A joint PennEnergy/Cognizant Survey Report on: "Customer Self-Service: Challenges and Opportunities in the Utilities Sector." The consumer revolution has reached the energy sector. The energy customers of today are more demanding and more digitally connected than ever before. They want to have choices and to be in control. To better understand this tectonic shift, Cognizant partnered with PennEnergy to ask utility organizations how they are addressing the core issues of cost, operations, innovation and - perhaps most importantly in this changing industry - customer relationships. Read the report to learn more.

1. SURVEY REPORT
Understand,
Empower and
Serve Your
Customers Better
A joint PennEnergy/Cognizant Survey
Report on: “Customer Self-Service:
Challenges and Opportunities in the
Utilities Sector”
sponsored by:
2 Foreward
3 Survey
Summary
11 Appendix
16 Glossary

2. Foreword
T
he consumer revolution has reached the energy sector. The
energy customers of today are more demanding and more digitally
connected than ever before. They want to have choices and to be
in control. Customers also want the convenience of conducting
transactions on their own and in their own time. They expect personalized
services, proactive cost saving tips and better products. These expectations are
driven by the customer’s experience with other consumer-friendly industries
such as Banking, Retail and Telecom.
Customer behaviors are changing, even as utilities continually upgrade their
processes and technology platforms. Not surprisingly, individual utilities are
at various levels of maturity along this paradigm shift. Some have successfully
transitioned away from the traditional cost-driven customer service model and
towards a more nimble and proactive approach focused on delivering responsive
and personalized customer experience. Others are lagging behind.
To better understand this tectonic shift, Cognizant partnered with PennEnergy to
ask utility organizations how they are addressing the core issues of cost, operations,
innovation and - perhaps most importantly in this changing industry - customer
relationships.
The results of that survey are powerful and unequivocal - consumers will
increasingly influence the utilities’ customer engagement strategy. Customer savvy
organizations are learning that one of the best ways to serve customers is to let
them serve themselves. Those forward-looking organizations are reaching out
where customers spend most of their time – the internet, the smart phone and
social media.
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3. Survey Summary
T
his survey yielded a number of key insights. Utilities can use those
findings to define and implement initiatives that will help them better
understand and serve today’s demanding customers.
Self-Service: At the heart of a
superior customer experience
Enhanced self-service is key to delivering the experience today’s customers seek.
We asked executives to identify their top customer service priorities. The response
was clear: Utilities no longer treat customer service as a transactional means to
reduce cost, and many have transitioned to
focus more on the customer experience.
Over 76 percent of respondents indicate
that extending and enhancing customer
self-service is an important part of their
overall customer service efforts. Innovating
customer self-service is a priority for many
utilities, with 76 percent of respondents
indicating they are seeking enhanced self-service features. Utilities are also working
to launch self-service-oriented smart phone applications.
Other Key Customer Service Priorities are:
:: mproving call center operations (67%)
I
:: ntroduction or extension of smart meter analytics (61%)
I
:: educing the overall cost of customer service efforts (61%)
R
:: nnovation - Introduction of new products and services (57%)
I
:: ntroducing smart phone apps (30%)
I
:: odifying or replacing CIS (25%)
M
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4. Understand, Empower and Serve Your Customers Better
Survey respondents gave a number of reasons for why they were seeking
enhanced customer self-service capabilities.
Improving customer satisfaction was by far the number one driver for strengthening
customer self-service, cited as top priority or important by 97 percent of responding
utilities.
Some 75 percent of respondents said
improving business processes was
important, or a top priority, when
considering customer self-service. Other
rationale included improving brand
image, with 71 percent and reducing
operating costs or providing new features,
at 68 percent of respondents each.
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5. Understand, Empower and Serve Your Customers Better
Multi-Channel Self-Service:
Web is the preferred Channel
To maximize adoption rates, utilities must employ the optimum delivery channel for
various self-service functions.
W
hen given a choice in how to deliver and access self-service
capabilities, the survey indicated that both utilities and their
customers prefer Web-based solutions.
That result is not surprising. The Web as a channel has evolved
for over two decades, and in its current state of maturity provides all the service
capabilities most customers expect.
After the Web, Utilities’ order of preference for self-service channel is Interactive
Voice Response (IVR), followed by Mobile and Social Media. In comparison,
customers’ preference for channel rates Mobile and Social Media higher than IVR.
