HPMC 2014 - The New Energy Consumer - Accenture Netherlands

The New Energy Consumer

24 January 2014

Agenda

NEC12

 The New Energy Consumer Initiative
 A New Era of Change and Uncertainty
 Summary Netherlands results
1.
2.
3.
4.

Delivering operational excellence
Optimizing customer interaction
Creating lasting customer engagement
Extending the value proposition

 Ten Strategic Priorities for Energy Providers

Copyright © 2014 Accenture. All rights reserved.

2

Accenture’s New Energy Consumer Research Program
Over 4 years of comprehensive and continuous research focused on energy users, our
research offers actionable insights into the preferences and values shaping the energy
marketplace.

>40,000 consumers
surveyed in 21
countries

>2,000 small and
medium businesses
in 9 countries


Survey of market
trends & priorities for
20 leading utilities
customer executives

Market insights & leading
practices from more than
50 leading energy
providers and over 30
cross industry providers

In-depth analysis of
technology adoption
in 8 major markets

3

Agenda

NEC12

1.
2.
3.
4.




4

Risks today, uncertainty tomorrow
Utilities are facing a storm of forces that are reshaping the market landscape and are
increasing uncertainty in the market.

Government
& regulatory
shifts

Advancing
technology

Uncertainty is
increasing
Shifting
consumer
preferences


Sustainability

5

A future of Uncertainty, Disruption and… Opportunity?
The changing market place, uncertainty and disruption require Utilities to develop simple
and agile organizations
The Rise of ‘Economics
of Dissatisfaction’
In order to be successful, Utilities need to build simple, flexible organizations, while eliminating key
dissatisfiers across strategic imperatives:

Reduce Operational
‘Cost-to-Serve’

Enhance Revenue
Potential

Sustain or Improve
Customer Value

Drive Energy
Efficiency Goals

6

Agenda

NEC12

1.
2.
3.
4.




7

1. Delivering operational excellence

8

Consumer’s level of trust in their utilities/energy providers has
decreased
What organizations do you trust to inform you about actions you can take to
optimize your energy consumption?
Do not trust
Consumer associations
Academics/schools/scientific
Associations
Environmental associations
Government/governmental
organizations
Online service providers
(e.g., Google, Microsoft)

Utilities/energy providers
Home service providers
(e.g., cable television provider,
telecommunications provider, home
security company, etc.)

Retailers/equipment manufacturers

Base: All Netherlands respondents

9%

Neither trust nor distrust
44%

8%

47%

50%

15%

18%

33%

32%
53%

23%

24%

65%

% Trust
2012
44%

42%
53%

23%

Trust

23%

17%

18%

22%

61%

17%

27%

23%

61%

16%

17%

34%

57%

9%

18%

Active community involvement, offering the latest technology,
treating employees well and offering physical locations are
where consumers feel their energy providers over perform
How important are each of the following factors in building your trust with your
energy provider?
Based on your experience to date, how would you rate your energy provider’s
performance on each of the following factors?
Accurate
invoice

Easy to
understand

91%

Reliable
energy

Ethical
brand

Environmental
brand

Energy
advisor

Valued
employer

Partners to
create
value

Techsavvy

Community
member

Face-toface
interaction

91%
88%

85%

89%
85%

85%

82%

79%

77%

87%

78%
76%

78%
75%
73%

71%

61%

68%
63%

47%

Consistently Provides clear
gets my bill and easy-tocorrect
understand
pricing
information

Provides me
with reliable
energy
delivery

Is known to
have ethical
business
practices


Is known to
work to
protect the
environment

Informs my
family or me
about efforts
we can take to
decrease
energy usage

Is known for
treating its
employees
well

Partners with
other
companies or
organizations
to enhance its
offerings

Importance (Somewhat + very important)

Offers me the
latest
technology

Is actively
involved in my
city and
neighborhood

47%

Offers a
physical
location where
I can meet with
its
representatives

Performance (Good + excellent)

2. Optimizing customer interaction

11

Aside from the bill payer, others in the home have influence on
energy usage
Thinking about all the members of your household, please indicate the level of influence
the following have on energy usage in your home (e.g., set the temperature, turning lights on/off,
turning on/off entertainment, doing laundry, etc.)

