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© 2016 E Source | www.esource.com 1
APPA Customer Connections ConferenceNovember 2016
Mike Hildebrand
VP Business Development, E Source
Becoming a Proactive Energy Advisor (and other interesting things to help you get there)
© 2016 E Source | www.esource.com 2
THE CHALLENGEDisruptive forces in the energy sector give businesses increasing choice in the types of energy services they receive and who they obtain them from.
To better serve business customers and build their trust, satisfaction, and loyalty, utilities can no longer rely on reactive, old-school account management. They need to adopt optimal, proactive, best-practice techniques.
E Source’s research shows that specific, relatively low-cost measures can improve customer perceptions of the utility and the account representative.
© 2016 E Source | www.esource.com 3
TOPICS TO BE DISCUSSED
•Account Management Best Practices
•Moving From Current State to Future State
•Renewable Energy/Distributed Energy Resources
•Moving from DSM to CSM
•Transforming from a RAM to a PEA
© 2016 E Source | www.esource.com 4
TOP ACCOUNT MANAGEMENT BEST PRACTICES
Business
Customer
Experience
and
Satisfaction
Conduct customer satisfaction surveys of business customers and benchmark
those results to others
Provide professional development or other training for key account representatives
Account
Management
Structure
Has customer groups (segments) which are defined and served differently
Has a business contact center, dedicated phone number & CSRs trained for business
Create a midsize account management function and have a formal national accounts
strategy
Business
Customer
Engagement
Key account representatives meet with their accounts based upon the customers
desired number of visits
Use key account representatives for unplanned outage or emergency communications
Designate employees to actively participate in business associations
Account
and Sector
Planning
Create customized strategic account plans for key account customers
Create strategic sector plans for the most significant sectors
Review customized strategic account plans with utility management and the customer
© 2016 E Source | www.esource.com 5
ACCOUNT MANAGEMENT DEPARTMENT OPTIMAL STRUCTURE
© 2016 E Source | www.esource.com 6
BEST PRACTICE MIDSIZED BUSINESS APPROACHES
SRP
- Call every customer within 24 hours after an outage is restored to make sure things were repaired properly and address any other issues
- Call customer with two or more late payment feesAustin
- Dedicated account manager to focus on small and midsized businessSnohomish PUD
- Dedicated midsized account managers assigned by business segmentTacoma Public Utilities
- Dedicated account manager to focus on small and midsized business - Hiring 4 BSR’s to staff newly formed Business Solutions Group PG&E
- Onboarding – calls every new customer to establish engagement (within 2 weeks) to discuss deposits, rate options, energy savings programs, etc.
SCE
- Segment plans foundational to success- 250-350 Customers per assigned Midsized Account Manager
© 2016 E Source | www.esource.com 7
APPROPRIATE ACCOUNT MANAGEMENT TITLES?
Words Matter - Consider Title Changes
Key Account Manager and Account Representative titles may be popular, but do they portray the right message
- Consider words like “customer,” “advisor,” or “advocate”
- Example: “Key Customer Advisor” or “Midsize Customer Advocate” to emphasize the purpose of the role.
© 2016 E Source | www.esource.com 8
Industry Current State
Future State
© 2016 E Source | www.esource.com 9
Industry Current State
Future State
Managing business as usual Managing for growth and change
Reliably supply a commodity Create strategic value
One size fits all Customer prioritization
© 2016 E Source | www.esource.com 10
Managing business as usual
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: E Source How Photovoltaic Systems and Distributed Generation Will Disrupt the Utility Industry 2015 (n=802)
© 2016 E Source | www.esource.com 11
Reliably supply a commodity
Create strategic
value
Develop Customer-Centric Offerings
3. Test options with customers
2. Gather input from internal stakeholders
1. Identify Strategic Segments
© 2016 E Source | www.esource.com 12
One size fits allCustomer
Prioritization & Segmentation
Office / Congregations
Retail / Service
Government / Education / Healthcare
Restaurants / Lodging
Groceries / C-Stores
Manufacturing / Warehouse
Small & Midsize Prioritization
© 2016 E Source | www.esource.com 13
Renewable Energy
is Here to Stay
© 2016 E Source | www.esource.com 14
RE100 - Corporate Commitment to 100% Renewable Energy Is 69 and Growing
© 2016 E Source | www.esource.com 15
Go100Percent – Cities Commitment to 100% Renewable Energy Is 59 and Growing
• Aspen, CO• Georgetown, TX• Greensburg, KS• Honolulu, HI• Rochester, MN• Ithaca, NY• San Diego, CA• San Francisco CA• Santa Barbara, CA• East Hampton, NJ• Burlington, VT
© 2016 E Source | www.esource.com 16
© 2016 E Source | www.esource.com 17
Sources: story from appleinsider.com and image from YouTube.com
© 2016 E Source | www.esource.com 18
GreenTech Media - October 18th, 2016
Wal-Mart has 145 megawatts of installed photovoltaic capacity (FYI -Target now has 147 megawatts of installed photovoltaic capacity)
470 locations powered by renewables in seven countries and 17 states 100% renewable power goal by 2020, about 25% of the way there so far Now deploying strategy for energy storage
Batteries would complete the circle of self-reliance Batteries could allow the solar system to disconnect from the grid Batteries provide an additional source of clean backup power until the grid is
restored Tesla batteries, provided by Solar City via pay for performance model
Wal-Mart states “This offers another opportunity for us to take care of our customers -
and, likely, to sell more stuff.” “Combined with other grid service revenues, Wal-Mart's investment in
renewables and storage could eventually be a real money-maker.”
