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Transcript of 2014 the new energy consumer initiative
Agenda
The New Energy Consumer Initiative
A New Era of Change and Uncertainty
Summary Netherlands results
1. Delivering operational excellence
2. Optimizing customer interaction
3. Creating lasting customer engagement
4. Extending the value proposition
Ten Strategic Priorities for Energy Providers
2 Copyright © 2014 Accenture. All rights reserved.
NEC12
Copyright © 2014 Accenture. All rights reserved.
Accenture’s New Energy Consumer Research Program
>40,000 consumers
surveyed in 21
countries
>2,000 small and
medium businesses
in 9 countries
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
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.
Agenda
The New Energy Consumer Initiative
A New Era of Change and Uncertainty
Summary Netherlands results
1. Delivering operational excellence
2. Optimizing customer interaction
3. Creating lasting customer engagement
4. Extending the value proposition
Ten Strategic Priorities for Energy Providers
4 Copyright © 2014 Accenture. All rights reserved.
NEC12
Risks today, uncertainty tomorrow
Utilities are facing a storm of forces that are reshaping the market landscape and are
increasing uncertainty in the market.
Shifting
consumer
preferences
Government
& regulatory
shifts
Sustainability
5 Copyright © 2013 Accenture. All rights reserved.
Advancing
technology
Uncertainty is
increasing
A future of Uncertainty, Disruption and… Opportunity?
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:
The changing market place, uncertainty and disruption require Utilities to develop simple
and agile organizations
Reduce Operational
‘Cost-to-Serve’
Enhance Revenue
Potential
Drive Energy
Efficiency Goals
Sustain or Improve
Customer Value
6
Agenda
The New Energy Consumer Initiative
A New Era of Change and Uncertainty
Summary Netherlands results
1. Delivering operational excellence
2. Optimizing customer interaction
3. Creating lasting customer engagement
4. Extending the value proposition
Ten Strategic Priorities for Energy Providers
7 Copyright © 2014 Accenture. All rights reserved.
NEC12
Copyright © 2014 Accenture. All rights reserved.
34%
23%
22%
18%
23%
15%
8%
9%
57%
61%
61%
65%
53%
53%
50%
44%
9%
16%
17%
17%
24%
32%
42%
47%
What organizations do you trust to inform you about actions you can take to
optimize your energy consumption?
Consumer’s level of trust in their utilities/energy providers has
decreased
Base: All Netherlands respondents
Do not trust Neither trust nor distrust Trust % Trust
2012
44%
33%
23%
23%
18%
27%
17%
18%
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
Copyright © 2014 Accenture. All rights reserved.
89%
88%
87%
78% 75%
73% 71% 68%
63%
47% 47%
91%
85%
91%
85% 82%
77%
85%
79% 78% 76%
61%
Importance (Somewhat + very important) Performance (Good + excellent)
Consistently
gets my bill
correct
Provides me
with reliable
energy
delivery
Provides clear
and easy-to-
understand
pricing
information
Is known to
have ethical
business
practices
Is known to
work to
protect the
environment
Informs my
family or me
about efforts
we can take to
decrease
energy usage
Offers me the
latest
technology
Partners with
other
companies or
organizations
to enhance its
offerings
Is known for
treating its
employees
well
Offers a
physical
location where
I can meet with
its
representatives
Is actively
involved in my
city and
neighborhood
Base: All Netherlands respondents
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?
Active community involvement, offering the latest technology,
treating employees well and offering physical locations are
where consumers feel their energy providers over perform
Accurate
invoice
Reliable
energy
Easy to
understand
Ethical
brand
Environmental
brand
Energy
advisor
Tech-
savvy
Partners to
create
value
Valued
employer
Face-to-
face
interaction
Community
member
Copyright © 2014 Accenture. All rights reserved.
Bill payer
Spouse-partner
Other adults who live in the home
Teenagers (13 to 18 years)
Regular in-house services (e.g., nanny, child care, etc.)
Occasional in-house services (e.g., house cleaning, pool servicing, etc.)
Children (12 years and under)
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.)
Aside from the bill payer, others in the home have influence on
energy usage
Base: All Netherlands respondents; excludes “Not Aplicable“ responses
94%
90%
74%
72%
69%
68%
51%
Moderate to significant influence
Copyright © 2014 Accenture. All rights reserved.
