CS Week Customer Analytics: Discover the Value. Bob Geneczko Executive Customer Analytics Utility Analytics Institute

Transcription

1 CS Week Customer Analytics: Discover the Value Bob Geneczko Executive Customer Analytics Utility Analytics Institute

2 Welcome & introductions Bob Geneczko Executive Customer Analytics, UAI Former VP, Customer Services, PPL Electric Kim Gaddy Vice President, UAI Frank Jiruska Vice President, Customer Operations, PECO Energy Central 2

3 UAI mission Through a utility led collaborative process, the Utility Analytics Institute will accelerate the adoption, advancement and utilization of analytics, enabling utilities to engage and satisfy their customers and operate more safely, reliably, sustainably and efficiently. 3

4 Utility members Source: Utility Analytics Institute 4

5 Solution provider members Source: Utility Analytics Institute 5

6 Remember when? Do you remember Customer Service functions: A decade ago? 5 years ago? 2 years ago? So how did you get to where you are now? Energy Central 6

7 An exciting place to be Utility Customer Service is an Exciting Place to Work Thanks to Technology!!! Basic Systems Customer Information System Meter Data (basic and advanced) Billing Advanced Front End Systems Self Service via Internet, Mobile, VRU Energy Central 7

8 Transactional efficiency These systems allow for ever increasing improvements in Transactional Efficiency As an industry we have tended to look internally for benefits Process Improvements Reduction in overheads Lower human interface time Etc. Energy Central 8

9 Day to day benefits Most of you already use analytic tools included within the applications Theft detection Outage reporting Outbound communications Collections for non payment Many others which you ve heard in the last few days. Energy Central 9

10 Discovering the value So, how are you mining other information available from these transactions? Do you have tools that tell you what s trending now? Do you have a staff upon which you rely to analyze the data and provide advice? Do you look externally to competitive firms to see how they use customer data? Do you think in terms of storing quality data for general use? Energy Central 10

11 Discovering the value Have you moved beyond transactional data and basic data analysis to better understand and provide more value to your customers? Are you leveraging data from across the utility enterprise as well as external sources? Are you using advanced analytics to: Predict customer behavior? Enhance customer engagement? Optimize customer service business processes? Energy Central 11

12 Observation on technology Technology itself is no longer an impediment Developing the analytics capability to take advantage of information available from the technology is key Energy Central 12

13 Question for the future... How many of you have a vision or mission that you would like to be the primary information source for customers when it comes to electric/gas use? Do you see a day when you will need to question that vision? Energy Central 13

14 Who s customer? Others are inserting themselves into your customer relationship Utility Models United Kingdom Texas Other states in various forms of deregulation Energy Central 14

15 Whose customer? And, there are many third parties that desire a relationship with your customers Self generation Micro grids, Municipal generation Energy efficiency providers Google, Nest, Home Depot? Energy Central 15

16 Customer choice Customers have or soon will have new choices You may need to redefine the role of Customer Services Functions You may need to invest more in understanding customer desires and behaviors More External drivers Energy Central 16

17 The answers So how are you going to address both today s and tomorrow s challenges? The answers lie in your data Treat your data as a strategic asset Harvest the benefits of ever changing technology Energy Central 17

18 Advanced Analytics Welcome to the world of advanced analytics to address both ongoing and strategic needs Energy Central 18

19 CS Week Customer Analytics: Discover the Value Kim Gaddy Vice President Utility Analytics Institute 1

20 UAI structure Peer groups Executive advisory council Working groups Online Discussion forums Research library Membership directory Utility project profile database Solution provider database Events Utility Analytics Summit Utility Analytics Week Webcasts Utility Analytics Institute Source: Utility Analytics Institute 2

21 Business drivers Importance of customer analytics business drivers Improving customer service Increasing reliability Improving performance Identifying and implementing cost savings Achieving smart grid return on investment Fulfilling regulatory requirements Benchmarking performance against other utilities Source; 2014 Customer Analytics Report, Utility Analytics Institute 3 3

