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KNOWLEDGE FOR ACTION
WCAI RESEARCH OPPORTUNITYLeveraging SmartMeter Data
to Increase Customer Engagement and Reduce Energy Consumption
KNOWLEDGE FOR ACTION
Introductions
Karen ZelmarDirector, Pricing ProductsCustomer Energy SolutionsColin KerriganAssociate Business Analyst, Economic ModelingCustomer Energy Solutions
Elea McDonnell FeitExecutive Director, WCAI
Ben AdamsResearch Director, WCAI
Eric T. BradlowK.P. Chao Professor
Professor of Marketing, Statistics, and Education Vice-Dean and Director, Wharton Doctoral Programs
Co-Director, WCAIPeter S. Fader
Frances and Pei-Yuan Chia ProfessorProfessor of Marketing
Co-Director, WCAI
KNOWLEDGE FOR ACTION
PACIFIC GAS & ELECTRIC
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA3
KNOWLEDGE FOR ACTION
About PG&E
• Among the largest utilities in the world
• Delivers power to 15 million people
• 70,000 sq. mile service territory
• Over 50% of electric supply from renewable and/or carbon-free sources
• Leverage big data to deliver safe, reliable, and affordable gas and electric service to our customers
KNOWLEDGE FOR ACTION
Big Data and Analytics at PG&E
• Why it matters:– Sources rapidly increasing– File size matters– Optimized data structures– Innovative database analytics– Provide safe, reliable, gas, electric and generation operations
• What lies ahead:– Cleaner and sustainable energy future– Enable energy independence through Smart Grid– Install powerful new technologies to improve public safety and service
reliability– Increase use of social media for energy management
KNOWLEDGE FOR ACTION
Research Questions
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 6
• Can we use the SmartMeter data to achieve greater customer engagement? – Segmentation: Can we cluster customers by usage and use this segmentation to better target
MarCom and to develop new service offerings?
– Marketing Effectiveness: Are there better ways to drive behavioral changes in how users interact
with PG&E, specifically changes in when customers use energy?
– What is the relationship between engagement and usage?
– What is the relationship between household demographics and usage?
• How does having access to SmartMeters change energy consumption?– Does installing a SmartMeter have a causal effect on energy usage? Do other interventions change
energy consumption?
– Do users who access SmartMeter information have different energy consumption patterns?
• SmartMeters enable sophisticated pricing strategies, for example, where prices vary by time-of-day.– What pricing strategies are acceptable or appealing to customers?
KNOWLEDGE FOR ACTION
SmartMeters
Once upon a time…
Once every month…
Rain, shine, or snow…
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 7
KNOWLEDGE FOR ACTION
SMARTMETERS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 8
• Installation starting in 2007
• Transmit homes’ energy usage every 15 minutes, hour or day
• Creates opportunities for customers to save money and energy in various ways
Additional information available at:http://www.pge.com/myhome/customerservice/smartmeter/
KNOWLEDGE FOR ACTION
CUSTOMER DATA PRIVACY
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 9
For PG&E, protecting customers’ information and privacy is a top priority. PG&E takes extensive measures to ensure the integrity of our systems and to secure and protect customers and customer data. Contractors acting on PG&E's behalf are required to comply with our privacy policy.
The data set doesn’t include customer name, identifiable customer ID, and customer address. The data set was anonymized by assigning a unique pseudo-ID to each unique ID. Every ID record in the data tables was then cross referenced and replaced with its corresponding pseudo-ID.
There is a non disclosure agreement that must be signed by each institution of successful proposals. Individual researchers cannot sign on behalf of institution.
Agreements must be signed before data can be distributed.
