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UtILItY WeeK | 26th september - 2nd october 2014 | 29 Customers Market view Utilities need a social life Customers would rather talk to each other than listen to brand messages. It's time that utilities joined the online conversation. U tilities have been through some major changes in the past two decades. From the gradual deregulation of the market to the emergence of switch- ing companies online, the environment has thrown up challenges and forced a response. The industry has consolidated, then adapted to accommodate new entrants. The result is a fierce competitive battle for market share. For a long time, price has defined the vic- tors and victims in this fight, but smart utili- ties take a different approach: competing by providing a better customer experience. It is no surprise that utility companies are now active where their customers are – on social media. But having a Twitter account and a Facebook page is not a social strategy. What companies in other industries have already learnt the hard way is that social media networks are not good places to engage with customers – as long as compa- nies continue to push messages out there, social media becomes just another reach or acquisition channel. The real opportunity to build better social customer experiences lies in finding ways to draw consumers into a conversation with each other and the company about topics that are of interest to them. These could, for example, include energy conservation or how to understand their energy bills. Why is fostering these conversations important? Forrester Research found that leaders in customer experience outperform their peers by 23 per cent. Customer expectations have shied. They expect to be met when and where they want by the firms they interact with. They expect all companies they deal with – including utilities – to listen to them through a variety of channels, including social media. They want to be involved in public conversations about relevant, useful topics. Companies that do this well build vocal advocates in their customer base who will carry the flag for the company on digital and social channels. This is key because con- sumers are increasingly tuning out brand messages in favour of social conversations, recommendations, and advice from peers. The old models must be thrown out when considering a strategy to appeal to today's digitally savvy customer. Think of the new strategy as a four-gear engine, each gear focused on playing a specific role. Acquire, the starter gear, will focus on attracting an audience of potential new cus- tomers and existing customers. The challenge here is that the social web is huge and com- plex – tailoring the message to the right audi- ence and picking the right communication channels is key to cutting through the noise. Engage is the power gear, nurturing pros- pects and customers and building loyalty. The key challenge here is to sustain the inter- est of the people in an environment where they are one click away from something else. Companies must find ways to drive active engagement – getting consumers to respond to a contest soliciting ideas for local energy conservation, or engaging in conversations with other consumers on a community site hosted by the company. Enlist. Use data analytics to identify custom- ers and prospects whose contribution is most valued by other members of the community and use them. Remember, there's nothing more powerful than having customers say good things about a company. If a utility com- pany wants to sway customers on something other than price, there is nothing more valu- able than authentic, unprompted customer testimonials about positive experiences. Monetise. This leads to the monetise gear. Only aer customers have been engaged and enlisted on behalf of the company is it appro- priate to start monetising these efforts. This means converting new customers and upselling to existing customers based on a solid understanding of their needs and desires. This can be gleaned from paying attention to social conversations. The great thing about the social web is that if you host the right conversation, your customers will tell you everything you need to know to improve your business results. Utilities can only live in denial about changing customer expectations for so long. Michael Schanker, vice-president, marketing, Lithium Executed well, this could bring significant benefits to both companies and custom- ers. Customers are increasingly demanding effortless service – it is the strongest cross- sector customer trend right now. Busier lifestyles are driving decreasing tolerance and higher customer expectations. Response times, availability of information, quality of information and consistency are all under increasing pressure and contact centres need to change rapidly to accom- modate this. They need to become genu- ine multi-channel contact centres, where multi-skilled agents operate across a mix of channels. They need to be disseminating information from across the enterprise proac- tively through outbound one-to-many com- munications rather than through inbound one-to-one contact. This model is more effective in manag- ing high volume situations such as storms and system emergencies. However, the skills, technology, processes and management approaches required are profoundly different to what DNOs operate today. The smart meter rollout should help DNOs step up to the challenge. At last they should be able to identify, at a property-by- property level, where power is on and off – a current weakness that is a constant source of surprise to consumers. With smart metering, DNOs should be able to pinpoint faults automatically, open- ing up a ra of enhancements to the power outage customer experience. Customers will set the DNO's agenda to a degree not seen since deregulation and, among business cus- tomers at least, relationships will form. We are already seeing a proliferation of tools that amplify the customer's voice, mak- ing individual customers increasingly pow- erful and influential. These platforms will enable customers to be heard immediately by the DNOs and the regulator. They will also obtain influence over other customers. Customers will more and more judge DNOs on the service they deliver as well as their perceived trustworthiness, transpar- ency, integrity, flexibility and empathy. The smartest organisations will ensure custom- ers are at heart of their boardroom, and that every aspect of their business is designed for the genuine benefit of customers. If industry responds in the right way, by 2020 the power outage customer experience could be the model all sectors look to as the benchmark for their own crisis customer experiences. Nicola Eaton Sawford, managing direc- tor & customer experience architect, Customer Whisperers