Independent Customer Survey (EUCOPS) for Power Distribution Utility (Licensed/Franchised) *EUCOPS – Electric Utility Customer Opinions, Preferences and Satisfaction Catalyzing emerging business models through STAKEHOLDER ENGAGEMENT | CONSULTING | RESEARCHSeptember 27, 2012 pManifold Business Solutions Pvt. Ltd. 1
We are an Information and Advisory Services company with focus on Emerging Markets Customer & Market Research for Utilities in Power, Water, Waste, Gas, Transport etc. is one specialization area Utility • Power Distribution Franchisee Research • Water utility Privatisation • Waste ManagementOur broader services Clean Technology • Solar catalyze emerging • Energy Efficiency and ESCObusiness models for bigand small businesses in Infra high growth, Consulting • PPP modelsdevelopmental sectors, through… Education • Higher Education Privatization Stakeholder ICT Engagement • ITO/ITES/BPO expansion in emerging locations Health • Out Licensing and Outsourcing . . .
… specially when utilities are monopolistic? WHY CARE CUSTOMERS..September 27, 2012 pManifold Business Solutions Pvt. Ltd. 3
Loss Reduction is core to Utility success and for it bothNetwork and ‘Customers’ need to be managedEngaging & Managing ‘Customers’ can lead to faster ‘Commercial losses’curtailment and hence better ROI realization • Part Payment by Consumer 1 • Non Delivery of Bills Technical Commercial • Non Payment by Consumer (Defaulters) • Premise Disconnected with Dues Losses Losses All relates to Customers • Consumer not billed / under-billed 2 • Provisional Billing • Bills pending for Quality Check (BQC) • Bills pending for assessment 1 • Meters installed but not appearing in data base • Un-metered connections (Unauthorized Colonies, JJ Clusters, Street Lights Poles) 2 • Meter (address) not traceable 3 • Import / Export Metering Error • C T Ratio Errors • Stop / Slow / Defective Meter 3 • CT Ratio Errors • Meters not read • Mismatch of Meters 4 • Direct Hooking 4 • Tampering / By-passing of Meter • Misuse of Category • Use of Multiple Connections - Misuse of Slab • Sanctioned Load lower than actual usage9/27/2012 www.pManifold.com DF – Distribution Franchisee 4
Higher ‘Customer Engagement’ reduces effort of new PrivateOperators to reduce losses & build positive brand ImageBetter efficiencies in Theft control, Metering, Billing and Collection, from increased‘Customer Engagement’ Overall Loss Reduction DF fulcrum Private 1 Effort Customer Engagement (Private effort reduce if Customer Engagement increase)9/27/2012 www.pManifold.com 5
Integrated Framework for ‘Systematic & Continuous Innovation’ of Customer Engagement HOW TO BUILD CUSTOMER ENGAGEMENT?9/27/2012 www.pManifold.com 6
Customer Engagement is managing both ‘Perception’ and ‘Performance’. It starts with Modeling and Measurement and that is EUCOPS. EUCOPS results integrate with overall Strategy, Structure and Systems •Customer Behaviors •Utility customer facing processes Model•Customer Performance•OperationalPerformance•Financial Performance Monitor Measure •Customer Satisfaction •Service Levels Customer Engagement •Customers & •Behaviors & trends Opinion Leaders Engage Analyze •Cause-Effect •Employees Relationships •Road map for Customer Design engagement • KPIs 9/27/2012 www.pManifold.com 7
pManifold’s Framework and Methodology EUCOPS ELECTRIC UTILITY CONSUMER OPINIONS, PREFERENCES AND SATISFACTION9/27/2012 pManifold Business Solutions Pvt. Ltd. 8
Value Proposition of our EUCOPS study Building Effective 2- Increased Public way Awareness & communication engagement with channels between Tie EUCOPS results Utility Utility & Customers with Customer database & Brand building Network Monitoring for deeper analytics Prioritize system Support to top investments for management to better ROI & monitor ground Customer issues Satisfaction Design of new and Identifying key Improving ROI & better services & issues affecting Customers Customer delivery channels Satisfaction (Ex. Energy Satisfaction Efficiency, DSM)9/27/2012 pManifold Business Solutions Pvt. Ltd. 9
