general utility customer engagement strategic initiatives
TRANSCRIPT
Continuous Customer Engagement Strategic Initiative for Utilities
Power, Water, Waste, Gas …
Catalyzing emerging business models through
STAKEHOLDER ENGAGEMENT | CONSULTING | RESEARCH
Loss Reduction is core to Utility success and for it both Network and ‘Customers’ need to be managed
Technical Losses
Commercial Losses
9/1/2012 www.pManifold.com 2
Engaging & Managing ‘Customers’ can lead to faster ‘Commercial losses’ curtailment and hence better ROI realization
• Direct Hooking• Tampering / By-passing of Meter• Misuse of Category• Use of Multiple Connections - Misuse of Slab• Sanctioned Load lower than actual usage
• Meter (address) not traceable• Import / Export Metering Error • C T Ratio Errors• Stop / Slow / Defective Meter• CT Ratio Errors• Meters not read • Mismatch of Meters
• Consumer not billed / under-billed• Provisional Billing• Bills pending for Quality Check (BQC)• Bills pending for assessment• Meters installed but not appearing in data base• Un-metered connections (Unauthorized Colonies, JJ Clusters, Street Lights Poles)
• Part Payment by Consumer• Non Delivery of Bills• Non Payment by Consumer (Defaulters)• Premise Disconnected with Dues
4
3
2
1
DF – Distribution Franchisee
1
2
3
4
All relates to Customers
Higher ‘Customer Engagement’ reduces effort required by new Private Operators to reduce losses
9/1/2012 www.pManifold.com 3
Better efficiencies in Theft control, Metering, Billing and Collection, from increased ‘Customer Engagement’
Overall Loss Reduction
DF fulcrumPrivate Effort
1
Customer Engagement
(Private effort reduce if Customer Engagement increase)
Private Operator necessarily needs to build ‘positive Brand Image’ with its customers - Replace common perception of ‘profit exploiting private’ to ‘honest & accessible ally’.
Loss reduction is core
Commercial losses significant part
Customer’s ‘forced behavior’ leads to commercial losses
Managing customer’s
‘Perception’ is key
Building ‘positive brand image’ is
necessary
Listening to customers &
Engaging them positively is a must
Customer Engagement drives
overall ‘Performance’
9/1/2012 www.pManifold.com 4
Customer Engagement is a Tool to build & measure this ‘positive Brand Image’
Positive Brand
Building Customer Engagement will be a ‘Soft Investment’ to reduce various losses
Why care Customer Engagement in the regulated and monopolistic utility market?
It act as ‘soft investment’ to realize efficiency from ‘hard investment’
9/1/2012 www.pManifold.com 5
Effectively leveraging insights from customers has been shown to be one of the best ways to build better relationships, improve processes, reinforce the company’s brand, develop new solutions, and much more.
HOW TO BUILD CUSTOMER ENGAGEMENT?
Integrated Framework for ‘Systematic & Continuous Innovation’ of Customer Engagement
9/1/2012 www.pManifold.com 6
Customer Engagement is managing both ‘Perception’ and ‘Performance’
9/1/2012 www.pManifold.com 7
Negative ‘Perception’ leads to customer forced behaviors and lower ‘Performance’
KPIs PERCEPTION PERFORMANCE
1 Price• “A private company will only
exploit us by raising prices or levy new charges”
• A slight disruption becomes intolerable, leading to mass resistance and damage
2 Theft• “My neighbor is stealing and
is not caught”• “Anyway this private co. will exploit us, let me also steal”
• “This new private co. seems to be fair, honest and delivering performance. May be I should report this theft, as it hurts us honest customers only at the end.”
3Customer Services
(Accessibility)
• “I am receiving bills late, so I will make payment also late. Anyway, its time consuming for making payments.”
• Not understood customer preferences lead to high defaults and arrears.
• “I know that regulator fixes price, and not this private co.”
4 Metering• “The new meters will run
fast. What’s wrong with my current meter?”
• Leads to opposition with AMR meter replacement, leading to continue high metering cost and anomalies.
• “New customer services are prompt, friendly and also personal. Let me pay on time, and bring to their notice that I am receiving bills late”
• “New meters with automatic metering will allow efficiencies and reduce meter reading and billing errors”
What cannot be ‘Measured’ cannot be ‘Managed’
• What are customer expectations (and perception) about privatisation?
• How are customers segmented - spatially, socially, economically, politically?
• How are electricity consumption and payment patterns amongst different segments?
• How is satisfaction on delivery of electricity services?
• What are the reasons for forced customer behaviors like theft, default etc.?
• What preferences to improve customer services at CFCs, and other touch points?
• What preferred communication channels to build brand image and foster co-operation?
