The Human-Ethical Association work to eliminate discrimination and oppression. They have over 100,000 members and 2,000 volunteers in Norway .
Most members did not pay their paper invoice on time. This income was reducing, while the costs increased, because more members had to be sent reminders.
Payment via Vipps. A friendly reminder via SMS meant that several members paid in time and the cost of sending out an invoice was cut by as much as 70%.
Some bills are often put in a drawer, for later. These are often invoices from interest groups, charities, sport clubs and other senders who rarely insist on payment.
In your eyes, the association that sent the invoice is doing an important job, and you have the extra money. Still, you have better things to do than log in and pay the bill.
Paper invoicing is more expensive
Paper invoices is a poor user experience for the receiver, while it is unefficient for the collector. Paper invoicing is time-consuming and not a very environmentally friendly process. You pay for postage, have a lower payment rate and more often have to send reminders.
This was also the case for the Human-Ethical Association, even though they had introduced digital invoicing for most of their members. The problems grew in 2016. Less members payed their invoice in time, which resulted in increased costs, because they had to send more reminders.
«The time was right to make it easier for members to pay, reduce the environmental footprint and at the same time reduce the cost of postage and reminders.»
- We have had a pleasant membership growth, which gives a little more money year after year. At the same time costs have increased in terms of printing, addressing and postage to reach those members who did not use digital invoicing. The distribution costs for paper invoices are unacceptably high today, says finance- and IT-manager Harald Masst.
The time was right to make it easier for members to pay, reduce the environmental footprint and at the same time reduce the cost of postage and reminders. The solution was Compello's solution for Vipps (Norwegian payment app) payment for membership invoices.
With Vipps, everything got better
With this solution, the Human-Ethical Association could send a friendly reminder via SMS to members who had not payed their invoice in time. They also explained how the members, with a few simple keystrokes, could pay their invoice via Vipps. This had an immediate and lasting effect.
Paper invoices is reduced by 60 per cent. This saves the environment and cut costs.
- The choice to streamline invoice handling and invest in new systems has resulted in a saving of approximately NOK 400,000 net. A significant sum that benefits the association and members, says Masst.
«The choice to streamline invoice handling and invest in new systems has resulted in a saving of approximately NOK 400,000 net.»
The solution made payment a lot easier for the members without the implementation being particularly demanding for the Human-Ethical Association.
Together with Compello, they washed member lists against the Vipps Invoice register so they could offer members invoices directly on their phone. To reach everyone, those who were not in the register of Vipps Faktura received an e-mail and SMS with a link to pay the invoice directly.
Saves 70 percent on invoicing
Already in the first year, this solution cut the association's invoicing costs by around 70 percent. More than half of those who previously received paper invoices, now choose to pay their membership via other channels.
- I recommend everyone to map out their invoicing and collection processes. It is important to assess the process from the target group's point of view and create a good solution for them. We in the Human-Ethical Association are well underway with this job, says Masst.
- For us, it is important to use the payment channels that our members prefer, such as eFaktura, AvtaleGiro and Vipps Faktura. The most important thing is to make it easy for members to pay. Then we can avoid making our members feel guilty when they walk past the paper invoice on the bench in the hallway.
Some members still want to receive their invoice on paper. It is not that many, and the service will be provided by the association in the years to come.