22 Analytics application areas Asset optimization Customer operations Transformer management Meter data analytics Substation equip management Credit and collections GRID ANALYTICS Overall T&D asset mgmt Grid optimization Outage management System modeling Power quality optimization Advanced distribution management Analytics for real time network operations Fraud detection Campaign management Customer segmentation Pricing optimization Customer engagement Demand response programs Energy efficiency programs CUSTOMER ANALYTICS Distributed generation programs Foundational/enabling technology and business processes ANALYTICS BUSINESS INFRASTRUCTURE Source: Utility Analytics Institute 4

23 What s most important? Meter data analytics Energy efficiency programs Fraud detection Demand response programs Customer segmentation Credit and collections Pricing optimization Call center optimization Campaign management Distributed generation management Source: 2014 Utility Analytics Institute Customer Analytics Report 5 5

24 Analytics value Source: Utility Analytics Institute 6

25 The analytics continuum Identify stopped meters Basic operational reporting Credit and collections risk assessments using weighted scorecards Static dashboards Analytics siloes Determine customer status Measure EE/DR program results What happened, where and when? Customer usage disaggregation Ad hoc queries, sophisticated analysis Predict risk for early/late stage actions; business process automation Visible, real time situational awareness Insights enabled by data integration Predict customer behavior Holistic supply/demand management Why did something happen, what will happen next, business transformation Source: Utility Analytics Institute 7 7

26 Analytics insights What we discovered... Contact center optimization possibilities Why water consumption varies Public sentiment, CSAT drivers Billing operations efficiencies Deeper understanding of customer segments Root causes of meter read issues New diversion detection methods Water heater damage, wiring problems Why some customers are winter peaking What we hope to learn... Why customers churn EV bursty demand impacts Which customers plan home renovations and when? Customer channel preferences Customer propensity to change behavior Customers most likely to enroll, participate, benefit, contribute in demand side management programs Situational intelligence 8 8

27 THANK YOU! Questions Comments 9

28 Customer Service Week Customer Analytics PECO Frank Jiruska

29 Exelon Overview Exelon Corporation (NYSE: EXC) is the nation s leading competitive energy provider, with 2014 revenues of approximately $27.4 billion Headquartered in Chicago with operations in 48 states 32,000 megawatts of owned capacity Constellation business unit provides energy products and services to approximately 2.5 million customers Exelon Utilities delivers electricity and natural gas to more than 6.6 million customers through three utilities BGE serves 1.25 million electric & 650k gas customers ComEd serves 3.8 million electric customers in northern Illinois PECO serves 1.6 million electric & 500k gas customers in southeastern Pennsylvania Founded in ,400 employees Delivered 899 million ccf of natural gas and 37.5 million MWh of electricity in

30 Customer Analytics Strategy Transform the enormous amounts of data available into usable information to drive business value Bring data sources together Define the problem being solved with the end state vision in mind Develop actionable implementations based on data analytics Accept failure as a means to get better 3

31 Collections Transformation Problem Statement Prior to Initiatives Opportunity to improve accounts selected for termination A cut list containing approximately 15K accounts was sent to field vendor who prioritized and selected the ~500 to 800 terminations that were completed daily Collection Paths (actions and timing) were limited and changes were difficult to implement All customers within a determined risk segment received the same collection treatment Changes to collection actions required opening an IT request 4

32 Credit & Collections Project Synergy Overview of Collections Transformation & Data Analytics Strategy 5 Collections Transformation Termination Optimization Champion / Challenger Collection Paths Strategy Performance Path Assignment Roll Rates AMI Remote Connect Disconnect Mobile Dispatch Productivity / UTC Rate Data Analytics Qlikview 5

