What will be the disruptive technology in utility customer service and interaction?

Utilities are not the only ones struggling with how to get more customers migrated to online and mobile billing services. This became clear while talking with people at the NACHA-Payments 2013 Conference earlier this week in San Diego.

J.D. Power and Associates research shows that customers who use electronic channels -Web and mobile -to view and pay their bills or undertake just about any customer service transaction are more satisified. Still, while more customers have gone to electronic payment methods, most remain on traditional channels when it comes to making a service phone call or receiving a paper bill in the mail. I was asked by someone in the insurance business that, if in fact customers are more satisfied on Web and mobile service channels, what is it that she could do to get more customers to go there now that the mobile website and apps have been built. This was unexpected, since most utility professionals I know seem to think other industries – including insurance - have all the answers.

But there is no easy answer to that question. The fact is Continue reading ›

Despite More EV Models Available, Q1 2013 EV Sales Decline From Q4 2012

While electric vehicle sales in the U.S. during the first quarter of 2013 rose substantially from the same quarter last year (+173%), the pace of EV sales has declined from the final quarter of 2012 (-18%).  18,269 electric vehicles were sold during the first three months of 2013, compared with just 6,678 units for the same three month period last year.  However, the final three months of 2012 saw an even faster sales pace of 22,245 units.  The decline in EV sales from the previous quarter is in contrast to an increase in total vehicle sales in the U.S. (+6.5%).

Ten different EV models were offered for sale during Q4 2012, and now there are 13 EV models avialable in the U.S.

2013EVSales

Six brands that did particulary well in the 2013 JD Power Utility Website Evaluation Study are…

Among the 75 utility companies included in the study, AEP, OG& E and Southern Company perform particularly well in overall customer satisfaction with utility websites when viewed from a desktop computer. DTE Energy, FirstEnergy and Public Service of New Hampshire perform well in overall satisfaction among customers who view the website from a mobile device.

The 2013 Utility Website Evaluation Study (UWES) is based on evaluations from more than 11,000 electric and/or gas residential customers, with 2,819 providing feedback about their online experience using a mobile device. The 75 largest U.S. electric and/or gas companies are included in the study, which was fielded in February and March 2013.

Press Release

Business Customer Satisfaction Declines with Natural Gas Utilities

Amid a reduction in local and customer-focused activities, overall customer satisfaction declines among business gas utility customers, according to the J.D. Power and Associates 2013 Gas Utility Business Customer Satisfaction StudySM released today.

“Overall, there are fewer touches being made in corporate citizenship and in communications, which has negatively impacted customer satisfaction,” said Chris Oberle, senior director of the energy practice at J.D. Power and Associates. “The customer-focused approach used to increase satisfaction in the 2012 study has somewhat waned, as utility companies receive lower awareness of their local support and economic development efforts this year.”

The study finds that local and community efforts are also declining, directly impacting customer perception of corporate citizenship. Business customer awareness of utility efforts regarding environmental efforts declines to 31 percent in 2013, down from 38 percent in 2012. Additionally, customer awareness of a utility’s local support and donations declines five percentage points year over year to 24 percent in 2013.

Read more in the Press Release

 

Four utilities that performed particulary well in the J.D. Power and Associates 2013 Social Media Benchmark Study are…

Social Media Servicing

  • Florida Power & Light
  • Georgia Power
  • Pacific Gas and Electric

Social Media Marketing

  • Con Edison
  • Florida Power & Light

(Companies are listed in alphabetical order.)

The inaugural study is based on responses from more than 23,200 U.S. online consumers who have interacted with a company via the companies’ social media channel. Fielded from November to December 2012, the study measures the overall consumer experience in engaging with companies through their social platforms for both marketing and servicing needs across more than 100 U.S. brands in six industries: airline, auto, banking, credit card, telecom and utility. The study establishes performance benchmarks and industry best practices that provide insights to companies to help them maximize their social media efforts.

The study also finds that some industries are more successful than others at implementing best practices into their social media engagement strategies than others. When looking across industries, the auto industry performs particularly well in both marketing and servicing social media interactions, the only industry to do so. Other industries performing well are wireless in social servicing interactions and utility in social marketing interactions.

