JD POWER 2018 UTILITY DIGITAL ENGAGEMENT STUDY · Our Speaker Andrew Heath, PhD, Sr. Dir. of Utility Practice, JD Power • Responsible for the company’s water, natural gas, electric

JD POWER 2018 UTILITY DIGITAL ENGAGEMENT STUDY

Brought to you by:

Our Speaker

Andrew Heath, PhD, Sr. Dir. of Utility Practice, JD Power

• Responsible for the company’s water, natural gas, electric and airport customer satisfaction studies and the Utility Website Experience Study.

• More than 25 years of experience working within the utility and infrastructure sectors.

• Dr. Heath received a bachelor’s degree in management science from the University of Lancaster and a Ph.D. in management science from Imperial College, London.

Apogee Engages Utility Customers

Don’t Just Read the Bill

Explain It!

Dollarize Weather Impact

Dollarize Days of Service

Quantify Rate Changes

Suggest Other Factors:

Guests

More Appliance Use

System Problems

Video Bill Explanation

© 2018 J.D. Power and Associates. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use. 1

J.D. Power's Digital Experience Study

June 5th, 2018

Digital Transformation Insights

Andrew Heath Senior Director, Utilities Practice [email protected]

mailto:[email protected]


2 © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.

Brands Measured

The 67 largest U.S. electric, natural gas and water utility brands (540,000 customers or > )*

45. PSE&G46. PSEG Long Island47. Puget Sound Energy48. San Antonio Water System49. San Diego Gas & Electric50. SCANA51. SMUD52. Southern California Edison53. Southern California Gas Company54. Southern Company Gas55. Southwest Gas56. Spire57. SRP58. Suez59. TECO60. UGI61. Vectren62. Washington Gas63. Washington Suburban Sanitary Commission64. We Energies65. WEC Energy Group66. Westar Energy67. Xcel Energy

23. Exelon-PHI24. FirstEnergy25. Florida Power & Light26. Georgia Power27. KCP&L28. L. A. Dept. of Water & Power29. LG&E-KU30. MDU Resources Group31. MidAmerican Energy32. National Fuel Gas33. National Grid34. NIPSCO35. NV Energy36. NW Natural37. OG&E38. ONE Gas39. Pacific Gas and Electric40. PacifiCorp41. Peoples42. Piedmont43. Portland General Electric44. PPL Electric Utilities

1. AEP2. Alabama Power3. Alliant Energy4. Ameren5. American Water6. APS7. Aqua America8. Atmos Energy9. Avangrid10. Black Hills Energy11. California Water Service12. CenterPoint Energy13. Columbia Gas14. Con Edison15. Consumers Energy16. CPS Energy17. Dominion Energy18. DTE Energy19. Duke Energy20. Entergy21. Eversource Energy22. Exelon

* Plus other proprietary Canadian and US brands on request


3 © 2018 J.D. Power and Associates. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.

Methodology

▪ Web-based survey of the 67 largestelectric, natural gas and water utilitybrands (540,000 customers or >)

▪ Sample sizes

▪ Study timeframe

• December 18 – January 22, 2018

▪ Combined score calculations

Desktop/Tablet Mobile Web App

Industry 9,994 5,516 831Device weighting

Desktop/Tablet

Mobile Web App

All Channels 58% 21% 20%

Desktop & Mobile Web 67% 33% 0%

Desktop & App 85% 0% 15%

Desktop Only 100% 0% 0%

KeyFactors Appearance

22% 17%

Clarity ofInformation

Provided

23%

Ease of Navigation

19%

Availability of Key Information

19%

Range of Services



Methodology

▪ Respondents sent to a screener to ensure thatthey met the following criteria:

• Customer of utility company

• Willing to set-up or have online access towebsite/app

• 18 years of age or older

• Resident of the United States

• Not employed within certain industries

• Only took the survey once, even if belonging tomultiple panels (cookie identifier)

