The New Energy Consumer

24 January 2014
Agenda

NEC12

 The New Energy Consumer Initiative
 A New Era of Change and Uncertainty
 Summary Netherlands results
1....
Accenture’s New Energy Consumer Research Program
Over 4 years of comprehensive and continuous research focused on energy u...
Agenda

NEC12

 The New Energy Consumer Initiative
 A New Era of Change and Uncertainty
 Summary Netherlands results
1....
Risks today, uncertainty tomorrow
Utilities are facing a storm of forces that are reshaping the market landscape and are
i...
A future of Uncertainty, Disruption and… Opportunity?
The changing market place, uncertainty and disruption require Utilit...
Agenda

NEC12

 The New Energy Consumer Initiative
 A New Era of Change and Uncertainty
 Summary Netherlands results
1....
1. Delivering operational excellence

8
Consumer’s level of trust in their utilities/energy providers has
decreased
What organizations do you trust to inform you ...
Active community involvement, offering the latest technology,
treating employees well and offering physical locations are
...
2. Optimizing customer interaction

11
Aside from the bill payer, others in the home have influence on
energy usage
Thinking about all the members of your househ...
Consumers are most interested in learning about energy or
related products and/or services during their discretionary time...
Consumers have different expectations for the features offered
on an energy provider’s website if they are accessing it vi...
3. Creating lasting customer
engagement

15
On a year-on-year basis, consumers are less satisfied with
their energy providers
What is your level of satisfaction with ...
Nevertheless, to date, the impact on loyalty is limited and overall
consumers’ intention to switch has decreased
Are you c...
Since 2011, the interest in alternative providers for purchasing
electricity and beyond-the-meter products and services ha...
Better prices and convenience are the main drivers why
consumers would consider purchasing from an alternative
provider
Wh...
Preferences for rate plans vary significantly across geographies
If your energy provider offered the two following rate pl...
4. Extending the value proposition

21
The main barriers to investing in energy-related products
and/or services are cost along with perceived lack of financial
...
Cost savings and financing options are key to motivating
consumers to make substantial investments in energy-related
produ...
Agenda

NEC12

 The New Energy Consumer Initiative
 A New Era of Change and Uncertainty
 Summary Netherlands results
1....
Global Agenda: Ten Key Priorities for Energy Providers

Economics of
Dissatisfaction

Retail
Redefined

Unconventional
Par...
Growing customer preference for digital
Sustainable, effective digital development requires strategic value-based prioriti...
Example digital customer experience

Copyright © 2014 Accenture. All rights reserved.
Spotlight On E.On
E.On Sweden provide a leading example of how digital technology can be leveraged to
drive specific strat...
Statements
1. Over 5 jaar vindt 80% van het klantcontact digitaal plaats
2. Over 5 jaar wordt 80% van de producten en dien...
Accenture Energy Consumer Services provides
customer care solutions for competitive energy
providers globally.
We help our...
Upcoming SlideShare
Loading in …5
×

HPMC 2014 - The New Energy Consumer - Accenture Netherlands

1,669 views

Published on

Presented during the High Performance Marketing Conference 2014, organized by Accenture on January 23rd, 2014.

