Dte energy driving to best in class retail experience

A collaboration of:

DTE Energy - Driving to Best in

Class Retail Experience

Chris Garber-Brown

DTE Energy

Jacqueline Robinson

DTE Energy

Who is DTE Energy?

DTE Energy Priorities and Strategies

Customer Technology Approach

Self Service Channel Strategy

Build Organizational Capability

Key Points to Take Home

Questions

What I’ll Cover

DTE Energy is a national energy company with

deep Michigan roots

DTE Gas

DTE Electric

Headquarters

• DTE Energy is a Fortune 300 company

• DTE Electric (founded 1886)

• DTE Gas (founded 1849)

• Non-utility businesses with operations in

24 states

• 260 onsite Customer Reps (CRs)

• Currently 70% outsourced

• 2.1 million electric customers in Michigan

• 1.2 million gas customers in Michigan

• More than 9,500 employees

• DTE is one of the top contributors to

Michigan’s economy

Our Businesses

Our Michigan Presence

Who is DTE Energy?

Nuclear 15%

Coal 76%

Gas & Other 3%

Renewable 6%

Profile of DTE Electric

• Twelfth largest US electric utility with 2.1 million

customers

• 12,200 square kilometers service territory centered

around Detroit

• ~$5.3 billion in revenue, $17.7 billion in assets

• Regulated by the Michigan Public Service Commission

(MPSC)

Generation Output by Fuel Type

Service territory

Profile of DTE Gas • Eighth largest US natural gas utility with 1.2 million

customers

• 23,500 square kilometers service territory throughout

Michigan

• Significant state regulated gas storage capacity benefits

customers (~139 Bcf)

• ~$1.3 billion in revenue, $4.1 billion in assets

Revenue by Type

Storage &

Transportation

27%

Gas Sales

73% Service territory

DTE Energy

YTD 2013 Stock Price Performance

(Through 7/19/13)

S&P 500 18.6%

Peers 16.6%

DTE 17.0% FY 2012 Earnings Release EPS Actual: $3.94 EPS Consensus: $3.91

Q1 2013 Earnings Release EPS Actual: $1.34 EPS Consensus: $1.07

2013 DTE Energy Stock Performance

7

DTE Energy Priorities and Strategies

Slide 8

DTE Energy’s Aspirations and System of

Corporate Priorities

Customer Satisfaction…

a key DTE Energy priority

DTE Electric 2012

DTE Electric 2006

Midwest Electric Utility

DTE Electric 2013*

Midwest Gas Utility

* Preliminary JD Power mid-year review

JD Power Residential Customer Satisfaction Ranking

2017 Goal 2017 Goal

9

DTE Gas 2012

DTE Gas 2006

DTE Gas 2013*

“Portalized” Website

10

• We benchmarked our existing technology against companies like USAA, Amazon, and Delta, and identified the gaps.

• We are introducing retail-centric customer technologies to close the gap and create a step change in customer perception.

• Understand each customer’s needs to deliver a personalized experience

• Like how Amazon offers book recommendations, we can offer products relevant to your needs

• Enable customers to access our website in a mobile friendly format and complete transactions from their mobile devices

• Like checking on a flight status while at the airport, you can check on your service or outage status while away from home.

• Deliver innovative apps that create “wow” experiences

• Like taking a picture of a check to deposit it to your bank account, you can take a picture of a downed wire and report an outage anywhere.

We are shifting our customer technology strategies from

delivering a first quartile utility offering

to a best in class customer centric retail offering.

