The Journey from. Transaction to Relationship

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2 The Journey from Transaction to Relationship

3 24 Year s in business SaaS provider focused on major utility initiatives Customer Engagement Customer Satisfaction Program Participation 600+ utilities 95% client retention rate

4 About Navigant A unique strategy consulting firm specialized in the impact of new technologies and business models in the Energy Sector WHO ARE WE WHAT WE OFFER WHO WE WORK WITH 5,600 employees working in four business areas: Energy, Healthcare, Financial Services and Disputes & Investigations Publicly traded since 1996 (NYSE: NCI), with annual revenue of $1 billion, and 60 offices globally Navigant s Energy practice has ~600 professionals with an average of 15 years of experience, and 50% with advanced or engineering degrees.

5 Today s Agenda Navigant Research Utilities and the Customer Capabilities Gap Study Overview & Findings Strategies to Bridge the Gap Shifting from Transaction to Relationship Voice of the Customer vs. Voice of Operations Customer Insight Toolbox Navigant Case Study: DTE Energy Efficiency Assistance Program Journey Mapping The Low-Income Customer Journey The Energy Burden Digital Strategies Designed for Low-Income Customers

6 Our Presenters Aida Hakirevic Associate Director at Navigant Energy practice with over 14 years of experience providing strategic advice and analysis related to emerging technologies and business model trends in the utilities industry with deep expertise in customer experience and digital transformation, process and operational analysis, and customer solutions delivery. Prior to joining Navigant, Aida was a Senior Manager at Accenture working with large utilities on Customer Service operational performance and solutions delivery, business process transformation leveraging Smart Grid capabilities, customer transformation strategies, and Business Process Outsourcing (BPO). Jim Malcom Chief Financial Officer and EVP of APOGEE Interactive, Inc., brings more than 25 years in corporate finance and accounting to Apogee, which began with the firms KPMG and Ernst & Young in Atlanta. He has held senior posts as chief financial officer, corporate controller, vice president and treasurer for such area companies as Heidelberg USA, LecStar Telecom and Powertel. Jim is a graduate of the University of Georgia with a bachelor's and master's degree in business administration, a certified public accountant, and a chartered global management accountant.

7 UTILITIES AND CUSTOMER CAPABILITIES GAP NAVIGANT STUDY OVERVIEW Focus - Customer engagement capabilities - Related systems, technologies and processes - Key trends in utility customer engagement Methodology - Online survey with ~100 utility executives respondents - 17 in-depth interviews - Focused on US and Canada - Mix of IOUs, co-ops, munis, and government-owned utilities 7 / / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

8 UTILITIES AND CUSTOMER CAPABILITIES GAP FINDINGS Utilities identified several challenges related to data access, agility, and speed to market when trying to improve CX or deliver new customer engagement capabilities. Key Capabilities Campaign management Proactive alerts/notifications Targeted web marketing Digital transactions Social media management Customer analytics/bi Cross-channel consistency Contact center next-best action Advanced CSR tools Digital marketplace Mobile applications Preference management Loyalty & rewards programs 360 view of customer How many utilities are very confident in their 15 different customer engagement capabilities? Fewer than 25% in any single capability Fewer than 15% in most capabilities Fewer than 5% in all capabilities Source: Bridging the Divide: Utilities and Customer Capabilities Gap white paper 8 / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

9 UTILITIES AND CUSTOMER CAPABILITIES GAP STRATEGIES TO BRIDGE THE GAP Analytics efforts underway related to improving customer journeys as well as operational insight. Revenue Management 32% DER: EV Detection, Solar Detection 1% Contact Center Analytics: Propensity to Call, Call Drivers, Handle Time 16% Program Management: Results, Participation, Opt Outs 18% Load Forecasting 16% Web Engagement: Engagement Tracking 5% Segmentation 4% Marketing: Marketing Effectiveness, Propensity to Participate 8% 35% of analytics solutions target specifically customer behavior and response Source: Navigant Research 9 / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

10 SHIFTING FROM TRANSACTION TO RELATIONSHIP VOICE OF THE CUSTOMER VS. VOICE OF THE OPERATIONS Two sides of the same coin Topic: Bill Payment Snippets from Social Media (Voice of the Customer) Customer Service Supervisor (Customer Operations PoV) Mobile App Experience Web Experience Message Why is <UTILITY> s bill pay site so terrible? (posted on 5/5/16 at 10:14 am) I feel like I ve been trying to pay a bill on there for a week now. Is it really so hard to create a site that is operable most of the time? the customer did it wrong. They should have clicked on this other link. Voice of the Customer provides actionable insight to remove dissatisfiers and reduce customer effort during moments that matter. 10 / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