Published in: Business, Technology
  • Be the first to comment

HPMC 2014 - The New Energy Consumer - Accenture Netherlands

  1. 1. The New Energy Consumer 24 January 2014
  2. 2. Agenda NEC12  The New Energy Consumer Initiative  A New Era of Change and Uncertainty  Summary Netherlands results 1. 2. 3. 4. Delivering operational excellence Optimizing customer interaction Creating lasting customer engagement Extending the value proposition  Ten Strategic Priorities for Energy Providers Copyright © 2014 Accenture. All rights reserved. 2
  3. 3. Accenture’s New Energy Consumer Research Program Over 4 years of comprehensive and continuous research focused on energy users, our research offers actionable insights into the preferences and values shaping the energy marketplace. >40,000 consumers surveyed in 21 countries >2,000 small and medium businesses in 9 countries Copyright © 2014 Accenture. All rights reserved. Survey of market trends & priorities for 20 leading utilities customer executives Market insights & leading practices from more than 50 leading energy providers and over 30 cross industry providers In-depth analysis of technology adoption in 8 major markets 3
  4. 4. Agenda NEC12  The New Energy Consumer Initiative  A New Era of Change and Uncertainty  Summary Netherlands results 1. 2. 3. 4. Delivering operational excellence Optimizing customer interaction Creating lasting customer engagement Extending the value proposition  Ten Strategic Priorities for Energy Providers Copyright © 2014 Accenture. All rights reserved. 4
  5. 5. Risks today, uncertainty tomorrow Utilities are facing a storm of forces that are reshaping the market landscape and are increasing uncertainty in the market. Government & regulatory shifts Advancing technology Uncertainty is increasing Shifting consumer preferences Copyright © 2013 Accenture. All rights reserved. Sustainability 5
  6. 6. A future of Uncertainty, Disruption and… Opportunity? The changing market place, uncertainty and disruption require Utilities to develop simple and agile organizations The Rise of ‘Economics of Dissatisfaction’ In order to be successful, Utilities need to build simple, flexible organizations, while eliminating key dissatisfiers across strategic imperatives: Reduce Operational ‘Cost-to-Serve’ Enhance Revenue Potential Sustain or Improve Customer Value Drive Energy Efficiency Goals 6
  7. 7. Agenda NEC12  The New Energy Consumer Initiative  A New Era of Change and Uncertainty  Summary Netherlands results 1. 2. 3. 4. Delivering operational excellence Optimizing customer interaction Creating lasting customer engagement Extending the value proposition  Ten Strategic Priorities for Energy Providers Copyright © 2014 Accenture. All rights reserved. 7
  8. 8. 1. Delivering operational excellence 8
  9. 9. Consumer’s level of trust in their utilities/energy providers has decreased What organizations do you trust to inform you about actions you can take to optimize your energy consumption? Do not trust Consumer associations Academics/schools/scientific Associations Environmental associations Government/governmental organizations Online service providers (e.g., Google, Microsoft) Utilities/energy providers Home service providers (e.g., cable television provider, telecommunications provider, home security company, etc.) Retailers/equipment manufacturers Base: All Netherlands respondents Copyright © 2014 Accenture. All rights reserved. 9% Neither trust nor distrust 44% 8% 47% 50% 15% 18% 33% 32% 53% 23% 24% 65% % Trust 2012 44% 42% 53% 23% Trust 23% 17% 18% 22% 61% 17% 27% 23% 61% 16% 17% 34% 57% 9% 18%
  10. 10. Active community involvement, offering the latest technology, treating employees well and offering physical locations are where consumers feel their energy providers over perform How important are each of the following factors in building your trust with your energy provider? Based on your experience to date, how would you rate your energy provider’s performance on each of the following factors? Accurate invoice Easy to understand 91% Reliable energy Ethical brand Environmental brand Energy advisor Valued employer Partners to create value Techsavvy Community member Face-toface interaction 91% 88% 85% 89% 85% 85% 82% 79% 77% 87% 78% 76% 78% 75% 73% 71% 61% 68% 63% 47% Consistently Provides clear gets my bill and easy-tocorrect understand pricing information Provides me with reliable energy delivery Is known to have ethical business practices Base: All Netherlands respondents Copyright © 2014 Accenture. All rights reserved. Is known to work to protect the environment Informs my family or me about efforts we can take to decrease energy usage Is known for treating its employees well Partners with other companies or organizations to enhance its offerings Importance (Somewhat + very important) Offers me the latest technology Is actively involved in my city and neighborhood 47% Offers a physical location where I can meet with its representatives Performance (Good + excellent)