One possible explanation for this disconnect could be the lack of other viable options
for the Utility, as Mobile and Social channels are still in their nascent stage. However
for the success of the overall self-service program, it’s critical that the utilities design
their channel strategy based on the customer’s channel preferences.
5
Customers are very much at ease using smart phone apps to handle daily utilitarian
tasks and to access banking, retail and other services. Utility companies are slowly
gaining familiarity with this rapidly maturing channel, and many are launching
apps for transactional features and online account management. Yet for many
utilities, implementation of the Mobile channel is still in its infancy.
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6. Understand, Empower and Serve Your Customers Better
While utilities are focusing on multi-channel
service delivery, it is important to understand
and leverage the specific capabilities of each
channel. The survey results highlighted
customer-preferred options for various
activities.
The Web channel is preferred for all available
utility self-service functions, including
billing, payments, service order creation,
outage searches and the filing of complaints.
IVR systems are the second most-preferred
channel for accessing billing and paymentrelated information and updates on service outages. This ranking is due to the
limited interaction capabilities of the IVR channel.
Mobile applications – and we will see more of them over the next few years – are
preferred for electronic billing and for accessing information on outages and energy
usage. Mobile payment channels are also maturing.
Social networks can be used to accept and manage customer complaints, and to
deliver information on service outages.
To maximize self-service adoption, utilities must deploy the right channel strategy
and should leverage the channels customers prefer.
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7. Understand, Empower and Serve Your Customers Better
Key factors for success of self-service
Technology, availability and reliability – along with customer awareness and education
– are the keys to self-service success.
W
hat
factors
most
affect
the
success
of a customer selfservice effort? Survey
respondents cited the following:
::
Inertia along with unwillingness on
the part of customers to try these new
services. (40%)
:: Availability and reliability of self-serviceoriented technology. (28%)
:: ustomer awareness and the need for education. (18%)
C
:: ecurity concerns were somewhat minimal. (10%)
S
To address those challenges, most responding utilities indicated that they have put
self-service technology and infrastructure upgrades on their planning roadmaps.
Utilities are also working to create greater
customer awareness about their selfservice capabilities. Bill inserts (71%) are the
most popular method to build self-service
awareness. Social media (46%), direct mail
and customer call are also being used.
Incentives such as bill credits or vouchers
are used less often as a means to create
customer awareness and interest in online
capabilities.
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8. Understand, Empower and Serve Your Customers Better
The need for a transformation partner
Creating a customer-oriented utility can be tough, and requires both internal efforts
and strong external partnerships.
U
tility executives recognize the clear value of next-generation self-
service capabilities for their customers and for their own organizations.
Yet those utility leaders also recognize a number of challenges in their
efforts to deploy self-service solutions.
Survey respondents cited the following challenges they faced in digital
implementation:
:: ecuring the needed budget was a primary challenge (67%)
S
:: imely availability of internal resources (65%)
T
:: hallenges of aligning with potential suppliers (64%)
C
:: vailability of in-house expertise (59%)
A
While quickly evolving technology offers
real possibilities for richer service channels
and greater functionality, utility companies
often struggle with how best to leverage
those advances.
Survey respondents noted that the lack of
internal experience often limits the benefits
they can realize from these emerging capabilities. Even when they have the needed
resources, internal groups often cannot focus on critical self-service projects in a
timely manner. This often leads to delays in the development and implementation
of much-needed new self-service projects.
For most utilities, digital implementation needs considerable internal effort and a
very strong external partnership. There is a clear need for a trusted advisor and
transformation partner to deliver the full value of a digital implementation.
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9. Understand, Empower and Serve Your Customers Better
To Conclude
T
o keep up with ever-changing customer preferences, utilities must
revisit their customer engagement strategies. The focus should be on
understanding the pulse of the consumer and providing the best possible
customer experience.
The results of this utility industry survey highlighted the need for a comprehensive
digital agenda to provide:
:: onnectivity across all available channels
C
:: consistent cross-channel experience
A
:: right-channel strategy
A
:: mproved features and enhanced reliability in existing channels
I
Utility customers will clearly benefit from channel innovations designed to support
seamless transactions and a more consistent and positive user experience. A better
self-service experience will improve customer loyalty, retention (‘stickiness’) and
adoption.
Forward-looking utility executives can leverage these strategies to reduce operating
costs, while simultaneously enhancing overall customer satisfaction.
