Navigant Research Blog

Consumers Are Ready for Upgraded Energy Platforms, and Utilities Should Oblige

Neil Strother — February 13, 2018

Utility managers in the US seeking to shake-up and modernize customer engagement have new evidence to support such efforts. A recent study supports the idea that many consumers are ready for an upgraded online platform to interact with their utility. The study, by Smart Energy Consumer Collaborative, finds nearly half (48%) of respondents said they would use an online platform that combines current and historical household energy usage data, preference settings, utility (or third-party) programs and offers, and use this information to help better understand and manage their energy use.

According to respondents, the two most popular applications are energy rewards programs (52% probably or definitely would use) and energy manager tools (46%). The study authors call on energy market stakeholders to move beyond energy alone and imagine how new innovations from other industry sectors can be applied to their businesses. In other words, think and act more like Amazon.

The study also underscores the growing trend of increased spending by utilities on customer experience tools across the globe, as noted by my colleague, Michael Kelly, in his recent Navigant Research report, Customer Management and Experience Technologies. In this report, he notes how engagement has become a much more complex process for utilities, and exhorts them to take a more proactive approach, deploying across multiple channels in a holistic manner so customers experience a consistent set of information and tools, no matter how they engage.

Behind-the-Scenes Work Needed, Too

There is no question engagement tools should keep pace with current consumer expectations. The customer-facing online tools they see today are often not up to expectations.

That said, there is also work to be done on the backend, those behind-the-scenes processes that can speed up the mundane and create a better experience for customers. Duke Energy has taken such steps by adopting robotic process automation (RPA), a new method of processing customer information. In the past, the company would have to manually process hundreds of thousands of requests a year for starting, stopping, or transferring energy services. That could take 3 business days to simply turn around the request during a peak season. Now, by using RPA technology, Duke Energy processes such requests around-the-clock, and can immediately send a confirmation to a customer who is then assured that their request was received and that follow-on services have been scheduled. This step reduces friction in the system.

Whether it is improved customer-facing platforms or deploying backend system upgrades through new tools like RPA, these steps must be taken by utilities. The customers have come to expect them. It still boggles my mind, though, at how slow the shift to new digital tools is in the utility sector compared to others. But at least the movement is headed in the right direction.

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