  11. 11. 2. Optimizing customer interaction 11
  12. 12. Aside from the bill payer, others in the home have influence on energy usage Thinking about all the members of your household, please indicate the level of influence the following have on energy usage in your home (e.g., set the temperature, turning lights on/off, turning on/off entertainment, doing laundry, etc.) Moderate to significant influence Bill payer 94% Spouse-partner 90% Other adults who live in the home 74% Teenagers (13 to 18 years) 72% Regular in-house services 69% (e.g., nanny, child care, etc.) 68% Occasional in-house services (e.g., house cleaning, pool servicing, etc.) Children (12 years and under) Base: All Netherlands respondents; excludes “Not Aplicable“ responses Copyright © 2014 Accenture. All rights reserved. 51%
  13. 13. Consumers are most interested in learning about energy or related products and/or services during their discretionary time and when shopping for products for the home Where would you be most interested in learning about energy or energy-related products and/or services, and how much time would you be willing to dedicate to learning about them? During my free time 33% (e.g., at home on evenings or weekends) While shopping for appliances 35% (e.g., washer, dryer, fridge, etc.) While shopping for materials or products to make major renovations to my home 58% 25% 52% 17% 28% 51% 23% (e.g., insulation, furnace, windows, etc.) While shopping for electronics 34% 14% 48% (i.e., television) While shopping for minor home improvement products 34% 12% 46% (e.g., light bulbs, weather stripping, etc.) While waiting to buy something 25% 6% 31% (e.g., waiting for coffee or food, etc.) While traveling 18% At work 18% 7% While shopping for groceries 17% 26% 8% (e.g., waiting for a train, while on a train, etc.) At an event (e.g., concert, sporting event, etc.) Base: All Netherlands respondents Copyright © 2014 Accenture. All rights reserved. 14% 6% 6% 25% 23% 20% <5 minutes >5 minutes
  14. 14. Consumers have different expectations for the features offered on an energy provider’s website if they are accessing it via a mobile device versus a traditional computer Provided you had access to a traditional computer (e.g., laptop or desktop) and a mobile device (e.g., smartphone), which of the following features would you want available on your energy provider’s website? 26% Detailed information about my energy usage 79% 22% Personalized tips on actions I can take to reduce my energy bill 49% 24% Personalized offers and coupons 44% (e.g., coupon for laundry detergent, rebate for appliances) 32% Notifications about my energy usage 43% (i.e., notification when higher than normal bill is forecasted) 22% Ability to perform self-service transactions 38% (e.g., pay bill, update account information, view outage information, etc.) 20% Reviews on energy-related products and services 35% (i.e., reviews of energy-efficient appliances) 14% Ability to purchase energy-related products and services from the website 31% (i.e., purchase an energy-efficient appliance) 17% Ability to purchase prepaid energy to use in the future 24% 35% Ability to control heating, cooling, or appliances in my home 18% 20% 15% Online games that educate my family about energy waste-conservation 22% Ability to participate in social games (i.e., compete with neighbors on decreasing energy usage) 13% An online community hosted by my energy provider to share energy-saving tips 13% 13% 0% Base: All Netherlands respondents Copyright © 2014 Accenture. All rights reserved. 20% Using a mobile device Using traditional computer 40% 60% 80% 100%
  15. 15. 3. Creating lasting customer engagement 15
  16. 16. On a year-on-year basis, consumers are less satisfied with their energy providers What is your level of satisfaction with your current energy provider? Please use a 10-point scale for which 1 means that you are extremely dissatisfied and 10 means that you are extremely satisfied 2013 Very satisfied 2012 18% 21% 76% Satisfied 82% 58% 61% Neutral 17% Not very satisfied Not satisfied at all 2% 5% 15% Base: All Netherlands respondents Copyright © 2014 Accenture. All rights reserved. 2% 1%
  17. 17. Nevertheless, to date, the impact on loyalty is limited and overall consumers’ intention to switch has decreased Are you considering switching to another energy provider in the next 12 months? Please use a 10-point scale for which 1 means that you will certainly not switch to another energy provider in the next 12 months and 10 that you will certainly switch 2012 2013 Certainly Probably 6% 11% 17% 11% 25% 14% Neutral 20% 15% Probably not Copyright © 2014 Accenture. All rights reserved. 11% Certainly not Base: All Netherlands respondents 14% 49% 49%
