Unleash Your Statements’ True PotentialA Complete Guide to Enhanced Statement Design & Delivery

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ForewordThis eBook asks the important questions you’ll need to consider before you embark on a statement redesign initiative. It delves into the problems of poor statement design and provides insights into how better looking statements can add significant value to your business through improved customer communications.

From design and layout to data integration, you’ll dive right into the anatomy of a best in class statement and learn what goes into a well designed statement. Finally, you’ll discover the multitude of opportunities that exist beyond the printed statement.

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When analyzing your statements, consider this:

• Whoisyouraudience?Whyareyousendingthemastatement?Andhowwilltheyusetheinformationwhentheyreceiveit?

• Isyourstatementsimplyatransactionaldocumentorisitalsoamarketingtool?Ifso,isittheretomarketthebrandorproductsandservicesaswell?

• Doyouwanttoincludeadditionalinformationon,orwiththestatement?Ifso,whichothermailingscouldyoueliminateifyoudidthis?

• Whatareyourkeydemographicsegments?Whatdoyouknowaboutthesepeople?Andareyouinapositiontoreally“speak”toeachdemographic?

• Ifso,whatarethekeymessages(cross-sellorup-sell)thatyoumightwanttodelivertothesedifferentdemographicsegments?

The exact definition of a statement can vary from one organization to the next, but typically statements are created and mailed to provide customers with a record of transactions for a defined period, and to demonstrate compliance with regulatory mandates that may govern your industry.

But a statement can be much more than just a summary of transactions and balances. If you ask yourself a few questions about the purpose of the statement beyond the simple “obligation to deliver”, there are a lot of things that actually merit some additional thought and action.

Looking Beyond the ObligationA statement is the one key communication piece that gets delivered to your entire customer base on a consistent and predictable basis. And when maximized to its full potential, statements can actually help you to drive new and incremental revenue, while driving costs down at the same time.

Through the inclusion of key marketing message zones, your statements can play an integral role in your marketing programs, providing a vehicle to cross-sell / up-sell your customers.

By addressing the way statement content and data is presented and by delivering a more meaningful, easy to understand statement, organizations can significantly reduce Customer Service Representatives (CSR) overheads.

By developing a better looking statement design, you can closely align it with other branding initiatives to support and enhance the reader’s overall brand experience.

In a nutshell, your statements have the potential to serve as a:

• Key customer communications vehicle • Key element in an integrated marketing program or campaign • Tool to reduce customer service overheads • Tool to reinforce your brand with your customers • Tool to cross-sell / up-sell additional products and services.

Unleash Your Statements’ True Potential

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Many organizations create basic black and white printed statements using the data coming directly from their core back-end systems, often using legacy systems and custom coding to create them. Although sufficient to create a basic paper statement, there are several problems associated with this scenario. These include:

Customer Dissatisfaction

If little time and effort has been put into the design of your statement it will likely present confusing data, which reduces customer satisfaction but also drives calls to the customer service teams.

With the average cost to manage a call in a call center ranging between $4.50 and $8.00, it really makes sense to do everything you can to ensure that the actual statement data you deliver to customers is clear and understandable. Sending out statements every month already costs enough. It certainly doesn’t make sense to increase this cost by incurring additional expenses in your customer service teams.

Brand Deterioration & Missed Brand Impressions

Sending out a plain vanilla black and white statement with basic data layout and design can lead to wasted brand impressions. These statements do little to reinforce the brand image and/or message that you want to communicate.

Legacy systems and custom coding make it difficult to respond to statement change requests.

The challenge for many organizations is that their print service providers operate legacy statement processing systems, which makes it difficult to actually embrace anything more than minor cosmetic changes to the statements that they output – at least in a timely and cost effective manner.

High Costs Associated with Monthly Statements

Monthly statements are a very costly part of doing business: when you factor in print, paper, insertion, mailing and call

center inquiries. So it makes sense to think about the value that better looking statements could bring to your

organization as a vehicle to support your marketing initiatives.

Over Exposure

Most consumers are exposed to thousands of ad impressions per day, and have become very good at tuning out these advertisements. As a result, consumers are selective about which messages they let through. This makes it a real challenge to communicate effectively with marketing messages, and even more of a challenge to ensure that your marketing messages get read.

The average North American is exposed to 3,000 marketing messages per day.

The Solution? Communicate using documents that customers will actually read!

The answer to this challenge is to leverage transactional documents, like statements, to deliver your marketing messages. They are the one communication piece that achieves a 95% open rate with consumers, who typically spend 2-3 minutes reading each transactional document. Statements really do represent the ideal vehicle to deliver key marketing messages.

The Problem with Poor Statement Design

Call centre inquiries for statement related complaints

typically range between 20-35% of total complaints.

