The utility customer experience has come a long way since “ratepayers” was an industry-standard term, but there is still a way to go. One way to create new opportunities to develop customer relationships is by pairing your CIS with a CRM.
The utility industry, often known for its traditional approach to serving “ratepayers,” is undergoing a profound transformation. Driven by deregulation and increased competition, a growing emphasis on energy efficiency and sustainability, high customer expectations regarding personalization and self-service, and diversification of utility company offerings, the shift from perceiving customers solely as ratepayers to recognizing them as empowered consumers and loyal customers is reshaping the sector’s dynamics.
The transition from reliance solely on customer information systems (CIS) to the complementary use of advanced customer relationship management (CRM) platforms further demonstrates this transformation.
As the utility customer mindset evolves, utilities must adapt to this change to deliver enhanced services and experiences to their customers. This blog looks into the changing utility landscape and how your organization can prepare for this transformation, including the benefits and potential challenges.
The Mindset Shift from Ratepayer to Customer
The historic utility customer relationship was characterized by a one-way interaction where customers were ratepayers, passively receiving required services. However, this dynamic is now giving way to a heavily focused customer-centric approach. Customers are no longer content being passive recipients. They demand a more active role in their utility services. Engaged customers want the ability to impact their usage, select their energy mix, interact more closely with their utility to receive timely updates on outages, and more.
This evolution has forced utilities to reimagine their operations, moving away from the conventional top-down model to one that encourages engagement and collaboration, and offers new digital tools, such as interactive portals and mobile applications, to empower the customer.
Empowering Utility Customer Engagement Through CRM
Historically, customer information systems were considered the base of utility operations, serving as repositories of customer, billing, and consumption data, among other critical functions.
However, the limitations of CIS became evident as customer expectations have evolved. As a result, customer relationship management platforms emerged as a technological solution that aligns with the new customer-centric paradigm while also supporting some of the traditional functionality requirements of customer information systems.
CRM systems offer utilities a holistic view of each customer, incorporating not only billing and usage data but also interaction point data, preferences, and user feedback. This approach enables utilities to personalize their offerings or programs, proactively anticipate customer needs, and provide a seamless experience across various touchpoints across digital channels.
It is important to note that CRM systems will not replace the need for a utility to have a strong CIS solution in place. CRM systems will not generally support required functionality requirements such as meter data management, outage management, and advanced billing and payments management. To address this gap, many utilities are using both systems to support their customer operations and interactions, viewing them as complementary systems that share data.
Benefits of the Mindset Shift
The evolution from ratepayer to customer and from CIS only to CRM incorporation brings several core benefits for both utilities who embrace this mindset and as well as the customers they support. Below we have highlighted a few:
Enhanced Customer Engagement
CRM platforms allow utilities to engage with customers on multiple levels, fostering a sense of involvement and empowerment. Customers can access real-time data, track their energy usage, and make informed decisions about their consumption patterns, guided by tools like personalized insights and recommendations.
Personalized Services
CRM systems enable utilities to deliver tailored services based on individual customer preferences and behaviors. Whether it is providing insights into energy-efficient practices or suggesting optimal rate plans, personalization enhances the customer experience.
Proactive Issue Resolution
With a comprehensive view of customer interactions and history, utilities can identify and address potential issues before they escalate. Proactive and informative communications during outages and disruptions build trust and loyalty. In fact, according to a McKinsey study, “50 percent of customer satisfaction is derived from factors within the direct control of that utility’s customer-service organization, including information timeliness, clarity, and ease of access; the other 50 percent focuses on outage frequency and duration.”
CRM systems will include tools to enable automated communications such as push notifications, SMS, and email. Beyond outage reporting and communications, CRM systems can also support a number of other self-service use cases.
CRMs allow customers to view articles specific to their account needs and inquiries, empower customer service agents with tailored resources based on account types, and have access to highly personalized customer service channels.
Data-Driven Insights
The use of a CRM opens new avenues for data analysis. Utilities can derive valuable insights from customer data, helping them optimize operations, plan for peak demand periods, and develop targeted marketing strategies.
Streamlined Processes
CRM systems streamline internal processes by integrating various departments and functions into one core system. This leads to improved operational efficiency and better coordination in delivering services.
Emergent Challenges From Pairing CRM and CIS
While the transition from CIS only to CRM and CIS pairing promises numerous advantages to utility organizations that embrace it, it is not without challenges.
Data Security and Privacy
As CRM systems handle substantial amounts of sensitive customer data, ensuring robust security and privacy measures is paramount. Cyber threats and data breaches could undermine customer trust and tarnish a utility’s reputation. It is important to use trusted CRM platform solutions with high cybersecurity benchmarks.
Data Integration Complexity
Migrating data from the CIS to a new CRM requires careful planning and integration efforts. Utilities must ensure the new systems seamlessly interface with existing infrastructure and that they (or a vendor) do the oftentimes complex data migration process correctly.
Due to the complexity of the migration and functionality gaps that may be present in current CRM solutions, many utilities will support both a legacy CIS, as well as a new CRM. When taking this approach, it is important to have a strong technical architecture in place to integrate these systems seamlessly.
Employee Adoption and Training
Adapting to CRM usage necessitates training employees to effectively use the new system. A lack of proper training could lead to inefficiencies and resistance to change, and not using the system for its maximum impact.
Cost Considerations
A CRM will not fully replace your CIS, which necessitates the use of both platforms. Implementing CRM systems involves significant upfront costs, including software acquisition, any required customizations, data migration, and training and related change management expenses. Utilities must carefully weigh these costs against the long-term benefits of the system.
Utilities should prepare strong business cases that outline the ways in which the CRM system can streamline business operations, enhance customer relationships, and promote utility programs.
Conclusion
The evolution from ratepayer to customer and from CIS only to CRM marks a transformative, exciting journey for the utility industry. As utilities adapt to this changing mindset, they embrace the potential of CRM systems to provide personalized customer experiences, improve engagement, and streamline operations.
When it comes to the energy and utility industry, there are plenty of software solutions available. Our checklist helps you decide if a custom approach or ready-made software is your best choice.
