Utility Week

UTILITY WEEK | MAY 2022 | 41 model prevents them from delivering a seam- less and e ective service for customers while the newer squad model requires a complete and complex overhaul of their current opera- tions creating signi cant risks along theway. I think there is room for a hybrid approach that retailers can take in order to reap some of the rewards of a less heavily segmented model without having to rebuild from scratch. In this model, advisers fall into two categories; generalists and specialists. Generalists handle high-volume, low/ medium-complexity queries and special- ists handle low-volume, high-complexity queries, whilst also proactively resolving exceptions. This simpli ed model is similar to the squad model in that there are generalist and specialist skill sets, however customers aren't allocated to small teams. Whether this model succeeds comes down to three main factors. Finding the most e ective ratios of generalist to special- ist skill sets, which is unique to that retailer, ensuring that the specialists are adequately resourced to continue to react to inbound queries while transitioning to a more pro- active way of working, and nally imple- menting the right technology to maximise e€ ciency. Decision time So, which is the better model? The answer depends on the metrics a retailer is optimis- ing for. With an absolute focus on reducing cost- to-serve, one could argue that the optimum model is one with pooled, lower skilled advisers on the frontline being supported by a more experienced layer of higher skilled, segmented reactive and proactive advisers – not aligned to a speci c cohort of customers. If optimising for customer satisfaction, the squad model with its end-to-end own- ership of issues will likely yield better results. If gross margin enhancement through cross-sell and upsell is the ulti- mate aim, then there are pros and cons to each – the squad model would lend itself to this more naturally as teams can own a P&L; although sales is a specialism so the segmented model might lead to higher con- version rates. However, important to any type of model is facilitating proactivity – actively looking for issues and resolving them before they manifest. Yes, it might seem cheaper to respond to a problem only when a customer Š ags it, but in most scenarios the issue has a customer and a business impact. Fixing an issue sooner will reduce the impact, improve customer experience and remove the cost of handling an unnecessary call. Mov- ing towards a more proactive model will help achieve these results and deploying the right technology will multiply them no end. Of course, the transition from reactive to proactive model is not easy. It entails considerable cultural change that requires careful plan- ning and execution but, depend- ing on which model is selected, the shiŽ doesn't have to require wholesale transformation. Ultimately, this evo- lution is an essential part of future- proo ng the energy retail business and enabling companies to deliver the quality of service customers need, especially in these chal- lenging times. In summary, there are a mul- titude of options available to retailers both in terms of established models and new variations; imple- menting the "right" one depends on the desired business outcomes. The e ectiveness of all of these models can be supercharged by adopting emerging technologies and in many ways deploying the best technology can reshape operating models organically. Melissa Gander, chief operating o cer, Kaluza "I think there is room for a hybrid approach that retailers can take in order to reap some of the rewards of a less heavily segmented model without having to rebuild from scratch." Melissa Gander, chief operating o cer, Kaluza A full version of this article is available free to members at: https://utilityweek.co.uk/is-your- front-line-on-the-front-foot/

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