Moderate to significant influence
Bill payer

94%

Spouse-partner

90%

Other adults who live in the home

74%

Teenagers (13 to 18 years)

72%

Regular in-house services

69%

(e.g., nanny, child care, etc.)

68%

Occasional in-house services
(e.g., house cleaning, pool servicing, etc.)

Children (12 years and under)

Base: All Netherlands respondents; excludes “Not Aplicable“ responses

51%

Consumers are most interested in learning about energy or
related products and/or services during their discretionary time
and when shopping for products for the home
Where would you be most interested in learning about energy or energy-related
products and/or services, and how much time would you be willing to dedicate to
learning about them?
During my free time

33%

(e.g., at home on evenings or weekends)

While shopping for appliances

35%

(e.g., washer, dryer, fridge, etc.)

While shopping for materials or products to make
major renovations to my home

58%

25%
52%

17%

28%

51%

23%

(e.g., insulation, furnace, windows, etc.)

While shopping for electronics

34%

14%

48%

(i.e., television)

While shopping for minor home improvement products

34%

12%

46%

(e.g., light bulbs, weather stripping, etc.)

While waiting to buy something

25%

6%

31%

(e.g., waiting for coffee or food, etc.)

While traveling

18%

At work

18%

7%

While shopping for groceries

17%

26%

8%

(e.g., waiting for a train, while on a train, etc.)

At an event
(e.g., concert, sporting event, etc.)


14%

6%
6%

25%
23%

20%

<5 minutes
>5 minutes

Consumers have different expectations for the features offered
on an energy provider’s website if they are accessing it via a
mobile device versus a traditional computer
Provided you had access to a traditional computer (e.g., laptop or desktop) and a
mobile device (e.g., smartphone), which of the following features would you want
available on your energy provider’s website?
26%

Detailed information about my energy usage

79%
22%

Personalized tips on actions I can take to reduce my energy bill

49%
24%

Personalized offers and coupons

44%

(e.g., coupon for laundry detergent, rebate for appliances)

32%

Notifications about my energy usage

43%

(i.e., notification when higher than normal bill is forecasted)

22%

Ability to perform self-service transactions

38%

(e.g., pay bill, update account information, view outage information, etc.)

20%

Reviews on energy-related products and services

35%

(i.e., reviews of energy-efficient appliances)

14%

Ability to purchase energy-related products and services from the website

31%

(i.e., purchase an energy-efficient appliance)

17%
Ability to purchase prepaid energy to use in the future

24%
35%

Ability to control heating, cooling, or appliances in my home

18%
20%
15%

Online games that educate my family about energy waste-conservation

22%

Ability to participate in social games
(i.e., compete with neighbors on decreasing energy usage)

13%

An online community hosted by my energy provider to share energy-saving
tips

13%
13%
0%


20%

Using a mobile device
Using traditional computer
40%

60%

80%

100%

3. Creating lasting customer
engagement

15

On a year-on-year basis, consumers are less satisfied with
their energy providers
What is your level of satisfaction with your current energy provider?
Please use a 10-point scale for which 1 means that you are extremely dissatisfied and 10 means that
you are extremely satisfied
2013

Very satisfied

2012

18%

21%

76%
Satisfied

82%

58%
61%

Neutral

17%

Not very satisfied
Not satisfied at all

2%
5%

15%


2%

1%

Nevertheless, to date, the impact on loyalty is limited and overall
consumers’ intention to switch has decreased
Are you considering switching to another energy provider in the next 12 months?
Please use a 10-point scale for which 1 means that you will certainly not switch to another energy
provider in the next 12 months and 10 that you will certainly switch

