Smart meter to smart customer...Customer satisfaction 5% avg. increase Key customer sentiment...

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Smart meter to smart customerEmbrace the data revolution

India Smart Grid Forum28th March 2017Sajin Rehan, Oracle-Opower

Confidential – Oracle Internal/Restricted/Highly Restricted

Data | Analytics| CX


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Opower Overview: Global leader in utility customer engagement

» Working with ~100 utilities in 10 countries

» Focused on residential segment; reaching over 60M homes globally, processing 600B meter reads

» Founded in 2007; IPO 2014; Acquired by Oracle in 2016

» ~600 employees in Singapore, Tokyo, London, USA

» Mercury (ANZ), TNB (Malaysia), CESC, Kolkata (India),

Company

» Data Science, Computer Science, Behavioral science

» Big data analytics > personal actionable insights @scale

» Outcome based approach; partnering with Utility

Company DNA

Sample clientele

Reduce cost to serve

Increase marketing effectiveness

Increase customer satisfaction

Increase IT agility

Diversify revenuestreams

Demonstrate value of AMI

Meet Energy Efficiencygoals

Outcome based approach


Smart Meter Rollout - Risk Areas

• Smart Meters alone are only part of the solution

• Rollout challenges and legacy technology integration

• Silo-ed business processes not agile enough

• Not able to leverage full investment opportunities of device rollout

• Only minimal use of data

• Difficulty in managing/analysing/leveraging massive volumes of data

• Negative impact on business processes/systems/effort/cost

• Proactive Customer engagement and participation is critical to successful adoption and new revenue streams

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Data

Integration

Process Improvement

Insights

Personalisation

Customer Engagement


Necessity for Customer Engagement & Participation

• Post AMI, Bills are more accurate and can be higher

• Consumers feel they are being forced to pay for the meters

• They trust their Utility less and are more prone to complain

• They are unclear of the advantages to them; “AMI only benefits the Utility”

• Smart Meter benefits that need customer participation:• Peak Shift / Demand Side Management initiatives

• Time of Use / Time of Day implementation

• Participation in new digital services

• Marketing and cross-sell programs

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Not appropriately educating & involving customers

Oracle Confidential – Internal/Restricted/Highly Restricted 6


Realized benefits of smart meters have missed expectations

USD 560M of estimated benefits were

dependent on customer action

2 of 3 customers do not understand

benefits of smart meters

Source: Victorian Auditor-General’s Report (2015): Realising the Benefits of Smart Meters

Case study: Victoria State (Australia)

As a result, the rollout is expected to result in a net loss of USD 223M

Yet


“We approached it like an

infrastructure project, but it

turned out to be a customer

project.”

- Chris Johns, President, PG&E


Customer Engagement Challenges in India

• Data sits in silo systems

• Systems are poorly integrated

• Marketing / communication is not highly automated

• Different customer experiences across channels

• Analytics is standalone

• Business highly dependent on IT

• No customer journey

High (hidden) costs

Lack of innovation

Difficult to change

Little improvement in customer engagement

Not ready for huge increase in data

from smart meters

Copyright © 2016, Oracle and/or its affiliates. All rights reserved. | Confidential – Oracle Internal/Restricted/Highly Restricted

Like other industries, utilities will find that new data is as much an asset as their physical infrastructure.

Transportation Consumer Goods Entertainment


Merging data reveals a complete picture of the customer

Pays bill every month through eBill

Experienced outage on 15 Sep but had 99% uptime

Received peak day alert on July 13 and clicked through

Heavy user of electricity, especially in the afternoons

Frequently calls the call center due to high bills

Prefers to be reached via email (mobile)

George: Account # 431811858811


Combining archetypes with other data enables advanced segmentation

Customer Activity Score is High

MotivationSegmenting based on potential benefit

Investment LikelihoodSegmenting based on income and ownership

Propensity to ParticipateSegmenting based on interaction history


“You’re on track

for a high bill…”

Deliver personalised targeted messaging


At “Moments that Matter”


Customer-facing capabilities allow for a deeply personal experience across channels

Reduces George’s likelihood of high bill shock

Shows George his utility knows him well

Gives George the relevant advice and tools to manage his energy consumption and relationship