Copies of the agreement are available on request to: [email protected]
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 10
Sample Set• 36 months: January 1, 2009 - December 31, 2011• 30,000 residential customers randomly sampled from the active customer
base at December 31, 2011
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 11
Sample Set• 36 months: January 1, 2009 - December 31, 2011• 30,000 residential customers randomly sampled from active customer
base at December 31, 2011
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
SMARTMETER INSTALLATION DATES
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 12
NotInstalled
NotInstalled
KNOWLEDGE FOR ACTION
THREE DISTINCT CLIMATE AREAS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 13
Average daily temperature,humidity, rainfall are generallysimilar across climate areas
Locations
KNOWLEDGE FOR ACTION
THREE DISTINCT CLIMATE AREAS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 14
Locations
Average daily temperature,humidity, rainfall are generallysimilar across climate areas
KNOWLEDGE FOR ACTION
THREE DISTINCT CLIMATE AREAS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 15
Locations
Average daily temperature,humidity, rainfall are generallysimilar across climate areas
KNOWLEDGE FOR ACTION
THREE DISTINCT CLIMATE AREAS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 16
Locations
White areas may include areasnot covered by data set.
KNOWLEDGE FOR ACTION
SMARTMETERS: ELECTRIC INSTALLATIONS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 17
Variation in when and who received SmartMeters
NotInstalled
NotInstalled
KNOWLEDGE FOR ACTION
SMARTMETERS: GAS INSTALLATIONS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 18
Not all SmartMeters were installed equally
NotInstalled
NotInstalled
KNOWLEDGE FOR ACTION
Average monthly energy consumption changes throughout the year and is dependent on Climate Area.
TIMING MATTERS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 19
KNOWLEDGE FOR ACTION
BOB'S STORY
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 20
Premise A: San Pablo
SmartMeter Read
10/3/2009 12/31/2011
KNOWLEDGE FOR ACTION
BOB'S STORY
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 21
Premise A: San Pablo
BobMoves In
BobMoves Out
10/3/2009 12/31/2011
KNOWLEDGE FOR ACTION
BOB'S STORY
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 22
Premise A: San Pablo
Premise B: Oakland
BobMoves In
BobMoves Out
BobMoves In
BobMoves Out
10/3/2009 12/31/2011
KNOWLEDGE FOR ACTION
BOB'S STORY
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 23
Premise A: San Pablo
Premise B: Oakland
BobMoves In
BobMoves Out
BobMoves In
BobMoves Out
Avg. Bill = $29.02
Avg. Bill = $20.59
10/3/2009 12/31/2011
KNOWLEDGE FOR ACTION
BOB'S STORY
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 24
Premise A: San Pablo
Premise B: Oakland
BobMoves In
BobMoves Out
BobMoves In
BobMoves Out
SmartMeter Read
SmartMeter Read
Avg. Bill = $29.02
Avg. Bill = $31.41
Avg. Bill = $22.66
Avg. Bill = $20.59
10/3/2009 12/31/2011
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 25
Sample Set36 months: January 1, 2009 - December 31, 201130,000 residential customers randomly sampled from active customer base at December 31, 2011Spanning a range of different climates
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
PSYCHOGRAPHIC PROFILES
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 26
Customers were assigned to 11 different “persona clusters” (4 shown) based on various demographic characteristics.
Week
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 27
Sample Set• 36 months: January 1, 2009 - December 31, 2011• 30,000 residential customers randomly sampled from active customer
base at December 31, 2011
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
Billing and Payments
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 28
Remember Bob?
