getting business value customer engagement - … business value from customer engagement chet...
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Getting Business Value from Customer Engagement
Chet Geschickter, Research DirectorGartner Energy & Utilities Industries
Research
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How Gartner Delivers ValueGartner research helps clients review, develop, and enhance
strategic IT initiatives to support their business objectives. We help define appropriate metrics to drive ongoing performance
improvementsWe provide critical guidance on utility industry specific technologies
and trends that will help shape the future of utilities and their success or failure. Our research includes global examples of best practices, survey
data, and analytical models to help clients align their IT strategies with business requirements Gartner provides access to an industry client base that represents
hundreds of institutions around the world including business and technology leaders
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Gartner Energy & Utilities Research Agenda
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Pop Quiz
For Utilities, Customer Engagement is a:a.) Way to amortize investmentsb.) Form of customer transportationc.) Tactic for moving customers to low cost channelsd.) All the abovee.) None of the above
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Answer
For Utilities, Customer Engagement is a:a.) Way to amortize investmentsb.) Form of customer transportationc.) Tactic for moving customers to low cost channelsd.) All the abovef.) None of the above
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Key Issues
• How can we define the business value of customer engagement for our utility?
• What process should we follow to create a solution architecture for customer engagement?
• What is the portfolio of technologies we can use to improve customer engagement
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
The Business Value of Customer Engagement
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Customer Engagement Can Support a Range of Utility Objectives
Utility Objectives Type of Utility Engagement BenefitsReduce cost to serve
Regulated integrated Drive to unattended service, optimize meter‐to‐cash
Achieve regulatory indexes
Regulated integrated Meet service quality indexes (SQIs) imposed by regulators
Grow revenue Competitive retailer Target high value segments, retain, cross‐sell/up‐sell
Acquire new customers
Competitive retailer; Regulated (gas)
Reduce customer acquisition costs.
Improve commodity management
Regulated integrated, competitive retailer
Reduce peak demand, connect customers to power markets
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• Channel adoption and usage creates value• More adoption amortizes fixed costs across a larger base
• Digital is “non‐rival” so upside from digital channels is unconstrained (within population)
• Adoption depends on engagement• Big benefits are intangible (e.g. brand loyalty and trust)
Customer Engagement Has a Multiplier Effect
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Item AmountDevelopment cost $250,000Engagement rate 1%Adopters 10,000Cost per adopter $25Repeat users (10%) 1,000 Cost per repeat user $250
Customer Engagement Drives Channel Productivity
MYUtility Mobile App:Build and Deploy
Item AmountMarket Research $100,000Development Cost $250,000Usability Study $100,000Marketing Investment $2,000,000Total Cost $2,450,000Engagement Rate 3%Adopters 30,000Cost per adopter $80Repeat users (50%) 15,000Cost per repeat user $160
Engagement is “The Great Amortizer”
MYUtility Mobile App: Research, Build, Test, Deploy, Market
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• Word of mouth is free• A good app or program can “go viral” and scale exponentially
• People make “irrational” economic decisions in your favor if they are captivated (aka “stranger buys drinks” effect)
Social Media is the Ultimate Accelerator
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Process for Creating a Solution Architecture
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Vision User Engagement
People
Processes
Technologies
Information
Cloud
MobileSocial
1. Organizational Objectives
2. Metrics, Benefits 3. Group and Categorize
4. Identify Solution Landscape
Four Step Engagement Process
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Step One: Define Organizational Objectives
Be specific with what you are trying to accomplish with customer engagementSome examples to get started:• Reduction in bill complaints• Opt‐ins to new tariff • Lowest cost achievement of energy efficiency targets• Water conservation
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Step Two: Translate Organization Metrics Into Specific Metrics
Type of Utility Example Objective Example Success MetricsNatural Gas Distributor Increase commodity
demand• Number of new customer
connections• Number of new gas
appliances coming online (fuel switching)
Water Utility Water conservation to address supply constraints
• Decrease in gallons per day of consumption per customer
• Number of water conservation devices installed
Regulated Investor Owned Utility
Lower cost‐to‐serve • Net increase in customer self‐service transactions
• Net decrease in call center call volume
