(and how they create a win-win scenario for organizations and residents)
Certain business trends, which would dramatically impact the success of other service-based industries, have not always been as applicable for public utility companies— many of which have held monopolies and been most focused on operational efficiency in order to provide the public an essential service. While the customer experience has not always been the key to gain competitive advantage in this industry, recently, in part due to the operational challenges created by COVID-19 distancing requirements, many public utilities have begun to recognize the mutual benefits of a good CX. In addition, a recent post, regarding equitable collections reform in public utilities touched on the importance of residents’ experience and how technology can play a part. In today’s post we are going to touch on two key elements of a good customer experience that are simple to implement and create a win-win scenario for utilities and their customers.
Customer portals
There is a high demand in every industry for digital self-service solutions, which was reinforced recently by the ways in which COVID-19 hindered business as usual. Employing an effective self-service website or mobile app that provides customers with self-service tools, such as payment portals for viewing and managing their accounts, offers the autonomy that the modern consumer expects as well as billing transparency that eliminates confusion and builds trust with your organization. In fact, in utility customer satisfaction surveys mobile apps ranked the highest of all communication channels in terms of CX, while speaking to a customer service representative came in last. But satisfaction and trust aren’t the only benefits; self-service systems can reduce operational costs by freeing staff to focus on tasks other than fielding routine account inquiry and payment calls (an important feature for organizations with low or zero growth loads). They also can serve as a platform for direct communications, which brings us to…
Digital communications
In-portal or in-app communications are an easy way to distribute invoices, industry news, brand messaging and alert customers of policy changes, outages, and financial programs. This too can cut expenses, but also help to generate brand recognition and improve public image – things that are essential for organizations looking to gain market share by selling other energy-related products or services. In addition to online portals or mobile apps, utilities may explore the idea of push notifications and text messaging which put communications directly into customers’ pockets. These forms of communication are highly efficient – delivering alerts in real-time – and offer the ability to remind customers of important deadlines, allowing them to avoid late fees or additional charges.
Other service-based businesses have been employing these two strategies for some time. The financial services industry, for example, was among the first to adopt digital self-service portals and communications into their business models with such huge success that few of us can remember banking without them. As an industry however, utilities are ranked at the bottom for providing customers with these kinds of digital experiences— a trend which is setting apart the pioneering organizations that are now finally giving their digital experience attention.
And it gets results…
Data repeatedly supports a positive return from just implementing of these two simple digital initiatives. In 2017, Central Hudson Gas & Electric of New York saw a huge increase in engagement and online payments after implementing their self-service platform CenHub. Within the first year, over 40% of customers had enrolled in the platform, electronic payments increased by 12%, and mobile app downloads jumped by 25% (numbers which were exemplary at the time). Now, just a couple of years later, online engagement numbers for public utilities are nearly double those. The J.D. Power 2019 Electric Utility Business Customer Satisfaction Study found over 70% of utility customers were using online portals when offered, and of those, 90% had signed up to receive digital alerts.
Nowhere is it more important than in the utility customers’ financial experience which at times can be emotionally charged. A quick and easy self-service solution can relieve much of the stress and negative feelings associated with account management. The kind of improvement to digital engagement we are describing above is being reflected in our own numbers. More transactions are processed through our online portal and mobile optimized website than via our customer service representatives.