Methodology Overview• A Division level “land survey” will be conducted to profile and measure satisfaction & key preferences of the electricity customers. The survey will cover the entire Franchisee areas of all population strata in the selected region. The land survey will be conducted through paper, phone and/or online mediums depending upon demographics.• The sampling will be done on “Stratified Random” basis with different electricity consumer types; For example - Residential, Commercial, Industrial and Agri across both LT and HT segments. Regional clusters/grids with dominant or high density of these consumer categories will be chosen. Then a random selection of survey respondent will be undertaken in defined clusters.• Clusters/grids will be allocated on the basis of connected load with attempt to spread grids across the region to cover all electrical divisions. The grids and random samples chosen within will be kept distant to allow capture of different localities responses to their local power infrastructure.• A comprehensive GIS model will be used for survey planning and visualization of the sample grids to avoid any sampling mistakes during data collection.• Secondary research and local intelligence will be employed to identify clusters. Utility customer records and if any network monitoring analytics will form major source for secondary research.8/8/2011 pManifold Business Solutions Pvt. Ltd. 10
EUCOPS Framework - Factors & AttributesConsumption Profiling Satisfaction questions on 7 Factors Opinion Questions Electricity consumption ‘Forced Choice’ 5 point Likert scale – VS, S, DS, VDS, NA 5 point Likert scale – Profession & Education level Order of Importance for all Attributes SA, A, N, DA, SDA Economic status 7 Factors – total 27+ Attributes Validation Meter type, backup devices etc. 1. Unplanned Outages 2. Planned Outages 3. Voltage Stability 4. Safety & Maintenance 5. Local Electricity Infrastructure 7. Ease of New Meter 6. Breakdown Restoration Power Quality & 8. Resolution Meter Complaints Reliability 9. Resolution Billing Complaints 10. Customer Service Response Time 11. Staff Behavior 27. Capability Company Image Customer 12. Access to customer service 28. Community Engagement Service CS 13. Advance notice about disruption 14. Advance notice about public work 25. Complaints Traceability 15. Awareness- Energy Efficiency 26. Online Accessibility of Information 16. Awareness- Customer Rights Access & Record Communication 17. Communication Modes Records Handling 18. Meter Accuracy 23. Fairness of Price 19. Bill Receipt on Time 24. Value for money Meter Billing 20. Billing Accuracy Price and Payment 21. Easy bill understanding 22. Modes of Payment 11 This EUCOPS framework is suggestive as already deployed at more than 13 sites. It could be customized for region/client specific.
Process Flow with Quality Control Smart Mobile phone based data collection automates GIS coding & digitization, and strengthen traceability of field data collection with copy of bill/meter F F F QC Survey Questionnaire Sample Plan Survey GIS Plan Survey Team Training Inputs • 95% ± 5% Confidence • GIS grid allocation covering • 1or 2 days training (faculties + • Inputs from all Level at sub-Division Level DCs students)/ External Agency Stakeholders • Coverage of proper • Coverage geographically • 1 day practical on-site session subgroups within a segment spread & as per utility issues for team members QC QC QC Survey Execution and Survey Data Digitization GIS Mapping Data Analysis Monitoring • MS Access database • GIS Mapping of • CSI Calculations • Daily updating by team digitization (in case of Respondents • Pattern and Trend members, Daily data check paper based surveys) • Associating data and Analysis • Daily customer feedback call • Consistency Check KML generations F F Management Reporting Final Top Final Reports with recommendations. Management Presentation Next Steps (‘Service Level Assessment’ & ‘Customer Engagement’)F – Feedback from Client 12QC – Quality Checks for Survey Data Authentication, Validation
SAMPLE ILLUSTRATIONS OF RESULTS – HOW IT HAS HELPED OTHERS…9/27/2012 Copyright (c) pManifold 13
ILLUSTRATIONBenefits for the Top Management• Overview of what is important to customer • Dashboard view to compare Zones across 7 and how they feel they are being served factors of customer satisfaction Gap between Expectations & Perception of utility’s Performance Power, Quality & Reliability 20% 15% Customer Company Image Service 10% 5% 0% Information Access & Rec Communication Handling Trend view of improvement in customer’s satisfaction from baseline Meter, Billing & Price Payment Weighted CSI (Perception) Weighted Order (Expectations)September 27, 2012 pManifold Business Solutions Pvt. Ltd. 14
ILLUSTRATIONBenefits for the Strategy teamIdentification of Priorities for planning improvements (both Capex and Opex) Importance HIGH 1.30 Fairness of Price Customer Priority Matrix Value for money 1.20 Unplanned Outages Meter Accuracy Satisfaction HIGH Satisfaction LOW Advance notice about Planned Outgaes 1.10 disruption Advance notice about public Bill Receipt on Time Service Response Time work Billing Accuracy Resolution Billing Resolution Meter Complaints Voltage Stability 1.00 Complaints Safety & Maintenance Awareness- Consumer Breakdown Restoration Easy bill understanding Rights Capability Modes of Payment 0.90 Complaints Records Awareness- Energy Efficiency handling Ease of New Meter Staff Behavior Communication Modes Community Engagement Online Accessibility to records 0.80 Access to customer service 0.70 40.00 45.00 50.00 55.00 60.00 65.00 70.00 75.00 Importance LOW9/27/2012 pManifold Business Solutions Pvt. Ltd. 15
