the journey from · 2019-10-18 · 8 / ©2017 navigant consulting, inc. all rights reserved...

The Journey from

Transaction to Relationship

• 24 Year’s in business

• SaaS provider focused on major utility initiativesCustomer

EngagementCustomer

Satisfaction

Program

Participation

• 600+ utilities

• 95% client retention rate

About NavigantA unique strategy consulting firm specialized in the impact of new technologies and business models

in the Energy Sector

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.

WHO ARE WE WHAT WE OFFER WHO WE WORK WITH

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

Our Presenters

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.

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).

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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

/ ©2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED8 / ©2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED8

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.

Source: Bridging the Divide: Utilities and Customer Capabilities Gap white paper

•

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

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UTILITIES AND CUSTOMER CAPABILITIES GAP

STRATEGIES TO BRIDGE THE GAP

Analytics efforts underway related to improving customer journeys as well as operational insight.

Source: Navigant Research

•

35% of analytics solutions target

specifically customer behavior and

response

Program Management: Results, Participation,

Opt Outs18%

Web Engagement: Engagement

Tracking5%

Segmentation4%

Marketing: Marketing Effectiveness,

Propensity to Participate8%

Load Forecasting16%

Contact Center Analytics: Propensity to Call, Call Drivers, Handle Time

16%

DER: EV Detection, Solar Detection

1%

Revenue Management

32%

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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

“…the customer did it

wrong. They should

have clicked on this

other link.”

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?

Voice of the Customer provides actionable insight to remove dissatisfiers and reduce customer effort

during moments that matter.

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SHIFTING FROM TRANSACTION TO RELATIONSHIP

CUSTOMER INSIGHT TOOLBOX – VOC RESEARCH

VoC

Comments

from forums

and third-party

sites

Blogs and

news

Social media

conversationsLetters

Contact-center

interactions

(voice, email)

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

Goal: reveal the

perspective of the

customer

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SHIFTING FROM TRANSACTION TO RELATIONSHIP

CUSTOMER INSIGHT TOOLBOX – JOURNEY MAPPING

Journey mapping takes on the customer’s perspective. . .

… and is a means of gaining empathy and clarity about customers’ experiences and identifying opportunities to improve

that experience.

Operational InsightIllustrative Challenges

“How do different customer segments describe

their interactions with our company?”

“What feelings or emotions do their experiences

elicit?”

“What are the touch points we have with our

customers and which matter most?”

“Where is customer satisfaction high or low and

why?

“What types of services are customers looking for

that may lead to new streams of revenue?

Service Optimization

Experience Optimization

Channel Optimization

Customer Satisfaction

Product and Service Adoption

Portfolio Development

/ ©2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED13 / ©2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED13

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 low-

income 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.

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LESSONS LEARNED AND OTHER INSIGHTS

Many EE programs require utilities to meet specific participation targets by customer segment, including the low-

income 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

/ ©2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED15

CONTACT

Aida Hakirevic

647.288.5226

aida.hakirevic@navigant.com

navigant.com

Polling Question

Energy Burden by City

ACEEE 2016 Lifting the

High Energy Burden

in America’s Largest Cities

Energy Burden by City

ACEEE 2016 Lifting the

High Energy Burden

in America’s Largest Cities

Low income customers spend 3 times as

much on energy as the median U.S. customer

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

MeetJane

Jane isa singlemother

MeetJane

This is

Jane’s Journey…

Payment Options

Rebates & Programs

Weather Impacts

Jane isnowEnergySmart!

Your Trusted Partner in Customer Engagement

Contact Information

Jim Malcom

jmalcom@apogee.net

678.684.6800

Join Apogee Interactive on

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Register: www.apogee.net/webinars

Text/SMS Consent

• Telephone Consumer Protection Act (TCPA)

• Opt-in vs Opt-Out

• Express written consent

• Clear and Conspicuous

Return on Investment

• Low income customers contact their utility multiple times per

month

• Conservative goal

• Impact 10% of customers

• One less call per month

Return on Investment

• Annual savings

• 10,000 customers: $60,000 to $90,000

• 50,000 customers: $300,000 to $450,000

• 100,000 customers: $600,000 to $900,000

• 250,000 customers: $1,500,000 to $2,250,000

• 500,000 customers: $3,000,000 to $4,500,000

• Not including benefits for collections efforts, bad debt,

disconnect/reconnect, and improved cash-flow

Any questions?