promoting customer service leadership...Successful communication leads to shared purpose of customer...
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promoting customer service leadership TPPA Marketing & Customer Service Conference March 2017
Transcript of promoting customer service leadership...Successful communication leads to shared purpose of customer...
promoting customer service leadership
TPPA Marketing &
Customer Service Conference
March 2017
Yo u r p r e s e n t e r
Patty Cruz
Patty Cruz is a management consultant
focused on facilitating strategic initiatives and
business transformation efforts for electric
utility clients.
P L A N D O Provide roadmap for goal attainment
Implement change effectively
C H E C K A C T Monitor outcomes and performance
Revise plans and take corrective action
objectives W H AT W E H O P E T O I M PA R T
o How demands on the customer service
function and individual personnel have
changed and what will be required moving
forward
o Why it is important to make customer service
a strategic issue
o How to devise and implement a strategy to
engender the right culture and to create an
organizational structure that supports a high
value, high quality customer service function
H O W W E H O P E Y O U W I L L PA R T I C I P A T E
o We want this seminar to be informative
and helpful, and just as importantly we
want this seminar to be interactive and fun.
o We will be providing opportunity for group
discussion and input; so that we can share
and learn from your experiences.
o We will also have a fun game and even a
fabulous prize.
TO
PIC
S F
OR
TO
DA
Y
Customer service is the assistance and advice provided by a company to those people who buy or use its products or services.
The heart of customer service is to take care of customers.
Why is customer service important?
o It is the “face” of the utility
o It is the “main” contact customers have with your utility to request service, get
answers, solve problems
o A negative customer service experience has a high cost
o A positive experience creates advocates
o Customers want options
W h a t i s c u s t o m e r s e r v i c e ?
purpose and meaning
“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.”
Peter Drucker
timeline
From electricity to related services
o Energy efficiency options to reduce their monthly bill
o Renewable energy options
o Electric vehicles
o Community outreach
o Reduce dependence on their electric provider
F r o m r a t e p a y e r s t o c u s t o m e r s
what has changed? Customer Contact:
From time constrained to 24x7
Snail mail Email
Visits to the utility
Social media
Telephone calls Live chat
Customers’ needs and expectations about their relationship with their electric provider are changing!
The customer service job function has evolved over time:
F r o m b i l l s t o s e r v i c e s
job functions transition
From To Answering questions Providing an experience Managing telephone calls
Managing customer interactions over multiple channels
Data entry Marketing and promotion Providing information Educating Solving problems Anticipating solutions
The purpose of the customer service job position has evolved from “clerk” to a “customer
manager.”
C u s t o m e r s e r v i c e r e q u i r e m e n t s
attributes & skillset
Evolved from Customer Service Rep to Customer Advocate
and Customer Ambassador!
Analytical Ability
Ability To Use
Technology
Problem Solving
Skills
Stress Management
kills
Communi- cation Skills
Analytical Ability
Ability to Use
Technology
Problem Solving
Skills
Stress Management
Skills
Service & Product
Expertise
Knowledge of Trends
d e s i r e s a n d e x p e c t a t i o n s
demographics Today’s workforce includes
four generations of people.
T R A D I T I O N A L
1928-1945
B A B Y B O O M E R S
1946-1964
1965-1980
G E N E R A T I O N X
1981-1999
M I L L E N N I A L S
35%34%
26% 6%
2015 U.S. Bureau of Labor Statistics Employed Persons by Industry and Age
Baby Boomers Under Age 65:
38 Million Workers
Generation XAge 35-50:50.8 Million
Workers
MillennialsAges 16-34:51.5 Million
Workers
Baby BoomersAge 65+ and Traditional:8.4 Million Workers
“…when we started Virgin Atlantic 30 years ago, we had one 747 competing with the airlines that had an average of 300 planes each. Every single one of those have gone bankrupt because they didn’t have customer service. They had might, but they didn’t have customer service, so customer service is everything in the end.” Richard Branson
o Customers may no longer be captive
o Other options available or becoming available
o Customer expectations are evolving and becoming more complex
o Excellent customer service can be a differentiator
o The best companies provide examples for us
R e c o g n i z i n g v a l u e
why is customer service a strategic issue?