pManifold has broad portfolio in the Distribution Utility/Franchisee spacewith deep understanding of ground challengesActive and independent contributor for scale-up of Power Distribution Franchisee Model Stakeholder Providing Bid/Deal Customer/Demand Research Reports Consulting Engagement Intelligence Studies• pManifold’s • Input Based • Regular DF bids • Conducted EUCOPS • Technical Due Linkedin-based Distribution and Deal Tracker study for 5 DF Diligence and Community of Franchisee Market • Supported utilities in 3 states Financial modeling Interest on Power in India (published informed bidding (MS, MP, Orissa) for Distribution Distribution 2012Q1) by DF Bidders & with total 6000+ Franchisee bidding Franchisee is the • Smart Metering influenced RFP customer at MP, MS and largest and most Landscape and design by GoMP interviews. Jharkhand states active virtual adoption (for 3 towns of MP • Conducted • Power DF entry platform in India challenges in India – Willingness to Pay strategy DF space. (due in 2012Q2) Gwalior, Ujjain, and (WTP) study for an• Conference on Sagar) utility with 1000+ ‘Utility Monitoring • Detailed RFP customers for new & Distribution analysis and privatization model Franchise (DF) - customer financial closure Enhancing SEB‘s segmentation Performance’ for • Socio-economic IIES analysis to• Active blog on estimate load Smart Distribution growth covering sectoral • Detailed Financial activities and modeling for bid knowledge sharing. estimation9/27/2012 www.pManifold.com 18
pManifold’s Value PropositionCreating standard customer ratings across different Utilities at all India levelthrough.. Independent Assessment Integrated & Scientific Methodology • Clear, transparent & structured ground reporting to • Validated sampling & survey methodology with Top Mgmt. and Operations Team National and International experts • Potential independent reporting and share of • Transparent and Traceable data collection through customer engagement results with Licensee and usage of GPRS enabled mobile phones and geo Regulators (only if requested) tagged customer-meter picture • Strict confidentiality of data maintained, and strong • Integration of customer data from varied primary ethics followed sources (Records, land/ online/ sms surveys, touch • Potential leverage in improving utility credit rating points, social media etc.) and secondary demographics to build strong customer understanding Core Competence Competitive Benchmarking • Modeling , and Measuring customer behavior • Ability to benchmark results with other power • Robust statistical and analytical engine to integrate Distribution utilities (only if registered for filtered varied information to build relevant Business data sharing in benchmarking database) Intelligence (with powerful GIS visualizations) • Share and learn best Operational and/or Customer • Broader portfolio in Power Distribution sector to strategies practices from other utilities bring business value add to utilities • Wider engagement through digital platform with all key utility stakeholders at pan India level to bring best collaboration and business value to utilities * Sampled 6000+ customers until Sep 20129/27/2012 www.pManifold.com 19
Our teamGlobally connected, Locally immersed, functionally diverse, Knowledge driven …Management Team Advisory • Rahul Bagdia – Co-Founder. Leads the CleanTech • Dr. Ashok Jhunjhunwala Practice at pManifold. Earlier, he led the PE fund in Rural Prof. IIT-Madras Energy for IFMR Trust, Chennai (supported by ICICI) and also the R&D for a German automotive component supplier BHTC Inc. in North America. He holds dual Masters (Mech. & EECS) from Univ. of Michigan, Ann • Dinesh Jain Arbor; and a BE (Mechanical) from VNIT Nagpur Founder Agaami Inc, USA • Faiz Wahid – Co-Founder. Leads the Education and ICT Practice at pManifold. Earlier, Faiz worked in Product • T.R. Krishnaswamy Marketing for NXP Semiconductors (formerly Philips) Founder Energreen Power Netherlands and also led global Banking-Technology consulting assignments for Cognizant in Switzerland & India. Faiz holds an MBA from HEC Paris/Univ. of Virginia • Dr. M. Vidyasagar USA, MS (Software Engg) from BITS Pilani and BE Prof. Univ. Texas Dallas (Electrical) from VNIT Nagpur.Business PartnerspManifold maintains links with established business partner consultants (and field partners) who have strongdomain (local) experience and their own teams to deliver upon assignments of larger magnitude.