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?
14%
17%
18%
18%
25%
34%
34%
28%
35%
33%
6%
6%
7%
8%
6%
12%
14%
23%
17%
25%
<5 minutes
>5 minutes
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
Base: All Netherlands respondents
20%
58%
23%
52%
25%
51%
26%
48%
31%
46%
During my free time (e.g., at home on evenings or weekends)
While shopping for appliances (e.g., washer, dryer, fridge, etc.)
While shopping for materials or products to make
major renovations to my home (e.g., insulation, furnace, windows, etc.)
While shopping for electronics (i.e., television)
While shopping for minor home improvement products (e.g., light bulbs, weather stripping, etc.)
While waiting to buy something (e.g., waiting for coffee or food, etc.)
While traveling (e.g., waiting for a train, while on a train, etc.)
At work
While shopping for groceries
At an event (e.g., concert, sporting event, etc.)
Copyright © 2014 Accenture. All rights reserved.
13%
13%
15%
18%
24%
31%
35%
38%
43%
44%
49%
79%
13%
22%
20%
35%
17%
14%
20%
22%
32%
24%
22%
26%
0% 20% 40% 60% 80% 100%
Using a mobile device
Using 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?
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
Base: All Netherlands respondents
Detailed information about my energy usage
Personalized tips on actions I can take to reduce my energy bill
Personalized offers and coupons (e.g., coupon for laundry detergent, rebate for appliances)
Notifications about my energy usage (i.e., notification when higher than normal bill is forecasted)
Ability to perform self-service transactions (e.g., pay bill, update account information, view outage information, etc.)
Reviews on energy-related products and services (i.e., reviews of energy-efficient appliances)
Ability to purchase energy-related products and services from the website (i.e., purchase an energy-efficient appliance)
Ability to purchase prepaid energy to use in the future
Ability to control heating, cooling, or appliances in my home
Online games that educate my family about energy waste-conservation
Ability to participate in social games (i.e., compete with neighbors on decreasing energy usage)
An online community hosted by my energy provider to share energy-saving
tips
Copyright © 2014 Accenture. All rights reserved.
5% 2%
2% 1%
17%
15%
58%
61%
18% 21%
Base: All Netherlands respondents
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
On a year-on-year basis, consumers are less satisfied with
their energy providers
Very satisfied
Satisfied
Neutral
Not very satisfied
Not satisfied at all
2013 2012
76% 82%
Copyright © 2014 Accenture. All rights reserved.
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
Nevertheless, to date, the impact on loyalty is limited and overall
consumers’ intention to switch has decreased
6% 11%
11%
14%
20%
15%
14% 11%
49% 49%
17% 25%
2013 2012
Certainly
Probably
Neutral
Probably
not
Certainly
not
Base: All Netherlands respondents
Copyright © 2014 Accenture. All rights reserved.
Yes, could consider a provider other
than a utility/electricity provider (i.e., retailer, phone or cable provider, online site)
Retailer (e.g. Koninklijke Ahold N.V )
Phone or cable provider (e.g., Koninklijke KPN N.V)
Online site
(e.g., Amazon, Google)
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:
Since 2011, the interest in alternative providers for purchasing
electricity and beyond-the-meter products and services has
decreased
31%
47%
38%
60%
28%
32%
33%
46%
2013
2011
Base: All Netherlands respondents
Copyright © 2014 Accenture. All rights reserved.
57%
48%
34%
31%
29%
25%
20%
17%
9%
The provider has lower prices than my energy provider
I can bundle products and services to get a discount (e.g., Internet, phone and electricity)
I have had better experiences dealing with this provider than
with my energy provider
The provider has a store where I can talk to a representative,
see products and discuss services
The provider has better service than my energy provider
The provider has a better return or service cancellation policy
than my energy provider
I trust the provider more than my energy provider
The provider is a local company
I belong to the provider’s loyalty rewards program
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)?
Better prices and convenience are the main drivers why
consumers would consider purchasing from an alternative
provider
Base: Netherlands respondents who would consider purchasing energy or energy-related products and/or services from providers
other than their energy provider
Mentioned in top three
Copyright © 2014 Accenture. All rights reserved.