Full Press Release

Business Customer Satisfaction with Electric Utilities Declines

Business customer satisfaction with electric utility communications increases (+4), while overall satisfaction declines (-10), according to the J.D. Power and Associates 2013 Electric Utility Business Customer Satisfaction Study SM released today.

Despite severe storm impacts, satisfaction with power quality & reliability declined only slightly (-3).  Utilities did a good job keeping businesses informed about outages and promised ETRs we met.

The area in which utilities are facing significant criticism is in corporate citizenship, where business customers are critical of utility efforts to develop energy supply plans for the future as well as utilities showing business leadership in local communities.

Study Rankings

Within each of the four geographic regions included in the study, utility providers are classified into one of two segments: large (serving 85,000 or more business customers) and midsize (serving between 25,000 and 84,999 business customers). Rankings within each region and segment are as follows:

East Region

PPL Electric Utilities ranks highest among large electric utility providers in the East Region with a score of 664. Among midsize electric utilities in the East Region, Central Maine Power (654) ranks highest for the second consecutive year.

Midwest Region

In the Midwest Region, We Energies (669) ranks highest among large electric utilities, while Indianapolis Power & Light Company ranks highest among midsize brands with a score of 676.

South Region

Georgia Power (695) ranks highest among large utilities in the South Region. Among midsize electric utilities, Entergy Texas ranks highest with a score of 687.

West Region

Portland General Electric (694) ranks highest among large electric utilities in the West Region. Among midsize electric utility providers, Seattle City Light ranks highest (689).

The 2013 Electric Utility Business Customer Satisfaction Study is based on responses from more than 25,700 online interviews with business customers of the 95 largest utility brands throughout the United States. The study was fielded from April through June 2012 and September through December 2012.

Read more in this link to the press release.

 

 

DistribuTECH Conference and Exhibition 2013 Concludes in San Diego

Yesterday the 2013 DistribuTECH Conference and Exhibition concluded in San Diego. For background DistribuTECH is one of the utility industry’s leading smart grid conference and exposition, covering automation and control systems, energy efficiency, demand response, renewable energy integration, advanced metering, T&D system operation and reliability, power delivery equipment, water utility technology, and customer service and engagement.

I had the chance to attend this year’s event, and had the pleasure of sitting in on a number of enlightening presentations and panel discussions, but my favorite was a panel discussion entitled Residential Customer Service Best Practices. David Elve, Chief Marketing Officer at PayGo, moderated this session which had customer service executives from four major investor-owned utilities describe how they use smart grid information, leading technologies, and new business processes to better manage customer engagement.

The participating utility executives were Barbara Jackson from Oncor, Caroline Winn from San Diego Gas & Electric, Bryan Olnick from Florida Power & Light Co., and Steven Malnight from PG&E. The panel discussed their programs, technologies, plans for enhancements, and lessons learned to date.

One of the themes of the panel discussion was that utilities cannot over communicate when informing customers about smart meter rollouts or new programs and services. According to Brian Olnick, utilities need to focus their communication efforts not just on the individual customers, but on all appropriate stakeholders, which can also include organizations such as churches and civic groups.

Another theme was that critical peak rebates seem to be resonating with utility customers. Critical peak rebates allow utilities to call critical events during pre-specified time periods (e.g., 4 p.m.—7 p.m. on summer weekday afternoons). During these events the price for electricity remains the same, but the customer is refunded at a single, predetermined value for any reduction in consumption relative to what the utility deemed the customer was expected to consume. According to Steven Malnight at PG&E, their critical peak rebate participants have saved an average of 8% on their electricity bill.

With the evolution of smart meters and other new technologies the utilities are also finding that key performance indicators are changing. Some of the newer metrics that the panelists have adopted include percentage of customers using “self-service” tools, the number of proactive communications sent, the amount of peak reduction achieved, and increased social media activity.

Thanks to David Elve for putting together such a thought provoking panel and to Penwell for another great event!

A Brief Overview of Smart Grid Consumer Collaborative’s Annual Symposium

Earlier this week I had the pleasure of attending the annual symposium of the Smart Grid Consumer Collaborative (SGCC) in San Diego. For background the SGCC is a nonprofit organization chartered to represent consumers, advocates, utilities, and technology providers in order to advance the adoption of a reliable, efficient, and secure smart grid and ensure long-lasting sustainable benefits to consumers.