Let’s get in Let’s deploy our insights and actions for your business to improve and grow!touch… Join us in our conversations at, pManifold Insights Premium & Free Reports, Presentations, and Talk to us or drop by… more… Rahul Bagdia Faiz Wahid pManifold +91 95610-94490 +91 88056-55069 Community Blog Rahul.Bagdia@pManifold.com Faiz.Wahid@pManifold.com Articles, technical notes. India (Main office) USA (Liaison Office) Power Distribution True Distributed Generation Crystal Plaza, Level 2 2020 Calamos Ct., 276 Central Bazaar Road, Suite 209 Franchisee AT&C Efficiencies Power Distribution Ramdaspeth, Nagpur - 10 Naperville, Community of Interest Franchisee Maharashtra, INDIA IL 60653, USA http://www.pmanifold.com Mr. Dinesh Jain +1 630-853-3520 Connecting talent & Making dinesh.jain@pManifold.com Local companies discoverableSeptember 27, 2012 pManifold Business Solutions Pvt. Ltd. 21
… for continuous Customer Engagement OUR BROADER SERVICES ..September 27, 2012 pManifold Business Solutions Pvt. Ltd. 22
Collecting, Analyzing and Reporting 1. Records 2. Surveyscustomer data from multiple sources 3. Touch PointsEmbedding distributed ‘Sensors’ for LIVE experience capture 4. Social Mediaof customers transacting with utility products and services Collection Customer Center Facilitation Call Center Center Mobile SMS Distribution survey Center Online CGRF and survey IGRF Online Land survey Social Media Integrated Customer Customer Offline Segmentation, Profiling Awareness, satisfaction Records Engagement Campaigns Monitoring Customer Analytics Strategic Decisions | Roll-out Decisions | Operational Decisions Informed decisions, in-time actions Better Customer Engagement9/27/2012 www.pManifold.com 23
Continuous year round ‘listening’ to Customers and facilitatinginformed & timely decisions (both Strategic and Operational)Recommended Basic annual service package for Integrated Customer EngagementMonitoring1 Stakeholder Survey - Management Summary: Top results for Customer Satisfaction Levels and Customer Survey priority matrix (Satisfaction vs. order of importance) Standard EUCOPS - Detailed Report: Segment wise results for each attributes with Detailed *Custom Pulse Online survey GIS mapping, including detail demographics *Custom Pulse ‘sms’ survey - * Detailed Demographic report - socioeconomical, ethnographical, Review of key Opinion Leaders political and other relevant indicators - Real time Data access: Read access to Real time field Data as collected - Formatted Excel Data and Tables - Formatted GIS Data file to allow interactive GIS visualization - Time Trend & Benchmark Report: Time Trend Report if repeat surveys. Additionally benchmarking Data from other EUCOPS completed utilities. - Review of key Opinion Leaders for issues and challenges2 Service Quality Assessment Touch Points Assessment - Management Summary & Detailed assessment report of customer Customer Facilitation Centers (CFCs) transaction with services offered at various touch point’s (CFCs, collection Collection Centers centers, call center etc.). At Transaction level, KPIs like servicing time, Customer Call Centers customer satisfaction, feedback (if any) will be reported. At touch point Distribution Centers level, KPIs on cleanliness, staff behavior, customer delight etc. will be Grievance Redressal Forum(s) reported. *Complaint Analytics - Causal analysis of Customer Satisfaction with Absolute Service Levels and internal KPIs - *Analytics & MIS of complaints, customer info, & resolution quality3 Online Customer Engagement Website Review - Website review, and recommendation for design and content to foster Social Media Monitoring & Analytics customer interactions and engagement - Online monitoring of engagement on social media9/27/2012 www.pManifold.com 24 * Not included in Basic package
Some of our publications on Customer Engagement inUtilities• Some selected Blogs on our Customer Research: – Why Customers Satisfaction & Preferences are important for Electricity Utilities? – Can Customer Engagement at Utility help expedite AT&C loss reduction? – Leveraging Customer Perspective for a stronger Onsite, Local Due- Diligence in Pre-Bid phase• Some of our Presentations, past Webinars on Local Intelligence on Consumers, Social demographics etc – Utility Consumer Monitoring and Analytics – Gwalior case study - http://www.slideshare.net/pManifold/p- manifold-dfwebinar2012117 – Ujjain case study - http://www.slideshare.net/pManifold/p-manifold- dfwebinarujjain2012210September 27, 2012 pManifold Business Solutions Pvt. Ltd. 25