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www.peakload.org
Customer Centricity: Prioritizing Customer Experience in Innovative
Program DesignPresented by
Lee Hamilton Jeana Swedenburg
September 20, 2018
www.peakload.org
Customer Centricity
2
Implementing programs that empower customers to make better energy choices
Customer Centricity
Reset the Customer
Experience
Innovate to Broaden
Customer Reach
Explore the Value of Data and
Technology
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Digital Engagement
3
Energy customers are loyal to providers that give them personalized digital interactions
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Proactive Energy Alerts
4
Up to 50% of utility calls are related to billing concerns
In 2015, JD Power named proactive alerts a top area of focus for utility customer service
• High energy usage alerts• Personalized savings tips• Bill payment reminders• Outage notifications• Severe impact weather alerts• Notification of load control
events
Proactive Communication → Higher Customer Satisfaction
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Proactive Energy Alerts
5
Case Study: Baltimore Gas & Electric Company
BGE Alerts
Successful Program Elements• Weekly Energy Updates• Notifications via email, phone or text• Interactivity: high bill threshold set by customer• Source of cross-communication with other DSM programs
(i.e., HERs and DR programs)
85% satisfied with the weekly energy updates
72% found the tips useful and easy to understand
>50% happy to receive a warning about high energy usage before receiving bill
Alert recipients were 7% less likely to call into contact center
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Utility Loyalty Programs
6
Energy customers are looking for energy-saving ideas and seeking personal, digital interactions
Rewarding customers with cash back or points when they take steps toward conserving energy can be more popular than traditional rebate programs
Loyalty programs bring an element of gamification to energy efficiency, particularly effective in engaging with millennials (or digital natives)
The lifetime value of a loyal, residential customer can be twice that of one who would not recommend the utility
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Utility Loyalty Programs
8
Case Study: National Grid
Points and Rewards Program Points and Rewards customers were 9x more likely to sign
into National Grid's web portal than other customers
National Grid saw a increase in customer satisfaction on the idea of value
10%
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Utility Loyalty Programs
9
Case Study:Con Edison
SmartChargeNew York
Beneficial Electrification:• Rewards for charging in Con
Edison service territory• Promotes demand-shifting
strategies
Digital Customer Engagement:• Data-sharing device• Educational component• Real-time feedback
Beneficial Electrification:• Rewards for charging in Con
Edison service territory• Promotes demand-shifting
strategies
Digital Customer Engagement:• Data-sharing device• Educational component• Real-time feedback
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Rate Design Programs
10
Use of technology to alert customers about events in real time can increase reduction by over 20%
Customer Benefits:• Reduced energy
costs• Immediate energy
savings• Personalized
education/tools• Reliable,
affordable energy
Reductions in electricity use during peak periods translate directly into utility cost savings
Communication is Key:• Persistence in
marketing avoids customer surprise
• Soliciting customer feedback supports program design improvements
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Rate Design Programs
11
Xcel Energy is evolving program concepts to better meet customers’ needs
Demand Response 1.0 Demand Response 2.0-3.0
RigidLimited program optionsLimited communicationAging infrastructureDirect load controlLimited intelligence
Manual operational processes
FlexibleCustomer choice
Advanced notificationsTwo-way communication
Flexible demand managementBig data, analytics, optimization
DRMS + automation
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Rate Design Programs
12
Case Study: Xcel Energy
Peak Partner Rewards (PPR)
Participants remaininformed and engaged with
a self-service portal designed to give near
real-time updates
Incentives paid to customers for capacity & performance:
$/kW per monthly reservation (capacity)
$/kWh per event (performance)
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Rate Design Programs
13
Case Study:Xcel Energy
Critical Peak Pricing (CPP)
Beneficial Electrification:• Rewards for charging in Con
Edison service territory• Promotes demand-shifting
strategies
Digital Customer Engagement:• Data-sharing device• Educational component• Real-time feedback
Program goal is to encourage customers
to reduce usage through price signals
Customer Offerings:• Reduced demand charge year round• Energy price ($/kWh) increases
during events to motivate change• “Real-time” monitoring to educate
customers
Possible
5-10%annual
electric bill savings
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Future Energy Customers
14
Continued evolution and focus on customer centricity is imperative to utility success
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Slide 2: http://www.ey.com/gl/en/industries/power---utilities/creating-a-customer-centric-utility
Slide 3: https://www.accenture.com/t20151124T172734__w__/us-en/_acnmedia/Accenture/next-gen/insight-unlocking-value-of-digital-consumer/PDF/Accenture-New-Energy-Consumer-Final.pdf#zoom=50
Slide 4 & 5: https://blogs.oracle.com/utilities/proactive-energy-alerts
Slide 6: https://www.engerati.com/article/utility-loyalty-programs-part-new-business-model
http://www.bain.com/publications/articles/turning-on-utility-customer-loyalty.aspx
Slide 7: https://www.esource.com/es-blog-3-3-16-rewards/how-innovative-utilities-are-rewarding-loyal-customers-and-attracting-new
Slide 8: https://blogs.oracle.com/utilities/points-and-rewards
Slide 9: https://www.fleetcarma.com/smartchargenewyork/setup/
Slide 10: https://www.energy.gov/sites/prod/files/Case%20Study%20-%20Sioux%20Valley%20Energy%20-%20Critical%20Peak%20Pricing%20Lowers%20Peak%20Demands%20and%20Electric%20Bills%20in%20SD%20and%20MN%20-%20June%202012.pdf
http://files.brattle.com/files/6520_the_case_for_dynamic_pricing_faruqui_sg_latin_america_aug_23_2010.pdf
Slide 12: https://www.xcelenergy.com/staticfiles/xe-responsive/Programs%20and%20Rebates/Business/CO-Peak-Partner-Rewards-info-sheet.pdf
Slide 13: https://www.xcelenergy.com/staticfiles/xe-responsive/Programs%20and%20Rebates/Business/CO-Critical-Peak-Pricing-Info-Sheet.pdf
References