© 2016 E Source | www.esource.com 19
Renewable Energy
E Source Market
Research Findings
© 2016 E Source | www.esource.com 20
Businesses Reporting Having Formal Renewable Energy Goals
53%
56%
39%
23%
39%
59%
37%
51%
Base: All respondents (n = 802). Question 17: Does your organization have any of the following in place?
© 2016 E Source | www.esource.com 21
LESS Likely to Have PV Installed
MORE Likely to HavePV Installed
Healthcare (15%), Manufacturing (29%)Use traditional utility (31%)
NOT on a demand rate (33%)NOT on a time-dependent rate (13%)Medium / low on green commitment
(23% / 1%)NOT highly satisfied with utility (31%)
Have not used EE rebates (15%)Lease their facility (26%)
Number of locations is 1 (27%)
Grocery (56%), Retail (50%), Lodging (48%)
Use a competitive retail provider (56%)On a demand rate (43%)
On a time-dependent rate (50%)High on green commitment (42%)Highly satisfied with utility (42%)
Used EE rebates (51%)Own their facility (38%)
Number of locations is 11+ (56%)
Perhaps surprising nonfactors:
Number of employees, presence of backup generation
Characteristics of Those Businesses Most & Least Likely to Have Installed PV
© 2016 E Source | www.esource.com 22
Businesses Percentage That Rank a Electric Utility as a Preferred PV Vendor
24%
14%
24%
25%
25%
19%
19%
16%Base: All respondents (n = 802). Question 47: Please assume that you were thinking about installing a new PV system and evaluate the following companies from which you might acquire a system. If the companies each offered similar technology and pricing, please rank your top three choices by putting a 1 next to your first choice, a 2 next to your second choice, and a 3 next to your third choice.
© 2016 E Source | www.esource.com 23
Which Segments Are Most Likely to Go Solar in the Next Two Years?
20%
26%
19%
8%
14%
18%
18%
24%
Base: All respondents (n = 802). Question 34: What is your best estimate of when your company will install its photovoltaic (PV) system?
© 2016 E Source | www.esource.com 24
In 5 Years, 45% of Midsize to Large Businesses Expect Half of Their Power to Come from Solar
Source: E Source Study How Photovoltaics and Distributed Generation Will Disrupt the Utility Industry
© 2016 E Source | www.esource.com 25
Source: Renewable Choice Energy
North American Deals
© 2016 E Source | www.esource.com 26
6
60
0
20
40
60
80
100
All corporate purchases 2010 – 2015 Renewable Energy Buyers Alliance – 2025 commitment
Gig
awat
ts o
f ren
ewab
le e
nerg
y
Corporate Procurement of Renewable Energy
© E Source; data from Renewable Center Deal Tracker
Corporate Commitment to Renewables Is Growing Rapidly
At least a
tenfold
increase!
© 2016 E Source | www.esource.com 27
Business Sector: Potential Battery Purchasers
Source: E Source Study Reliability, Resiliency, Storage, and Microgrids: The Business Customers’ Perspective
38%
54%
71%
32%
27%
15%30%
19% 14%
0%
20%
40%
60%
80%
100%
3-year payback 5-year payback 10-year payback
Per
cent
age
of r
espo
nden
ts
Bottom-6 box Middle-2 box Top-2 box
Base: Respondents that do not have facility-level battery systems (n = 275). Question 44: Assume that by
implementing battery backup generation, you could reduce the energy and demand charges that you pay by
20% by charging the battery automatically at certain times of the day. Given this discount, how likely would
you be to purchase a battery storage system if: [SCALE: “1” = “Not at All Likely,” “10” = “Extremely Likely”?
Note: Percentages may not add to 100 percent due to rounding.