  18. 18. Since 2011, the interest in alternative providers for purchasing electricity and beyond-the-meter products and services has decreased You may currently, or in the future, have new companies offering you electricity, energy-efficient products (i.e., smart thermostats), and/or related services (i.e., customized information on your electricity consumption) on top of their traditional products and services. Would you consider purchasing electricity, energy-efficient products, and/or related services from the following providers: Yes, could consider a provider other than a utility/electricity provider 46% 60% (i.e., retailer, phone or cable provider, online site) Retailer 33% 38% (e.g. Koninklijke Ahold N.V ) Phone or cable provider 32% (e.g., Koninklijke KPN N.V) Online site (e.g., Amazon, Google) 47% 28% 31% 2013 2011 Base: All Netherlands respondents Copyright © 2014 Accenture. All rights reserved.
  19. 19. Better prices and convenience are the main drivers why consumers would consider purchasing from an alternative provider Why would you consider purchasing energy or energy-related products and/or services from a provider other than your energy provider (e.g., retailer, phone or cable provider, website)? Mentioned in top three The provider has lower prices than my energy provider 57% I can bundle products and services to get a discount 48% (e.g., Internet, phone and electricity) I have had better experiences dealing with this provider than with my energy provider 34% The provider has a store where I can talk to a representative, see products and discuss services 31% 29% The provider has better service than my energy provider The provider has a better return or service cancellation policy than my energy provider 25% 20% I trust the provider more than my energy provider 17% The provider is a local company I belong to the provider’s loyalty rewards program 9% Base: Netherlands respondents who would consider purchasing energy or energy-related products and/or services from providers other than their energy provider Copyright © 2014 Accenture. All rights reserved.
  20. 20. Preferences for rate plans vary significantly across geographies If your energy provider offered the two following rate plans, which option would you select? 77% 76% 23% 24% CN KR 46% 52% 52% 51% 51% 51% 49% 56% 55% 60% 60% 59% 58% 58% 64% 64% 61% 61% 69% 67% 54% 49% 49% 49% 51% 45% 48% 48% 44% 39% 39% 40% 40% 41% 42% 42% 33% 36% 36% 31% IT PL ZA SG Base: All respondents Copyright © 2014 Accenture. All rights reserved. TR AU BR CA ES AVG FR JP Flat rate plan The price of energy is fixed and does not change throughout the day. You do not need to pay attention to the times at which you use energy, but you cannot save money on your energy bill by actively managing the times at which you use energy DE SE DK UK NO BE US NL Variable rate plan The price of energy changes throughout the day. You can save money on your energy bill if you actively manage the times at which you use energy (i.e., use major appliances when energy is cheaper), if you do not, your energy bill will increase
  21. 21. 4. Extending the value proposition 21
  22. 22. The main barriers to investing in energy-related products and/or services are cost along with perceived lack of financial payback In the next 12 months, are you planning to spend money on energyrelated products and/or services for your home (e.g., energy-efficient appliances, smart thermostats, etc.)? Why are you not planning to spend money on energy-related products and/or services in the next 12 months? Mentioned in top three I cannot afford the cost of the required investment Yes, I plan to spend money 71% I do not think it will result in significant cost savings on my energy bill 59% I am not able to make changes to my home 46% (i.e., I rent it and do not own it) 41% I do not want to spend money on energy related products and services 59% 37% I do not think it will have a significant impact on the environment 35% I do not know what energy related products and services are available No, I do not plan to spend money Base: All Netherlands respondents I do not have the time to learn about these new energy products and services 23% 14% Base: Netherlands respondents who do not plan to spend money