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10. Understand, Empower and Serve Your Customers Better
Survey Methodology
F
or this survey, we surveyed nearly 104 utility executives in North
America. The survey sample consisted of electric utilities (78.8%), gas
utilities (34.7%) water utilities (21.2%). The numbers are a deliberate
overweight towards electric utilities, due to the major focus on customer
satisfaction and energy efficiency
in that sector.
Survey respondents included
senior utility executives in the
position of Director or above.
This sampling was selected to
provide insights into high-level
future strategies to improve the
customer experience.
With respect to the customer bases
of surveyed utilities, over 35% of the
utilities surveyed have more than
1 million customers. The focus
was primarily on utilities with a
customer base of at least 500k.
This sampling provides insight into
the customer service strategies of
various sized utilities.
10
By surveying utilities
across various market
sizes and ownership
structures, the survey
supports
conclusions
about customer service
strategies across various
segments.
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11. Appendix
1. Please rate on a scale of 1 to 5 the top Customer Service Priorities you plan
to address in the next 2 years (1 being Not Important and 5 being Top Priority).
a. Cost Reduction
b. Improving Self-Service Features
c. Leveraging Smart Metering Data
d. Modifying or Replacing the Customer Information/Billing System (CIS)
e. Introducing New Products and Services
f. Implementing Smart Phone Apps
g. Using Social Media as a Customer Service Tool
h. Improving Call Center Operations
2. On a scale of 1 to 5 (1 being not important and 5 being mission critical) how
important is Customer Self-Service (CSS) to your customer service strategy?
3. What are the key investments you will be making in Customer Self-Service
(CSS) in the next 2 years?
4. Please rate how important the following potential benefits are when
considering investment in Customer Self-Service (CSS): (1 being Not
Important and 5 being Top Priority).
a. Reduction in Operating Cost
b. Improving customer satisfaction
c. Providing New Self-Service Options
d. Reduction in Call Center Call Volumes
e. Improving Business Processes
f. Increasing Sales by providing an additional sales channel
g. Improving Brand Image
5. Please indicate which channels customers can use to interact with your
company for the following functions today.
11
a.
b.
c.
Bill Information Payment- Kiosks
Bill Information Payment- IVR
Bill Information Payment- Website
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12. Appendix
12
d. Bill Information Payment- Mobile Apps
e. Bill Information Payment- Social Media
f. Bill Information Payment- Not Available
g. Outage Information- Kiosks
h. Outage Information- IVR
i. Outage Information- Website
j. Outage Information- Mobile Apps
k. Outage Information- Social Media
l. Outage Information- Not Available
m. Energy Usage Analysis/Goals/Tips- Kiosks
n. Energy Usage Analysis/Goals/Tips- IVR
o. Energy Usage Analysis/Goals/Tips- Website
p. Energy Usage Analysis/Goals/Tips- Mobile Apps
q. Energy Usage Analysis/Goals/Tips- Social Media
r. Energy Usage Analysis/Goals/Tips- Not Available
s. Move in/Move Out- Kiosks
t. Move in/Move Out- IVR
u. Move in/Move Out- Website
v. Move in/Move Out- Mobile Apps
w. Move in/Move Out- Social Media
x. Move in/Move Out- Not Available
y. Home Energy Management- Kiosks
z. Home Energy Management- IVR
aa. Home Energy Management- Website
bb. Home Energy Management- Mobile Apps
cc. Home Energy Management- Social Media
dd. Home Energy Management- Not Available
ee. Complaints- Kiosks
ff. Complaints- IVR
gg. Complaints- Website
hh. Complaints- Mobile Apps
ii. Complaints- Social Media
jj. Complaints- Not Available
kk. Enrollment for Products and Services- Kiosks
ll. Enrollment for Products and Services- IVR
mm. Enrollment for Products and Services- Website
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13. Appendix
nn. Enrollment for Products and Services- Mobile Apps
oo. Enrollment for Products and Services- Social Media
pp. Enrollment for Products and Services- Not Available
6. Please rate the popularity of the following Self-Service Channels. (1 being
Unpopular and 5 being Highly Popular)
a. Kiosks
b. IVR
c. Web (Online)
d. Mobile App
e. Social Media
7. Please indicate the current status of the following Self-Service functions of
the Online/Web Channel.