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1. Improved BrandingIncrease brand awareness for your organization by customizing your logos, headers and color schemes on your statements, providing optimal brand consistency.

2. Improved Customer ExperienceMany enhanced statement designs allow key account information and summarized account balances to be consolidated on page one, before the account details. This means customers no longer have to rummage through pages of statements to find the account summary information they are looking for.

3. Reduced Call Centre InquiriesEnhanced statement designs make it easier for your customers to locate the statement information they need, reducing calls to customer services representatives.

4. Targeted, Personalized Marketing in Multiple Marketing Message Zones Enhanced statements provide the opportunity to deliver targeted, personalized marketing – facilitating true one-to-one marketing.

5. Rich Text and Images Well-designed statements will also allow you to include text ads as well as color images and photos – giving an interactive and attractive look and feel to all your statements.

6. Decreased CostsBy embedding marketing messages onto statements, the need to include separate marketing inserts can be eliminated, decreasing your print and insertion costs.

7. Broader Design and Layout OptionsThere are a wide variety of ‘best practice’ statement designs that can be deployed, allowing you to pick the statement template options that are best suited to your brand and your customers.

8. Deliver a Better Look OnlineIf you improve the design of your statement and already offer e-statements, you can deliver electronic versions with the same great look and feel – in rich, full color – with extras like interactive links embedded directly in the marketing messages to allow online customers to engage with your marketing programs in real time.

9. Check Image SupportEnhanced designs also support the delivery of check images (full front and back) with statements – with multiple check layout options to choose from.

10. Stay in the GameFinally, the fact is that many financial organizations have already taken their statements to the next level. So the question is really no longer “should we do it” but rather “how can we get there at a reasonable cost?” It’s a great way to remain competitive and provide your customers with the value they deserve.

Top 10 Reasons to Enhance the Look and Feel of Your Statements

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When setting about designing a better looking statement it’s paramount to first define the goals of enhancing or redesigning your statement. These can range from a desire to facilitate communication through reinforcing brand perception, to simply wanting to provide an enhanced customer experience and leverage the opportunity to do some cross selling via enhanced statement based marketing.

Keep in mind that if you are going make the effort to change your statements, it’s important to give due consideration to the anatomy of the statement and its contents. With statements, the priority is to let form follow function.

Ergonomics

When making changes to statement data presentation, you need to look at the ergonomics of your statement.

• Create a logical flow to the information with the most important information delivered first. In the case of a statement, this would typically be the account balances. For example: move account balances up to the prime real estate on page one – the first page the customer sees when they unfold their statement.

• Ensure statement data is comfortably laid out and easily accessible, so the reader does not need to hunt for information.

Smart Documents

An enhanced statement is also a smart document. This means that it displays what is necessary and useful to the recipient and removes all other information that is not – like codes and ambiguous abbreviations that might be a part of the banking system statement data stream. If they mean nothing to the reader and do not need to be there, remove them.

Document Reengineering

Basically, creating a better looking statement is all about document re-engineering. To do this well, it’s important to put some time and effort into addressing those things that impact the purpose of the document. So beyond deciding which data should go where, you should also think about how to use space efficiently.

• Avoid overcrowding the content but don’t leave too much white space either, as this can lead to increased page count which will in turn lead to increased print costs and even increased postage.

• Using proportional fonts vs. fixed width will help maintain readability, while allowing you to tighten up spacing.

• A well designed, user friendly and intuitive statement is one that the reader should not have to think about. They just open it and read it!

• Consider print and electronic production realities. For example, while the new look may be fantastic when viewed in color on line, make sure to do some tests to ensure that the colors and tones you have chosen also work well when they are output in black and white print.

“ The new statement format is definitely more user friendly and as this is a key touch point with our members it really helps improve the overall member experience. Debra Kellestine – Manager of Information Technology, North Peace Savings and Credit Union

Fonts: Types Style and Size

The type and size of font that is used on your statement is also crucial to design, attractiveness and readability.

• Use solid, plain easy to read fonts. Twelve point is a good size for most readers and ten point is probably the minimum size to use, except for things like Ts and Cs.

• Consider the need to deliver statements with a larger type size to readers who may need it (e.g. seniors). This is typically achieved by defining preferences in a document processing system.

• Avoid combining more than three different fonts on the same page. This can make the content overly busy and reduce readability.

• As a rule of thumb, a serif typeface makes text easier to read because it leads your eye from letter to letter (hence its extensive usage in newspapers and books).

• A sans serif typeface is good for titles as it draws the eye down into the body of the text. Hi, I am a serif font Iamasans-seriffont.

• Finally, a tip about capital letters: They are HARD TO READ! If you want to highlight some content it is better to bold it to make it stand out.