▪ Each respondent was asked to complete or findinformation on the following tasks, if applicable:

• Set up an online account

• Account log in

• View consumption history

• Review account information

• Make a payment

• Research energy saving information

• Update service

• Report outages

• View outages

• Locate contact information

• Perform account and profile maintenance

• Locate gas/water leak information



Combined UDES RankingOverall Index

849

848

846

845

844

844

844

844

842

842

841

840

840

839

838

837

837

FirstEnergy

Duke Energy

OG&E

CenterPoint Energy

Exelon

PPL Electric Utilities

Spire

TECO

Eversource Energy

Xcel Energy

DTE Energy

Ameren

WEC Energy Group

Industry

National Grid

PSE&G

Southern California Edison

879

872

870

866

866

865

865

862

862

862

861

861

857

855

853

852

851

Alabama Power

SRP

MidAmerican Energy

AEP

Atmos Energy

Florida Power & Light

LG&E-KU

PacifiCorp

SCANA

Vectren

KCP&L

NV Energy

Consumers Energy

Westar Energy

Georgia Power

Southwest Gas

Entergy

¹ A mobile channel was not measured for the utility and therefore it will not be officially ranked.



Combined UDES RankingOverall Index

825

825

824

824

823

821

821

821

818

817

815

814

812

802

791

790

786

Aqua America

Pacific Gas and Electric

CPS Energy

Southern California Gas Company

Black Hills Energy

MDU Resources Group

NIPSCO

UGI

Con Edison

Southern Company Gas

San Antonio Water System

APS

Avangrid

L. A. Dept. of Water & Power

Washington Gas

Suez

WSSC

836

835

835

835

833

833

832

832

832

831

831

830

830

828

828

827

826

Alliant Energy

Piedmont

Portland General Electric

San Diego Gas & Electric

SMUD

We Energies

Dominion Energy

National Fuel Gas

Peoples

Columbia Gas

NW Natural

ONE Gas

Puget Sound Energy

California Water Service

PSEG Long Island

Exelon-PHI

American Water

1

1

¹ A mobile channel was not measured for the utility and therefore it will not be officially ranked.



Strong desktop performers utilize a comprehensive landing page with key account information and clear paths for navigation

An overview of account activity is provided within cards along with contextual links to information or actions

▪ Sections are prioritized and well-defined

▪ Appropriate use of color enhances usability

How could [Utility] improve this process? (Availability of Key Information, Desktop)▪ “Everything I wanted and more was present and easy to

find.” – FPL▪ “Everything is very easy to find. It is a very simply laid out

platform.” – Consumers Energy▪ “I don't see any areas for improvement, all crucial areas

displayed on home page, everything else was easy to find.”– MidAmerican Energy

▪ “I don't think I would change anything it is all there for youon the dashboard on the home page and very easy to findand use.” – NV Energy

▪ “They are absolutely perfect for my needs- simple,straightforward, and easy to navigate. I wouldn't changethe layout a bit.” – Alabama Power



Top mobile web performers provide key information within clearly formatted pages

Weaker Performance

Stronger Performance

Top performers display additional content efficiently

▪ Key information appears above the page-fold

▪ Content is fitted to the screen

How could [Utility] improve this process? (Availability of Key Information, Mobile Web)▪ “Only 3 things are readily available.” – LADWP▪ “Availability of personalized information.” – DTE Energy▪ “Make it easier to find key information use tabs etc.” – LADWP▪ “Create buttons or areas that show the key information areas.”