a. Bill Presentment
b. Online Payment
c. Enrollment for Product and Services
d. Outage Search and Reporting
e. Energy Usage Analysis/Goals/Tips
f. Move in/Move out
g. Home Energy Management
h. Online Chat
i. Complaints
8. Please rate the popularity of the following Self-Service functions. (1 being
Unpopular and 5 being Highly Popular)
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a. Bill Presentment
b. Online Payment
c. Enrollment for Product and Services
d. Outage Search and Reporting
e. Energy Usage Analysis/Goals/Tips
f. Move in/Move out
g. Home Energy Management
h. Online Chat
i. Complaints
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14. Appendix
9. What percentage of your customers use at least one of the Self-Service
functions your company provides?
a. Under 10%
b. 10% - 24%
c. 25%- 50%
d. Over 50%
10. What are the challenges customers are facing in adopting Customer SelfService (CSS) in your opinion?
11. What is your company doing to promote Self-Service to customers (check
all that apply)?
a. Direct Mail
b. Bill Inserts
c. Free SmartPhone Apps
d. Contact Customers by Phone to generate awareness about Self-Service options
e. Open houses and Public Forums
f. Incentivizing Self-Service (Bill Credits etc)
g. “How to” videos available over Web
h. Promoting Self-Service over Social Media Channels
i. Other (please specify)
12. Which of the following best describe how you manage Customer SelfService (CSS) implementation?
a. Internal Staff Manages It
b. Seek out Third Party Out-of-Box Solutions
c. Outsource Development and Maintenance
d. Hybrid Model- Internal Staff and Outsource
e. Other (please describe below)
13. How much do you plan to spend on Customer Self-Service (CSS) initiatives
in the next 3 years?
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a. Under $500,000
b. $500,000- $1 million
c. $1 million- $5 million
d. $5 million- $10 million
e. Over $10 million
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15. Appendix
14. On a scale of 1-5 (1 being Not Prepared and 5 being Very Prepared) rate
how prepared you are in implementing your Customer Self-Service (CSS)
initiatives.
a. Securing Budget
b. Right internal expertise/skills
c. Availability of internal resources
d. Meeting customer expectations/demands
e. Integration with other systems
f. Security Issues
g. Alignment with suppliers/partners
15. Which of the following services does your company provide (check all
that apply)?
a. Electric
b. Natural Gas
c. Water
d. Other
16. Is your retail electric service deregulated?
a. Yes
b. No
17. Please select the type of utility you work for.
a. Municipal Utility
b. Public Irrigation District/ Public Utility District
c. Rural Electric Cooperative Utility (REMC)
d. Federal/Crown Utility
e. State/Provincial Utility
f. Investor-Owned Utility
g. Competitive Energy Retailer
h. Other (Please specify)
18. How many customer accounts does your utility serve?
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a. Under 100,000
b. 100,000- 500,000
c. 500,000 – 1 million
d. 1 to 3 million
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16. Understand, Empower and Serve Your Customers Better
Glossary
Customer self-service. Methods and processes that allow customers to interact
with the utility at their convenience. Often used in a Customer Relationship
Management (CRM) environment, CSS is used to handle account information
management tasks a customer can and will manage on their own.
Interactive Voice Response (IVR). Can include a range of voice-oriented selfservice methods, including automated interactive voice, interactive voice and video
response, outbound dialing and speech-enabled self-service systems.
Web self-service (WSS). Self-service delivered specifically through a utility’s
website. Customers can sign in to a web portal, then update their account, request
information or conduct a transaction.
Mobile self-service (MSS). By optimizing the customer experience for mobile
devices and browsers, mobile self-service extends WSS capabilities and supports
interactions that can be contextualized with location, service history and other
variables.
Social. To fully exploit the promise of online self-service, utilities can provide an
experience similar to that of the Web 2.0 and social networking environment,
including forums, blogs, tags, wikis, video and online support.
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17. About Cognizant
Cognizant is a leading provider of information technology, consulting and business
process outsourcing services, dedicated to helping the world’s leading companies
build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant
combines a passion for client satisfaction, technology innovation, deep industry and
business process expertise and a global, collaborative workforce that embodies the
future of work. Cognizant serves energy and utilities companies with a wide array
of strategic consulting and business process services solutions, supported by proven
IT frameworks and accelerators. Five of the top 10 global utilities companies trust us
to strengthen their businesses with solutions for plant automation and supply chain
optimization, as well as retail, billing and customer care.
Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
About PennEnergy
PennEnergy serves global energy professionals with the broadest, most complete
coverage of industry-related information, with resources to help effectively
perform critical job functions. This includes content from all PennWell Petroleum
and Power brand and other industry sources, PennEnergy.com delivery original
industry news, financial market data, in-depth research, maps, surveys, statistical
data and equipment/service information.
17
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