2012

2013

Certainly
Probably

6%
11%

17%

11%

25%
14%

Neutral

20%
15%

Probably
not


11%

Certainly
not


14%

49%

49%

Since 2011, the interest in alternative providers for purchasing
electricity and beyond-the-meter products and services has
decreased
You may currently, or in the future, have new companies offering you electricity, energy-efficient products
(i.e., smart thermostats), and/or related services (i.e., customized information on your electricity consumption) on top
of their traditional products and services. Would you consider purchasing electricity, energy-efficient
products, and/or related services from the following providers:

Yes, could consider a provider other
than a utility/electricity provider

46%
60%

(i.e., retailer, phone or cable provider, online site)

Retailer

33%
38%

(e.g. Koninklijke Ahold N.V )

Phone or cable provider

32%

(e.g., Koninklijke KPN N.V)

Online site
(e.g., Amazon, Google)

47%

28%
31%

2013
2011


Better prices and convenience are the main drivers why
consumers would consider purchasing from an alternative
provider
Why would you consider purchasing energy or energy-related products and/or services from a provider
other than your energy provider (e.g., retailer, phone or cable provider, website)?
Mentioned in top three
The provider has lower prices than my energy provider

57%

I can bundle products and services to get a discount

48%

(e.g., Internet, phone and electricity)

I have had better experiences dealing with this provider than
with my energy provider

34%

The provider has a store where I can talk to a representative,
see products and discuss services

31%
29%

The provider has better service than my energy provider
The provider has a better return or service cancellation policy
than my energy provider

25%
20%

I trust the provider more than my energy provider

17%

The provider is a local company
I belong to the provider’s loyalty rewards program

9%

Base: Netherlands respondents who would consider purchasing energy or energy-related products and/or services from providers
other than their energy provider

Preferences for rate plans vary significantly across geographies
If your energy provider offered the two following rate plans, which option would
you select?

77% 76%

23% 24%

CN

KR

46%
52% 52% 51% 51% 51% 49%
56% 55%
60% 60% 59% 58% 58%
64% 64% 61% 61%
69% 67%

54%
49% 49% 49% 51%
45% 48% 48%
44%
39% 39% 40% 40% 41% 42% 42%
33% 36% 36%
31%

IT

PL

ZA

SG

Base: All respondents

TR

AU

BR

CA

ES

AVG

FR

JP

Flat rate plan
The price of energy is fixed and does not change throughout
the day. You do not need to pay attention to the times at
which you use energy, but you cannot save money on your
energy bill by actively managing the times at which you use
energy

DE

SE

DK

UK

NO

BE

US

NL

Variable rate plan
The price of energy changes throughout the day. You can
save money on your energy bill if you actively manage the
times at which you use energy (i.e., use major appliances
when energy is cheaper), if you do not, your energy bill will
increase

4. Extending the value proposition

21

The main barriers to investing in energy-related products
and/or services are cost along with perceived lack of financial
payback
In the next 12 months, are you
planning to spend money on energyrelated products and/or services for
your home (e.g., energy-efficient
appliances, smart thermostats, etc.)?

Why are you not planning to spend
money on energy-related products
and/or services in the next 12
months?
I cannot afford the cost of the required
investment

Yes, I plan to
spend money

71%

I do not think it will result in significant
cost savings on my energy bill

59%

I am not able to make changes
to my home

46%

(i.e., I rent it and do not own it)

41%

I do not want to spend money on
energy related products and services

59%

37%

I do not think it will have a significant
impact on the environment

35%

I do not know what energy related
products and services are available

No, I do not plan to
spend money

I do not have the time to learn about
these new energy products and
services

23%

14%

Base: Netherlands respondents who do not plan to spend money

Cost savings and financing options are key to motivating
consumers to make substantial investments in energy-related
products
Some energy-related products (e.g., solar panels, energy efficient appliances, etc.)
can be expensive. Would any of the following motivate you to purchase energyrelated products that require a significant financial investment?
Guaranteed reduction in your energy bill

66%

Discounts on bundles of energy and energy-related products

49%

(e.g., bundling electricity with solar panels)

Flexible payment plans to finance my purchase

39%

(e.g., monthly payments on my bill, no payments for two years, etc.)

