Utilities are at a critical juncture in today’s rapidly evolving digital landscape. Customer expectations have reached unprecedented heights, fueled by the demands of digitally native consumers and businesses. Outdated communication infrastructures not only fail to meet these rising expectations but also pose operational risks. Recent research from J.D. Power indicates that customer satisfaction with electric utilities has plummeted to an all-time low, primarily due to a perceived lack of concern for customer needs, support and engagement.1
Outdated communication infrastructures not only fall short of meeting rising customer expectations but also pose significant operational risks.
To bridge this gap, utilities must prioritize omni-channel transformation, modernizing infrastructure and embracing next-generation digital tools. This article explores how utilities can work toward a future characterized by simplified and intuitive communications, deeper customer engagement and reduced operational costs.
Infrastructure Modernization is an Imperative
Utilities have traditionally relied on voice-based systems for customer interactions and operational management. However, these aging systems are prone to disruptions, affecting critical communications during emergencies. Their limited functionality means they lack modern features such as self-service options, real-time updates and analytics. Notably, these legacy systems struggle to integrate emerging digital channels like SMS, MMS and chatbots. Moreover, the escalating costs of maintaining these outdated systems become increasingly burdensome as resources grow scarce.
These deficiencies are at odds with modern expectations. Research from EY indicates that 42 percent of utility customers are dissatisfied with their experience, expecting greater choice, simplicity and support from providers. A majority of customers prefer digital experiences across eight out of 10 interactions, from monitoring consumption to paying bills.2
Leading utilities are harnessing next-generation CX platforms that blend human expertise with Artificial Intelligence (AI), creating holistic digital customer experiences. This translates to offering personalized onboarding experiences based on real-time customer sentiment analysis, creating targeted campaigns to drive engagement and supporting customers with easy-to-use digital touchpoints like self-service portals, mobile apps and chatbots.
Next-generation CX platforms synergize human intelligence and AI to craft comprehensive digital customer experiences.
These platforms can also unlock a new era of proactive customer engagement. For instance, real-time insights and automation capabilities can enable utility companies to pre-empt consumer needs, providing early warnings of risks such as severe weather events or potential outages through customers’ preferred communication channels. This proactive outreach significantly impacts satisfaction: Customers who receive outage-related updates report satisfaction rates 62 points higher than those who don’t.3 Proactivity also enhances perceived empathy among utility customers. Through a human-digital blend, utilities can identify vulnerable customers and offer contextual interactions, providing necessary assistance.
Transformative CX is Anchored in Key Elements
Prioritizing omni-channel transformation not only delivers immediate benefits but also positions utilities to seamlessly embrace emerging technologies that will define the industry’s future.
Generative AI (Gen AI) is a prime example. A recent survey by HFS Research, in collaboration with WNS, revealed that utilities are leveraging Gen AI to transcribe customer calls and generate summaries integrated into customer relationship management systems. The technology is also helping automate administrative tasks, significantly boosting productivity by acting as a back-office co-pilot. Supporting this trend, data from Deloitte shows that at least 16 percent of the top 25 utilities are already in the initial stages of integrating Gen AI into their operations.4
To fully embrace the omni-channel era and realize the potential of these advancements, utilities must adopt the following key strategies:
1. Unified Communications
Invest in modern Voice over Internet Protocol (VoIP) and unified communications systems that seamlessly integrate voice and digital channels. Unified communications streamline operations, reduce redundancies and enhance customer experience by providing consistent and efficient service across all platforms.
2. Customer-centric Digital Transformation
Develop self-service portals, mobile apps and chatbots to empower customers and offer real-time interaction options. Intuitive and user-friendly digital interfaces can enable utilities to lessen the burden on customer service centers.
3. Data-driven Insights
Utilize customer data analytics to personalize communications and enhance satisfaction. Insights gleaned through social media analytics can help utilities refine products and services based on sentiment. ESG-focused products represent one such future focus, with Gen Z and millennial customers 27 percent more likely to engage with a company that prioritizes planetary impact versus older generations.5
4. Security and Compliance
Prioritize data security and privacy while transitioning to digital channels. Regular security audits, encryption and secure access controls are essential to a comprehensive security strategy. By safeguarding data, utilities can prevent breaches and maintain customer confidence.
5. Employee Training
Equip employees with the skills to manage omni-channel communications effectively. Training programs should focus on new technologies, such as Gen AI, customer service best practices and data security protocols. Integrating digital training simulations can provide hands-on experience in a controlled environment, allowing employees to practice and refine their skills in handling various scenarios before applying them in real-world situations.
6. Customer Education
Ensure customers are comfortable using the new digital channels. Utilities should provide clear instructions, tutorials and support resources to help customers navigate self-service portals, mobile apps and other digital tools.
7. Emergency Preparedness
Update emergency response protocols and communication systems to function smoothly in a digital environment. By leveraging digital tools, utilities can improve their responsiveness and coordination, minimizing the impact of crises on customers and infrastructure.
Partnerships are Key to Navigating Omni-channel Transformation
While some companies manage transformation in-house, many leading organizations collaborate with third-parties to swiftly build this new, proactive era of utility CX. These partnerships offer instant access to tailored AI-powered digital solutions, flexible and scalable workforces, domain expertise and regulatory compliance.
Such approaches can optimize CX while reducing operational costs. The impact can be felt in months, not years. Research from McKinsey shows that utility companies embracing omni-channel transformation have increased customer satisfaction by 10-20 percent and reduced cost-to-serve by 20-30 percent.6
With the digital landscape evolving rapidly and consumer expectations rising, the race is on for utilities to deliver differentiated CX befitting of this new era.
About the Author
Shane McDonald is a Senior Vice President in the WNS Energy and Utilities Practice. With over 25 years of experience across retail energy, financial services, telecom and SaaS, his focus lies in orchestrating business transformations to enhance customer satisfaction and lower cost of ownership. Shane’s expertise encompasses customer lifecycle transformation, risk management, process design and control, digital transformation, and data analytics and reporting.
Dive deeper into strategies that can help utilities transform customer experience and operational efficiency.
References
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Electric utility business customer satisfaction study | J.D. Power
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As consumers lead the way, how can energy providers light the path? | EY - Global
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Electric utility business customer satisfaction study | J.D. Power
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2024 power and utilities industry outlook | Deloitte
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Consumers’ sustainability demands are rising | Harvard Business Review
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Three ways energy providers can boost resilience and digital CX | McKinsey