CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE...
Transcript of CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE...
![Page 1: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/1.jpg)
CUSTOMER ENGAGEMENT IN RATE DESIGN
Business & Financial ConferenceSeptember 17, 2018
Ted Kelly, Principal & Senior Project Manager of Regulatory Services, Burns & McDonnell
Michael Vigeant, Chief Executive Officer, GreatBlue Research, Inc.
![Page 2: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/2.jpg)
Knowing Your Customers
Importance of Customer Engagement
Example Public Engagement Process
Questions
2
Agenda
![Page 3: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/3.jpg)
3
Today’s Many Converging Challenges
► Sales are flat or declining► Growth is stalled► Many costs are fixed► Aging facilities► Demand for system upgrades► Increasing regulations► Little support for rate increases► Feels a little like a perfect storm…
![Page 4: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/4.jpg)
► Changes in costs► Master plan and/or budgeting process► Shifts in class characteristics► Advances in technology► Proper revenue recovery► Develop rate options
4
Why Do a Study Now?
![Page 5: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/5.jpg)
5
Why Include Customer Engagement?
![Page 6: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/6.jpg)
KNOWING YOUR CUSTOMERS
6
![Page 7: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/7.jpg)
► Customer interactions have changed► Customers now have more influence► Information is everywhere, all the time► Technology can produce a more engaged and aware
customer► Utility must engage the public proactively
7
Shifting Relationships
![Page 8: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/8.jpg)
► Convenience through technology► Immediate gratification► Just the facts – harder to sell► Recognition and appreciation: rewards for time and loyalty► A deal all the time - entitlement
8
What are Customers Looking For?
![Page 9: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/9.jpg)
► Electric rates are an issue with customers► Methodical and informed approach needed to communicate► Incorporate research, education and stakeholder engagement► Know answers to some basic questions
9
Research in Advance
![Page 10: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/10.jpg)
Lessons learned workshopCustomer research
Affordability analysis
1 0
Methods for Gathering Information
Non-retailcustomer communication
Stakeholderadvisory committee
Political considerations
![Page 11: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/11.jpg)
Lessons learned
1 1
Gathering Information
Customer research
![Page 12: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/12.jpg)
Affordability analysis
1 2
Gathering Information
Non-retailcustomer
communication
![Page 13: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/13.jpg)
Stakeholderadvisory committee
1 3
Gathering Information
Politicalconsiderations
![Page 14: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/14.jpg)
1 4
![Page 15: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/15.jpg)
1 5
![Page 16: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/16.jpg)
1 6
![Page 17: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/17.jpg)
1 7
![Page 18: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/18.jpg)
► Deliberate/targeted messaging – segment your audience accordingly
► Relevant and timely► Engaging – what’s in it for
them?
1 8
Communication Strategies
► Relentless – multi media approach
► Simple and clear – confusion is a killer
► Ongoing – beyond the reward delivery
![Page 19: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/19.jpg)
IMPORTANCE OF CUSTOMERENGAGEMENT
1 9
![Page 20: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/20.jpg)
2 0
Customer Engagement Process
Provide information to
customersObtain data
Educate customers
Create engagement opportunities
Test concepts
![Page 21: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/21.jpg)
2 1
Engagement Considerations
Uniqueness of region
Customer growth
Past studies
Utility structure
Gauge customer interest/acceptance
![Page 22: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/22.jpg)
2 2
Information Gathering/Dissemination
► Local/regional newspapers ► Online news ► Civic clubs and local meetings► Social media► Word-of-mouth
![Page 23: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/23.jpg)
EXAMPLE PUBLIC ENGAGEMENT PROCESS
2 3
![Page 24: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/24.jpg)
► Gain significant customer/stakeholder input and buy-in through the process Rate classes/customer types Stakeholder groups (elected officials,
community groups, local leaders) Environmental groups
► Develop a rate structure designed in collaboration with customers/stakeholders
2 4
Engagement Plan Goals
![Page 25: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/25.jpg)
2 5
Customer Engagement Process
Conduct customer/stakeholder researchGain feedback through a variety of methods -online surveys, text surveys, one-on-one interviews, public meetings - tailored to specific stakeholder
groups.
Strong communications plan to encourage engagementWeb, email, social media, direct mail, bill inserts, ads, informing
customers/stakeholders of goals and inviting participation.
Develop and test customer/stakeholder communication materialsFocus-group test content and delivery. Refine materials.
1
2
3
![Page 26: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/26.jpg)
2 6
Customer Engagement Process
Roll out new rate program to customer/stakeholders Comprehensive communication plan/rate guide.
Analyze feedback, prepare final rate design proposalFinal Board and Management review/approval
Customer/stakeholders review of proposed rate design Take additional input - surveys and public meetings.
Analyze feedback, prepare rate design proposal Present findings/propose rate design for Board/Mgmt review.4
5
7
6
![Page 27: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/27.jpg)
► Assess knowledge and acceptance of current rates and fees
► Gauge interest in new/different rate options
► Allow customers open channel to express opinions, thoughts and ideas about rates
► Feedback is meant to provide insight, non-prescriptive feedback
2 7
Purpose of Customer Survey
![Page 28: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/28.jpg)
2 8
Customer Survey Topics
Affordability Conservationrates
Life line rates
Pre-paid option
Economic development
rate
Time of use rates
![Page 29: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/29.jpg)
► Act on areas of interest and concern► Utilize guidance received► Evaluate areas for communication and education► Utilize in conjunction with additional data Business needs/revenue requirements
Best/standard utility practices
Rate Policy
Available technology
2 9
Incorporating Customer Feedback
![Page 30: CUSTOMER ENGAGEMENT IN RATE DESIGN › system › files › documents...CUSTOMER ENGAGEMENT IN RATE DESIGN Business & Financial Conference September 17, 2018. Ted Kelly, Principal](https://reader033.fdocuments.us/reader033/viewer/2022060400/5f0ddb4c7e708231d43c6d5b/html5/thumbnails/30.jpg)
QUESTIONS
3 0
Ted Kelly | [email protected] | 816.822.3208
Michael Vigeant | [email protected] | 860.740.4000