Using New Strategies to Communicate with Your … Landline Mobile SMS Multiple channels, ... ─US...

© 2017 Fair Isaac Corporation. Confidential. 1© 2017 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.

Ted LondonPartner, Government SolutionsAugust 22, 2017

Using New Strategies to Communicate with Your Taxpayers

© 2017 Fair Isaac Corporation. Confidential. 2

Agenda

• Current Communication Trends

• Usage of New Communications at Tax Agencies

• Crafting the Right Messages

• Security Considerations

• Conclusion and Questions

© 2017 Fair Isaac Corporation. Confidential. 3© 2017 Fair Isaac Corporation. Confidential. 3

Gartner predicts by 2020,

Citizens will manage 85% of their

relationships with external parties

without interacting with a human.

© 2017 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.


We're living a different era

1990sLetters Landline Mobile SMS Multiple

channels, 24x7

awareness

2020

© 2017 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.


Taxpayers want to communicate with you using new technologiesGetting the status of an IRS case

11%8%

19%

12%12%

27%

11%

DesiredFuture State

Phone

Secure Online Chat

Online Tool

Smartphone App

Automatic EmailNotification

Automatic TextNotification

Phone (Auto)

100%

Current State

Source: IRS Taxpayer Choice Model Survey


Taxpayer desire to migrate from Traditional Channels

100%

11%0%

89%

0%

20%

40%

60%

80%

100%

Current Future

Phone New Channels

Source: IRS Taxpayer Choice Model Survey


Current Communication Trends

Convenience – “No Wrong Door”Tablet computers, mobile devices, telephone, Smartphone App from work, home or anywhere else

FasterReal-time information, One Stop Resolution, Confirmation in Seconds, automated conversations

Secure – Barrier to TaxpayersSignificant data available, risk is a concern

Trusted – Barrier to TaxpayersNeed to demonstrate proper use of data and confidentiality must be maintained


Cell Phone and Smart Phone Usage by Year

Source: Pew Trusts


97 96

59

19

96 94

64

27

95

82

57

10

98

62

42

30%

20%

40%

60%

80%

100%

A desktop orlaptop computer

Smartphone Tablet A wearable smartwatch

Technology Use

Gen. Z Millennial Gen. X Baby Boomer +

Boomers’ computer and smartphone usage increased since 2015The heaviest app users, Gen Z, further increased their usage since 2015.


Usage of Smart Phones before going to bed and after waking up

Source: Deloitte Global Mobile Survey


Government has been slow to respond to these changes

• Have your contact methods changed in the last 5-10 years?• Does your agency still rely on letters and staff initiated phone

calls as the primary method to communicate with your taxpayers?

• The percentage of your US Mail being opened is going down• Do your letters and notices look like the ones issued 5, 10 or

even 20 years ago?


Usage of New Communications at Tax Agencies


Opportunities for enhanced communications

SMS/Text Messages

• ~90 percent are read within 3 minutes of delivery

• Typically used for alerts

• More likely to be deleted and less searchable then email

Emails

• Average time to view an email message is as long as 6.4 hours

• Used for things the taxpayer may want to refer back to, such as confirmations

• Provides links for actions

Fully Automated Phone Calls

• Needs to provide a relatively straightforward message

• Actionable, at that time

• Many will like it, some will not


Opportunities for Automated Communications in Tax Agencies

• Customer Service

• Filing/Registration

• Collections and Desk Audit

Voice

Email

Mobile Direct

Online

Apps


Can you use New Communications to Change Behaviors?

• Should tax agencies thank taxpayers for doing what is expected of them?

• Would some people be motivated to keep their streak alive, or keep it as a badge of honor?

• If you allowed them to print a “certificate” would some do that?

The DOR has received your return. Thank you for filing on-time for the 17th consecutive period.


