is the traditional utility-customer relationship obsolete? october 2, 2011
TRANSCRIPT
Is the Traditional Utility-Customer Relationship Obsolete?
October 2, 2011
Page 2
Who is Puget Sound Energy (PSE)?
Page 3
Who is PSE?
• Puget Sound Energy (PSE) was founded in 1886
• PSE is a privately owned utility, providing gas and electric services to 11 counties in Western Washington
• PSE’s corporate headquarters are in Bellevue, Washington (a suburb of Seattle)
• PSE has approximately 1,000,000 electric customers and about 700,000 gas customers
• PSE has approximately 3,000 overworked employees
Page 4
PSE’s Mission, Values, Strategy, and Risks
OUR MISSION:• Serve our customers and the community by providing safe, dependable, and
efficient energy solutions
OUR VALUES:• Work together openly• Provide honest dialogue supported by analysis, different perspectives, and
respectful challenge of ideas, issues, and concerns• Seek the best outcomes for our customers and the community
OUR STRATEGY:• Serve our customers with safety, dependability, and efficiency• Achieve our business objectives through continuous improvement
OUR RISKS:• Manage our business challenges• Accept responsibility for understanding and managing our Company’s risks
Page 5
PSE Serves 11 Western Washington Counties
Page 6
Who Are PSE’s Customers?
Page 7
Household Income: Urban Areas Most Prosperous U
rban
Rur
al
Urb
anR
ural
Page 8
Household Income: Including Low-Income Residents
Page 9
Increasing Diversity Across the Region
King County is Washington State’s
most populous county
Nearly 1/4 of King County residents
do not speak English at home
PSE regularly distributes customer
information in nine different languages
Page 10
Practical Idealists
24%
Affluent Conservers
5%
Standard Sounders
18%
Educated, but
Disengaged 8%
No Interest, No Action
21%
Comfort is King
10%
Green Idealists
14%
Residential Customers: Energy Attitudes
Page 11
The PSE-Customer Relationship
Page 12
What Do Our Customers Think of PSE?
Residential and Business Customer Surveys
• JD Power Utility Customer Satisfaction Studies
• PSE 2011 Residential and Small Business Perception Survey
• Bourke Customer and Constituent Feedback Survey
Page 13
JD Power Customer Satisfaction Studies
Keys to Improvement:
• Power Quality and Restoration: Reduced outage frequency and duration Accurate restoration times
• Billing and Payment: Greater alternative payment options
• Communication: Better information about outage restoration times, call-backs after
outage restoration, safety, price changes, and utility plans for the future
• Corporate Citizenship: Increased awareness of energy efficiency, renewable energy,
environmental efforts, and community involvement
Page 14
PSE 2011 Customer Perception Survey
Strengths:Customers see PSE as:
• Dependable• Trustworthy• Responsive
Weaknesses:Customers see PSE as:
• Expensive• Not highly innovative• Not strongly customer focused
Opportunities:Customers are interested in new services:
• Self-service energy monitoring and outage reporting• Electric vehicles• Solar
Page 15
2009 Bourke PSE Industrial Customer and Constituent Satisfaction Surveys
“I have a customer representative that is readily available. I don’t have to call an 800 number. Jacoline Stewart is an excellent representative for PSE.”
“John Campion has a great deal to do with these very high scores. He is a role model for the rest of the utility industry . . . “
“George Pohndorf . . . embodies the customer service focus that makes PSE so special.”
High satisfaction, but driven by direct access to account executives unavailable to most PSE business customers:
Page 16
The Customer Engagement Strategy
Connecting with the Customer
Page 17
Defining an Integrated Customer Plan
What is the Integrated Customer Plan (ICP)? The ICP is a strategy for aligning customer, community, and company interests in order to achieve PSE’s Business Plan
What do we want the customer service experience to be?The desired customer service experience is marked by four attributes:
Clear – customers know what PSE can do for themEasy – customers get what they want simplyChoices – customers have optionsSuccess – focusing on customer’s success versus PSE’s convenience
The desired customer experience results in customers who:Select – cost-efficient channelsReceive – a consistent, actionable messageUnderstand – the value and benefits of having PSE as their
energy service provider
Page 18
What We Learned:
Key finding #1: Our customer demographics vary widely
Key finding #2: We lack connection with small- and mid-size businesses
Key finding #3: Customers are uncertain of the services provided by PSE
Key finding #4: Customers do not see PSE as an innovative solution provider
PSE’s Customer Engagement Strategy
Page 19
19
Strategic Objectives:
Objective #1: Closer connection to local communities
Objective #2: Deeper engagement with small- and mid-size businesses
Objective #3: Clear customer understanding of PSE services
Objective #4: Provide customers with integrated energy solutions
PSE’s Customer Engagement Strategy
Page 20
Today Customers Must Find Their Own Way Through Processes Designed for Our Needs – Not Their Needs
Electric Vehicles
Local Offices
Subcontractors
Energy Efficiency
Customer Renewable Generation
Field Services
Claims Process
Energy Advisors
Mobile AccessCommunity Relations
Communication
Web Access
Green Power Options
Customer Access Center
New Customer
Construction; they direct
her to our. . .