KNOWLEDGE FOR ACTION
Billing and Payments
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 29
ACCOUNT_ID_PSEUDO PREMISE_ID_PSEUDO bill_date Therms Gas_Bill_Amount kWh Electric_Bill_Amount193469 861988 10/16/2009 na na 77 $6.74193469 861988 11/17/2009 na na 321 $28.11193469 861988 12/16/2009 na na 609 $53.61193469 861988 1/15/2010 na na 560 $49.02193469 861988 2/17/2010 na na 380 $33.26193469 861988 3/19/2010 na na 335 $29.33193469 861988 4/19/2010 na na 285 $24.95193469 861988 5/18/2010 na na 300 $26.26193469 861988 6/20/2010 na na 273 $23.90193469 861988 7/20/2010 na na 220 $19.49193469 861988 8/19/2010 na na 276 $24.61193469 866023 10/5/2010 11 $10.55 121 $10.64193469 866023 11/3/2010 19 $17.76 176 $15.48193469 866023 12/6/2010 23 $19.27 229 $20.15193469 866023 1/4/2011 23 $20.22 246 $21.63193469 866023 2/3/2011 24 $21.46 240 $21.13193469 866023 3/7/2011 21 $11.79 225 $19.81193469 866023 4/6/2011 23 $20.43 197 $17.34193469 866023 5/6/2011 22 $20.45 222 $19.54193469 866023 6/6/2011 20 $18.98 222 $19.53193469 866023 7/7/2011 17 $17.80 195 $17.16193469 866023 8/5/2011 23 $24.95 233 $20.81193469 866023 9/4/2011 24 $25.28 253 $22.73193469 866023 10/5/2011 22 $21.89 355 $32.75193469 866023 11/3/2011 19 $17.79 287 $26.16193469 866023 12/4/2011 25 $21.63 273 $24.04
KNOWLEDGE FOR ACTION
Billing and Payments
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 30
ACCOUNT_ID_PSEUDO PREMISE_ID_PSEUDO PAYMENT_DATE Gas_Payment Electric_Payment193469 861988 11/13/2009 na ‐$6.74193469 861988 1/22/2010 na ‐$60.00193469 861988 2/7/2010 na ‐$30.00193469 861988 2/22/2010 na ‐$35.00193469 861988 3/20/2010 na ‐$20.00193469 861988 6/18/2010 na ‐$45.00193469 861988 7/9/2010 na ‐$26.00193469 866023 9/27/2010 na ‐$25.00193469 866023 2/11/2011 ‐$37.72 ‐$10.96193469 866023 3/10/2011 ‐$21.86 ‐$23.14193469 866023 6/17/2011 ‐$32.81 ‐$35.19193469 866023 8/3/2011 ‐$111.27 ‐$109.73193469 866023 11/2/2011 ‐$25.60 ‐$22.40193469 866023 12/1/2011 ‐$24.06 ‐$35.94
Payment Method Dataincluded in data set, available after NDA.
Payment Methods include:- Check- Money Order- Cash- Electronic Funds Transfer- Payment Processing Center- Pay-by-Phone
and 23 other methods
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 31
Sample Set• 36 months: January 1, 2009 - December 31, 2011• 30,000 residential customers randomly sampled from active customer
base at December 31, 2011
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
REBATES
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 32
Customers can submit applications for rebates for energy-saving purchases and investments in their homes.
5,681 applications for rebates were submitted altogether. 59% were accepted.
Most rebates were for appliances followed by heating/ac, lighting, recycling devices and water heating improvements.
“Other” contains: Building Shell, Customized
Measure, Water Heating, Integrated Building,
Pumps/Motors
Rebate Data includes: date submitted, date accepted, and whether or not application was accepted. NOTE: reason for refusal not included.
KNOWLEDGE FOR ACTION
CUSTOMER PROGRAMS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 33
The majority of customers do not participate in any plan.
Customers can sign up for one or more programs:
- CARE/Other Plans
- Balanced Payment Plan
- SmartAC(remote device controlling AC)
- Direct Access(energy from another supplier)
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 34
Sample Set• 36 months: January 1, 2009 - December 31, 2011• 30,000 residential customers randomly sampled from active customer
base at December 31, 2011
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
CRM Data – Call Center
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 35
• When a customer runs into trouble with their service, a “help ticket” is created as part of the CRM system.
• Of the 11,232 records in the data, ~64% were for the following categories:
KNOWLEDGE FOR ACTION
CRM Data – IVR
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 36
• Interactive Voice Response is automated voicemail which can address one of many issues.
• On average electric customers placed 3 calls to IVR in 2011; with a large handful of customers heavily skewed toward a large number (30+) calls during the year.
• The most common reasons for calling were:
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 37
Sample Set• 36 months: January 1, 2009 - December 31, 2011• 30,000 residential customers randomly sampled from active customer
base at December 31, 2011
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
PRICING – RATE PLANS
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 38
Energy regulation fixes electricity prices across customers within climate bands, except in some cases.
Within climate bands, prices vary for time of year (winter prices and summer prices) and plan type.
The majority had traditional plans (E1) or income-qualified plans (E1L).
Similar rate plan distribution for Gas.
We have specific rate plan data for both electric and gas.
KNOWLEDGE FOR ACTION
OUTBOUND MARKETING
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 39
Direct Mail, Email, Phone used to promote programs or inform customers of other initiatives.
