Power Insight: Getting to Know Your Customer
Customer profiling and segmentation in the power & utilities industry
Electric industry deregulation and evolving customer expectations are driving intensity and complexity in the P&U industry. Added to that is an influx of players that is spurring unparalleled competition. And while the introduction of smart grid technologies has created a substantial growth of usage and measurement data, few organizations have discovered how to transform that data into actionable insights.
With “Power Insight,” Deloitte is leveraging analytics to move beyond the traditional focus on service reliability and usage-based block rates to help take data to another level. Using advanced analytical capabilities, P&U companies can unearth new insights on customer behavior and preferences. These insights then inform the development of products and services tailored to specific customer segments.
Five phases of customer segmentation analytics
Customer segmentation analytics creates distinct groups of customers with common characteristics, such as interests, risk factors, behaviors, likes, dislikes, propensities, etc. Having an integrated and realistic view of the life time value of all customers at each moment, can enable a utility to make value-generating decisions on many levels --- from strategic to operational. Utilities can thus deliver better sales, marketing and service efforts via new education, incentives and customer motivations. A comprehensive segmentation analytics strategy should be comprised of five phases:
- Planning and data gathering
- Segmentation analysis
- Organization and change
- Business case/finance
- Pilot solution
Deloitte’s combination of analytics and extensive power and utility industry experience can drive significant value for P&U companies. Through an integrated set of cross-service area capabilities, Deloitte Customer Transformation helps companies improve sales, marketing, and customer management. Deloitte Analytics helps clients to drive value through in-depth understanding of customer insights. Finally, our Information Management practice helps companies extract and employ data from existing systems and capitalizes on emerging technologies.