Utility Week

UTILITY WEEK | 21ST - 27TH SEPTEMBER 2018 | 29 Customers Market view W hen you think about the sectors that consumers are most fond of, utilities languish somewhere near the bottom of the list. It is unsurprising, therefore, that it has long been vaunted that consumers are just not interested in having a relationship with their utility suppliers. And as a result mar- keting has been aggressively acquisition based with limited customer relationship management thrown into the mix. But the tide is turning. For instance, insight from direct marketing associations' email benchmark shows that although util- ity emails are some of the least opened (15 per cent), if opened they garnered the high- est click-through rate of any sector. The fact that clicks are driven by relevance, but opens are driven by interest, shows that customers are responding to added- value content on top of their account-based communications. A separate research report, this one from Electricity North West, revealed that almost three-quarters (70 per cent) of people want to have a greater understanding of the UK's utility infrastructure and future plans for greater sustainability. However, the majority have no idea where to get such information. Status quo shiing So what do these two disparate reports have in common? They indicate that the status quo is shiing. Consumers are more inter- ested in utilities than ever before, and with the advent of smart technology this interest is gathering pace. For instance, it is esti- mated that around 12 million smart meters have already been installed in the UK and by 2020 every household and organisation is set to have been offered a smart meter by their utility provider. This sea change in technology pro- vides an exciting opportunity for the sector because the data generated by smart meters, if used properly, could revolutionise the util- ity customer experience. An ongoing study conducted by the gov- ernment into smart meters reveals that so far only seven per cent of customers have been le unsatisfied by their smart meter. Eighty per cent are either very or fairly satisfied. The research shows that the majority of customers have opted to have a smart meter installed so they can see how much energy they are consuming and to reduce the need for meter readings as well as more accurate billing. Data sharing Attitudes towards data sharing were also very encouraging, particularly in this post- GDPR world. A third of all respondents recalled their supplier asking whether they wanted to share their half-hourly con- sumption data – and of these, 94 per cent agreed. Almost a fih (17 per cent) believed that sharing their data would be of value to them. Half (52 per cent) of respondents said they would like to receive more information about at least one of a list of topics shown to them during the survey. They were most interested in finding out more about the data stored on their smart meter (36 per cent), how to use less energy in their home by changing habits and routines (29 per cent) and changes they could make to their home to make it more energy efficient (28 per cent). The fact that a fih of people already believe that sharing their data will be of value to them is incredibly encouraging. It continues to prove the theory that if organi- sations use data in a responsible but relevant and beneficial manner, customers are willing to share their personal information. For instance combining previous con- sumption usage with property informa- tion and weather data to alert customers of an upcoming cold snap along with advice on when to turn their heating on, at what temperature and for how long to keep their home comfortable in the most sustainable manner. Or providing customers with a heat- ing plan that could help them reduce their consumption and thus save money on their bills by analysing their previous usage along with predicted weather patterns. In today's changing landscape, customers want more than just an arms-length relation- ship with their providers. Increasingly they are seeking more meaningful relationships and are rewarding those that comply with their loyalty. The good news is that we're now at a time when this is entirely possible through the wise use of big data. Caroline Worboys, COO, Outra Cosy up to your customers Despite the received wisdom, recent research suggests customers are ready for more meaningful relationships with their utilities – and big data may be the key, as Caroline Worboys reveals. Customers' increasing familiarity with technology means they may be more willing to share data

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