Smart Meters and Consumer Engagement webinar

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Webinar presentation given by VaasaETT and Opower on 15 Nov 2015 about Consumer engagement and Smart Metering

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Smart Meters and Consumer Engagement webinar

  1. 1. Don’t leave your customers behind: Explore secrets to demonstrating smart meter value for customers Thursday, 15 October 2015
  2. 2. Today’s topics 1 | State of deployments: Globally and ANZ 2 | Smart meter engagement: Learnings 3 | Smart meter engagement: A framework 4 | Putting it all together: A blueprint for success 5 | Visions for Customer Engagement in the Utility Industry
  3. 3. VaasaETT overview Supporting Consumer Centric Energy Markets & Solutions Consumers Markets Offerings CONSUMERS 18 years of ground breaking research into energy consumer behaviour in liberalised energy markets MARKETS Nearly Every liberalised market (and others) tracked since the onset of competition. OFFERINGS Monitoring of what is offered to consumers around the world, how and with what success.
  4. 4. VaasaETT overview
  5. 5. VaasaETT overview VaasaETT has researched or assisted over 100 customer engagement programmes around the world
  6. 6. State of deployments: Overview Source:
  7. 7. State of deployments: Europe • 80% smart electricity meters by 2020 (approx. 200m elec. smart meters and 45m gas) • Total installation estimated 154.7 million by 2017. • Consumer response mixed • Websites, emails, information campaigns, newsletters, site visits and phone calls etc. at time of installation of a new meter are the most common type of consumer communication Source: European Commission, 2015
  8. 8. State of deployments: USA Expected smart meter deployment by US state in 2015 • >50m smart meters deployed in the U.S as of end 2014. • 30 of the largest utilities in the U.S. have fully deployed smart meters • Several states have implemented policies that allow customers to opt out • The number of customers that have officially requested to opt- out of a smart meter installation is low (according to IEI 2014 Smart Meter survey) Source: IEI 2014, VaasaETT Analysis
  9. 9. State of deployments: ANZ Australia NEM (non Vic) • New rules in 2017 • Opt-out for new meter (new homes, upgrades and replacement) • Opt-in for the rest (mostly related to the new offerings) • NSW has recently announced a voluntary market-led rollout. • AGL has started rolling out prior to the new Rules in South Australia Victoria • Completed the full roll-out • 2.8 million meters installed • Mandated roll-out Result Very negative in VIC, Negative elsewhere so far New Zealand Status • 1.26 million smart meters deployed (about 72% of the total meters) • Commenced in 2015; expected to complete in 2018 • Averagely 17,000 meters/month Approach Market-led, Opt-in Result • Generally positive on public feedback and ROI • Limited resistance from a few minor groups (e.g. conspiracy theorists)
  10. 10. Audience Question #1 In your view, which area will see the most significant value from current and future smart meter deployments in Australia and New Zealand? 1. Customer-driven value added services 2. Demand side management 3. Operational savings and grid reliability 4. Integration of renewables & distributed generation
  11. 11. Today’s topics 1 | State of deployments: Globally and ANZ 2 | Smart meter engagement: Learnings 3 | Smart meter engagement: A framework 4 | Putting it all together: A blueprint for success 5 | Visions for Customer Engagement in the Utility Industry
  12. 12. Negative Impact of Smart Meter Deployments
  13. 13. Post Roll-Out Campaigns Don’t Really Work
  14. 14. Because Customers Are Pre-Disposed • Automatic outage detection, restoration and SMS notifications • Accurate Bills (not estimated) • In-home display • Energy alerts • Cheaper costs when moving house • Smoother switching between retailers • Flexible pricing • Smart appliances / smart thermostats • Solar: monitor what percentages of solar and mains electricity you are using and change usage patterns to take advantage of your solar generation. • Allows power companies to sack thousands of meter readers, increase charges and remotely control electricity supply for their financial advantage. • Give no real benefits for customers who have paid power companies over $2 billion towards the cost of meter installations. • Allows power companies to force peak tariffs charges onto customers, increasing the costs to people who can least afford it. • Allows power companies to remotely control home appliances. • Cause thousands of people who are sensitive to microwave radiation to suffer health ailments including headaches, insomnia, heart palpitations, ringing in the ears, fatigue and other health issues.