The symposium consisted of a number of presentations and panel discussions that focused on issues such as consumer education, communication strategies, social media, and customer engagement

My favorite presentation of the day was from David Lawrence of San Diego Gas & Electric (SDG&E). He provided an excellent presentation on SDG&E’s social media efforts. His presentation confirmed the findings of recent research conducted at J.D. Power and Associates that interaction within the social media sphere is growing at a rapid pace, and customers’ expectations regarding a utility’s responsibility to respond to their online posts, as well as the concerns they have expressed, have dramatically increased during the past few years.

According to Lawrence, utilities should create a social media strategy with clear goals and objectives that tie to the utility;s business goals. He also suggested that utilities need to become story tellers, as storytelling is the best way to execute a social media strategy because people do not connect with companies but rather stories.

In effort to recognize SGCC members that serve as role models within the industry in the development and implementation of consumer education programs, SGCC presented a top utility and top non-utility award. The winners this year were Comverge for their IntelliMARKET, IntelliSUPPORT and SmartPrice™ Programs and Southern California Edison for their Edison SmartConnect® Program.

Kudos to Patty Durand and her team for an informative symposium!

Electric Light & Power Executive Conference 2013 – “Challenges & Choices”

Electric Light & Power conducted their annual Executive Conference in conjunction with DistribuTECH 2013 this week in San Diego. I very much enjoy this forum and what differentiates EL & P’s approach is anchoring their sessions with speakers who are not usually featured at these kinds of events; but have relevant messages around the issues we face in our respective roles back at the office. This year’s list included: Danielle DiMartino Booth from the Federal Reserve Bank of Dallas, Michael Reagan, (elder son of the President Reagan), and Jerry Zucker, Hollywood filmmaker. 

Danielle DiMartino Booth always provides a real and sometimes sobering perspective regarding the macro economic challenges we face as a nation, and provokes her audience to examine the current state, and to consider the economic environment we operate our businesses in each day. She spoke specifically to the recovery of the housing market and why this is important to the electric utility industry. I always leave Ms. DiMartino Booth’s sessions with more questions than answers, but that is the objective and again what differentiates the approach Electric Light & Power uses in conducting their executive sessions.

Michael Reagan addressed how his father would manage these challenging political times, and took the audience on a journey into the mindset and values of  who many believe is America’s most admired president. In addition to providing the audience a behind the scenes view of the campaign trail and into the private residence of the Reagan White House, Michael Reagan provided insight into policy and how President Reagan believed America must use all its resources to become energy independent.

Jerry Zuker, one of Holllywood’s most successful filmmakers delivered a message about reaching your audience and creating messages that resonate. Zuker is the creative genius behind movies such as “Airplane”, the “Naked Gun” series, “Ghost”, and “Friends with Benefits”. His perspective on the energy market comes from being the co-chair of The National Academy of Science & Entertainment Exchange, which is hosting a Future of Energy day for several hundred leading producers, directors, and writers who will interact with prominent energy experts and groundbreaking energy companies.    

The keynotes were complimented with engaging executive member panels on topical issues such as: ”The scorecard for smart grid”, ”What will the blueprint for the utility of the future look like?” and ”Preparing for disruptive events”.

Electric Light & Power also hosts an Awards Dinner and recognizes three categories: “Small Utility CEO of the Year”, “Large Utility CEO of the Year”, and “Utility of the Year”. This year’s recipients were: 

  • Small Utility CEO of the Year:  Walter W. Haase, General Manager, Navajo Tribal Utility Authority
  • Large Utility CEO of the Year: Joseph M. Rigby, Chairman, President and CEO, Pepco Holdings Inc.
  • Utility of the Year: Southern Company; accepting was Thomas A. Fanning, Chairman, President and CEO

I encourage each of you to attend this event next year, you will not be disappointed – January 27 – 29, 2014, San Antonio, Texas

…and thanks to Michael Grossman, Publisher and Teresa Hansen, Editor in Chief

 

David E. Steele, CMC