Customer Service

• Receipt of Returns• Reminders before due dates• Account clean-up/account

closing• Customer Service Campaigns• Taxpayer Education Campaigns


Filing/Registration

• Refund Status─ On-line App: IRS2GO─ Proactive SMS

• Easier Zero Returns• Registration Renewal


Collections and Desk Audit

• Text messages or emails─ Replacing US Mail─ Supplementing US Mail─ Low Cost initial contact

• Smart Phone App for Paymentsand Payment Agreements

• Fully Automated,Unattended Phone Calls


Imagine in the near future…

Text Message Communications

• A text message is sent to a non-filer on the day after the filing date

• Through predictive analytics and third-party data sources message tailored for $0 return filers

• A link is provided in the text message to file the zero return and pay the late fee from her/his smartphone

Email Communications

• Email reminder before due date

• Timing determined by analytics

• Email provides a link to file return

• Link could be to a website or Tax Department App

• Wording is concise and actionable in the moment

• Easy to opt in and opt out


Crafting the Right Messages


Much Research on Behavioral Science

• Make conscious decisions about how you frame your messages─ Straightforward text (plain talk)─Bold or Color for emphasis─Graphics when appropriate─Clearly define the action

you are requesting


Concepts to consider in your Messaging

• Personalize: Make your communication person-to-person where possible

• Salience: People skim letters, make the important parts stand out

• Call to Action: Quickly highlight what you want them to do or learn

• Consequence: If you need them to change their behavior emphasize the consequences – people respond to negatives over positives


Random Trials

• Don’t assume you will optimize your language the first time• Communication methods are changing rapidly – plan to

evolve over time• Try different strategies and test

the results+ Increased contact rates+ Increased payments+ Increased voluntary compliance─ Decreased default rates─ Decreased phone calls


Security Considerations


Cyber Security Considerations

• You will need to educate the public to expect Emails and SMS’s

• Employ an “Opt In” for these new channels

• Initially you may want to focus on customer service-oriented messages to build your Opt In base


Balancing Security and Customer Service

• Various apps can provide end-to-end encryption─ However, the harder you make it, the lower the adoption rate─ Secure emails and text message tools are available─ Strike the right balance between convenience and security

• Consider two factor authentication─ A PIN could be used before activate a new online account─ While all of these add security, they will lower your adoption rate


Conclusion


Things you can do at almost no cost quickly

• Review your communication channels• Define your agency’s strategy and guidelines for email and SMS (if

you haven’t done so already)─ Determine the first items to tackle

• Look for a low-risk, customer service focused opportunity first• Consider pre-emptive “opt-in” strategies─ Registration forms─ Tax Returns

• Consider Shorter Web Addresses─ US Treasury prompted 45% more payments by shortening their address─ bit.ly/FICOCCS─ dor.state.us/PayBill

http://bit.ly/FICOCCS

dor.state.us/PayBill


About the Presenter

• 24 Years working with Federal, State and Local government agencies

• Experience with more than 20 different tax agencies worldwide

• Skilled in enhancing collections, audit and fraud systems and business processes

• Experience with predictive modeling and behavioral science techniques to enhance collections

Ted LondonPartner, Government Solutions

(916) [email protected]


Profile

The leader in analytic solutions for risk management, fraud, and customer engagementFounded: 1956NYSE: FICORevenues: $839 million (fiscal 2015)

Products and Services

Pioneers at transforming Data into insights to help organizations achieve their missionFICO® Score and other models for making decisions130+ patents in analytic and decision management technology, with an additional 90+ patents pendingAnalytic applications for collections, fraud, customer service and cybersecurity

Clients andMarkets

10,000+ clients in 90+ countriesIndustry focus: Banking, government, insurance, retail, health care

Recent Rankings

#1 in services operations analytics (IDC)*#4 in worldwide analytics software (IDC)*#8 in Business Intelligence, CPM and Analytic Applications (Gartner)**#26 in the FinTech 100 (American Banker)

Offices

20+ offices worldwide, HQ in San Jose, California2,900 employeesRegional Hubs: New York, San Diego, Fairfax, London, Birmingham (UK), Johannesburg, Milan, Moscow, Munich, Madrid, Istanbul, Sao Paulo, Bangalore, Beijing, Singapore

FICO Overview

*IDC, Worldwide Business Analytics Software 2013-2017 Forecast and Vendor Shares, June 2013.**Gartner, Market Share Analysis: Business intelligence, Analytics and Performance Management, 2012,Dan Sommer & Bhavish Sood, May 7, 2013.

© 2017 Fair Isaac Corporation. Confidential. 31© 2017 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.

Thank you

Ted LondonPartner, Government [email protected](916) 634-5179

Using New Strategies to Communicate with Your … Landline Mobile SMS Multiple channels, ... ─US...

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