  23. 23. Cost savings and financing options are key to motivating consumers to make substantial investments in energy-related products Some energy-related products (e.g., solar panels, energy efficient appliances, etc.) can be expensive. Would any of the following motivate you to purchase energyrelated products that require a significant financial investment? Mentioned in top three Guaranteed reduction in your energy bill 66% Discounts on bundles of energy and energy-related products 49% (e.g., bundling electricity with solar panels) Flexible payment plans to finance my purchase 39% (e.g., monthly payments on my bill, no payments for two years, etc.) Renting options 37% (e.g., rent solar panel, programmable thermostat, etc.) Loyalty points in return for money that I spend with my energy provider 30% Ability to transfer remaining payments on energy-related products if I move 27% (e.g., transfer financing payments on my solar panels to the new owner if I sell my home) None of these would motivate me to purchase energy-related products that require a significant financial investment Base: All Netherlands respondents Copyright © 2014 Accenture. All rights reserved. 13%
  24. 24. Agenda NEC12  The New Energy Consumer Initiative  A New Era of Change and Uncertainty  Summary Netherlands results 1. 2. 3. 4. Delivering operational excellence Optimizing customer interaction Creating lasting customer engagement Extending the value proposition  Ten Strategic Priorities for Energy Providers Copyright © 2014 Accenture. All rights reserved. 24
  25. 25. Global Agenda: Ten Key Priorities for Energy Providers Economics of Dissatisfaction Retail Redefined Unconventional Partnerships Copyright © 2014 Accenture. All rights reserved. Bridging the Digital Divide The Consumer Ecosystem The Neglected Middle Workforce of the Future Enterprise State of Mind Reinventing Value Age of Turnkey Technologies 25
  26. 26. Growing customer preference for digital Sustainable, effective digital development requires strategic value-based prioritization and planning to deliver robust infrastructure, cumulative benefit and full integration with existing operations and strategy. Progressive Adoption of Mobility Globally 800 More than $100bn spent on mobile media globally Global Smartphone Volume (Millions) 700 + 31% 600 Mobile device penetration exceeds PC 500 + 38% 400 Smartphone catalyzes disruptive technology innovation 717.5m 300 494.5m + 43% 200 + 20% 305m +14% 100 119.7m 139.3m 2007 2008 175m 2009 2010 Year Copyright © 2014 Accenture. All rights reserved. 2011 2012 “61% of customers would prefer to use digital channels for ¾ of their key utility interaction scenarios1”
  27. 27. Example digital customer experience Copyright © 2014 Accenture. All rights reserved.
  28. 28. Spotlight On E.On E.On Sweden provide a leading example of how digital technology can be leveraged to drive specific strategic outcomes, consumer behaviors and business goals in a utilities context. E.On created ‘Sweden’s Largest Energy Experiment’ to drive customer energy efficiency adoption through provision of multiple digital tools that visualized, tracked and monitored participant energy usage. 1 10k customers were provisioned with a smartphone app that monitored real time power usage for their household 3 The initiative was supported by a larger campaign community website to facilitate comparisons and sharing 2 Over 12 months the app visualized their energy consumption in 5 ways to determine the most effective 4 Participants on average saved 12% on their energy consumption over the course of the year Watch the full outcomes on YouTube here: http://www.youtube.com/watch?v=jHgZc4m1FtA&feature=youtu.be 28
  29. 29. Statements 1. Over 5 jaar vindt 80% van het klantcontact digitaal plaats 2. Over 5 jaar wordt 80% van de producten en diensten aangeschaft, in gebruik genomen en gefactureerd via digitale kanalen 3. Utilities kunnen alleen overleven als ze aansprekende en relevante digitale value added services aanbieden aan hun klanten 4. Business en cultuurchange zijn grotere challenges dan IT change om een digitale transformatie te realiseren 5. Digital = Internet Copyright © 2014 Accenture. All rights reserved.
  30. 30. Accenture Energy Consumer Services provides customer care solutions for competitive energy providers globally. We help our clients to develop and implement full valuechain solutions that achieve three key business imperatives: cost effectiveness, revenue assurance and customer satisfaction. Through new energy customer transformation, next generation customer solutions, transformational outsourcing and asset-powered services, we bring world-class industry-specific management consulting, technology and business process customer- care capabilities to our electricity, gas and water clients. How to increase customer satisfaction? What new valueadd products and services can be developed? How to reduce pressure on operational costs? How the business can be simplified? What path to define a medium- and long-term customer care strategic vision? We can help. Accenture’s global New Energy Consumer program delivers actionable insights on the trends and critical competencies for the evolving energy marketplace. Our New Energy Consumer research spans years of insights into consumer needs and preferences:

×