• How to raise 80% mass support to isolate the 20% miscreants and reduce DF efforts to 20%?
• How customer ‘perception’ & ‘performance’ improving (benchmarking with previous results and other DFs)?
• How new piloted customer engagement initiatives getting adopted and meeting their objectives?
• Is advertisement (branding and PR) spent yielding measurable increase in customer confidence & loyalty?
• How to engage employees and create a performance management system tied with customer satisfaction?
• What policy change advocacy with local administrators, licensee, regulators and/or state govt. could yield improved returns, if backed by high customer confidence and satisfaction?
• If and how enhanced customer experience can allow better grid efficiencies and improved financial ROI?
9/1/2012 www.pManifold.com 8
Below key Customer Insights (or ‘Perception’) needs to be captured first. Then appropriately driven to yield ‘Performance’ (Customer, Operational and Financial)
‘Perception’ capture ‘Performance’ integration
DF roll-out phase DF stabilization period
Integrated Framework for ‘Systematic Innovation’ of Customer Engagement
Stakeholder Surveys
•Comprehensive primary household surveys (EUCOPS*)
•Opinion Leader surveys
•Custom surveys to address utility specific issues (arrear customers, new initiative outreach & impact etc.)
•Brief pulse surveys – telecalling, sms, online
•Benchmarking across time and other utilities
Service Quality Assessment
•Assessment of levels of services at touch points (CFCs, Collection Centers, Call centers, IGRF, CGRF, DCs etc.)
•Employee satisfaction & Engagement
•Analytics of customer records, complaints and quality of resolution
•Overall Utility Business performance association with Customer Service levels & Customer Satisfaction
Customer Engagement
•Offline events & campaigns
•Online website, devoted customer portal and social media engagement (blog, forum, communities of interest etc.)
•Marketing and Brand building
•Education & Advocacy
Business Value Add
•Cooperation for arrear recovery, Reliability charges, tariff hike, smart metering etc.
•Vigilance - no theft, no manipulations
•High customer retention with Open Access
•Optimised load curve with DSM
9/1/2012 www.pManifold.com 9
Involvement, Interaction, Intimacy and Influence, in that order leads to effective Customer Engagement
1. Involvement
2. Interaction
3. Intimacy
4. Influence
*EUCOPS – Electric Utility Customer Opinion Preferences & Satisfaction
Continuous Life Cycle of Customer Engagement
9/1/2012 www.pManifold.com 10
Integration with overall Strategy, Structure and Systems
Model
Measure
Analyze
Design
Engage
Monitor
•Road map for Customer engagement• KPIs
•Customer Behaviors•Utility customer facing processes
•Customer Satisfaction•Service Levels
•Behaviors & trends•Cause-Effect Relationships
•Customers & Opinion Leaders•Employees
•Customer Performance•Operational Performance•Financial Performance
Customer Engagement
INTEGRATED CUSTOMER ENGAGEMENT MONITORING
pManifold’s Recommended Basic Annual Service Package for Distribution Franchisees
9/1/2012 www.pManifold.com 11
Integrated Customer
Engagement Monitoring
Customer Records
Land survey
Online survey
Mobile SMS survey
Customer Facilitation
Center
Collection Center
Call Center
Distribution Center
CGRF and IGRF
Online Social Media
Offline Campaigns
Collecting, Analyzing and Reporting customer data from multiple sources
9/1/2012 www.pManifold.com 12
Embedding distributed ‘Sensors’ for LIVE experience capture of customers transacting with utility products and services
Strategic Decisions | Roll-out Decisions | Operational Decisions
Informed decisions, in-time actions
Segmentation, Profiling Awareness, satisfaction
Better Customer Engagement
Customer Analytics
1. Records2. Surveys3. Touch Points4. Social Media
Continuous year round ‘listening’ to Customers and facilitating informed & timely decisions (both Strategic and Operational)
9/1/2012 www.pManifold.com 13
Recommended Basic annual service package for Integrated Customer Engagement Monitoring
* Not included in Basic package
Stakeholder Survey
Customer Survey
Standard EUCOPS
*Custom Pulse 'Online' survey
*Custom Pulse ‘sms’ survey
Review of key Opinion Leaders
Service Quality Assessment
Touch Points Assessment
Customer Facilitation Centers (CFCs)
Collection Centers
Customer Call Centers
Distribution Centers
Grievance Redressal Forum(s)
*Complaint Analytics
Online Customer Engagement
Website Review
Social Media Monitoring & Analytics
- Management Summary & Detailed assessment report of customer
transaction with services offered at various touch point’s (CFCs, collection
centers, call center etc.). At Transaction level, KPIs like servicing time,
customer satisfaction, feedback (if any) will be reported. At touch point
level, KPIs on cleanliness, staff behavior, customer delight etc. will be
reported.