23% 24% 31% 33% 36% 36% 39% 39% 40% 40% 41% 42% 42% 44% 45% 48% 48% 49% 49% 49% 51% 54%
77% 76% 69% 67% 64% 64% 61% 61% 60% 60% 59% 58% 58% 56% 55% 52% 52% 51% 51% 51% 49% 46%
CN KR IT PL ZA SG TR AU BR CA ES AVG FR JP DE SE DK UK NO BE US NL
If your energy provider offered the two following rate plans, which option would
you select?
Preferences for rate plans vary significantly across geographies
Base: All respondents
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
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
Flat rate plan Variable rate plan
I cannot afford the cost of the required
investment
14%
23%
35%
37%
46%
59%
71%
In the next 12 months, are you planning to spend money on energy-related 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?
The main barriers to investing in energy-related products
and/or services are cost along with perceived lack of financial
payback
Mentioned in top three
I do not think it will result in significant
cost savings on my energy bill
I am not able to make changes
to my home (i.e., I rent it and do not own it)
I do not know what energy related
products and services are available
I do not want to spend money on
energy related products and services
I do not think it will have a significant
impact on the environment
I do not have the time to learn about
these new energy products and
services
59%
41%
Yes, I plan to
spend money
No, I do not plan to
spend money
Base: All Netherlands respondents Base: Netherlands respondents who do not plan to spend money
Copyright © 2014 Accenture. All rights reserved.
Some energy-related products (e.g., solar panels, energy efficient appliances, etc.)
can be expensive. Would any of the following motivate you to purchase energy-
related products that require a significant financial investment?
Cost savings and financing options are key to motivating
consumers to make substantial investments in energy-related
products
13%
27%
30%
37%
39%
49%
66%
Mentioned in top three
Base: All Netherlands respondents
Guaranteed reduction in your energy bill
Discounts on bundles of energy and energy-related products (e.g., bundling electricity with solar panels)
Flexible payment plans to finance my purchase (e.g., monthly payments on my bill, no payments for two years, etc.)
Renting options (e.g., rent solar panel, programmable thermostat, etc.)
Loyalty points in return for money that I spend with
my energy provider
Ability to transfer remaining payments on energy-related products if I move (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
Agenda
The New Energy Consumer Initiative
A New Era of Change and Uncertainty
Summary Netherlands results
1. Delivering operational excellence
2. Optimizing customer interaction
3. Creating lasting customer engagement
4. Extending the value proposition
Ten Strategic Priorities for Energy Providers
24 Copyright © 2014 Accenture. All rights reserved.
NEC12
Global Agenda: Ten Key Priorities for Energy Providers
The Consumer
Ecosystem
Enterprise
State of Mind
Age of Turnkey
Technologies Unconventional
Partnerships
Retail
Redefined Reinventing
Value
Workforce of
the Future
Economics of
Dissatisfaction Bridging the Digital
Divide
The Neglected
Middle
25 Copyright © 2014 Accenture. All rights reserved.
Copyright © 2014 Accenture. All rights reserved.
Growing customer preference for digital
2007 2008 2009 2010 2011 2012
100
200
300
400
500
600
700
800
Glo
bal S
mart
phone V
olu
me (
Mill
ions)
Year
119.7m 139.3m 175m
305m
494.5m
717.5m
+14% + 20%
+ 38%
+ 43%
+ 31%
Smartphone catalyzes disruptive
technology innovation
Mobile device
penetration exceeds PC
More than $100bn spent on
mobile media globally
Progressive Adoption of
Mobility Globally
“61% of
customers
would prefer
to use
digital
channels for
¾ of their
key utility
interaction
scenarios1”
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.
28
Spotlight On E.On
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.
10k customers were provisioned with a smartphone app
that monitored real time power usage for their household Over 12 months the app visualized their energy
consumption in 5 ways to determine the most effective
The initiative was supported by a larger campaign
community website to facilitate comparisons and sharing
Participants on average saved 12% on their energy
consumption over the course of the year
1 2
3 4
Watch the full outcomes on YouTube here: http://www.youtube.com/watch?v=jHgZc4m1FtA&feature=youtu.be
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.
Copyright © 2014 Accenture. All rights reserved.
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
Statements
Accenture Energy Consumer Services provides
customer care solutions for competitive energy
providers globally.
We help our clients to develop and implement full value-
chain 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 value-
add 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: