Engaging SMB Customers: Some Really Cool Ideas

Jan Barrett Manager, Strategic Telephone Outreach Business Customer Division E Source Forum 2014 September 29–October 2, 2014

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• 50,000 square-mile service area

• Nearly 14 million residents in service territory - counties of Central, Coastal and Southern California

• Service territory that includes 430 cities and communities with a total customer base of about 4.9 million residential and business customers

• Maintain over 115,000 miles of distribution and transmission lines and 1.5 million electricity poles

• Regulated by the California Public Utilities Commission and the Federal Energy Regulatory Commission

In 2013, SCE:

• Answered more than 15 million phone calls in 7 languages (plus up to 190 languages through translation services)

• Issued more than 55 million bills

• Processed over 51 million payments

• Collected over $12 billion in revenue

• Achieved 1,156 GWh and 193 MW of energy efficiency savings

• Maintained 1,710 MW of demand response capability

Company Profile Southern California Edison

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Segmentation Model

Evolution

CUSTOMER PERSPECTIVES

• Customer Care and DSM Needs: - Frequency of customer care

needs and interest in Demand Side Management (DSM) programs

- Complexity of issue resolution and DSM enrollment and fulfillment

• Channel Preferences: - Type of relationship (from

single point of contact to transactional)

- Type of delivery channel (from in-person to self-service)

SCE OBJECTIVES

• Drive Key Business Priorities: - Achieve DSM goals

- Maintain or improve customer satisfaction in key market segments

- Manage cost to serve

• Limit Business Risks: - Manage politically sensitive and regulatory

intensive customers

- Remain a competitive energy provider within the region

Effective segmentation will rely on identifying and reconciling the perspectives of business customers and SCE

Foundation Business Customer Segmentation

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Segment Channels

Strategic (S1) 3.000 customers

Strategic with Varying Potential (S2) 2.400 top customers

Basic Needs and Potential (S3) 6.500 customers

Strategic Self-Service (S4) 285,000 customers

ID

SM S

peci

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Outside Account Managers

Tele

phon

e O

utre

ach

Man

ager

s (T

OM

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CCC

Strategic G, I & Ag

Strategic C & I

Business Solutions

BCD Customer Coordination

Business Customer Education and Operations

Account Management Support and Technical

Services

Centers of Expertise • IDSM • Lead Generation • Rate Analysis • Outage Communications • Customer Care • New Construction Services • Field Engineering

Integration of Sales & Support Serving Our Customers

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Business Solutions Overview • Assigned Customers: 8,600

• Unassigned Customers: 287,000 • Service Accounts: 530,000 • Annual Impact to SCE Business

– 18.6 billion kWh – 23% of Total SCE kWh Sales – $3.04 billion annual revenue – 26% of SCE Total Revenue

• Customers served via three primary channels: Telephone, field, and community outreach:

– Telephone Outreach Managers: Handle customer care issues and prospecting to identify and influence Integrated DSM via phone or email.

– Integrated DSM Specialists: Responsible for field delivery of energy efficiency and demand response programs.

– Energy Efficiency Outreach Team: Promote energy management solutions through partnerships with business, community, and faith-based organizations. Emphasis on working with hard-to-reach customers.

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Counting on Account Management

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Transforming Customer Perceptions

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Price • Personalized Rate Analysis Letters • Customer Engagement via Multi-Channel Communication • Best Practices Communications • Social Media • Account Management • Business Advisory Panels Customer Service • Mobile Apps for Outage • SCE.com Functionality • Tablets for Field Account Managers

JD Power Alignment

Best Practice and Initiatives

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2015 TOU Transition Strategy

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Sept

embe

r 201

4 TOU Awareness Postcard/Email

Oct

ober

201

4 Rate Analysis Letter / Email

Oct

– D

ec 2

014

Outbound Calling

Jan

– Au

g 20

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Aftercare

SCE.com/TOU, My Account, Rate Analyzer, Rate Analyzer landing page on SCE.com, Customer Testimonial videos and solutions to help customers with the TOU transition

Events, including energy walks, chamber meetings, business forums and presentations

Agricultural publications and newspapers in Joaquin Valley and Ventura counties and radio sponsorships of live farm reports

Media Campaign

@ @ @

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Power Quality and Reliability • Outage Schools • Proactive Communication • Pre- and After Care • Mobile Apps for Outages • Targeted Outreach • Expanded Outage Notification Process • Best Practices Corporate Citizenship • Integrated DSM Programs • Customer Engagement, Outreach Events and Community Forums • Involvement in Local Charities and Civic Organizations

JD Power Alignment

Best Practice and Initiatives

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Outage Communications

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Serving a Diverse Marketplace

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Empowered Employees

Result in Delighted

Customers

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Account Rep Satisfaction: Key Drivers

61

67

88

147

156

0 50 100 150

Brings Technical Expertise

Addresses Concern Timely

Understands Needs andChallenges of Business

Resolves Question / Concern

Takes Responsibility

Account Rep Attributes

Impact

% Yes

89%

93%

90%

83%

87%

15 Business Customer Division