Direct Energy Direct Sales Training. Module 1 USN- All Markets Version 1.1 May 2014

Transcription

1 Direct Energy Direct Sales Training Module 1 USN- All Markets Version 1.1 May 2014

2 Overview Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Who is Direct Energy? Overview of Deregulation Rules and Regulations Sales Process Field Sales Pitches

3 Lesson 1 Who is Direct Energy?

4 Who is Direct Energy? Subsidiary of Centrica PLC HQ in Houston Texas Leading supplier in North America Over 6 Million Customers Over 6000 Employees Upstream Business Residential Services

5 Who is Direct Energy? Upstream: Gas fired power generation, natural gas production, wind power purchase agreements, trading, auctions and storage and transportation Business: For commercial and Industrial customers, natural gas and electricity contracts. Residential: Natural gas and electricity pricing plans with fixed and variable priced options of varying term lengths Services: For both residential and commercial/industrial customers. HVAC installation and service, plumbing, protection plans, energy audits etc.

6 Primary Locations Direct Energy supplies energy and related services for residential and business customers in a number of regions. Our primary markets are: Canada Texas US North

7 Our Values Simple Speak plainly Stay focused Friendly Smile Be engaging Direct Straightforward Honest We want to harness our energy expertise to make a difference in peoples lives.

8 Lesson 2 Overview of Deregulation

9 Terms Deregulation To eliminate regulation; In the energy industry, this allows consumers to choose and energy supplier that meets their needs Generation The process of producing electric energy Transmission The movement of electricity from the generation plant to the local distribution company Distribution The delivery of energy to the customer

10 Deregulation in US North

11 Responsibilities Local Utility Issues customer bill Handles emergencies Direct Energy Purchase commodity Supply to the local distribution company to deliver Maintains pipes, poles, meters, wires General customer care Provides innovative pricing plans General customer care related to supply

12 Lesson 3 Rules and Regulations

13 Public Service Commission Public Service Commissions were created to assure adequate, safe and reliable public utility services at a fair price. The Commissions are responsible for facilitating competitive utility choices for consumers. The PSCs have rules that all Suppliers must comply with in order to sell electricity or gas to customers Public Utility Commission Public Service Commission Commerce Commission Public Utilities Regulatory Authority Department of Public Utilities Board of Public Utilities OH, PA MI, MD, NY, DC IL CT MA NJ

14 Badges True or False: The field agent must have identification that is visible at all times and prominently displayed. 14

15 True Badge Requirements The field agent must have identification that is visible at all times and prominently display the following: 1) The sales agent s full name in reasonable size type face. 2) A photograph of the sales agent. 3) The trade name and logo of the supplier they are representing. 4) Upon request, the agent must supply a telephone number or address for the supplier they are representing. Identity - (877) Rikers 15

16 PSC Regulatory Requirements Multiple Choice: During a sales pitch Field Sales Agents must: A. Explain the purpose of the solicitation. B. Confirm that they are a representative of Direct Energy, an independent energy marketer C. Explain that he or she does not represent the distribution utility. D. All of the Above 16

17 PSC Regulatory Requirements Field Sales Agents must: Explain the purpose of the solicitation. Confirm that they are a representative of Direct Energy, an independent energy marketer. Explain that he or she does not represent the distribution utility. All of the above! 17

18 Quoting Price TRUE OR FALSE: You must make sure the customer understands you re only talking about the supply and the delivery (distribution) rate when pitching our plans. 18

19 False: Quoting Price You must make sure the customer understands you re only talking about the supply rate when pitching our plans. The following statements are required if a price is quoted: The price quoted is only for the specified commodity provided by the supplier; The price quoted does not include any tax, utility distribution charge, or other utility fee or charge. 19

20 PSC Regulatory Requirements True or False: You can suggest that receiving electricity or natural gas service from Direct Energy will provide the customer guaranteed savings. 20

21 FALSE: PSC Regulatory Requirements You cannot suggest that receiving electricity/natural gas service from Direct Energy will provide the customer guaranteed savings. Note: You can tell the customer mathematical facts, but you cannot say guarantee. All communication must be clear and not misleading, fraudulent, unfair, deceptive or anti-competitive. Prohibitive communication examples include: You cannot say a rate is fixed if the plan does not meet the definition of a fixed rate product. You cannot say a contract has benefits for a longer period than the contract term. 21