Design Principles

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Statement data is well laid out, easy to read and decipher making reading a breeze and finding the information quick and easy.

Creating Best In Class StatementsBy moving from a legacy format statement to an enhanced statement, the look, feel, utility and value of your statement can be increased enormously. Let’s take a look at an example of a better looking statement and the various elements that it can include.

A Better Looking Statement Dissected

Full color banner with prominent logo placement helps reinforce your brand image and core messaging.

The ability to dynamically add personalized contacts allows you to insert the appropriate account manager/representative for each customer, improving overall personalization.

Multiple message zones both in print and image formats allow you to deliver targeted marketing messages at both a product and recipient level.

2D barcodes are smaller and contain a lot more data than OMR or 3 of 9 barcodes, allowing you to manage new levels of preference at the letter shop end of the statement output process.

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Integration with Banking/Brokerage Systems Tocreateabestinclassstatementyoushould,ifpossible,startbyworkingwithyourcoreplatformprovidertoenhancethedatacomingoutofthecorebankingorbrokeragesystem,ideallyconvertingittoXMLforoutput.Thisprovidesthemaximuminhandlingflexibilitydownstream.

Bydoingthis,additionaldataanddataflagscanbecapturedandusedtofurtherpersonalizethestatementrightdowntoacustomer/demographiclevel,enablingyoutobettercommunicateyourofferings.

“ Our new statements are much clearer and facilitate effective marketing message delivery. Staff and member feedback has been very positive.

Joe Agro, Teachers Credit Union

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Advanced Statement Design

There is a lot to think about when embarking on a project to improve something as seemingly simple as a statement. A good enhanced statement design should:

Provide lots of flexibility in the way statement content can be laid out.

Allow multiple templates to be created and utilized, so that things like first page and inside page templates are different.

Allow you have different templates for eStatements (in color) and Print (Black & White) so you can optimize the statement for B&W print output

Allow you to append additional content and materials to the statement, including of course check images - preferably in various different layout options, depending on customer preferences – along with other materials such as newsletters or notices.

Sample First Page Sample Inside Page Sample Black & White Statement Sample Check Image

An Opportunity Exists

To remain competitive, organizations must consider communication strategies that allow them to communicate more effectively with their customers, improve customer satisfaction, lower costs and add additional revenue streams via statement based marketing. A great opportunity exists with a new statement redesign and it’s a win/win for both your internal stakeholders and your customers.

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In today’s competitive climate, organizations are compelled to find new approaches to communicate with customers. Advances in technology have presented financial services organizations with a wide range of valuable opportunities to implement strategies to communicate and market more effectively and directly with their customers:

From To

Print and mail only Online statement options

One data stream Multiple, merged streams

Single item printing Multiple item printing

Black and white Full Color

Online StatementsMany financial organizations recognize the value of eStatements and have already implemented some sort of online solution. Electronic statements make enormous sense for a number of reasons:

• StaffcanaccesseStatementsmoreeasily,facilitatingimprovedcustomerservicedelivery

• Customersgeteasyself-serveaccesstoeStatementsthroughtheironlinebankingportal

• Bysendingoutfewerpaperstatementsprintandmailcostscanbereducedenormously

• Storingstatementselectronicallyandgettingridofhardcopystoragesavesofficerealestateandtimetoupkeepthephysicalstorage

Furthermore, there are many new delivery and communication opportunities that exist with online statements such as differential bundling, embedded links and eInsertion, which are very worthwhile considering.

Differential BundlingWhile multiple printed statements might be sent out in one envelope (which saves postage costs) the online versions don’t need to be delivered in the same format. They can be bundled and uploaded differently, based on customer preferences. For example, customer statements can be put into an online statement archive as three separate statements for three separate accounts or consolidated into one single PDF document before upload.

Checking AccountSavings AccountInvestment Account

Either

Print

Output

Or

ElectronicOutput to

Archive

All three statementsbundled into one envelope for mail delivery

Saves costs for:• Envelopes• Stamps• Handling

Differential Bundling for electronic and print version of statements

The Next Step: The Value of eStatements

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Embedded LinkseStatements allow for hyperlinks to be embedded in the text and image ads in the statement. This allows online readers to respond in real time to something they see on the statement that interests them, and be linked through to relevant web content.

Embedded links also allows you to better understand how people respond to your statement based advertising by tracking click throughs, using a simple web analytics tool (like the free but powerful Google Analytics).

By implementing this relatively simple enhancement to your eStatements you can start to measure reader engagement and therefore test which ad campaigns are more effective – ensuring you spend your marketing budgets more wisely.

eInsertion

Electronic insertion or eInsertion allows you to add additional content, or pages, to the eStatement itself. When a customer decides to only receive their statement online there’s a nice cost saving for you, but it makes it a challenge to expose them to the marketing materials that you typically insert with printed statements. eInsertion is the ideal solution for this scenario.