– DTE Energy▪ “Make more urgent info easier to identify.” – Pacific Gas and

Electric▪ “Easier access to your account information.” – Pacific Gas and

Electric▪ “I had to do to much searching for different tabs, there should

be only a few main tabs for the heavily used items.” – LADWP



Florida Power & Light’s app offers straightforward functionality in an intuitive and visually appealing framework

FPL follows many best practices

▪ Descriptive links

▪ Large touch targets

▪ Focused drawer and menus

▪ Key information is highlighted

▪ Follows conventions, e.g. toggles

▪ Color is used appropriately to highlight anddifferentiate key elements

How could Florida Power & Light improve this process? (Mobile App)▪ “I like the look of the app.”▪ “It was a great experience.”▪ “The way it is very easy to navigate the application.”▪ “I think it's excellent right now. It has great features and is user

friendly even for the novice.”▪ “I think this app is simply perfect. I don't see it needing

anything really. It's easy to get to the 4 main things: bill, usage,outages, and profile. I cannot believe how great this app is andthe technology behind it!! So Thank You!” Process flow is

straightforward

Personalized time of day

greeting and weather info



Review account information, make a payment and view usage have the highest usage on the website/app…

Note: Update service, Report/view outages, and View water/gas leak information not shown

68%

63%

50%

25% 24%20%

3.90

4.00

4.10

4.20

4.30

4.40

4.50

0%

10%

20%

30%

40%

50%

60%

70%

80%

Review accountinformation

Make a payment View usage Energy savinginformation

Find contactinformation

Change profile

Website/App Task Usage in Past 3 Months



…although satisfaction for view usage (4.19) is substantially lower than review account information (4.44) and make payment (4.46)…

68%

63%

50%

25% 24%20%

4.44 4.46

4.19

4.13

4.36

4.27

3.90

4.00

4.10

4.20

4.30

4.40

4.50

0%

10%

20%

30%

40%

50%

60%

70%

80%

Review accountinformation

Make a payment View usage Energy savinginformation


Change profile

Website/App Task Usage in Past 3 Months




… and has the greatest impact on satisfactionWhen customers meet satisfaction drivers (KPI’s) the overall experience improves

21%13%

18%23%

16%12%

79%87%

82%77%

84%88%

View usage Review accountinformation

Change profile Energy savinginformation


Make a payment

Satisfaction Impact by KPI

Did not Meet KPI Met KPI

+43 +36 +33 +30 +29 +19


KPIs defined as Not Met = 1-3 rating; Met KPI = 4-5 rating by task



Even strong performers across devices struggle to show usage in a way that meets customers expectations

The usage information and functionality provided could be more robust

▪ Limited functionality

▪ Filtering options are not always intuitive

How could [Utility] improve this process? (Clarity of Information)▪ “Make a usage comparison to a related to a standard.” –

TECO, Desktop▪ “Text messages or emails for usage.” – San Diego Gas &

Electric, Mobile App▪ “Improve consumption information/explanation.” –

Dominion Energy, Desktop▪ “Explain some of the graphs in greater detail regarding

consumption.” – Spire, Desktop▪ “The only thing that is hard to understand is the graph and

usage section.” – Entergy, Mobile▪ “They could provide more detailed information on what

days in the month I used more electric and tell me what Icould do to keep my usage lower.” – SRP, Mobile

SRP

Alabama Power FPL

NV Energy

MidAmerican Energy Duke Energy



Customer Video Methodology

Customer Survey Feedback via Self-Video Recordings

Method:

Customers that had a video camera on their desktop or mobile device were asked if they would volunteer to take a video recording of their website experience.

After agreeing to submit a response for market research purposes, they were asked the following two questions:

1) Please describe your overallsatisfaction with the website/app for[utility company].

2) What did you like Best and Least.Please be specific.



Self-Service Customer Video Analytics

Millennial segment

OSAT 10 Rating segmentVideo Dashboard



Lab-based Biometric Deliverables

Heat Map

Galvanic Skin Response

Eye Tracking and Face Emotions

Areas of Interest





The utility industry scores 571 on a 1000-point scale, which is lagging digital best practices …



… but there is a wide range of digital capabilities within the industry



Channels are the biggest weakness for both top and bottom performers



The digital experience must go well beyond the website in order to foster a functional relationship and experience with the customer

Experience with Insufficient Depth

▪ The utility industry lacks features thatextend the functional relationship andexperience with the utility brand via digitalchannels

▪ On average, utility brands scored belowparity in product and channel functionalitybest practices, while the customerexperience received high marks

▪ However, websites and experiences alonelack real staying power



Other industries have acknowledged the demand for a greater variation of digital channel offerings (especially text)

FedEx Health Care

AT&T Chipotle



IVR Satisfaction Has Improved Dramatically in Recent Years

787

788

792

795

819

Phone-CSR

Website

Phone-IVR

Email

Chat

Channel Satisfaction

!