Reminder to use MyEnergy portal
High energy use notice
Energy use relative to neighbors notice
Data set only contains campaigns that were tracked
KNOWLEDGE FOR ACTION
MYENERGY PORTAL
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 40
Customers can log in to see energy usage, pay a bill,or enroll in a program.
Reminders to use the portal are a frequent campaign subject.
KNOWLEDGE FOR ACTION
MYENERGY PORTAL
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 41
We have last login date for each customer in the data, but no history. However, there is opportunity to study usage, patterns, or program participation by login recency.
Customers who Logged in x Months Ago (from now)
KNOWLEDGE FOR ACTION
ABOUT THE DATA
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 42
Sample Set• 36 months: January 1, 2009 - December 31, 2011• 30,000 residential customers randomly sampled from active customer
base at December 31, 2011
Energy Usage Data• Traditional Metering Data (Monthly)• SmartMeter Installation Date• Gas SmartMeter (Daily)• Electric SmartMeter
(15 minutes or Hourly)
Psychographic Data
Billing
Activity Data• Energy Efficiency Programs & Rebates• Call Center and Help Tickets• Pricing• Outbound Marketing
Additional• Local Climate Data• Education• Demographic
KNOWLEDGE FOR ACTION
Additional Data
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 43
• Local Climate Data– Temperature, precipitation– Daily during data window
• Education– Highest level attained– By account/household
• Demographic Data– Census blocks– Additional data available at: census.gov
KNOWLEDGE FOR ACTION
DATA Q&A
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA44
KNOWLEDGE FOR ACTION
Why should you submit a proposal?
• Access to unique data
• Simple, efficient proposal process
– Proposals due 2-3 weeks after the webinar
– Data awarded about 4-6 weeks after the webinar
• Assistance with data cleaning and preparation
• Teleconference Q&A sessions with the corporate sponsor
• Invitation to a private symposium (typically at Wharton) to share your research findings with the corporate partner about a year from now
• Promotion of your research paper through the WCAI SSRN Research Paper Series
KNOWLEDGE FOR ACTION
Proposal Format
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 46
Proposals should be no more than 2,000 words and include the following:• Title• Author(s) name, title, affiliation and e-mail address: Please designate a
corresponding author.• Abstract• Introduction: Describe expected contribution(s), covering both the academic and
practical aspects. Please keep it concise, and cite relevant work as necessary to explain your academic contribution. There is no need to include a lengthy literature review.
• Detailed Project Proposal: Describe the proposed research. Please include enough detail that we can assess the feasibility and merit of the proposed approach. For example, modeling projects should include at least a sketch of the model. Experimental projects should include an outline of the research design. Please also include a rough estimate of how long the project will take.
• Biographies: Include up to a paragraph-long biography highlighting what each team member will contribute to the project.
KNOWLEDGE FOR ACTION
Proposal Submission Process
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 47
• Read more about the proposal format at http://www.wharton.upenn.edu/wcai/Proposals.cfm
• Submit proposals at http://www.wharton.upenn.edu/wcai/proposalform.cfmno later than Friday, November 9, 2012.
– Proposals will only be accepted online.
• Proposals will be evaluated both on academic contribution and potential to significantly improve the research sponsor’s marketing practice.
– Anand Bodapati (UCLA), Eric Bradlow (WCAI), Pete Fader (WCAI), Elea Feit (WCAI), and representatives from PG&E.
• Contact [email protected], if you have questions prior to submitting your proposal.
KNOWLEDGE FOR ACTION
Other WCAI Opportunities for Researchers
TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 48
If you registered for this webinar, you will receive regular announcements about:
• Research Opportunities like this one
– Employee and Customer Satisfaction in Repeat Transactions: December 2012
– Online Ratings across multiple channels/brands: January 2013
– General Motors: February 2013
• Grant/funding opportunities
Also find us at:
• SSRN Research Paper series: http://www.ssrn.com/link/Wharton-Cust-Analytics-Initiative-RES.html
• Announcements: http://wcai.wharton.upenn.edu
KNOWLEDGE FOR ACTION TRANSFORMING BUSINESS THROUGH CUSTOMER DATA 49