SunTrust and CheckFree Study Links Electronic Billing and Payment with Higher Customer Retention and Profitability

DAVIS, Calif., Nov 16, 2007 (ASCRIBE NEWS via COMTEX) -- STI | charts | news | PowerRating -- A new SunTrust Bank and CheckFree Corp. study reveals a clear link between electronic billing and payment habits and higher account balances, customer loyalty and profitability.

The study analyzed consumer data from customer households during a 13- month period from February 2006 through February 2007. It found that customers who received and paid at least three e-bills per month at the SunTrust website:

-- Were 86 percent more profitable than offline customers

-- Had a 78 percent lower attrition rate on average

-- Carried 121 percent higher deposit balances than the average SunTrust customer

-- Were twice as likely to have a mortgage and 60 percent more likely to have a savings account with the bank

-- Paid 25 percent more bills online than other customers

The study is the first of its kind to isolate e-bills as a major factor in driving customer retention and profitability based on a matched sample analysis. Conducted by Aspen Marketing Services on behalf of SunTrust and CheckFree Corp., the study builds on previous research findings that customers who use online billing and payment services were more profitable and loyal to their financial institutions. A 2007 Harris Interactive consumer bill payment survey conducted for CheckFree found that consumers using e-bills reported significantly greater satisfaction with their financial institutions and were more likely to recommend a bank's online offerings to friends and family, and 58 percent said they were less likely to switch financial institutions as a result of using e-bills.

"Over the past several years, SunTrust has focused on integrating value- added services like electronic bills to enhance the online banking user experience as part of our broader strategy to differentiate and drive the highest levels of customer satisfaction and retention through the online channel," said Tom Bennett, director of Consumer Deposits and Access Services at SunTrust. "This landmark study shows that there is a strong link among online banking, increased profitability and share of wallet, and there's an even stronger link among e-bills, customer loyalty, profitability and usage of other banking products."

Details of the study, including additional findings, will be formally presented by SunTrust and CheckFree at the Bank Administration Institute (BAI) Retail Delivery Conference on Nov. 15, at 11:15 a.m. in the Expo Solutions Theatre, Mandalay Bay Resort in Las Vegas. A white paper of the study, "The e-Bill Effect: The Impact on Customer Attrition from Banks that Offer e-Bill," will be published by Aspen Marketing Services and available for download at http://www.checkfree.com/whitepapers.

E-bills contain the same information as paper bills but are delivered online rather than via regular mail. Because it offers the ability to securely receive, view and pay multiple bills at a single financial institution's Website, e-billing helps consumers manage household bills in a more organized, secure and convenient fashion. Replacing paper bills with e-bills can also remove sensitive financial records from unsecured mailboxes to help lower the risk of falling victim to identity fraud. E-billing also contributes to environmental conservation by reducing waste and pollutants associated with producing, mailing and transporting paper bills and payments across the country.

"CheckFree is closely aligned with financial institutions' highest priorities of generating revenues and increasing overall customer satisfaction and retention. Our Online Channel Optimization strategy combines CheckFree's industry-leading online banking and bill payment service with value-added services like e-bill," said Alex Hart, executive vice president and general manager of CheckFree Electronic Banking Services. "SunTrust Bank has been a valued CheckFree customer since 1995, and we're pleased to be working closely with the bank to provide integrated online banking and bill payment solutions, as well as the marketing analytics and metrics that can help them achieve maximum return on investment from the critically important online channel."

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