Renting options

37%

(e.g., rent solar panel, programmable thermostat, etc.)

Loyalty points in return for money that I spend with
my energy provider

30%

Ability to transfer remaining payments on energy-related products if I move

27%

(e.g., transfer financing payments on my solar panels to the new owner if I sell my home)

None of these would motivate me to purchase energy-related products that
require a significant financial investment


13%

Agenda

NEC12

1.
2.
3.
4.




24

Global Agenda: Ten Key Priorities for Energy Providers

Economics of
Dissatisfaction

Retail
Redefined

Unconventional
Partnerships

Bridging the Digital
Divide

The Consumer
Ecosystem

The Neglected
Middle

Workforce of
the Future

Enterprise
State of Mind

Reinventing
Value

Age of Turnkey
Technologies

25

Growing customer preference for digital
Sustainable, effective digital development requires strategic value-based prioritization and
planning to deliver robust infrastructure, cumulative benefit and full integration with
existing operations and strategy.
Progressive Adoption of
Mobility Globally
800

More than $100bn spent on
mobile media globally

Global Smartphone Volume (Millions)

700
+ 31%

600
Mobile device
penetration exceeds PC

500

+ 38%

400

Smartphone catalyzes disruptive
technology innovation

717.5m

300
494.5m

+ 43%

200
+ 20%

305m

+14%

100
119.7m

139.3m

2007

2008

175m

2009

2010
Year


2011

2012

“61% of
customers
would prefer
to use
digital
channels for
¾ of their
key utility
interaction
scenarios1”

Example digital customer experience


Spotlight On E.On
E.On Sweden provide a leading example of how digital technology can be leveraged to
drive specific strategic outcomes, consumer behaviors and business goals in a utilities
context.
E.On created ‘Sweden’s Largest Energy Experiment’ to drive customer energy efficiency adoption through provision of multiple digital
tools that visualized, tracked and monitored participant energy usage.

1

10k customers were provisioned with a smartphone app
that monitored real time power usage for their household
3

The initiative was supported by a larger campaign
community website to facilitate comparisons and sharing

2

Over 12 months the app visualized their energy
consumption in 5 ways to determine the most effective
4

Participants on average saved 12% on their energy
consumption over the course of the year

Watch the full outcomes on YouTube here: http://www.youtube.com/watch?v=jHgZc4m1FtA&feature=youtu.be

28

Statements
1. Over 5 jaar vindt 80% van het klantcontact digitaal plaats
2. Over 5 jaar wordt 80% van de producten en diensten aangeschaft, in gebruik
genomen en gefactureerd via digitale kanalen
3. Utilities kunnen alleen overleven als ze aansprekende en relevante digitale
value added services aanbieden aan hun klanten
4. Business en cultuurchange zijn grotere challenges dan IT change om een
digitale transformatie te realiseren
5. Digital = Internet


Accenture Energy Consumer Services provides
customer care solutions for competitive energy
providers globally.
We help our clients to develop and implement full valuechain solutions that achieve three key business
imperatives: cost effectiveness, revenue assurance and
customer satisfaction. Through new energy customer
transformation, next generation customer solutions,
transformational outsourcing and asset-powered
services, we bring world-class industry-specific
management consulting, technology and business
process customer- care capabilities to our electricity, gas
and water clients.
How to increase customer satisfaction? What new valueadd products and services can be developed? How to
reduce pressure on operational costs? How the business
can be simplified? What path to define a medium- and
long-term customer care strategic vision?
We can help.
Accenture’s global New Energy Consumer program
delivers actionable insights on the trends and critical
competencies for the evolving energy marketplace. Our
New Energy Consumer research spans years of insights
into consumer needs and preferences:

HPMC 2014 - The New Energy Consumer - Accenture Netherlands

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