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Step Three: Categorize Metrics Into Program Initiatives• Categorize metrics into related groups or subsets • Organize into initiatives that define organizational imperatives
Example:
Objectives InitiativeDevelop new tariffs
Consumption InsightsDemand managementResource conservationDistribution planning
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4. Identify Components to Support Initiatives• Identify people, process and
technologies to support the initiative
• Remember to include common infrastructure components
Predictive Modeling Engine
Predictive Modeling Engine
Customer Profile
Database
Customer Profile
Database
Customer Master Data
Mgmt
Customer Master Data
Mgmt
Data Governance
Data GovernanceData ScientistsData Scientists
Database Administrators
Database Administrators
ConsumptionDatabase
ConsumptionDatabase
Example Customer Insights Initiative Components:• Consumption analytics• Customer demographics• Interaction context• Customer financial data
People
Technology Process
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SolutionLandscape
Customer Master Data
Customer Master Data
……
PortalPortal
ContextUnderstand the current interaction
Web Analytics
…
High Bill Detection
Customer Demographics
Consumption Analytics
Social Analytics
DeliveredExperienceDeliver an impactful user experience
Portal
…
WCM
SMS ‐ Text
Social
Document Management
WCMWCM
Conservation (incl EE, DR,
H2O)
Conservation (incl EE, DR,
H2O)
ConsumptionAnalytics
ConsumptionAnalytics
OMS Integration
OMS Integration
Customer Self ServiceCustomer Self Service
MultichannelCampaignMgmt
MultichannelCampaignMgmt
CIS Integration
CIS Integration
Social for CRM
Social for CRM
Mobile App
Completed Solution Landscape Example
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Technologies for Customer Engagement
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Customer Interaction• Customer service — chat• Customer service — email management• Multichannel surveys• Self‐serve portal• Mobile self‐service• SMS channel• Social for customer engagement• Virtual agent
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Customer Service
• Collaborative customer interface• Customer service scheduling• Outage restoration portal• Outbound notifications (payment delinquency, outage, DR events)
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Analytics
• End‐user consumption analytics
• Peer consumption benchmarking
• Rate plan analyzer• Social media monitoring• Theft prevention/revenue assurance
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Billing
• Complex billing engine (or advanced or convergent)
• Electronic bill presentment and payment
• High‐bill alerts• Prepayment• Quotation and contract management
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Energy Efficiency / Conservation
• Energy efficiency gamification• Energy efficiency program management• Energy efficiency tips• Water conservation measures• Usage data exchange• Usage presentment
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Example Selection Criteria
Customer Effectiveness
Utility
Efficiency
Customer Effectiveness: •Secure and reliable power•Opportunity to save money•Fast and easy to communicate •Variety of rate plan options•Easy to do business with• Insight into consumption
Utility Efficiency:•Cost‐to‐serve reduction•Regulatory service quality indexes of achievement
•Revenue growth•Commodity management risk•Customer acquisition
High
Medium
Low
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Engaged Utility Customers Are More Likely To
• Participate in optional utility programs such as energy efficiency or demand response
• Give higher marks for customer satisfaction• Help themselves instead of calling for helpIn other words, do what we want them to!
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Measuring Results
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Yesterday: Transactional Metrics
• First call resolution• Average call handle time• Number of complaints received• Number of complaints resolved• Average time to complaint resolution• Agent productivity
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Today: Self‐Service Activity Metrics
• Number enrolled in self‐service• Number enrolled in online bill pay• Number of online bill pays• Number of log‐ins• Page views
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Where to Go Next With CustomerSelf‐service — Find the Delivery Gaps
• Track each person who has attempted self‐service• Measure completion rates of self‐service• Measure escalations• Detail escalation paths. Example: Google, to community, to your website, to a chat, to an IVR, to a human
• Measure and publicize satisfaction with each channel, and overall
• Identify Net Promoter Score drivers
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Pop Quiz Answer Key
For Utilities, Customer Engagement is a:a.) Form of customer transportation – yes, we can move customers from initial interaction to where we want them to gob.) Way to amortize investments – yes, engagement drives adoption which lowers the cost per userc.) Tactic for moving customers to low cost channels – yes, digital channels are non‐rival and scalabled.) All the abovee.) None of the above
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Questions?