Marketing Executives’ Conference Counterbalancing Rising Rates – Managing the Customer Impact Fred Stoffel Vice President, Marketing Xcel Energy October 13, 2008
Customer Indicators Leading indicators Late Payments Third Party Assistance Requests Payment Arrangements Late Payment Fees Bad Debt Customer Complaints Lagging Indicators Customer Satisfaction Foreclosures
Utility Outreach High Bill campaign Designed to alert customers of higher bills Campaign will run during high bill winter months Promotional component to drive customers to action Remind Customers of weatherization options Remind Customers of payment options Advise customers of availability of assistance programs Promote seasonally appropriate customers electric and gas DSM programs Use paid for and “free” media to drive awareness.
Basic Billing Options Customer Payment Convenience Automatic Payment “Check-Free” Paperless Billing Customer Payment Flexibility Average Monthly Payment Custom Due Dates Credit Cards
Customer Choice Products Windsource Solar*Rewards Saver’s Switch
Alignment with Low Income Assistance Agencies United Way Salvation Army Energy Outreach Colorado Low Income Provider Agencies Donations Efficiency projects
Demand Side Energy Efficiency Programs On-Line Audits Home Energy Audits Customer Rebates In-store Promotions Separate Web-Site
Future Approach, Programs, and Initiatives Approach Drive customer from awareness to action Awareness of utility efforts and programs is high But, utility industry lags program participation versus other industries (ie. Banking, Hotels) Customer centricity is not fully embraced because regulatory and operational focus Make it easier to do business with the utility. Programs/Initiatives On-Line Account Management Web redesign Personal Energy Reports Segmented Customer Communications New Rate Options Smart Grid Applications More engaging mass media approach Community-based marketing
Discussion