Safety Concerns
This is Megan, a new PSE customer building her first
house. She attempts to contact PSE. . .
Page 21
The Front Office and Back Office Transform the Customer Experience
Web
Voice
In Person
Electric Vehicles
Local Offices
Subcontractors
Energy Efficiency
Customer Renewable Generation
Field Services
Claims Process
Mobile Access
Communication
Web Access
Green Power Options
Customer Access Center
New Customer Construction
Energy Advisors
Community Support
Safety Concerns
Page 22
No Customer Engagement Strategy Model
Electric and Natural Gas
Market Development
New Products
Product+ Service Delivery
CustomerAccessCenter
Field Services and Service
Providers
Community Services
Business Services
Marketing
Communications
Page 23
?
No Customer Engagement Strategy Model
Electric and Natural Gas
Market Development
New ProductsProduct
+ Service Delivery
CustomerAccessCenter
Field Servicesand Service
Providers
Community Services
Business Services
Marketing
Communications
Page 24
Customer Engagement Strategy Model
Vision & Culture – Customer Strategy Committee
Continuous Improvement – Customer Working Group
Leveraging – IT Investm
ents for Custom
ersLeve
ragi
ng –
Ope
ratio
ns S
ervi
ces
Pla
nnin
g
Marketing and Communications Group
Community and Business
ServiceTeams
Field Services andService Providers
Customer AccessCenter
Front Office
Engagement Customer Energy Solutions
Electric and Natural GasMarket Development
New ProductsProduct
+ ServiceDelivery
Back Office
Page 25
Objective: Closer Community and Small Business Connections
External functions aligned to meet customer demographics and density
Central
PSE Function-Based Alignment
Local GovernmentMajor Accounts
Energy EfficiencyNorth
West
Community& Business
Service Teams
South
Customer and Community-Based Alignment
Page 26
Objective: Customer Understanding of PSE Services
Unified Communications, Marketing, and Research Functions
PSE Function-Based Alignment Customer-Based Alignment
Research
Marketing
Communications
In Person
By Voice
Web + Media
All Right, PSE!All right, PSE!
Page 27
2011 Q3 2011 Q4 2012 2013
Phase I Phase III
Customer Strategy
Committee
Community & Business Service
teams
Unified Customer Market
Strategies + Communications
Customer Working Group
Customer Energy
SolutionsDevelopment
Productanalysis
Support ITprojects
Phased Implementation
Leverage ITprojects for customer
communicationand self-service
Phase II Phase IV
Page 28
PSE’s Corporate Affairs Department
N EW DirectorCom m unity an d
B usiness Services(N orth)
N EW DirectorCom m unity an d
B usiness Services(South )
N EW DirectorCom m uinty an d
B usiness Services(East)
N EW DirectorCom m unity an d
B usiness Services(W est)
DirectorFederal Government
Relations
DirectorState Government
Relations
DirectorCorporate
Commun ications
DirectorCustomer
M arket Strategies
Vice PresidentCorporate Affairs
Page 29
Newly Organized Energy Efficiency Services
N EW DirectorCustom er Ex perience
M anagerBusiness Energy M gmt
M anagerResidential Energy M gmt
M anagerNew Program Development
& Evaluation
DirectorCustomer Energy
M anagement
Program M anager
Sr. Business Analyst
Program I mplementer
M anagerBudget &
Admin istration
M arket Manager
M arket Manager
M arket Manager
M arket Manager
M anagerCustomer Renew able
Energy
Sr. Market Analyst
Program M anager
M anagerGas M arketing
& Development
M anagerStrategic P lann ing
& Research
Vice PresidentEnergy Effi ciency Services
(EES)
NEW TITLE VP Customer
Energy Solutions
Page 30
PSE is a Work in Progress. . .
Who is PSE?