Impact of DSM & Technology Usage on Utilites Market Strategies International

Transcription

1 Impact of DSM & Technology Usage on Utilites Market Strategies International

2 Building Customer Engagement Through Great Product Experiences Insights from the 2014 Utility Trusted Brand & Customer Engagement Study Prepared for: TMAF Conference Chris Oberle Senior Vice President October 9, 2014

3 Market Strategies International Who Are We? Custom Research > Largest utility custom market research firm in the country > Traditional and patented quantitative and qualitative approaches > Topics include satisfaction, brand, product/offerings, distribution, transmission, generation portfolio, tracking, post-transactor, energy efficiency, smart technology > Dedicated to research quality of a custom research firm > Not a big-box seller of products Syndicated Study > Residential syndicated study is a semi-custom, open-architecture offering with: Representative sample Custom models Ability to select own peer sets Ability of utilities to subscribe and be added to study > Highest quality/lowest cost syndicated study available on the market > Cogent is owned by Market Strategies as a syndicated offering brand 16

4 Utility Management message we are hearing We have focused on operational improvements and awareness of what we do but haven t moved the needle on how our company is perceived by customers 17

5 Study Overview and Methodology Market Data collection Residential electric and natural gas and combo utility customers Online based upon demographically representative sample for each utility (according to census data) Product Experience Composes a Significant Share of Customer Engagement and Relationship Strength 2 fielding waves Wave 1: April May (complete) Wave 2: September October Reporting Sample Targets Wave 1: June (published) Wave 2: December Quotas based on census age, income and race for demographic representativeness at individual utility level 125 utility brands covered (58 electric with 300K+ customers, 37 natural gas with 230K+ customers, 30 combination providers with 550K+ combined counts) 18

6 12 Strategic Factors Create Positive Customer Engagement: Product Experience Has 3 and Trusted Brand Has 6 Strategic Factor Importance on Operational Satisfaction 44% Safety & Reliability Strategic Factor Importance on Trusted Brand Customer Focus 21% 37% Billing & Payment 19% Customer & Field Service Company Reputation 20% Communications Effectiveness 18% Quality & Reliability 16% Community Support 12% Trusted Brand Engaged Customer Relationship (ECR) Operational Satisfaction Environmental Performance 12% Product Experience Strategic Factor Importance on Product Experience 65% Benefits Awareness 28% Design & Features 7% Usage Performance 19

7 Utility Product Experience and Brand Lag on Performance Satisfaction is close to maximized Overall Engaged Customer Relationship (ECR) Strength Customer engagement is somewhat strong but not VERY strong 690 Operational Satisfaction Customers agree we keep service flowing and answer the phone 725 Product Experience but don t think we add much value beyond that 680 Trusted Brand and don t think that highly of us 656 Index: 1,000-point max scale 20

8 What Are CMOs of Nation s Top Competitive Businesses Focusing on in Next 12 Months? (Product and Brand) Highest Company Priority Superior product quality/innovation Brand and trusted relationships 23% 35% Forecasted Marketing Spending Change Online marketing Targeting stronger customer relationships New products 8% 8% 11% Service Price 19% 23% Marketing research/ intelligence Brand building 5% 4% Traditional advertising -4% Highest Marketing Priority New Areas of Focus Increase revenues 45% Worry consumer data usage would raise privacy concerns 29% Increase brand value 37% % company growth spending on products/services development 24% Source: The CMO Survey from McKinsey & Company and Duke University (350 CMOs of Fortune 1000 companies) 21

9 Product Usage Scores High but Awareness, Design and Features Lag Usage Performance 806 Customer & Field Service 776 Billing & Payment Communications Effectiveness Quality & Reliability Reliability & Safety Benefits Awareness Design & Features Customer Focus Environmental Performance Company Reputation Community Support Operational Satisfaction Product Experience Trusted Brand Index: 1,000-point max scale 22

10 Emerging Utility Product Strategic Focus

11 Forget Familiarity with Offerings and Educate Customers Greatest Customer Engagement advantage is garnered from product education and targeting customers Engaged Customer Relationship (ECR) Index Score by Product Experience Levels General familiarity with offerings/programs provides small Customer Engagement value 822 Overall ECR index = Not aware Educated on offerings doesn't fit needs Aware of offerings Educated on offerings and fits needs Index: 1,000-point max scale 24

12 Consumption Management and Service Offerings post the Highest Customer Engagement and Brand Trust but have the Lowest Usage Engaged Customer Relationship Product Experience Brand Trust None of these Billing & Payment Options Electronic Account Access Consumption Management Services Service Offerings Usage 41% 47% 26% 7% 5% Index: 1,000-point max scale 25

