Cut the cost to communicate

Utilities can reduce costs through the customer-centric digital transformation of their communications.

Digitally comfortable consumers manage their utility bills through their phone and online, so energy and water industries should embrace a customer-centric digital transformation of customer service to save money.

Personalised digital migration. Accurate information tailored to the individual requirements of each customer through data segmentation is essential to customer-centric digital transformation.

Behavioural nudges. The utility sector must help consumers reduce bad debt – and the design of customer communications can play a crucial role in this.

Digital communications coupled with eye-tracking data ensure that key information, like how much a customer owes and how to pay, is positioned where it will have the most impact.

Innovation cuts costs. The costs of traditional communication methods also face greater scrutiny. Research shows that inbound mail items can be handled up to 19 times before they are received by the intended recipient. Innovative digital information capture technologies allow crucial information to be extracted at source when received, stored digitally and transmitted to companies’ systems directly. This avoids unnecessary handling and the risk of loss or damage, as well as cutting costs.

Reducing environmental impact. Digital transformation can go a long way to reducing a company’s environmental impact. The impact of traditional printed customer communications can also be reduced though the use of innovative products.

Traditional post still has a role. Digital transformation does not signal the death knell for print communications. Campaigns that include both print and digital channels boost sales by 27 per cent compared with print or digital only. There are also times when documents must be printed. Fifty-seven per cent of people still feel more valued when they receive a letter. Utilities can reduce postage costs by working with suppliers that can offer discounts on postage options because of the volumes they post.

Time to save. The utility sector has several key challenges: enhancing customer service, reducing the cost to serve, reducing bad consumer debt and mitigating environmental impact. Customer-centric digital transformation that provides an optimised multi-channel approach is one way in which companies can satisfy those expectations, reduce the significant costs of outsourcing and, most importantly, prosper in a competitive market.