22 Regulatory Requirements Product offerings must contain information written in plain language that is designed to be understood by the customer. This includes providing any information to the customer in a language in which DE s representative has discussions with the customer or in which a contract is negotiated. NOTE: Currently Direct Energy conducts all field sales in English only- with the exception of IL and NJ. See your manager for details. 22

23 Right of Rescission The right of rescission gives the customer a chance to stop the enrollment transaction before it is processed by the utility. The federal ROR is 3 days and is written on their contract State OH NJ MI IL DC, MD, MA, PA, NY CT DE 23 Right of Rescission 7 Calendar days (E) 7 Business Days (G) from the postmark on notice from the utility 7 Calendar days from the postmark on notice from the utility 30 Days 10 Calendar (E) 10 Business (G) 3 Business Days 4 Business Days 10 Calendar days from the postmark date on notice from the utility

24 Sales Process The supplier must clearly disclose the following information during the sale: The details of the offer-including rate and term. The presence or absence of any early termination fees or penalties and the amount of those fees. A billing procedure description must be disclosed to the customer; Direct Energy s name will appear on their utility bill. 24

25 Sales Process True or False: Walk away from any sale if the customer appears: Not to be the account holder/authorized decision maker. Underage. Incapable of understanding the transaction/confused/intoxicated. 25

26 Not to be the account holder/authorized decision maker. Underage. Sales Process TRUE: Walk away from any sale if the customer appears: Incapable of understanding the transaction/confused/intoxicated. 26

27 Authorized Decision Maker Sales must be completed by customers that are the account holder (their name is on the bill) or their authorized spouse. We will cancel the sale and you will lose your commission if you sell to someone who was not authorized to switch suppliers. Not Eligible to Enroll Roommate Boyfriend/Girlfriend Parent of Account Holder Power of Attorney Child of Account Holder 27

28 Slamming/Fraud Slamming, also known as fraud, is switching someone s service against their will. Examples include: Faking the customer s voice on TPV and forging their signature on a contract. Regulatory authorities and the police are especially sensitive to this type of complaint. Consequences of slamming include large fines by the PSC, the shutting down of your business and, in some cases, can lead to your arrest. 28

29 PSC Rule: Sales Process The field sales agent shall not dress in uniforms or wear any apparel that contain branding elements that are deceptively similar to that of the utility company (including their logo). A supplier shall not use bills, company names, marketing materials or consumer education materials of another supplier, distribution company or government agency in any way that implies a relationship that does not exist. 29

30 Make It Clear You Are With Direct Energy The field agent must make it absolutely CLEAR that they represent Direct Energy and NOT the utility. Pitches that are considered deceptive by Public Utility Commissions: I am here to update your utility bill. Your rate is out of date and I was sent here to update it. I am here about the utility bill to make sure you are getting the discounted rate. The utility sent me here to make sure you have the current prices/plans. 30

31 Make It Clear You Are With Direct Energy Pitches that are considered deceptive by Public Utility Commissions: I am here to verify that you are in the program. Direct Energy is the supply company for the utility. This tpv call you are doing is to just verify I was here. Direct Energy works with [utility name] 31

32 Obtain clear consent? Clear consent occurs when the authorized decision maker (account holder or spouse) has shown a sincere interest in becoming a Direct Energy customer. Clear consent occurs when TPV confirms sale with prospect Sales Advisor contacts TPV Sales Advisor answers any additional applicant questions Prospect understands switch will occur Prospect has clear understanding of the plan

33 No Sales Customer Changed Mind Typically a direct result of the customer not being informed properly about what they are signing.

34 The Jones Effect Using the Jones Effect Use of the Jones Effect ( your neighbor took advantage of this offer ) should only take place if the neighbor actually signed up for service. DO NOT name-drop if that customer did not sign up; claiming your neighbor Jane Doe just took advantage of this offer, too is only permissible if it s TRUE. DO NOT make up names for neighbors in an attempt to leverage the Jones Effect. 34

35 Existing Direct Energy Customers When agents encounter any potential customer that is already a Direct Energy customer: THANK THEM FOR THEIR BUSINESS AND LEAVE 35

36 Lesson 4 Sales Process

37 Sales Process Explain program details to Customer Customer gives clear consent to switch to Direct Energy; TPV Contacted Agent relays customer information to TPV agent; Tablet sale: Transaction ID Agent receives verification code, and hangs up with TPV Agent gives customer completed contract & leaves premises TPV calls customer back at the number provided Customer responds affirmatively to all questions Sale is finalized!

