Using SMS for Customer

Facing Utility Applications

Rory FlorenceDirector, Spintelligent Technology

SMS stats…

• 1.5 billion global mobile phone users

• #1 country – China 300 million

• SA 16 million active customers

• 4Q2004 – 95 billion global SMS sent

• #1 SMS country – Phillipines (up to 200 messages/month)

• Global monthly SMS : 36/user

Africa…

Growth in the number of cell phones far outstrips the number of landlines due to:

• Cheaper to lay down cable to a base station than to individual homes

• Landline business is a near monopoly

• Advantages of mobility and messaging

Utility Application of SMS

• Machine <-> Utility <-> Machine• AMR, Condition monitoring, SCADA

• Staff <-> Utility <-> Staff• Field force applications, Alarm monitoring, Database query,

HR applications• Customer <-> Utility <-> Customer

• Marketing• Customer Service Measurement• Self Meter Reading• Outage Management• Billing enquiries• Prepayment vending

Characteristics of SMS?

• SMS is the killer app for GSM in many (most) markets

• The cell phone is the most accessible device for communication

• SMS is very cost effective

• SMS is immediate

• SMS is well understood by customers across all segments

• SMS allows for automated data collection

• Two way communication with customer

• Non-invasive, customer initiated

• Real Time data

• Cell numbers and history of engagement = advanced CRM

• Analogous to E-Mail on the internet, with some key differences

Two examples

• Self Meter Reading• Outage Management

Self Meter Read

• Self meter reading is a growing trend in many markets

• Current data collection mechanisms:

• Website

• IVR

• Post card

• SMS provides an additional channel for self meter reading, with the following benefits -

Benefits of SMS Self-Meter Read

• Low cost per meter read

• Customer convenience

• Instantaneous and real time collection of data

• Supplements existing methods of read collection

• Reads can be checked in real time

• Reads can be scheduled with reminders at the customer convenience

• Two way communication channel to the customer

• Rapid deployment

Example of a self-meter read card

• Acc No: 567891234986• Meter reading A: 102• Meter reading D: 203

567891234986 A102 D203

Example

Self Meter Reading Customer reads

questionnaire

Read typed into Customers cell phone

Reports generated

Data fed through to utility database

for checking

Appropriate response sent back according

to customer input

Server in hosted environment

Highlighting of anyIssues, advanced

CRM

Two examples

• Self Meter Reading• Outage Management

Outage Management

• Most outage management reporting from customers is by means of voice

• This is fine for low volume problems

• However, with extensive outages, this can overload call centres, increased cost & poor customer service perception

• Also considerable cost in keeping customers updated as to outage status

• SMS provides a new channel to communicate with customers during an outage event

Outage Management - benefits

• Instant knowledge of outages

• Immediate communication to consumers on the

state of an outage

• Reduce load on call centers

• Low cost of communication

• Rapid Deployment

• Improve consumer relationship

• Integration into existing OMS

Example

• Customer experiences outage at home

• Customer sends ‘O’ to the utility contact number

• If outage is known, utility replies with suitable message

• If outage is not know, system will reply that this is being investigated. Message is passed to DA systems.

• If outage is identified, message is sent to customer with expected up-time

• If outage cannot be identified, then call center calls customer

Outage Management Customer reports outage

Information on outage sent back to customer

SMS/e-mail sent to required person / call centre

Field reporting

Data fed through to utility database – Compare with known outages

Server in hosted environment

Further updates sent back to customer

Benefits of using SMS

• Rapid data collection and analysis

• Rapid appropriate response to required parties

• Rapid deployment

• Extremely low cost per interaction

• Allows for multiple solutions

• Encouraged response through incentives

• Real-time data accessible via e-mail, web or client preference

• Every customer is contactable

Conclusion

• These are just two examples of SMS playing a role in Customer <-> Utility interaction

• Opportunity exists to leverage the mobile phone as more than just a voice phone

• The user adoption of SMS will continue to grow at a rapid rate

• The use of SMS will diversify into many different business opportunities

• Customer initiated SMS for chat and services will be the predominant usage of SMS

Thank You...

Questions?