Full Mobile Access Innovative Mobile

Applications

Customer Technology Approach

Slide 11

Chat

WEB MOBILE KIOSK PHONE

Customer System Current Architecture

Contact History

Data Mart

Business Channels Assisted Channels

Account

Manager Marketing

Analyst

Outage

Management

System

SWIFT Call Rep

eMail

Service Layer

Self-Service Channels

Residential

Customer

Service and

Billing

Platform: Oracle

CSB

Customer

Communication

Work & Device

Management

Platform:

Maximo,

PowerTrack

Metering

Platform:

MDM, MVRS

Finance

Platform: SAP

ECC

Field Service

Platform:

Advantex

Data:

Goldmine SalesForce CSB

Commercial and

Industrial Billing

Platform: Oracle

KCS

CSB CSO-CR

KCS

Commercial

Marketing Data

Mart

Residential

Marketing Data

Mart

Financial Data

Mart

Notification

Service

Varolii

Restoration

Calls

Angel

OpenText

StreamServe

Data Stewardship and Business Intelligence Customer Data Warehouse

Interaction Center

CRM

Account

Manager

Marketing

Analyst

Outage Management

System

Demand Side Management

SWIFT Call Rep

Chat eMail

Service Layer

Customer Events, Account Events, Service Events, Trouble Events,…

Business Process Management Key Transactions: Turn On/ Disconnect, Account Inquiry, Payments, Report Outage,

Collections

WEB MOBILE KIOSK PHONE

Self-Service Channels Assisted Channels Business Channels

Billing Platform: SAP CR&B Data: Account, Site, Rate, Service, Bill, Payment, Credit

&Collection

CRM Platform: SAP CR&B

Data: Customer, Account, Agreement, Care Case, Campaign

CCM Platform: Open

Text StreamServe, Genesys,

Data: Bills, Service Letters,

Notifications

Work & Device Platform:

IBM Maximo Data: Work Orders, Asset Management

Metering Platform: Itron

MDM Data: Meter

Readings

Finance Platform: SAP ECC

Data: GL, Payments, Arrears,

Revenue

Field Service Platform: Advantex

Data: Appointment Book, Dispatching

Customer System Future Architecture

Self Service Channel Strategy

Slide 14

Approach to our Self Service Channel Strategy

Slide 15

Three work streams will enable DTE Energy to shift its customer technology strategies from delivering a first quartile utility offering to a best in class customer centric retail offering

Improve and extend our current offerings

Improve existing operational fundamentals

Deliver greater residential transaction capabilities

Introduce new offerings

Create a business self service offering

Deliver innovative, differentiating experiences

Establish organizational capability for sustainability

Benchmark and establish a future state organization

Operate today with cross functional teams

Improve and Extend Our Current Offerings

Slide 16

Source: JD Power &

Associates 2013 Utility Website

Evaluation Study

Number 3 Mobile Web Number 6 Website

Introduce New Offerings

17

Mobile Outage Reporting Customer Energy Awareness

Engaging customers as they “desire”

Slide 18

30.4

6.8 6.1

0.839 0.045 0.026 0.022 0.007 $0

$5

$10

$15

$20

$25

$30

0

5

10

15

20

25

30

35

Avg

Co

st p

er

Co

nta

ct

Nu

mb

er

of

Co

nta

cts

(M

M)

Annual Contacts Avg Cost per Contact

83% 90% 71% 82% 95% 60% 62% 83%

Web (Mobile

& Desktop) Agent

Assisted

Offices Kiosks Email Chat Mobile

(SMS & App) IVR

Current Channel Performance C

SAT

Slide 19

Channel Effectiveness Dashboard We actively monitor the performance of our channels to provide insight to our executive team

weekly, with a deep dive on anomalies.

Synopsis of issues resulting in a drop in Web Sat Score:

• A new release of the website was deployed on 8/26.

• Login issues and Features/Content issues provided the largest driver for reducing the Web Sat score. The second

largest driver is Page Loading/Site Error.

• It’s observed that the score of “ability to complete objective” reflects the overall sat score. If this score is low, the

overall sat score will also be low.