38 No Sales Agent Not Following Procedure Typically a Direct result of: Agent did not leave during TPV call Agent did not leave paperwork with customer Customer did not sign paperwork

39 Sales Process Once TPV is completed, the sale is categorized as one of five options: On Flow Enrollment Accepted Enrollment Pending Enrollment Cancelled Enrollment Rejected

40 Rejections Reason Account already active with us Customer on credit hold / On Arrears ACCOUNT NOT FOUND / Invalid Account Number Explanation Account is already active with DE/Affiliates Customer owes money to the LDC Incorrect account number NOT FIRST IN Another REP signed them up ahead of us Account exists but is not active Blocked Enrollment Customer not eligible (most likely due to gov't assistance or other programs) Account is valid, but customer has not gotten their first invoice yet Customer need to contact the LDC to remove the block before he can choose a supplier Customer is not eligible

41 Activity What actions can we take to ensure all of the customers you enroll go ON FLOW with Direct Energy?

42 What is TPV? TPV is a process where an independent thirdparty verifies that new customers understand what they have signed up for. How conducted by phone at the point-of-sale. Sales agent will leave the premises-the customer will complete their portion of the call alone. TPV is not a sales call it will not educate customers on our products, it will only verify the customer s intentions.

43 A = ALPHA B = BRAVO C = CHARLIE D = DELTA E = ECHO F = FOXTROT G = GOLF H = HOTEL I = INDIA J = JULIET K = KILO L = LIMA M = MIKE TPV

44 TPV: Sales Agent Contact TPV TPV Agent Contact Customer Customer Confirm intention to enroll

45 Activity Sample TPV Call/Review TPV script

46 Field Sales Pitches Lesson 5

47 Features & Benefits Stressing the features and benefits is crucial part of sales Feature Fixed Rate/Price Protection Strength and Stability Choice Same bill Benefit We take the market fluctuations out of the equationallowing you to enjoy a fixed rate for a set period of time. We are one of the most highly regarded retail energy providers in the U.S. You the customer have the right to choose an energy supplier which best suits your needs Your utility will continue to provide your bill just as they always have

48 Features & Benefits Feature Benefit DE Services Cross-Sell Tune up Repair Plan Maintenance Essentials Plan (See current offer) Not only will we provide price protection on the supply portion of your bill, we will also protect your HVAC equipment in your home as well- at no additional cost!

49 Fixed Rate -VS- Variable Rate

50 Variable Rate Short Story Introduction: Hi, my name is. I am here on behalf of Direct Energy regarding your electricity/natural gas bill. Variable Rate Short Story: We are offering price protection for your utility bill. Many customers still have an unprotected variable supply rate. Included with your enrollment is a free trial of our <insert home services offer here> Grab your bill and I will show you what I am talking about.

51 Slam Dunk Variable Rates If they do not have price protection: It looks like you have a variable rate. Variable rates tend to fluctuate month to month and spike in the summertime historically. The reason you continue to see your rate move up and down is because your price is not protected. I can give you a protected price so that you have a low, fixed rate for months.

52 Deregulation Short Story Introduction: Hi, my name is. I am here on behalf of Direct Energy regarding your electricity bill. PSC / Deregulation short story: The <Public Service Commission> set up deregulation so customers can choose their own electric/natural gas supplier instead of having to pay supply rates from the utility. In addition to your supply service, you will receive a free trial of <insert home services offer here>. Grab your utility bill and I will show you what I am talking about.

53 What is the Difference between Direct Energy and the Utility? The utility maintains and reads your gas and electric meters. You still call them if you have an emergency, an outage or if you need someone to read your meter. We supply the energy to customers that choose Direct Energy and the utility delivers it to your home. Direct Energy is NOT affiliated with the local utility. It is NOT acceptable to state or even insinuate that we are affiliated.

54 Ask Questions Next we are going to talk about questions you can ask the customer and transition the customer s answers into you asking to review their bill. Your questions will keep the conversation going and encourage your customer to ask questions too. The answers to your questions can lead to the close of the sale.