From OpenPV by NREL
p l u m m e t i n g s o l a r p r i c e s
s o a r i n g i n s t a l l a t i o n s
U t i l i t i e s f a c e m o r e t h a n j u s t n e t e n e r g y m e t e r i n g o Customer and stakeholder expectations
o New and disruptive technology
o Distributed generation
o Energy efficiency
o Demand-side management
o Environmental regulations and concerns
o Other regulatory requirements
o Large required capital investments
o Workforce continuity and succession
o Uncertainty in predicting load growth
o Wholesale and retail market changes and uncertainty
o Internal/external needs for Information and
communication
o Inflation rates
o Fuel costs and availability
o Uncertainty of the future
of nuclear power, coal, and hydro
o Risk management, processes, and controls
o Project permitting and delays
o Natural disasters
o Cyber and physical security threats
o Weatherization, system hardening, and securitization
o Affordable and adequate insurance or self-insurance
C u s t o m e r s ’ p r i m a r y c o n c e r n
lower energy costs Most customers installing distributed
generation (DG) are looking to cost-
effectively reduce energy and/or demand
charges.
DG economics are highly specific to
individual customers of a particular utility.
Drivers are system costs, incentives (though
less important now), and the current rate for
utility-provided power.
Grid-supplied power costs are driven by
environmental regulations and required
investment in infrastructure.
Renewable DG
• Lowers utility bill • Produces clean
energy • Provides more stable
billing compared to volatile fuel prices
Natural Gas/ Thermal DG
• Produces cost-effective energy
• Mitigates demand • New technologies
emerging
Energy Efficiency
• Saving energy and using it more efficiently remain a focus of regulators and customers
• New technologies emerging
DG + Storage
• Provides greater if not complete independence
• Mitigates demand charges
• Not currently cost competitive, but soon may be
E c o n o m i c a n d t e c h n o l o g i c r e a l i t i e s
customer perspective
Value
Cents/kWh
Time
Cost of DER Cost of Grid Electricity
Parity
Improving Value Proposition
o Higher costs and/or less revenue for the utility
o More needs and greater demands to be met by fewer and fewer resources
o Large increase in required investments and uncertain paybacks
o Customers who can leave will; difficult to stop them
C o m m o n f e a r s a n d r e a l - w o r l d c o n s e q u e n c e s
perils of customer exit
Like any other business, the revenue issues which pose the most risk to the sustainability of the utility are those which erode the customer base.
o Availability of better and/or cheaper alternatives
o Prices are painful
o Unacceptable level of service
W a t c h o u t f o r t h e s e m o t i v a t o r s
customer exit triggers
Competitive industries have trained customers to expect:
o Multiple choices
o Declining prices
o Evolving technology
o Responsive suppliers
In short, “low cost and high touch”
Think smart phones, tablets, TVs, and just about everything else.
G r o u n d e d i n e x p e r i e n c e
customer expectations
Customer expectations are escalating:
o More intimacy
o Increased responsiveness and on-demand services
o Digital economy; timely, transparent information
o Heightened social consciousness
They want reliable, low-cost, high quality, clean energy
Yet price resistance remains constant.
Information and technology advancements are changing customer expectations and options available to them.
Customers value more choice and more control over energy usage.
Customers will choose to implement new technologies if it is cost-effective to do so.
Energy consumers more frequently desire:
o Choice in how they consume energy, and
o Choice in selecting the sources from which that energy is generated.
New players have emerged offering competitive options in the form of distributed energy resource solutions.
It is not necessarily that the choice is new – but rather that there are more parties offering customers this choice.
New enabling technologies (e.g., software) can lead to better integration and performance of competing options.