33 6 Business Solution Overview (Implemented Q1 2013) Termination Optimization (Experian Marketswitch) The cut list is optimized to determine the best account mix based on a business defined objectives Factors considered when selecting accounts for termination are balance, monthly bill, probability of cut success, % of balance paid if cut or not cut, and probability of finaling if cut or not cut Field vendor receives only what is needed to be fielded Resource availability, skill set (bucket, meter, or AMI) and geographic information Collection Actions Enhancements (Experian Probe) Provides for continuous testing and refinement of alternative treatment approaches champion versus challenger IT Dialogue resides within business PECO Credit & Collections users have the ability to develop, modify and implement collection paths changes 6

34 Credit & Collections Data Analytics - Qlikview A management tool for consolidating relevant information and identifying patterns that require changes to Credit and Collections actions Dashboards utilized: Credit & Collections: Provides leading indicators (weather patterns, billing, LIHEAP) a portfolio overview (delinquent receivables, termination eligible accounts) and collection action / call volumes Call Volumes: Displays call response rate to collection actions, drivers for inbound calls and other relevant call metrics Payments: Payment response to collection actions vs. collection cost 7

35 Credit & Collections Leading Indicators Leading indicators (weather patterns, billing, LIHEAP), portfolio overview (delinquent receivables, termination eligible accounts) and collection action / call volumes 8

36 Termination Work Provides location of work, field technician productivity and highlights accounts at risk of expiration 9

37 Call Volumes Response Rates Tracks calls received due to collection actions; provides estimated impacts on call centers from changes in credit & collection strategies 10

38 Payments Dashboard Collection Actions Return on Investment Proprietary Tracks and payments Confidential received Exelon PECO due Internal to collection use only actions; Utilized to estimate benefits from increasing collection actions 11

39 12 Champion/Challenger Results Illustration Champion Challenger Champion Challenger Path Name Risk Segment 2&3 2&3 2&3 2&3 Invalid phone AMI N Y N N Allocation 20% 80% 50% 50% Challenger Distinction Disc Notice is 5 days Sooner Disc Notice is 10 days later and Recieves a friendly notice Number of accounts 10,831 43,921 73,207 73,437 Performance YTD Benefit $ 35,952 $ 58,289 Aug - Dec $ 119,840 $ 155,437 FY Benefit $ 155,792 $ 213,725 For risk segment 2&3 customers with an AMI meter, accelerating the disconnect notice by 5 days resulted in ~$36k benefit YTD and a projected FY benefit of ~$156k For risk segment 2&3 customers with valid phone number and without AMI meter, sending an additional letter and delaying the disconnect notice by 10 days resulted in ~$59k benefit YTD and a projected FY benefit of ~$214k. 12

40 Bad Debt Key Trends 95,000 90,000 Terminations 91,132 85,000 80,000 75,000 # of Accounts Millions 2,200 2,000 1,800 1,600 1,400 $64 $62 $60 $58 $56 $54 $52 $50 86,177 85,857 84,531 81,340 76, High Balance (> $5,000) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Total Accounts 2014 Total Accounts $63.8 $62.7 $59.3 Bad Debt Expense $60.6 $59.7 $ Strong Performance driven by transformational projects (Collections Transformation, AMI RCD, Data Analytics), account-specific collection strategies and focus on tightening credit practices to reduce payment agreements and collection exceptions 13

41 Advanced Metering Outage System (AMOS) 14

42 Traditional Outage Management Process AMOS Enhanced Outage Process 15

43 Nested Outage Visualization Customer Call and Power Fail Alarm occur at nearly the same time Timeline for Premise Two outage pings confirm that meter does not have power 16

44 Smart Data Driven Customer Callback Process Analysis indicates the following categories 1. Allow Callback 2. Perform Further Analysis - delay callback & evaluate premise: ping again, evaluate PF & PR of neighbor premises on same transformer, evaluate if premise is on another OMS open event prior to callback, etc. Power Fail Power Restore No Alarm Received Totals Pinged On No Ping On Totals Allow Call Back with existing or new/more definitive IVR Message Perform Further Analysis then use existing or alternative IVR 17

45 THANK YOU 18