11 SHIFTING FROM TRANSACTION TO RELATIONSHIP CUSTOMER INSIGHT TOOLBOX VOC RESEARCH Goal: reveal the perspective of the customer Social media conversations Blogs and news Letters Contact-center interactions (voice, ) VoC Comments from forums and third-party sites Customers Customer experience Buying signals Churn indicators Segmentation Influencers, promoters and detractors Products & Services Unmet market needs New product ideas Missing features Customer satisfaction Perception maps Company Reputation Early crisis detection and avoidance 11 / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

12 SHIFTING FROM TRANSACTION TO RELATIONSHIP CUSTOMER INSIGHT TOOLBOX JOURNEY MAPPING Journey mapping takes on the customer s perspective... Illustrative Challenges How do different customer segments describe their interactions with our company? Operational Insight Service Optimization What feelings or emotions do their experiences elicit? Experience Optimization What are the touch points we have with our customers and which matter most? Channel Optimization Where is customer satisfaction high or low and why? Customer Satisfaction What types of services are customers looking for that may lead to new streams of revenue? Product and Service Adoption Portfolio Development and is a means of gaining empathy and clarity about customers experiences and identifying opportunities to improve that experience. 12 / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

13 JOURNEY MAPPING CASE STUDY Journey mapping helped DTE evaluate participants experiences and inform actionable insights related to Energy Efficiency Assistance Program. DTE Energy s EEA Program provides direct installation of energy efficiency and weatherization measures in the lowincome housing market segment to achieve both energy and demand savings. DTE engaged Navigant to better understand the experiences of the all the external parties involved in the EEA program delivery. 13 / / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

14 LESSONS LEARNED AND OTHER INSIGHTS Many EE programs require utilities to meet specific participation targets by customer segment, including the lowincome customer segment. Some of the lessons learned and other practices: 1. Identifying the low-income segment can be challenging - data and analytical models can be effective in addressing this barrier Leverage upstream levers to help put the incentives where they can reach this segment more effectively 2. Strong relationships with NPOs and CAAs help maximize the impact 3. Proactive outreach - making outbound calls, doing community outreach, and being flexible in scheduling home visits goes a long way 4. Smartphones can play an important role in reaching this segment: Smartphone ownership in households with overall annual incomes less than $30,000 rose 12 points from 2015, to 64%. The corresponding percentage for those 65 and older rose 12 points to 42%* 5. Flexible billing and payment options are a win-win Level billing Prepay Source: Pew Research Center 14 / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

15 CONTACT Aida Hakirevic navigant.com 15 / 2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

16 Polling Question

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18 Energy Burden by City ACEEE 2016 Lifting the High Energy Burden in America s Largest Cities

19 Energy Burden by City Low income customers spend 3 times as much on energy as the median U.S. customer ACEEE 2016 Lifting the High Energy Burden in America s Largest Cities

20 What is EPIC? Outbound, timely and actionable communication Targets low income, renters, multi-family and new launched consumers Simple to implement turnkey solution Stand alone offering or can be embedded in existing utility program Mobile phone focused

21 Meet Jane

22 Jane is Meet Jane a single mother This is Jane s Journey

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30 Payment Options Rebates & Programs Weather Impacts

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34 Jane is now Energy Smart!

35 Contact Information Jim Malcom Your Trusted Partner in Customer Engagement

36 Join Apogee Interactive on Subscribe to our blog: apogee.net/blog Sign up for webinars and events apogee.net/webinars

37 Webinar: Finding Value in the Sea of Analytics Oct. 19 2:00 Eastern Register:

38 Text/SMS Consent Telephone Consumer Protection Act (TCPA) Opt-in vs Opt-Out Express written consent Clear and Conspicuous

39 Return on Investment Low income customers contact their utility multiple times per month Conservative goal Impact 10% of customers One less call per month

40 Return on Investment Annual savings 10,000 customers: $60,000 to $90,000 50,000 customers: $300,000 to $450, ,000 customers: $600,000 to $900, ,000 customers: $1,500,000 to $2,250, ,000 customers: $3,000,000 to $4,500,000 Not including benefits for collections efforts, bad debt, disconnect/reconnect, and improved cash-flow

41 Any questions?

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