The competition for utility customers’ dollars is very savvy, driven, and customer-focused.
C o m p e t i t i o n i s c u s t o m e r f o c u s e d
customers desire choice
“Being on par in terms of price and quality only gets you into the game. Service wins the game.”
Tony Allesandra
Jeopardy! T H E VA L U E O F E X C E L L E N C E
In the form of a question…
This company has the highest retail sales per square foot of any U.S. store. Hint: It’s a tech giant. .
C u s t o m e r S e r v i c e
PR
IZE
= $
25
Gif
t C
ard
Jeopardy C u s t o m e r S e r v i c e
PR
IZE
= $
25
Gif
t C
ard
What is Apple? Apple Stores have the highest retail sales per square foot at $4,798 in 2015!
L e a d e r s a n d i n n o v a t o r s
customer service excellence
Why are Apple Store associates so passionate and
enthusiastic about the products they sell?
Why is Amazon willing to send a customer a replacement
for a lost package immediately without ever implying that
the customer is at fault?
Why does REI consider replacing someone’s boots even
after 3 years and 3,000 miles?
Apple has the highest retail sales per square foot of any U.S. store. Associates evangelize the products but they also focus on creating value for the customer, not a sale.
A P P L E : # 1 R E T A I L S A L E S
Amazon.com Inc. is the top e-retailer in North America, reporting 2015 full-year revenue of $107.01 billion, up 20.2% from $88.99 billion in 2014. Amazon accounted for 60% of all U.S. online sales in 2015.
A M A Z O N : # 1 O N L I N E S A L E S
REI is the largest consumer coop, paying members dividends of $168 million in 2014. REI is consistently rated top ten for customer satisfaction and customer loyalty, outperforming S&P retailers for most of the last decade, even during the recession.
R E I : # 1 C O N S U M E R C O O P E R A T I V E
These companies understand reaching the highest lifetime value of a customer is a result of superb customer service
J.D. Power’s Residential Electric Utility Annual Customer Satisfaction Survey (2015) o Clark Public Utilities (743): #1 for West Region,
Midsize Utility Segment
o EPB (Electric Power Board of Chattanooga) (737):
#1 for South, Midsize Utility
o SRP (730): #1 for West , Large Utility
o SMUD (719): #2 for West, Large Utility
o Colorado Springs Utilities (712): #2 for West,
Midsize Utility
o CPS Energy (707): #5 for South, Large Utility
o Omaha Public Power District (700): #3 for Midwest,
Midsize Utility
o Imperial Irrigation District (699): Tie for #4 for West,
Midsize Utility
o Seattle City Light (699): Tie for #4 for West, Midsize
Utility
o Lincoln Electric System (694): #5 for Midwest,
Midsize Utility
P u b l i c p o w e r a c c o l a d e s
best of the best
9th consecutive year as #1 for West Region, Midsize Utility Segment
C L A R K P U B L I C U T I L I T I E S
15th consecutive year as #1 for West Region, Large Utility Segment
S R P
Customer service must be seen as vitally important and valued—a key strategic direction, championed by leadership.
Customer service must be engrained in the culture and exemplified by leadership, or there must be plans in place to make this a reality.
These conditions must be present in order to attract, motivate, and retain high-quality customer service leaders/agents.
H o w d o w e g e t t h e r e ?
customer service excellence
H o w d o w e g e t t h e r e ?
leadership, direction, culture, and structure
• Engaged and effective leaders
• Strategic and tactical action plans as roadmaps to achieve the desired results
• Strong corporate culture that is flexible and adaptable
• Organizational structure that enables flexibility
Senior leadership must be engaged in setting the vision, modeling correct behavior, and rewarding success.
Words and actions of senior management set the tone for employees.
Successful communication leads to shared purpose of customer service.
Every employee understands that the quality of service provided to customers is impacted by their job.
