantly request that Congress remove the annual appropriation bill rider, first added in 1983, that requires the Postal Service to deliver mail six days each week."
"The ability to suspend delivery on the lightest delivery days, for example, could save dollars in both our delivery and our processing and distribution networks. I do not make this request lightly, but I am forced to consider every option given the severity of our challenge," Potter said.
That doesn't mean it would happen right away, he noted, adding that the agency is working to cut costs and any final decision on changing delivery would have to be made by the postal governing board.
If it did become necessary to go to five-day delivery, Potter said, "we would do this by suspending delivery on the lightest volume days."
The Postal Service raised the issue of cutting back on days of service last fall in a study it issued. At that time the agency said the six-day rule should be eliminated, giving the post office, "the flexibility to meet future needs for delivery frequency.
A study done by George Mason University last year for the independent Postal Regulatory Commission estimated that going from six-day to five-day delivery would save the post office more than $1.9 billion annually, while a Postal Service study estimated the saving at $3.5 billion.
The next postal rate increase is scheduled for May, with the amount to be announced next month. Under current rules that would be limited to the amount of the increase in last year's consumer price index, 3.8 percent. That would round to a 2-cent increase in the current 42-cent first class rate.
The agency could request a larger increase because of the special circumstances, but Potter believes that would be counterproductive by causing mail volume to fall even more.
Dan G. Blair, chairman of the Postal Regulatory Commission, noted in his testimony that cutting service could also carry the risk of loss of mail volume. He suggested Congress review both delivery and restrictions it imposed on the closing of small and rural post offices.
The post office's problem is twofold, Potter explained.
"A revolution in the way people communicate has structurally changed the way America uses the mail," with a shift from first-class letters to the Internet for personal communications, billings, payments, statements and business correspondence.
To some extent that was made up for my growth in standard mail _ largely advertising _ but the economic meltdown has resulted in a drop there also.
Potter also asked that Congress ease the requirement that it make advance payments into a fund to cover future health benefits for retirees. Last year the post office was required to put $5.6 billion into the fund.
"We are in uncharted waters," Potter said. "But we do know that mail volume and revenue _ and with them the health of the mail system _ are dependent on the length and depth of the current economic recession."
He proposed easing the retirement pre-funding for eight years, while promising that the agency will cover the premiums for retirement health insurance.
At the same hearing the General Accounting Office agreed that the post office is facing an urgent need for help to preserve its financial strength. But the GAO suggested easing the pre-funding requirement for only two years, with Congress to determine the need for more relief later.
Potter noted that the agency has cut costs by $1 billion per year since 2002, reduced its work force by 120,000, halted construction of new facilities except in emergencies, frozen executive salaries and is in the process of reducing its headquarters work force by 15 percent.
From the Postmaster General's Mouth
Posted by Mark Brousseau
Below is a link to Postmaster General John E. Potter's testimony before Congress Wednesday where he asked lawmakers to lift the requirement that the agency deliver mail six days a week. This proposal could have a significant impact on remittance and lockbox processors, industry observers point out.
http://www.usps.com/communications/newsroom/testimony/2009/pr09_pmg0128.htm
What do you think? Post your comments below.
Below is a link to Postmaster General John E. Potter's testimony before Congress Wednesday where he asked lawmakers to lift the requirement that the agency deliver mail six days a week. This proposal could have a significant impact on remittance and lockbox processors, industry observers point out.
http://www.usps.com/communications/newsroom/testimony/2009/pr09_pmg0128.htm
What do you think? Post your comments below.
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