Business Process Services White Paper Redefining Customer Experience in the UK Water Utility Industry with Digital Communication
About the Authors Dipanshu Shekhar Dipanshu Shekhar is a Transformation Consultant for the energy, resources, and utilities sector at Tata Consultancy Services' (TCS) Business Process Services (BPS) unit. He has over eight years of experience in the IT and ITES sector. He is a quali ed instrumentation engineer and has earned his MBA from Xavier Labor Relations Institute, Jamshedpur. Saumabha Barua Saumabha Barua is a Practice Consultant with Tata Consultancy Services (TCS) and leads the transformation team for the energy, resource, and utilities domain. He is responsible for identifying and implementing projects that bring about a disruptive change in businesses through IT automation as well as through non-it interventions. He has over 17 years of experience providing technology and process consulting across a wide range of functions for performance optimization and business metrics improvements. Saumabha is a postgraduate in management from the Indian Institute of Management, Calcutta and a graduate in Chemical Engineering.
Abstract Currently, water utilities in most parts of the UK operate in a regulated market. However, the draft Water Bill introduced by the UK government, likely to come 1 into force by 2017, will open up the non-household customer market to competition. This deregulation is gradually expected to extend to the household sector as well, and water utilities need to gear up for this change by offering differentiated customer service. The Office of Water Services (OFWAT) encourages the water and sewerage industry to transform its end-consumer experience in order to meet changing customer expectations. In doing so, OFWAT hopes to push water utilities towards implementing next generation practices in customer service, and thereby ensure readiness for the imminent wave of deregulation in non-household sectors (business, charity, and public). In this competitive environment, water utilities that adopt technology early on to enhance customer experience will have the rst mover advantage, and will be able to differentiate themselves. Streamlining digital channels can help water utilities realize sustainable business value in an evolving market. Digital reimagination is a strong force that can drive disruptive innovation in the water utilities industry. This paper highlights how water utilities in the UK can ensure effective customer communication, a critical part of delivering superior customer experience. It also illustrates how the adoption of a digital communication model can drive enhanced customer experience. 1 OFWAT, Policy paper2010 to 2015 government policy: water industry, May 2015, https://www.gov.uk/government/publications/2010-to-2015-government-policy-water-industry/2010-to-2015-government-policy-waterindustry#appendix-3-reform-of-the-water-market-the-water-act-2014, accessed July 2015
Contents Embracing Customer Centricity: The Current Imperative 5 The Evolving Omni-channel Model 5 Moving Towards a Futuristic Digital Communication Model 6 Utilize NLP 6 Leverage Mobile Technology 6 Use Social Media 8 Creating a Digital Reimagination Strategy 9 Preparing for a Dynamic Future 10
https://www. - x https://www. - x Embracing Customer Centricity: The Current Imperative Water utilities in the UK are increasingly focusing on improving customer experience. The Service Incentive Mechanism (SIM) introduced by OFWAT, the country's water regulatory authority, imposes financial penalties on companies that provide poor customer service. In response to this push, water utilities are trying to become more agile and enhance customer service to stay ahead of competition. They plan to achieve these objectives by placing customers at the heart of their business decisions, and overhauling their customer communication systems and processes through digital reimagination. The initiatives are expected to bring about a radical transformation in end-customer experience and position the utilities at par with sectors such as telecom that are renowned for customer service. The need of the hour is a strong content management system that is integrated with the customer information system (CIS) and supported by real time synchronization. The Evolving Omni-channel Model Today's digitally savvy customers expect instant resolution to their queries and problems. A wellintegrated omni-channel customer interaction model, as illustrated in figure 1, provides customers with the flexibility to start an interaction in one channel and seamlessly transition to another, leading to an enhanced SIM score. The SIM parameter, introduced by OFWAT, helps utilities measure the effectiveness of their customer experience. The score is calculated based on qualitative and quantitative service improvement measures. It is targeted at helping utilities improve their brand value, perception, and awareness with, and eliminate the risk of being penalized by the regulator. Single Channel Multi-Channel Omni-Channel MOBILE Figure 1: Customer Interaction Models in the Water Utility Sector 5