W h a t i s t h e b e d r o c k ?
leadership
P l a n n i n g f o r e x c e l l e n c e
customer service as a strategic goal Strategic planning:
o Is an organizational activity used to set priorities, focus resources, and ensure that employees and stakeholders are working toward common goals.
o Establishes agreement around intended outcomes/results, and determines the organization's direction in response to a changing environment.
o Creates a shared purpose and enables organizational alignment.
U t i l i t y e x a m p l e
Salt River Project
SRP’s leadership provides vision of customer service.
2 0 1 6 A n n u a l P l a n
“To address the business environment we see ahead, our path forward focuses on three elements
• Be leaner. Expenses have been growing faster than revenues. We are working to add new revenue sources, increase productivity of assets and reduce expenses by improving business processes.
• Be greener. We have been moving forward towards a less carbon-intense mix over time. SRP reduced its carbon intensity by 23% from fiscal year 2006 to 2014, and we plan to further reduce emissions by 40% by fiscal year 2043.
• Be even more customer-centric. We are enhancing digital interactions with our customers. They are helping us design the products and services they value and want to use. We are improving the flexibility and responsiveness or our grid to facilitate new uses, technologies and customer experiences.
I am excited to be moving in these new strategic directions, towards a new horizon. We have recently reset our organizational structure to reflect this strategy. Getting from where we are today to where we need to go is highly motivating. Because of the skill, knowledge and good will of SRP employees, I’m confident we will arrive at an outcome that is better for SRP, our customers are the community we serve.”
Mark B. Bonsall SRP General Manager & CEO
U t i l i t y e x a m p l e
Sacramento Municipal Utility District
In 2003, the Board of Directors established a customer relations policy goal to achieve overall 95% customer satisfaction. SMUD has consistently achieved that target since the policy was enacted.
2 0 0 3 P o l i c y G o a l
The 5-year Strategic Plan strikes a balance between the strategies, projects, program and other initiatives aimed at ensuring SMUD’s success in a changing industry:
• Getting the basics right: Keeping the lights on safely, reliably, economically and in an environmentally responsive.
• Improving internal process and lowering costs to deliver high-quality services.
• Building and maintaining a safety-committed, highly skilled and engagement workforce.
• Enhancing the connection to our customers and community.
• Investments in technology to lay the foundation for the new utility business model.
• Advancing SMUD’s position as an innovative and environmentally progressive thought leader.
“If you’re not serving the customer, your job is to be serving someone who is.”
Jan Carlzon
A culture of service excellence is developed through the alignment of values and behaviors.
o Espoused by leadership
o Embraced by employees
o Sustained by the organization’s structure and policies
Management must model exceptional service, not only to customers, but also with internal staff and peers.
Improving the customer experience must be the responsibility of everyone in the organization, not just the customer service department.
O r g a n i z a t i o n a l t r a n s f o r m a t i o n
aligning culture
C u s t o m e r S e r v i c e a t t h e t o p
current norms Of the 20 public power utilities reviewed, only 7
have an executive devoted primarily to
customer service directly reporting to the
general manager or equivalent.
Most have customer service bundled in with
other primary functions, including power supply
planning, regulatory affairs, finance, business
operations, etc.
For most public power utilities, the head of
customer service is not considered an
executive position.
S t r u c t u r e s t h a t w o r k
promoting leadership SRP, SMUD, Austin Energy, Clark
Public Utilities, and CPS Energy
have adopted structures that
promote customer service
leadership.
providing opportunities S T R AT E G I C P L A N N I N G
Customer service should be part of
the core team for strategic planning.
D E C I S I O N - M A K I N G
Customer service should be part of
the core leadership team informing
and making decisions.
INP
UT
& G
UID
AN
CE
E n a b l i n g l e a d e r s h i p
“Your most unhappy customers are your greatest source of learning.”
Bill Gates
P A T T Y C R U Z
[email protected] 737-202-2155
L E A R N M O R E
www.leidos.com/infrastructure
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