How mobile is key to customer service

Consumers are happy interacting with suppliers via mobile apps, but energy companies have been slow to catch on to this. David Tuohy says there is a first-mover advantage to be had.

There are more than 40 energy utilities competing in the UK. Traditionally, the incumbents have prioritised their infrastructure assets over improving customer relationships.

However, with increasing consumer demand for better service, utilities are starting to recognise that customers are probably their most important asset.

The big six maintain a dominant position, serving an estimated nine out of ten customers in the UK. However, when Which? surveyed UK consumers on which utilities had the best customer service, they all scored remarkably low in the rankings.

The question is, how can utilities improve relationships with their customers and get ahead of the competition? Mobile technology could be a big part of the answer. Consumers have fully adopted a mobile lifestyle and expect to be able to engage with their suppliers on their personal devices. Mobile usage grows 58 per cent year-on-year, according to research by Flurry and Google.

While the mobile first approach is both employed and expected in a variety of industries, it has been slow to infiltrate the energy sector.

Here are three considerations that will help shape a winning mobile strategy.

1. Ensure a unified customer experience

Customers want a service that is easy to use, flexible and brings value to their lives. Customers expect a single app for all their interactions with their utility. This includes home improvement suggestions, energy saving tips, bill notifications, payments, and even control of smart devices in the home, such as changing connected thermostat settings to save energy.

We have seen great examples of how design thinking can be applied to ensure the consumer has a delighting experience within other industries. An uncluttered and simple but intuitive interface is what consumers have become accustomed to from their bank and airline. They expect nothing less from their energy utility. 

2. Utilise data analytics to get personal

Gartner reports that only 10 per cent of businesses have a data analytics strategy. The use of big data presents a substantial opportunity for utilities to differentiate themselves from the competition. Data-driven, personalised and targeted communications give utilities an opportunity to cross and up-sell services that add significant value to their customers.

For instance, a utility can provide their customer with a detailed view of how their home consumes energy versus local weather, which could show an unusually high amount of gas being used for heating versus an average home. This data can then be used to present an offer to re-insulate the home, replace an old boiler or purchase a smart thermostat.

This is possible thanks to data analytics but it is vital the customer receives the information when it matters most. Pushing relevant notifications to the right customer, at the right time and through the right channel will lead to higher engagement and customer
satisfaction. This helps to reduce churn and drive sales of new services.

3. Get ready for a connected and smart home

The government’s plans for a mass rollout of smart meters combined with rapid adoption of connected thermostats will greatly improve energy insights for both the consumer and utility. The smart utility will remain platform agnostic and incorporate new services via open APIs (application programming interfaces) and cloud-to-cloud integration.

The utility app of the future should enable a consumer to calculate the savings on their total energy bill by adjusting the settings on a smart thermostat and to update the thermostat settings without ever having to leave the utility app.

However, not all homes are connected equally or yet have access to smart devices. Data analytics can provide useful insights to improve existing service offerings and to develop new services. The key to a unified mobile customer experience will be to initially gain an understanding of the home and consumer behaviour without hardware, and use the smart devices to further enhance consumer interactions.

If a utility wants to create a data-driven, personalised mobile customer experience, they will need foster a seamless transition to connected and smart devices. The consumer will demand more from their utility, and expect an app that enables a unified and personalised interaction.

The key is to build an app that delivers value to both the utility and the consumer. In addition, utilities that incorporate the use of data analytics to better understand and interact with their customers will achieve higher adoption and more meaningful and lasting engagements.

Ultimately, the outcome for the utility is stronger customer relationships that result in loyalty, increased adoption of new products and services and sustainable market share.