Frequently calls the call center due to high bills

Prefers to be reached via email

Heavy user of electricity, especially in the afternoons


» Personalized insights are automatically calculated and prioritized for reps

» One view of the customer from multiple data sources

» Single screen replicates the flow of a high bill call

» Seamless customer experience across channels

Empower CSRs to become energy advisors…

Turning customers into smart meter champions

INNOVATE to deliver next generation energy service

ENGAGE by turning AMI data into peak saving action

ENROLL in new alerts that deepen your relationship

DEMONSTRATE value with useful energy advice

EDUCATE about smart meter benefits before the rollout

before deployment

first meter data flowing

ongoing


Utilities realize customer benefits despite obstacles

Customers don’t understand smart

meters Utility fails to demonstrate value of new

data to customers

Customers don’t respond to

dynamic pricing

Utility misses new opportunities

Low participation in utility programs

Smart meter marketing modules

Welcome experience

NextWeb widgetsWeekly Energy Updates

Rate education reportsPeak time rebates

Net metering serviceSolar Promotions

High Bill AlertsPeak notifications

InnovateEngageEnrollDemonstrateEducate


Le

vel

of

cu

sto

me

r en

ga

ge

me

nt

$!

Solar engagement

High Bill Alerts

Peak time engagement

Oracle helps utilities engage customers during the full smart meter roll-out and beyond

InnovateEngageEnrollDemonstrateEducate

Weekly Energy Breakdowns

Rate analysis tool

Rate education report

Web

Welcome ExperienceEducation

campaign


Case Study #1: Driving additional savings with smart meter rolloutsBaltimore Gas & Electric (Maryland)

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Background:

» BGE is the largest gas and electric utility in the state of Maryland, serving 1.25 million electric and 650,000 natural gas customers

» BGE is a the subsidiary of Exelon Corporation, the US’s leading competitive energy provider

» BGE Smart Savers program (in partnership with Opower) is one of the nation’s top rated consumer and energy savings programs


Goals of the Opower-BGE partnership

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» Deliver AMI-rich information in a manner that is effective yet easy-to-understand and triggers behavioural change

» Secure smart meter regulatory approval by providing valuable data to consumers in a fast and scalable manner

» Trigger increased customer engagement, satisfaction and trust during the smart meter rollout process

» Reduce demand during peak hours & days through a behavioural demand response program


Journey of an AMI-enabled customer

4 weeks before installation

Post card introducing Smart Meters

during installation

Smart Meter benefitsdoor-hanger

4 weeks after installation

Opower report & welcome insert

5 weeks after installation

Email reminder

Maryland, USA

In advance of an upcoming bill

Weekly AMI reports & Unusual Usage Alerts

Bill

Arrival

After the bill

Bill Analysis & Tips


Behavioral Demand Response: Reaching 100% with DR

Personalized engagement builds awareness

Post-event feedback delivers insights on benefits


Opower has helped BGE achieve customer satisfaction, smart meter acceptance & demand reduction

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Digital

engagement

20% Increase in Opower content views by smart

meter customers

Customer

Satisfaction

85% Of customers report liking the report

(compared to average 65%)

Digital

engagement

13% More time spent on website by AMI

customers

Peak

Demand

5% Average system-wide peak energy

reduction. Over $10 million rewarded to

customers who lowered their consumption.

Peak

Demand

85% Of customers were aware (unaided recall)

of events

Maryland, USA

Peak

Demand

75% Of customers reported high satisfaction

with Peak program


An Opower program: Significant operational benefits before, during & after a smart meter rollout

Digital Engagement Peak savings

Adoption of self-service tools

>100% increase in 2 months

after program launch

Program duration

Increased sales

Sales of utility products & services

Utility products & services promoted in

Opower reports

“My account” registrations

60%

avg. increase

Customer satisfaction

5% avg. increase

Key customer sentiment metrics

Reduced cost-to-serve

Avg. hourly kW reduction

per household

Peak

5% kW

reduction

BGE System-wide Results

High bill call reduction from unusual usage alerts

22% reduction

3-5x

cross-industry average

Email open rates

Cross-industry

average

Opower

communications

Smart meter to smart customer...Customer satisfaction 5% avg. increase Key customer sentiment...

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