By transforming customer interaction mechanisms, water utilities can bring significant improvements in both the qualitative and quantitative components of SIM, leading to greater customer satisfaction. The channel integration layer in the omni-channel model seamlessly integrates from all communication channels to enable analytics driven decision making in real time. It also offers customers the flexibility to resolve queries at their convenience, through a channel of their choice. In addition, the layer ensures security by allowing only authorized channels to access common business applications that provide effective customer service. Regardless of how many new digital channels are added over time, this model ensures smooth and consistent service levels, and higher responsiveness and quality of service in each individual channel. Moving Towards a Futuristic Digital Communication Model Next generation customer communication models enhance the existing channels by utilizing Natural Language Processing (NLP), and leveraging new age digital channels such as mobile apps and social media. Utilize NLP The current operational methodology of IVR is cumbersome; whether the query is standard or not, the customer has to sift through multiple options to get through to a customer services operator. Natural Language Processing (NLP) can help eliminate the complexity and significantly improve customer satisfaction. Users can present their standard queries as simple commands such as, I would like to understand how direct debit (DD) works. The new IVR platforms use NLP, a field of computational linguistics, to analyze historical customer interactions and an industry specific dictionary prepared by subject matter experts to create a standardized set of responses. This helps in interpreting customer requests, thereby helping resolve the problem faster. On the other hand, a customer query could be more specific, such as, I have placed a request for updating the DD amount, but the previously set DD amount continues to be deducted. In such scenarios, users are automatically routed to the appropriate customer service representative for quick processing. Leverage Mobile Technology While some leading UK water companies are attempting to enhance customer experience by offering self-service through mobile channels, others continue to lag in this area. Mobile solutions provide a range of functions; from basic ones such as viewing and paying bills to more advanced options such as processing move-ins and move-outs, enabling consumption comparisons with peer groups, and tracking services. Additionally, they also enable billing through photographs of the meter and advanced IVR. 6
Photo meter application A Photo Meter Mobile application can help customers capture meter readings, thereby reducing dependence on estimated readings, resulting in more accurate billing. It extracts and processes the image with the meter reading in real time using Optical Character Recognition (OCR) algorithms. The customer then accepts the reading and submits it to the supplier server for validation, which is then approved and used to bill the customer. User Actions :- Customer ID 0000000000 User Steps Step 1 Step 2 Click Picture of Meter Reading using Smart phone Uploads Uploads and Sends Meter Reading Image through Mobile App with user s Customer ID Extracts Image Contents for Customer ID System Reconciles Automate Data Entry of Meter Reading in SAP system Backend System 1. Meter Reading 2. GPS Tagging 0 0 0 0 2 1 Timestamp Mobile location using LBS (Location Based Services) A Extracted Meter Reading Text through OCR (Optical Character Recognition) Engine Image GeoTagging Mobile Location Site Location Automate Data Entry Figure 2: Photo Meter Application Process Flow Figure 2 shows the process flow of a photo meter application. The image pre-processing and OCR algorithm runs directly on the customer's smartphone. Once the image is captured, the image processing algorithm converts it to text. The reading along with the GPS coordinates of the meter location is then forwarded to the billing system for reconciliation and customer billing. The application uses technology based on augmented reality to provide customers a convenient way of capturing and sending self reads. This can help increase the billing percentage and reduce billing related discrepancies. Visual IVR A visual IVR solution converts customized IVR flow for enquiries and requests into a visual format that customers can directly view on their smart devices. While this solution promotes self-service, customers can also get additional support such as online chats or voice calls as needed. If a customer contacts the company after a visual IVR process, the average handle time (AHT) will be reduced as the key details have already been captured accurately in the system, reducing the overhead for the customer service associate. 7