13 Targeting Consumption Management Product Usage Increases Customer Engagement with Utility Engaged Customer Relationship (ECR) Index Score by Product Experience Levels Have or use Interest in Not interested Online Energy Mgmt Tool Index: 1,000-point max scale Online Energy Audit Household Equipment Control EE Rebate In-home Energy Audit Solar Incentive Sent Energy Usage Report Smart Meter 2 of 3 have or want a smart meter 26

14 Customers will Use additional products when their current Product Experience is rated Above-Average (over 5) # of products used Product Experience rating 27

15 Leverage Emerging Technology Customers will see you as more Innovative and Environmentally-friendly Brand Characteristics Innovative Environmental Overall Have Smart meter Used Solar incentive Sent Energy Usage Report Used Online Energy Audit Based upon 7-point scale 28

16 Consumption Management Demand and Performance

17 Except for Selecting a Bill Due Date, Most Billing and Payment Offerings Have Little Demand Left to Capture Payment Offerings Billing Offerings Have/use service Interested in service/aware Interested in service/not aware Not interested in service/aware Not interested in service, not aware 30

18 Consumption Management and Service Offerings Have High Demand Service Offerings Consumption Management Have/use service Interested in service/aware Interested in service/not aware Not interested in service/aware Not interested in service, not aware 31

19 Top Industry Performers Consumption Management

20 Utility Industry Top Ratings on Leverages Technology to Improve its Service TECO Peoples Gas Florida Power & Light Salt River Project SMUD Piedmont Natural Gas Columbia Gas - South Gulf Power New Jersey Natural Gas MidAmerican Energy Virginia Natural Gas Georgia Power Xcel Energy - Midwest Alabama Power PSNC Energy OG&E CPS Energy OPPD Southern California Gas Company JEA Dayton Power & Light Oklahoma Natural Gas Based upon 0-10 rating scale 33

21 Utility Industry Top Ratings on Encourages or incentivizes the use of smart technology that helps manage energy usage or costs OG&E 7.45 Florida Power & Light 7.42 Salt River Project 7.38 TECO Peoples Gas SMUD BGE Gulf Power Virginia Natural Gas MidAmerican Energy Delmarva Power CPS Energy New Jersey Natural Gas Southern California Gas Company Dayton Power & Light Xcel Energy - Midwest Based upon 0-10 rating scale 34

22 Utility Industry Top Ratings on Their programs or offerings can or did help make me a more conscious energy consumer Salt River Project BGE Virginia Natural Gas New Jersey Natural Gas SMUD OG&E TECO Peoples Gas MidAmerican Energy Georgia Power PPL Electric Utilities Delmarva Power Kentucky Utilities Florida Power & Light Alagasco Columbia Gas - South TECO Tampa Electric Gulf Power PG&E Southern California Gas Company Louisville Gas & Electric DTE Energy PSNC Energy Elizabethtown Gas Indianapolis Power & Light Piedmont Natural Gas Portland General Electric Xcel Energy - South Vectren JEA Idaho Power Xcel Energy - Midwest CPS Energy SDG&E NW Natural NYSEG OPPD Penelec SWEPCO Wisconsin Public Service Black Hills Energy Puget Sound Energy Duke Energy Midwest Indiana Michigan Power Based upon 0-10 rating scale 35

23 Utility Industry Top Scores on Energy Efficiency Product Usage Experience Florida Power & Light 866 Rocky Mountain Power 842 Xcel Energy - South Gulf Power MidAmerican Energy Salt River Project Georgia Power Wisconsin Public Service DTE Energy Kentucky Utilities Austin Energy PECO Energy ConEd NorthWestern Energy BGE

24 Questions?

25 Contact for more information: Chris Oberle Senior Vice President Selected Deliverables Access to all data every question, rating and score for 125 utilities after each quarterly fielding Copy of survey tool NEW for Simulator to forecast engagement Individual subscriber utility model provided NEW for 2015 Clients can provide sample Ad-hoc statistical analysis of results Client-specific modeling developed upon request Benchmarking to peers by ranking segment and by custom peer sets Two industry reports of rankings, trends and performances Executive summary of utility performance Onsite customer engagement management presentation of results with benchmarking and recommendations Management best practice discussions on topics of client choice Chris Oberle, Senior Vice President External communications Research and and Consulting media claim included (949) Participation in chris.oberle@marketstrategies.com customer metric goal setting Input into study enhancements and topics of measurement. Just Ask! (new for 2015) Client customized deliverables and management support