Utility Voice of the Customer vs Digital Best Practice

UDES Overall Satisfaction

Dim

en

sio

ns

Sco

re

© 2018 J.D. Power and Associates. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use. 25

Beyond Measure

Alerts keep customers informed.

0% 10% 20% 30% 40% 50% 60%

Worsened

Stayed the Same

Improved

Bill Explanation – Perception

• Perceived as personalized, about your bill

• About 10x more improved (58%) vs. worsened(6%)

“What a great personalized way to

understand changes in my bill. I like that

fact that it was proactive and narrowing

where the changes were in the bill.”

“It was interesting to see what affects the bill.”

It was very helpful to understand my energy use.”

I didn’t know some billing periods were longer

than others.”

After watching this video, has your perception of Your Utility…

58%

36%

6%

Bill Explanation – Usefulness

89% Very or Somewhat Useful

0% 10% 20% 30% 40% 50% 60%

Not very useful

Somewhat useful

Very useful

52%

37%

6%

How useful was the information presented?

“I liked that it gave specific

information about the changes

in the last month and what

they specifically cost or save

me.”

It created awareness and prompted more attention in thermostat settings.

I like the cost factors breakdown.

Tell me what I can do to improve my rising bill. I am cold in my home in spite of increased sweaters or jackets.

Giving real increase costs was interesting and helpful I think my other factor increase was due to running gas fireplaces more often and having the thermostat set at 68 instead of 66

Interesting info, that you did not have to invest in supplying.

Very well done with the explanation of the higher monthly bill.

Very informative. I didn’t know this.

The breakdown of costs

Good idea, simple and informative!

I must say it was interesting and informative good idea

It raised the question, that I will answer, as to why our energy bill went up by $60 when only $6 of the increase can be explained by colder weather and a single additional day in the billing cycle.

I liked how it detailed the various factors that may have increased or decreased the bill. Knowing the cycle was 5 days longer was helpful.

it was very clear.

Impressive how you could break it down that way.

Well done, I would have liked to know how the increase in gas prices for the season is calculated.

I liked the dollar amounts told

Liked the analysis.

It was specific to me and my family.

Pretty good all around and informative

I like the breakdown of the factors affecting our bill.

Verbatim Classification

Negative Neutral Positive

Comment Analysis

Extremely Positive!

92%

Findings & Conclusions

• Subsequent messages had increased Click-Thru Rates: 5%, 14%, 16%

• Drastically increases click-through rates (3x to 10x Industry Averages)

• Improves customers’ perception of their utility

• Documented fewer calls from treatment group

• Home-profile information mined for refining messages, betterprogram targeting

• Proven to produce greater, ongoing,customer digital-engagement

• Cost-effective at pennies ($.03 - $.05)a message at scale

Add Videos to Online Portals

When you

can do

THIS! >>>

Why do<<<This?

ApogeeRoadmap

Video Moves to Voice

Call Avoidance

Webinars Coming Soon

June 28, 2:00 Eastern – Video Messaging Master Class

July 24, 1:00 Eastern – Apogee Presents with AESP In Focus

Sign up at: www.apogee.net/webinars

http://www.apogee.net/webinars

Questions…Discussion?

Thank you!

JD POWER 2018 UTILITY DIGITAL ENGAGEMENT STUDY · Our Speaker Andrew Heath, PhD, Sr. Dir. of Utility Practice, JD Power • Responsible for the company’s water, natural gas, electric

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