Integrated Account Management for Business Customers · PDF fileIntegrated Account Management...

www.esource.com October 26, 2015

Integrated Account Management for Business Customers

Vice President, Consulting Solutions, E Source Mike Hildebrand

Senior Manager, Consulting Solutions, E Source Chad Garrett

Web conference

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Account Management ≠ Key Accounts

Key

Midsize Small

Integrated Account Management


Key account management

Programs

Marketing Engineering

Contact center

Rates Product

Development

System Operations

Current Alignment of Departments Supporting Business Customers

Billing


People

Policies

Customers Processes

Systems

Current Alignment of Operational Inputs Supporting Business Customers


Policies People

Systems Processes


Customers


How Do We Get There from Here?


Operational inputs

Departments


Industry current state

Future state

Managing business as usual

Managing for growth and change

One size fits all Differentiation

Collect snapshots in time

Continuous feedback and follow-up

Reactive customer service Create strategic value



Managing for growth and

change

When Will You Install Your Next/First PV System?

Half of the customers expecting to install PV in the next 5 years anticipate that the system will cover 50% of their electric load.

Source: How Photovoltaic Systems and Distributed Generation Will Disrupt the Utility Industry, E Source (2015) (n = 802)


Adopt a structured approach to account

management innovation


Managing for growth and

change



versus

Over half of utilities see just:

Source: E Source Account Management Assessment (2015) (n = 34)

S4_1. Which of the following best depicts customer groups that your utility defines and serves differently?



Office

Retail

Service

Government

Education

Restaurants

Lodging

Grocery/C-Stores

Manufacturing

Warehouse

Healthcare

Congregations

Other Commercial

Number of accounts

Revenue to utility

Customer service

modeling

Customer Service Prioritization and

Segmentation

Very small Small Midsize Large



Selective engagement Access to specialized experts Targeted outreach First-call resolution (FCR) Current State

• Limited Customer Knowledge • Purely Reactive • Residential Mindset

Enable choices & drive to self-service Prioritized call routing Benefits from increased

industry knowledge & FCR

Move from transactional to relational Specialized expertise Proactive communication Taking time for personal ownership

& added value

A

B

C Reactive

Moderately proactive

Proactive



53% have inside account managers for midsize customers

Placement within the utility:




Continuous feedback and

follow-up

Ongoing customer

transactional surveys

Regular satisfaction

surveys

Employee surveys

Align metrics with corporate goals Identify and track the drivers




follow-up

6.9

8.2

1

2

3

4

5

6

7

8

9

10

SMBs Large Businesses

Cus

tom

er s

atis

fact

ion

Source: E Source Large (2015) and Small and Midsize (2014) Business Gap and Priority Benchmarks




follow-up

Utility satisfaction drivers

Reliability Trustworthiness Working to keep prices down

Offers a variety of programs

Source: E Source Large Business Gap and Priority Benchmark (2014) (n = 1,773)

Account rep satisfaction drivers

Attentive to needs

Communicates when

appropriate Trustworthiness

Actual visits equal or greater

than desired


Reactive customer service

Create strategic value

Develop customer-centric

offerings 2. Gather input from internal stakeholders

3. Test options with customers

1. Identify strategic segments




Predictive analytics

Customer knowledge Engagement


Key account management groups drive most sector-planning initiatives.

Eighteen percent of utilities create strategic plans specific to a particular segment or industry sector for all sizes of business customers (n = 34).

Who owns segment strategy?







63 percent of utilities that define key accounts create a customized strategic account plan for those accounts. Of those utilities that do: 55 percent always review the plan with the customer and 40

percent do so sometimes 35 percent create the plan collaboratively with the customer 50 percent review the plan with utility management on a set

schedule annually or more frequently

Question S4_14: Do you create a customized strategic account plan for your key account customers? n=32 Question S4_15: Do you review the plan with the customer? n=20 Question S4_16: Do you create the plan collaboratively with the customer? n=20 Question S4_17: How often are these plans reviewed with utility management? n=20





Approach to Strategic Customer Planning


Are We There Yet?

Managing for growth and change


Continuous feedback and follow-up

Customer prioritization


Operational Inputs

Departments


Sacramento Municipal Utility District

Rob Lechner Manager, Commercial & Industrial Account Solutions

Roopali Shah

Strategic Market Development Manager

Powering forward. Together.

Commercial/Industrial Account Strategy SMUD

Roopali Shah, Strategic Market Development Manager Rob Lechner, Manager, C/I Accounts Solutions October 26, 2015

26

Transitioning to a Future Ready Utility

SMUD can proactively partner with customers, guide them through this changing environment and help them make the best energy choices for their business.