  15. 15. Only Experience Changes Perceptions Storuman Energi, Sweden Flick, New Zealand Tempus, Great Britain Origin, Australia Chamelian, UK
  16. 16. Only Experience Changes Perceptions Source: AGL Source: Opower & Mercury Energy Mixed success, huge potential
  17. 17. Source: ADVANCED FP7 Project, 2014 Insights which questions old beliefs… DO NOT JUST FOCUS ON HIGH BILLS Simply paying attention to energy use because of a high cost actually reduces a customer’s propensity to participate in Active Demand programs…
  18. 18. Source: ADVANCED FP7 Project, 2014 Insights which questions old beliefs… FOCUS ON PERSONALISED UNDERSTANDING Only when the communication effort was personalized and a better understanding about energy consumption achieved did people become positive about smartening their energy usage…
  19. 19. Insights: What Works? 1. Segmentation 2. Harvesting data 3. Communication a) Simple b) Linked to behaviour c) Not primarily about savings d) Not primarily about being green e) But by taking the customer’s concerns seriously f) Non-stop journey g) Do not promote the smart meter as the benefit but the benefits as the smart meter h) MAKING IT FUN & Fashionable - Something to shout about 4. Preparation for changes not only within the minds of the customers but also internally in the organizations of your industry 5. Before, during and after smart meter roll-out
  20. 20. 17.3% Circulation of Newspapers (drop from 2001 to 2008) Source: Newspaper Assn of America 18% Number of households saying ”no” to paper ads Source: Post Danmark 10% Network TV Viewership (drop in 2009) Source: TV Report 14.2% Household Telephone Usage (drop in 2009) source: ITU World Telecommunication 21% Yearly e-mail growth source: Forrester 1.3 bio Smart Phones shipped in 2014 source: IDC 2.8 bio Global Internet Users Source: Internet World Stats 1.5 bio Facebook users Source: Internet World Stats Insights: Dynamic Engagement for Changing Behaviour Digitalisation has changed the way we interact from business driven to customer driven and from single channel to multi channel.
  21. 21. Non-activeActive IndifferentActive OppositionalModerate Concerned Green Not concerned Anti green Listen to the man in the street I have lots of other things to care about Progress is good, but one step at a time Power by the people – let’s get into actionWhich actually is an enabler for starting a dialogue…… Insights: Dynamic Engagement for Changing Behaviour
  22. 22. SEGMENT UTILITY ROLE COMMUNICATION Comfortable Advisor Step by step explanation, constant reassurance, not too many words. Easy to understand diagrams Active Guide Feed back programs, analysis, follow up, recommendations – applauding - very personal Moderate Coach Asking questions – giving answers. Encouraging, status on environmental benefits Oppositional Teacher Calming down, reassuring. Telling what to do and explaining. Positive words, giving way, understanding, small steps at a time Insights: Dynamic Engagement for Changing Behaviour
  23. 23. 1 | State of deployments: Globally and ANZ 2 | Why smart meter engagement? 3 | Smart meter engagement: A framework 4 | Putting it all together: A blueprint for success 5 | Visions for Customer Engagement in the Utility Industry Today’s topics
  24. 24. WORKING WITH 98 utilities PROCESSING DATA FOR OVER 58 million homes & SMEs ANALYZING OVER 400 billion meter reads
  25. 25. Continuous value creation Post-installation engagement Roll-out campaign A framework for smart meter engagement Pre-deployment education Proactively engage customers and the community prior to installation to gain consumer trust Proactively engage customers and the community prior to installation to gain consumer trust Establish baseline energy management tools enabled by interval data Make customer engagement a priority as additional smart meter-enabled technologies and programs are available 6 months prior 4 weeks prior 4 weeks after Ongoing
  26. 26. Engagement results in greater value for customers, as well as measurable business value Increase customer loyalty Decrease cost to serve Enable demand side management Increase adoption of new products and services Continuous value creation Post- installation engagement Roll-out campaign Pre-deployment education
