the customer is already smart… and getting smarter twenty first century communications utility...

The Customer is Already Smart…

And Getting Smarter

Twenty First Century CommunicationsUtility Client Meeting

Memphis, TNMay 4, 2011

Todd W. ArnoldManaging Principal

Copyright Smart Customer Insights, LLC 2010. All rights reserved.

2Copyright Smart Customer Insights, LLC 2011. All rights reserved.

“There’s something happening here What it is ain’t exactly clear”

70’s

80’s

90’s

00’s

10’s


There’s Something Happening Here…..Disruptive Technology Innovation More

Frequent

Source: NY Times

Copyright Smart Customer Insights, LLC 2011. All rights reserved.

4

There’s Something Happening Here…..Adoption Cycles Shorter

iPod

Internet

TV

Radio

0 5 10 15 20 25 30 35 40

Years to Reach 50 Million Users

Source: Econsultancy


There’s Something Happening Here…..Adoption Cycles Shorter – Payment Methods

Magnetic Stripe

Debit Accounts

PayPal Accounts

Contactless Credit Cards*

Mobile Banking*

NFC Enabled Handsets*

0 5 10 15 20 25 30

Years Taken to Reach 100 Million Users

* ProjectedSource: TowerGroup Projections and First Data, The Risks & Opportunities in a Mobile Commerce Economy 2008


Millennials

(Ages 18-34)

Gen X

(35-46)

Younger Boomers(47-56)

Older Boomers(57-65)

Silent Gen.

(66-74

G.I. Gen.

(75+)

All Adults

(18+)C

Cell Phone 95 92 86 84 68 49 85

Desktop Computer

57 69 65 64 48 28 59

Laptop Computer

70 61 49 43 30 10 52

iPod/MP3 Player

74 56 42 26 16 3 47

Game Console

63 63 38 19 8 3 42

E-Book Reader

5 5 7 3 6 2 5

Tablet, like iPad

5 5 4 3 1 1 4

None of These

1 3 7 7 10 43 9

Source: Pew Research Center’s Internet & American Life Porject, August 9-September 13, 2010 Tracking Survey

There’s Something Happening Here…..Connectivity – It’s Not Just for Young People

Anymore


Millennials

(Ages 18-34)

Gen X

(35-46)

Younger Boomers(47-56)

Older Boomers(57-65)

Silent Gen.

(66-74

G.I. Gen.

(75+)

All Adults

(18+)C

% Who Go Online

95 86 81 76 58 30 79

Watch a video

80 66 62 55 44 20 66

Use Social Networks

83 62 50 43 34 16 61

Send Instant Messages

66 52 35 30 29 4 47

Bank Online 62 62 58 56 44 35 58

Email 96 94 91 93 90 88 94

Use Search Engine

92 87 86 87 82 72 87

Get News 76 79 76 76 67 54 75

Buy a Product

68 66 64 69 59 57 66

Source: Pew Research Center’s Internet & American Life Porject, Generations 2010, Decamber 16, 2010

There’s Something Happening Here…..eActivity – It’s Not Just for Young People Anymore


Jan-00

Jun-00

Nov-00

Apr-01

Sep-01

Feb-02

Jul-0

2

Dec-02

May

-03

Oct-03

Mar-

04

Aug-04Jan

-05

Jun-05

Nov-05

Apr-06

0

100

200

300

400

500

600 Millions of Users

There’s Something Happening Here…..Ubiquitous New Platforms Appear

Quickly

Source: Facebook


There’s Something Happening Here…..Ubiquitous New Platforms Appear Quickly

100 million iPhones < 4 years 15 million iPads sold in 9 months

350,000 apps available in less than 3 years

More than 10 billion apps sold


There’s Something Happening Here…..From AMI to Energy Internet ---

Overnight!!!


Ubiquitous digital technology requires you to transform your customer experience in order to meet customer expectations


• Channels & Technology• Internet

• Smart phone

• Mobile Apps

• Social

• Twitter

• Facebook

• Smart Meter

• Smart Appliances

Customer Expectations• Affordable• Reliable• Convenient• Clean• Safe• Back-of-Mind

12

Don’t Start with Technology

Means to an End

It’s About the Customer – Not the Technology


Start With The Customer

Pain PointsBilling

Accuracy

Appointments

Monthly Mystery Bill

Payment Posting

Budget Billing

Credit

Deposits

Establishing Service

Third Party Agencies

Gas Trouble

No Context for CCF


It’s About Eliminating Customer Pain Points

Paperless Billing & Online PaymentsCase Study

Before•Enrollment – 24 hour wait period

•eBill program did not follow residents to new service location

•30 day wait period to view electronic bill

•Accumulate bill images on monthly basis

•24 hour wait period to pay

After•Instant enrollment

•eBill flag now follows customer to new service location

•Immediately view bill upon enrollment

•Immediately provide historical to Nov 08

•Immediately pay bill

15Copyright Smart Customer Insights, LLC 2011. All rights reserved. 15Copyright Smart Customer Insights, LLC 2011. All rights reserved.

It’s About Eliminating Customer Pain Points

Paperless Billing & Online PaymentsCase Study

Before•Does not provide real-time account balance information

•Does not address customers in nonpayment situations

•Does not offer way to contribute to Customer Care Programs

•No integration with email address changes between CRM and e-bill app

After•Provides real time account balances for customers

•Provides customized messages based on customer status

•Can make contributions toward Customer Care Programs

•Update email address across applications


The Always Connected, Always On CustomerChanging Expectations for Utilities

On-Line Services

Remote Order

Pre-Pay Social

•Easy to use•Mobile•Convenient•Security•Flawless Execution•Real-time

•Easy to use•Mobile•Convenient•Options•Flawless Execution•Real-time

•Easy to use•Mobile•Convenient•Security•Flawless Execution•Real-time•Rewards/Recognition

•Easy to use•Mobile•Convenient•Price Info•Cost Savings•Options•Navigation


Customer Service Capabilities Migration

Simple Inquiries

Basic Transactions

Complex Solutions

Batch Near-Real Time Real Time

Data Barren Master Data Mgt.

Data Generating

Phone/IVR/Web

Ubiquitous Devices

Online Services

Actions

Latency

Data

Channels


Platform Transformation Required

Always Connected, Always On Customers’ expectations…

will require new customer service systems and capabilities

•Process rigor – Six Sigma•Customer relationship management•Master data management•Customer contact platform•Proactive communication – dynamic customer interaction

•Easy to use•Convenient•Security•Flawless execution•Real-time•Options•Mobile


• Vision of 2016 smart customer experience.

• Vision of 2016 customer service platform.

Think Big!

• Not Big Bang!• Pilots for learning

requirements to scale• Focused, modular

building blocks of defined scope where success can be readily seen.

• Build value propositions• Engage stakeholders

Start Smart Transform the Platform

• Smart starts that fit into platform that provides a seamless customer experience.• Architecture• Data governance• Customer access

strategy• Products & services

Customer ExperienceTransformation Model


Todd [email protected]

+1 513-673-7728

Thank You

the customer is already smart… and getting smarter twenty first century communications utility...

Documents

customer experience

technology slide

facebook slide

ccf slide

econsultancy slide

ny times slide

projected source

tracking survey theres