An eStatement is created when statement data comes in from a back end core system where it’s pushed through a document processing engine. The resulting statements are then sent to print or converted to PDF for upload to an online archive.

An eInsert capability allows you to add eInsert content to the archive, which can then be appended to the end of an electronic statement when the PDF of the eStatement is opened, so that it can be viewed online along with the statement. In essence, it becomes a contiguous part of the statement itself.

This appended information could be the advertising content you use for inserts, a copy of your customer newsletter or some other type of customer notification.

eStatement Data fromCore Processing System

Insert/Newsletter served upIN THE SAME PDF as the statement when user opens

the statement online

Doxim BPM

Print Lettershop Mail

Doxim ECM

Content

Doxim eInsertion – Append electronic documents to eStatements

Clickable link in text based ad that takes reader directly to relevant web content

Clickable ad that takes reader directly to relevant web content and allows them to respond in real time to a marketing promotion.

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Data Insertion and Merging

Data insertion refers to the concept of adding a supplementary data set from another data source to the statement data stream before the statement data is processed. The two data sets are then processed together and output as one document. An example of this might be adding the details of an AIR MILES balance onto a bank statement.

Data stream merging, on the other hand, refers to the concept of merging two separate print streams after the statement data has been processed, so they can be printed together, as if they were one single document. An example of this might be adding a newsletter to the end of a monthly statement.

Color Printing

The cost to print statements in color used to be prohibitively expensive, and advances in technology have led to reductions in price, but has this really come to a point where it’s a viable choice for statements? The simple answer is yes.

Color Printing Is Now More Affordable Than Ever

However, it does still cost somewhat more than black and white. Even so, there has been an increasing trend towards color output for things like statements. Let’s see how this can be achieved.

It costs about $800 to print and mail 1000 statements. In an organization that only issues paper statements, the majority of these costs are for the postage – in fact nearly 75% of that $800 goes towards postage.

As an organization increases the penetration of eDelivery by encouraging customers to opt out of paper statements, the postage cost starts to decrease.

$800

$700

$600

$500

$400

$300

$200

$100

$0Paper Only Paper & 40% eSolutions Paper & 70% eSolutions

Postage eSolutions eDelivery Print Colour Print B&W

eStatement Data fromCore Processing System

SupplementaryData File

SupplementaryData File

Doxim BPM

Print Lettershop Mail

Doxim ECM

DataStreamMerging: Allows two separate print streams to be merged together post processing, before printing / output:

e.g. Adding a newsletter to a statement print run

DataInsertion:Allows supplementary data to be added to the statement data stream before processing:

e.g. Adding an AIR MILES balance to a bank statement

Data Insertion and Merging – Merge two separate print streams into one

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At 40% eDelivery or greater, you begin to save so much in postage that the cost to switch to color printing for the statements you still mail out starts to become a viable proposition.

Once you get to 70% eDelivery adoption, you can do away with black and white printing all together, and move to color – and still save money compared to the organization that has not adopted statement eDelivery.

And let’s face it, it’s difficult to argue the positive impact and benefit of delivering a beautiful color statement in the mail vs. a black and white one.

“ Converting our statements to full color reinforces the quality of our brand and ensures that we are not wasting valuable brand impressions. Paul McAfee – Vice President Service, North Peace Savings and Credit Union

Interested in Learning More?

Visit the Doxim website for a number of valuable resources:

• Doxim’s Statement Design Services – Learn More• Wainwright Credit Union’s new look statements eliminate customer issues

and provide new marketing opportunities – Read Case Study• Learn more about creating Great looking Statements – Watch Video• Great Looking Statements – Download Brochure

Yes, I Want Better Looking Statements!

Create best in class statements with Doxim’s Statement Design Services.Doxim’s unique statement composition process converts difficult to read, unattractive print outs into attractive, easy to read statements complete with targeted marketing messages and a custom look and feel that faithfully respects organizational branding guidelines.

Get started today. Contact a Doxim Representative to find out more.

Statement Solutions from DoximDoxim provides a comprehensive range of advanced statement composition and processing services for the Financial Service Provider community. We output these documents in both print and electronic formats, leveraging our Cloud Based Enterprise Content Management platform for secure online document access.

Doxim statement solutions include:

Presented by:

445 Apple Creek Boulevard Markham, Ontario L3R 9X7 866.475.9876 www.doxim.com

• Secure Statement Printing• Secure Daily Confirm Printing• Cheque Processing and Exceptions Matching• Cloud Based eStatements• Enhanced Statement Design

• Personalized Statement Marketing• eNewsletter and eInserts• eNotifications• In-line printing of Newsletters and Inserts • Data Insertion and Merging