  27. 27. Gain consumer trust by proactively engaging the community prior to installation Continuous value creation Post-installation engagement Roll-out campaign Pre-deployment education 6 months prior CASE STUDY Awareness and community engagement campaign Phase I: Raising awareness Phase II: Direct engagement Launch of interactive website Phase I local newspaper advertising Phase II local newspaper advertising Public transit advertising Campaign events
  28. 28. Maryland, USA Pair the hardware installation with an education campaign Continuous value creation Post-installation engagement Roll-out campaign Pre-deployment education 4 weeks prior CASE STUDY Smart meter value education & tools introduction 4 weeks before installation Post card introducing Smart Meters during installation Smart Meter benefits door-hanger 4 weeks after installation Opower report & welcome insert 5 weeks after installation Email reminder
  29. 29. Result: Greater customer understanding of investment value and acceptance 47% 40% 42% 62% 54% 57% I have a good understanding of smart meters and their function I have a favourable opinion of smart meters My smart meter has given me personally useful information Control Opower Report Recipients +15% +14% Continuous value creation Post-installation engagement Roll-out campaign Pre-deployment education 4 weeks prior +15%
  30. 30. CASE STUDY Smart meter enabled alerts + self-service insights Establish baseline energy management tools enabled by their new smart meters 4 weeks after Continuous value creation Post-installation engagement Roll-out campaign Pre-deployment education Customer satisfaction 5% increase in overall customer satisfaction Call center reduction 19% decrease in high bill calls during highest volume months
  31. 31. CASE STUDY Smart meter enabled alerts + self-service insights Weekly AMI emails Smart meter insights via web Continuous value creation Post-installation engagement Roll-out campaign Pre-deployment education 4 weeks after Establish baseline energy management tools enabled by their new smart meters
  32. 32. CASE STUDY 1 Proactive TOU engagement Ongoing Continuous value creation Post-installation engagement Roll-out campaign Pre-deployment education Make customer engagement a priority as additional technologies and programs are enabled CASE STUDY 2 Solar net metering self-service
  33. 33. Audience Question #2 Which of the four stages are the most important for your business in the next 2 years? 1. Pre-deployment education 2. Rollout campaign 3. Post-installation engagement 4. Continuous value creation
  34. 34. 1 | State of deployments: Globally and ANZ 2 | Why smart meter engagement? 3 | Smart meter engagement: A framework 4 | Putting it all together: A blueprint for success 5 | Visions for Customer Engagement in the Utility Industry Today’s topics
  35. 35. Three requirements for a successful deployment Qualify the business case for a smart meter deployment1 2 Establish the underlying technology platform 3 Execute on the smart meter engagement framework
  36. 36. The business case for the investment greatly improves when customer value can be created $- $50 $100 $150 $200 $250 $300 $350 $400 Costs Operational savings Customer-driven benefits Total NPV benefits per smart metered home (20 year life | USD) Incremental customer engagement investment ($46) Technology + installation ($237) $148 $130 Incremental customer engagement benefit $103 NET BENEFIT $41 per smart metered home NET BENEFIT $98 per smart metered home
  37. 37. One technology platform equipped to deliver a customer experience during all framework stages
  38. 38. Today’s topics 1 | State of deployments: Globally and ANZ 2 | Smart meter engagement – Reasons and Realities 3 | Smart meter engagement: A framework 4 | Putting it all together: A blueprint for success 5 | Visions for Customer Engagement in the Utility Industry
  39. 39. Visions & Trends: New Energy Lifestyles
  40. 40. Visions & Trends: Communities & Platforms
  41. 41. Visions & Trends: Community Lifestyle Platforms
  42. 42. Visions & Trends: The Missing Factors? Source: ADVANCED FP7 Project, 2014 Calculus
  43. 43. Visions & Trends: The Missing Factors? X Factor Italy / ENEL Coolness
  44. 44. Visions & Trends: The Missing Factors? Closeness
  45. 45. Thank you.

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