20

81

80 82

73 69

78

83

90

87

72

40

50

60

70

80

90

100

4-Aug 11-Aug 18-Aug 25-Aug 1-Sep

September 13, 2013

Weekly Web Score Customer Issues from 8/14/13 – 9/4/13 Sat Score

FCR

0

1

2

3

4

5

6

Login Features/Content Other Page Load/Site Error Update Account Page Load

Tracking Customer Satisfaction

Slide 21

Interaction/ Transaction Mobile Web

Payment Make a payment A

Sign up for autopay A A A

Sign up for ebill A A A

Account Inquiry Update account information (address, email) A A

Learn about optional services and/or how to save energy and money

A

Sign up for optional services (eg- DSM) A

Book an appointment (eg- for meter read) A A A

Submit a meter reading A

Get account balance A

Determine usage A

Problem/ question regarding bill A

Collections Arrange a payment plan A

Case management discussion

Outage Report an outage

Notify DTE Energy of downed power line

Notify DTE Energy of gas leak

Inquire about restoration time

Turn On/ Disconnect Set up new account A

Cancel service A

Transfer service A

Disconnection or reconnection of power A

We conducted an analysis of transactions in our customer channels to identify

opportunities to improve and extend offerings.

Transaction Inventory

Slide 22

Customer Segment

Averse to Technology!

Has Some Technology Aptitude

Is Ok with Technology, has

security concerns

Tech Saavy

Tech Affluent

%

22 %

34 %

9 %

22 %

13 %

Characteristics

Mails payments or uses office, no

IVR or web ID

Uses IVR , 3rd parties or kiosk

Has a web ID, uses online

account inquiry, mails payments

Logs in 2-3 times, uses Auto Pay

Surfs the website, logs in 8-9

times, makes payments online

Technology Acceptance Segmentation

Build Organizational Capability

Slide 24

Success Factors to Achieve a Stellar

Customer Experience

Slide 25

Customer Effort

• Degree of intuitiveness and ease of

completing transactions in self-service

channels

• Clear and attractive digital designs that

appeal to the customer

• Few transactional barriers

It is easy!

Channel Consistency/ Continuity

• Consistent, branded communications

and transactions across channels

• Ability to perform one transaction

across >1 channel

It is consistent!

Personalized Experience

• Recognize key differences across

groups and tailor treatment

• Communications through preferred

channels with personalized messaging

It is personalized!

Technology Stability

• Stability and availability of digital

channels and IVR

• Safe payment transactions

It is available & works!

Effective Promotions

• Change customer behavior w/

promotions, education, advertising,

incentives

• Internal Culture and Incentives

encourages CSR promotion

It benefits me!

Organization & Gov

• Align organization to a single vision

• Clear ownership of self-service

channels

• Consistent reporting and metrics that

align to goals and outcomes

• Embedded continuous improvement

We’re aligned!

In order to become a leader in channel performance and self-service, DTE Energy will deliver on six

dimensions

Katrina Pays Her Bill Katrina sees a

promotion for the

DTE Energy App.

She’s been

meaning to

download the

app.

While waiting for the bus, Katrina downloads the app. After following a few quick steps, Katrina sees her balance on the app.

Katrina goes into

her account to

view her

information. She

can choose to pay

her bill with

various methods:

credit card,

PayPal, or DTE

Energy points.

She confirms her

payment and sees

the balance switch

back to $0.00.

Slide 29

Today

• Cross Industry customer service leader; Utility leader in cost to serve and self-service adoption

• Smaller number of channels with exquisite and

consistent experiences

• Accountable customer experience point and

clear prioritization process

• Integrated Multi-Channel infrastructure with

incentives to drive migration to self-service

• Configurable infrastructure whereby process

redesign can be achieved across channels

with ease

• Multi-Channel Contact Center Centric

• Interactions across channels are customized to

customer segments and their unique needs

• Compared to Utility and Energy service leaders, lagging key adoption and cost to serve

• Large number of channels with inconsistent experiences within each

• Limited customer experience vision and ownership accountability

• Fragmented Multi-Channel infrastructure and culture limiting digital channel adoption