55 Effective Questions Are you aware that you can choose your electric/natural gas provider? Yes: So you know you can pick the company that supplies your electricity (or gas). Grab your bill and let us see how we compare to your current supplier. No: Grab your bill and I will show you what I am talking about.

56 Effective Questions Do you know how many kwh (kilo-watt hours) you use each month? I do not know: Grab your bills and I will see if my offer will benefit you. I use between 500 to 1000 a month: Grab your bills and I will see if my offer will benefit you. 56

57 Effective Questions Do you know if you are on a fixed rate or a variable rate? I do not know: Grab your bill and I will show you what I am talking about. Fixed rate: Grab your bill and let us see how we compare to your current supplier. Variable rate: I can price protect that rate. Grab your bill. When their rate is fixed it also usually means they are currently in a contract. It also can indicate that they like fixed rates and the price certainty that comes with them. When they are on a variable rate it is a good opportunity to pitch fixed pricing so the customer can be protected from potential price increases. 57

58 Effective Questions What questions can I answer for you? (trial closing question) What are your concerns about...(switching, price, contracts, savings)? (trial closing) These questions are very open ended and open the door for the customer to speak and for you to get insight to how they are thinking about the pitch. 58

59 Assumptive Cross-Sell Close As a new Direct Energy customer you will be receiving a complimentary <X> month protection plan which protects your furnace and AC. As a welcome to the Direct Energy family you will be receiving a <X> month protection plan on your AC and Furnace. Additional details are provided in the back of the form if you have any questions, you do own this home correct? Do you own the home and responsible for the upkeep on the furnace/ac?

60 Assumptive Cross-Sell Close Since you are enrolling with Direct Energy included in the plan is a <X> month protection plan for your furnace and air conditioner. Included in the plan is a <X> month protection plan that covers your furnace and air conditioner. Do you own the home and are you responsible for the upkeep on the furnace/ac?

61 Role Play Time: 20 mins. Objective: Effectively pitch Cross Sell offer Key Questions: Did the agent pitch the correct product? Did the agent present the feature and value of the product? How well did the agent use the short story approach? Did the agent use effective closing techniques? (Assumptive closing) Feedback: What did the agent do well? How could the agent improve?

62 What are advantages of being on fixed rates? A fixed rate ensures that the customer s price will not change for the length of their contract. It provides peace of mind because customers know exactly how much they are paying per unit (kwh, CCF, MCF, Therm) and can budget their energy costs. If prices go up, they are protected. The customer s usage will continue to fluctuate based on how they consume electricity and natural gas, but their price per unit remains the same. 62

63 What are the disadvantages of being on variable rates? Variable rates offer no price certainty. The energy charges are volatile and move up or down based on the retailer s buying schedule and market rates. The customer s on variable pricing risk spikes in their energy rate if the market prices go up Variable Price Protection

64 Why does Direct Energy participate in the Choice Program? We are trying to grow our business and gain market share. Can't I just call a supplier and do this myself/can I get back to you? The plan I am offering today is a plan exclusively created for residents in this area. The plan and the rate could change as early as tomorrow if the market goes up. I am going to call my current company myself to lower my rate. That is an option, however your current provider may not agree to lower your rate at this time and our offer is available to you today. 64

65 I have heard about deregulation but I really do not know how it works Deregulation allows customers to choose the company that supplies their electricity or natural gas. Companies that are participating in deregulation offer competitive pricing plans to attract customers. Why doesn t picking a supplier happen automatically? It is not automatic because picking a Supplier is your choice just like signing up for any other service. In some markets the utility will pick your supplier for you if you don t choose one yourself, but they could pick one whose price isn t very competitive and is not protected. 65

66 How long does it take to have my service switched to Direct Energy? It takes one to two billing cycles. The timing of the switch depends on when your meter is read and when the enrollment is processed by the utility. So you want me to switch from my current provider to your company? We would only like you to take advantage of our competitive offer for your electric/natural gas supply. If you are under contract with another supplier you would need to check with them to understand the details of your current plan. 66

67 Always Remember Your safety is a top priority. Do not enter a customers home Be aware of your surroundings If you feel uncomfortable contact your manager immediately Do not give out your phone number to customers Be professional in your interactions Leave the bill with the customer Explain the product completely and accurately Answer customer questions before contacting TPV You represent Direct Energy! Don t speculate about the offers of the competitors Direct Energy will not pay another suppliers cancellation fee- do not imply that we will

68 Questions?