Jessica Marketing Cluster
FISERV Case Study
1. Define the problem or objective.
Fiserv is a company that has an electronic process for consumers to expedite payments through online billing for their payments/bills due. Mr. Jon Black is the senior VP of Marketing has to present to his EVP Lori Strides on how Fiserv could endeavor into the e-billing sector. As proven in exhibit 2 in Kerin and Peterson’s Strategic Management book, Fiserv has improved its billing/automatic payment process over a 4 year period in excess of 40%. Fiserv are attempting to improve the notification of the billing to its consumers. They are attempting to encourage its customers/consumers to not ...view middle of the document...
It was also determined that there was an opportunity to promote saving the environment. “One energy company reported after converting 130,000 consumer’s to e-billing it was able to save 31 tons of paper (the equivalent of 753 trees). Kerin & Peterson; Strategic Management 2013. The final outcome was that consumers were extremely more satisfied with the service that was provided once choosing to conform to e-billing at no charge.
3. Enumerate the decision factors. (Alternative courses of action and uncertainties in the competitive environment).
The marketing mix strategy chosen from Johnston was Focus Groups and Concept Tests. Johnston hired a well-known market research firm to study and research the e-billing process and implementation of the process. Focus groups were generated consisting of groups that did not utilize e-billing, there was an interest from these focus groups regarding e-billing however many of the participants wanted answers to questions. The focus group members also expressed wanting to know the benefits of e-billing and additionally expressed that the paper bills gave the consumer the opportunity to be reminded of when the bills were due and a paper was one of the best reminders for them.
The second marketing mix was a concept test; Fiserv contacted 2,000 who were an example of the overall population and who also did not use e-billing, and were asked to try the e-billing process for 2 months and they then had to report their findings and outcomes of the process. The uncertainties defined here was that only 4.5% of the group expressed interest however there were 8% that responded to the question were E-Savvy Planner’s a group defined as consumers will spend money on time saving tools, seek fast efficient ways to save money and prefer electronic bill pay to paper.
4. Consider the alternate options.
Alternate options for Fiserv are as follows; the biller pay Fiserv $0.025 on each event the bill was viewed by the consumer; If a consumer chose to turn off e-billing they would pay Fiserv $0.040 per month to include unlimited views; billing companies were advocating to consumers to convert to e-billing; outcomes demonstrated that the average cost to convert a consumer from all-paper billing to e-billing was $4.50 and...