Opportunity for SMUD to proactively partner

with customers, provide guidance and expertise in

helping them make the best energy choices for their

business.

SMUD’s focus on Customer

Value Creation

Transforming Market

Emerging Technology

Commercial Customer Segments

Key Major Midsized All Other Description Top 300+ customers prioritized

according to revenue, revenue recovery, expansion

plans, interest in self generation and engagement

level with SMUD.

>300kW; Revenue between $100k-250

annually.

50-299kW; Revenue less than $100k

annually

Less than 50kW: Revenue less

than $5k annually

# of customers 340 400 6,500 19,000+

Average annual revenue per customer $1.2M $140k $20k $1k

# of customers per strategic account advisor

10-30 100-125 1000+ NA

Service delivery model

Dedicated account advisor, highly individualized account

management, long term planning, customized solutions

Dedicated account advisor, account

management, long term planning.

Dedicated representative by

geography, regional/community

associations, My Energy Tools, etc

CSRs, self service channels, My Energy Tools

Be the facilitator; Be the innovator!

• Team of 25 account advisors

• Single point of contact for service related issues, energy efficiency projects, program enrollment, billing questions, etc.

• By definition, the role of the account advisor is to:

− Delivers value to the customer

− Is the central point of activity for the customer

− Build strategic relationships with customers

− Drive alignment within the organization

Engage with

customer

Understand their

business and their

needs

Gather customer insights

(i.e., customer/

market intel

Utilize intel towards

informing SMUD’s strategy

Strategic Account Advisor

29

Components of the Commercial Strategy

Understanding the Customer

Marketing Transition to Strategic Account Advisory Role

Enterprise Integration

30

Understanding the Customer

What Do We Know About Key Customers?

31

• Multiple industries – Government, Healthcare, High Tech, Industrial, Retail

• Public and Private Sectors

• National chains, statewide organizations, local businesses

32

Develop Customer Data Set

Quantitative Assessment (Financial

assessment)

Qualitative assessment (Customer

attributes and engagement)

Prioritize Customer

Groups &

Develop Strategic Solutions

• 2 measures of strategic value were developed:

• Quantitative scoring – financial indicators • Qualitative assessment of customer attributes and engagement level

33

Qualitative Assessment

Customer characteristics

• Nature of relationship • Contact level • Interest in self-generation • Expansion plans • Presence of 3rd party energy

manager • Sustainability/corporate responsibility

policy • Legislative energy mandate • SMUD program participation level • Tech savvy

Level of Engagement

Partner

Engaged

Indifferent

34

Account Prioritization

Customer ranked by revenue Top 500 covered by account management team

Top 5 customers (2014): 1. State of California 2. County of Sacramento 3. City of Sacramento 4. Raging Wire 5. Aerojet

Moving towards….

Multi-dimensional ranking based on: Revenue Revenue Recovery Score Engagement Level Interest in self generation Potential expansion plans

Top 5 customers (2015): 1. Sutter Health 2. Raging Wire 3. Aerojet 4. Dignity Health 5. Kaiser … 14. State of California 15. County of Sacramento … 28. City of Sacramento

Currently Moving towards…. Currently

• High Revenue • Low Engagement • High Interest in Self Gen • Expansion Plans

• Low Revenue • High Engagement • Low Interest in Self Gen • No Expansion Plans

35

Transformation of Account Manager to Strategic Account Advisor

Managing for Growth and Change

The ability to deliver on this value proposition is what will allow SMUD to distinguish itself from third party competition

Strategic Advisor

Managing for growth & change

Holistic, long-term view of the customer

Customer focus

Proactive approach

Deliver value and create loyalty

Account Manager


Single focus view of customer (i.e., kWh savings)

Product/service focus

Reactive approach

Offer incentives

Moving towards…. Currently

37

Marketing

PROPRIETARY; DRAFT 8/8

38

Multi-Channel Marketing Strategy Multi-channel approach to marketing:

Strategic Account

Advisors as Subject Matter

Experts

SMUD Programs and

Services for Commercial Customers

Customer Recognition

39

Multi-Channel Marketing Strategy

40


PROPRIETARY; DRAFT 8/8

41


R&D/ DES

Grid

Strategy

Acct Mgr

Marketing

Rates

Program Delivery

Customer value creation

Econ Dev

42

Questions


Mike Hildebrand Vice President, Consulting Solutions, E Source 303-345-9176 [email protected]

Thank You! Questions?

Chad Garrett Senior Manager, Consulting Solutions, E Source 303-345-9151 [email protected]

mailto:[email protected]

mailto:[email protected]

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