Leak Reporting Such applications enable users to take a picture of the leak, tag the geo location, and add a description of the leak quickly with minimal clicks. Subsequently, the application generates a custom report and forwards to the fix-the-leak dashboard maintained at the water utility. The operations team views and actions the report. At every step of the workflow, it notifies the customers of the reported leak. Gamification can be used to engage and reward the customer. The app can reward customers with badges for reporting leaks; these badges can then be converted to monetary rewards as an acknowledgement of their support in helping water utilities reduce revenue leakage. Mobile solutions along with various supporting applications can help water utilities realize the following benefits: Reduce cost-to-serve by replacing channels that require manual intervention with cost effective, automated channels of communication Improve SIM score by enabling easy, effective, and instant customer interaction Help contact center staff utilize their time and effort optimally and handle more high value-low volume customers Use Social Media In this digital age, social channels such as Facebook and Twitter are gaining strategic prominence as the preferred media for customer communication. These channels have become the focal points of innovation, especially with respect to branding, marketing, and customer communications. For example, many water utilities are set up to receive household move and bill payment related requests from customers through social media. To tune in to this changing scenario, water utilities should set up a dedicated team as a command center to effectively monitor and manage social media interactions with end-customers. The team could mine conversations in real time to generate actionable insights at the right time. Effective utilization of social media with the help of analytical tools also helps reimagine the existing customer service process as shown in Figure 3. Analytics can be designed around buzzwords such as billing, burst pipe, low pressure, poor service, no water, closures, or delays to identify and prioritize issues. This also helps categorize specific conversations on various topics of relevance to an organization. Categorizing conversations and taking proactive actions help arrest customer dissatisfaction and increase the SIM score. For instance, sentiment analysis provides a highly effective way to understand customer preferences and ensure proactive engagement. 8
Social Media Analytics Engine Influencer Score Daily Tweet Count Verified Followers Select Enterprise Data Tracker alert set for posts with high potential impact PR, Marketing, or Customer Services SPOC Social media team analyses all conversation in real time for potential high imapact posts-both positive and negative Interaction History CRM Sentiment Value Daily Engagement Rate Potential Reach Based on User Profile Requisite actions taken by the management to satisfy identified business needs Figure 3: Schematic Representation of Social Media Analytics Sentiment analysis Utilities can identify trends through sentiment analysis of social media posts. This helps utilities resolve customer issues on social media before they raise an official complaint. Appropriate interventions should be designed to address such customer concerns in time. For example, let's assume a flood has occurred in a particular area managed by a water utility, generating heavy traffic on social platforms. The following are some proactive actions that can be implemented to ensure a smooth customer experience: An increasing frequency of tweets necessitates closer monitoring of the situation. If the sentiment score generated on a real time basis turns negative, the organization needs to initiate proactive messages to address the concerns of customer groups. Classification of tweets based on region and issue can help organizations take preemptive action by contacting customers of the region to ascertain the problem and advising them on emergency procedures. Social media platforms can be leveraged to spread a positive message that the utility has things under control. Creating a Digital Reimagination Strategy Water utilities need to create and implement a robust digital strategy based on desired outcomes such as SIM score improvement and reduction in retail operating cost. They also need to factor in specific operational metrics such as reduction in customer complaints and overall cost-to-serve. A supporting roadmap of digital initiatives based on the views and expectations of key stakeholders should be used to strengthen the strategy. In addition, a digital governance body that oversees program implementation and tracks metrics needs to be created. Robust governance helps deliver consistent customer experience and ensure effectiveness of the solution. The roadmap should enable the following: 9
Provide a prioritized list of digital projects that need to be executed Identify key areas where benefits can be realized Determine ways to build upon and protect existing investments Ensure the acceptance of ideas across the organization for effective collaboration Preparing for a Dynamic Future In the current water utility ecosystem in UK, OFWAT is using rewards and penalties levied through its service incentive mechanism parameter to encourage water utilities to adopt digital channels and improve customer engagement. In addition, the impending deregulatory wave in non-household sectors will significantly shake up water utilities, forcing industry players to evaluate digitization holistically. Given these significant pressures, water utilities will need to take a fresh approach to enhance customer experience. Organizations with a robust digital strategy and substantial digital presence will be well positioned to navigate the imminent industry deregulation successfully, and build enduring and profitable relationships with customers. 10
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