• Business limited in flexibility by systems and ability to implement rapid change across channels

• Call Center Centric

• SMB customers feel they are an after thought and are screaming for tailored service offerings`

DTE Energy’s response: Multi-Channel Contact

Center Operating Vision

Tomorrow

Chief Customer Experience Officer

*Strategy & Planning *Channel

Integration

*Workforce Strategy

Payment Account

Inquiry

Collections Outage TrnOn/Disc End

Contact Center Lead

Transformation from Call Center to Contact Center, Workforce Training

Digital Lead

Align Customer Experience Digital Channel Strategy

Customer Segment Leads – SMB & Residential

Manage the strategy and customized experiences for SMB and

residential customers

Analytics Lead

Customer insights and reporting

Shared Services

• Workforce Management • Communications & Branding

• Marketing • Change Management

• IT • Continuous Improvement

Establish Organizational Capability for Sustainability

Slide 30

Governance Evolution ~ Over

the next 2.5 years, DTE will

implement a matrix model with

lifecycle and channel managers

Key Changes:

• Customer Lifecycle Leads collaborate with digital

channel lead and contact center to design customer

experience strategy

• Analytics Center of Excellence executes advanced

analytics capabilities

• Digital channel and contact center lead are

responsible for channel management and experience

2013 portion is funded Currently not funded

Investment Area 2013 2014 2015 2016-Beyond

Channel Program

Ch

ann

el S

pec

ific

Web

Telephony

Mobile

Emerging

Call Center

Shar

ed Core Systems

Ops & Enhancements

Interactive Bill $0.4M

Social $3M

SWIFT $6M

CRM Preference Mgmt. $2.4M

CRM Complaint Mgmt. $0.4M

CCM Bill/Letter Gen $3M

CR&B – KCS and CSB Replacement ~$100M CR&B Bus. Case $0.4M

WFO $1.1M

SMS $1.4M

Infrastructure Design $0.1M Telecom Infrastructure Upgrade $4.5M

Account Inquiry $1.7M

Business Portal $0.9M

Quick Pay $0.2M

Outage Tracker v1, v2 $0.8M

Cust. Energy Aware $4.5M

Payments $2M

Mobile Infrastructure $5.3M

Analytics Infrastructure $2.1M

Energy Awareness $1.4M

Content Mgt. $0.7M

Other, Police/Fire $1M Moving Center $1.5M

$8.5M $8.5M

Preference/Contacts $1.6M

Outage $1.2M

Enrollments $0.8M

Service/Moves/Collections $1M

Business Transactions and Customization $1.7M

Additional Transactions $1.5M

Landlord Custom $0.75M

New Mobile Web $0.75M

OTv3 $0.8M

Analytics (“tape”) $1.4M*

Payments $1.1M

CEA v2 $1M

Ops and Monitoring $1M*

PMO $0.7M*

No Shortage of Gaps

To Fill the Gaps

Slide 32

• Added new customer channels: mobile web and mobile apps

• Developing an enterprise view of the customer

Existing channels were not current with how our

customers want to engage with us

• Planning underway for SAP CRM&B, implementation starting 2014

DTE Energy’s Customer Information is dispersed in four separate billing related

systems

• Implemented Open Text CCM system

• Implemented SAP CRM system to aggregate data and create a holistic customer view

Two of the core system capabilities are largely missing

(CRM and CCM)

• Implementing a comprehensive data strategy Customer data is stored in

multiple systems and is difficult to access

Key Take Aways

Slide 33

• Greatest Insights:

The cultural and change management effort to take us from a site focus to a

customer focus is critical to success.

• What did I get right?

We decided to do a couple of items to provide a quick return to market

(Usablenet and Portal).

• What I would do differently.

Communication of self-service strategy and roadmaps up front.

A collaboration of:

Chris Garber-Brown DTE Energy

[email protected]

Jackie Robinson DTE Energy

[email protected]