- Causal analysis of Customer Satisfaction with Absolute Service Levels and
internal KPIs
- *Analytics & MIS of complaints, customer info, & resolution quality
- Website review, and recommendation for design and content to foster
customer interactions and engagement
- Online monitoring of engagement on social media
- Management Summary: Top results for Customer Satisfaction Levels and
priority matrix (Satisfaction vs. order of importance)
- Detailed Report: Segment wise results for each attributes with Detailed
GIS mapping, including detail demographics
- * Detailed Demographic report - socioeconomical, ethnographical,
political and other relevant indicators
- Real time Data access: Read access to Real time field Data as collected
- Formatted Excel Data and Tables
- Formatted GIS Data file to allow interactive GIS visualization
- Time Trend & Benchmark Report: Time Trend Report if repeat surveys.
Additionally benchmarking Data from other EUCOPS completed utilities.
- Review of key Opinion Leaders for issues and challenges
2
3
1
pManifold’s Value Proposition
Independent Assessment
• Clear, transparent & structured ground reporting to Top Mgmt. and Operations Team
• Potential independent reporting and share of customer engagement results with Licensee and Regulators
• Potential leverage in improving utility credit rating
Integrated Methodology
• Validated sampling & survey methodology with National and International experts
• Transparent and Traceable data collection through usage of GPRS enabled mobile phones and geo tagged customer-meter picture
• Integration of customer data from varied primary sources (Records, land/ online/ sms surveys, touch points, social media etc.) and secondary demographics to build strong customer understanding
Core Competence
• Modeling , and Measuring customer behavior
• Robust statistical and analytical engine to integrate varied information to build relevant Business Intelligence (with powerful GIS visualizations)
• Broader portfolio in Power Distribution sector to bring business value add to utilities
• Wider engagement through digital platform with all key utility stakeholders at pan India level to bring best collaboration and business value to utilities
Competitive Benchmarking
• Ability to benchmark results with other power Distribution utilities
• Share and learn best Operational and/or Customer strategies practices from other utilities
9/1/2012 www.pManifold.com 14
Creating standard customer ratings across different Utilities at all India level through..
* Sampled 3200+ customers until Dec 2011
Why pManifold? - pManifold has growing portfolio in Utilities (Power, Water, Waste and others) with deep understanding of ground challenges….
Stakeholder Engagement
•pManifold’s Linkedin-based Community of Interest
•Power: Power Distribution Franchisee
•Water: Water Sector Reforms – India
•Health: Global Life Science Business in India
•Conference on ‘Utility Monitoring & Distribution Franchise (DF) - Enhancing SEB‘s Performance’ for IIES
•Active blog on Smart Distribution coveringsectoral activities and knowledge sharing.
Research Reports
•Input Based Distribution Franchisee Market in India (published 2012Q1)
•Smart Metering Landscape and adoption challenges in India (due in 2012Q2)
Providing Bid/Deal Intelligence
•Supported informed bidding by DF Bidders & influenced RFP design by GoMP (for 3 towns of MP –Gwalior, Ujjain, and Sagar)
•Conducted EUCOPS study for 9 DF prospect towns
•Detailed RFP analysis and customer segmentation
•Socio-economic analysis to estimate load growth
•Detailed Financial modeling for bid estimation
Customer/Demand Studies
•Conducted 11+ EUCOPS studies for private and state Power Distribution Utilities across 2 states with total 5000+ surveys
• Conducted one Willingness to Pay (WTP) study for a new 24x7 water privatization city at Maharashtra
Consulting
•Financial modeling for Distribution Franchisee bidding for a large energy management company .
•Power DF entry strategy
9/1/2012 www.pManifold.com 15
Active and independent contributor for scale-up of Franchisee Model across Utilities to support Transformation
Let’s get in touch…
Join us in our conversations at,
Power Distribution Franchisee
AT&C Efficiencies
True Distributed GenerationPower Distribution
FranchiseeCommunity of Interest
Connecting talent & Making Local companies discoverable
pManifold InsightsPremium & Free Reports,
Presentations, and more…
pManifold Community BlogArticles, technical notes.
Together we can create a strong Governance for utilities in India…
Rahul Bagdia
+91 95610-94490
Faiz Wahid
+91 88056-55069
India (Main office)
Crystal Plaza, Level 2
276 Central Bazaar Road,
Ramdaspeth, Nagpur - 10
Maharashtra, INDIA
http://www.pmanifold.com
USA (Liaison Office)
2020 Calamos Ct.,
Suite 209
Naperville,
IL 60653, USA
Mr. Dinesh Jain
+1 630-853-3520
Let’s deploy our insights and actionsfor your business to improve and grow!
169/1/2012 www.pManifold.com