© E Source
© 2016 E Source | www.esource.com 28
Utility Is the #1 Preference for Installing a Facility-Level Battery System
Potential facility-level battery system vendor
Average rank as preferred
facility-level battery system
vendor
Ranking as top-2
battery system vendor
(%)
Local electric utility company 1.86 40
A subsidiary of your local electric utility that
specializes in energy services2.15 29
Local electrical contractor 1.90 28
An independent energy services company 2.13 24
A retail or wholesale equipment dealer
(e.g., Grainger)2.05 22
A local gas company or its subsidiary 1.91 19
National / regional energy services company 2.09 19
A generator manufacturer 1.90 18
Base: All respondents (n = 805). Question 48: Please assume that you were thinking about installing one of the technologies that you have just been
reviewing. If the companies each offered similar technology and pricing, please rank your top three choices for each technology by putting a “1” next to your
first choice in each column, a “2” next to your second choice in each column, and a “3” next to your third choice in each column.
© E Source
© 2016 E Source | www.esource.com 29
Make the customer centric to all of your decision making!
© 2016 E Source | www.esource.com 30
www.esource.com/csm
© 2016 E Source | www.esource.com 31
1
2
3
Current Program Design and Marketing StrategyTYPICAL METHOD
Load-shape goal / cost-cutting goal
Target customers
Sell and bribe
© 2016 E Source | www.esource.com 32
1
2
3
Target customers
Incorporate attractive attributes
Blend in utility goals
Fundamental Shift in Program Design and Marketing StrategyCUSTOMER-FIRST METHOD
© 2016 E Source | www.esource.com 33
Try
Immersion:Immerse yourself in the experience
of others
Look
Observation:Observe what
people do
Ask
Engagement: Capture what people say
they do
Shortcuts to Customer Empathy
© 2016 E Source | www.esource.com 34
Most People Are Too Close to a Problem to See It as a Problem
© 2016 E Source | www.esource.com 35
http
://99
perc
entin
visi
ble.
org/
artic
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ast-r
esis
tanc
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ign/
© 2016 E Source | www.esource.com 36
Journey Mapping – An Approach!
Typical process-mapping focus Journey-mapping focus
Company / organization CustomerInternal External
Operational efficiency Customer experience and operational efficiency
Internal steps and department-to-department handoffs
Customer’s intent and preferred interaction channels
Specific department roles Cross-functional teamsConsistency Pain points and customer emotions
© 2016 E Source | www.esource.com 37
Journey Mapping: Customer’s POV
Quickly create an organized inventory
of all company touchpoints
Audit and measure the effectiveness and value of each
customer interaction
Identify what’s most important to
customers and what creates or detracts
from value and loyalty
Build a compelling case for change
Exclusive for North American utilities
© 2016 E Source | www.esource.com 38
Journey Mapping Clients
© 2016 E Source | www.esource.com 39
RAM to
a PEA
top 10
list
© 2016 E Source | www.esource.com 40
RAM to a PEA Transformation
10. Be a Team Leader
© 2016 E Source | www.esource.com 41
RAM to a PEA Transformation
9. Be an Advocate
© 2016 E Source | www.esource.com 42
RAM to a PEA Transformation
8. Be a Communicator
© 2016 E Source | www.esource.com 43
RAM to a PEA Transformation
7. Be Trustworthy
© 2016 E Source | www.esource.com 44
RAM to a PEA Transformation
6. Be a Listener
© 2016 E Source | www.esource.com 45
RAM to a PEA Transformation
5. Be Informed
© 2016 E Source | www.esource.com 46
RAM to a PEA Transformation
4. Be a Relationship Architect
© 2016 E Source | www.esource.com 47
RAM to a PEA Transformation
3. Be Compelling
© 2016 E Source | www.esource.com 48
RAM to a PEA Transformation
2. Be Nimble
© 2016 E Source | www.esource.com 49
RAM to a PEA Transformation
1. Be Proactive
© 2016 E Source | www.esource.com 50
RAM to a PEA Transformation
Be a Team Leader Be an Advocate Be a Communicator Be Trustworthy Be a Listener Be Informed Be a Relationship Architect Be Compelling Be Nimble Be Proactive
© 2016 E Source | www.esource.com 51
TOPICS DISCUSSED
•Account Management Best Practices
•Moving From Current State to Future State
•Renewable Energy/Distributed Energy Resources
•Moving from DSM to CSM
•Transforming from a RAM to a PEA
© 2016 E Source | www.esource.com 52
Thank You! Questions?
Mike Hildebrand
VP, Business Development(303) 345-9176mike_hildebrand@esource.com
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