Improving customer service was the hot topic of the late
1980s and early 1990s and tended to be the primary driver
for upgrading or replacing Customer Information Systems
(CIS). Everyone knew that we needed to be more in tune with
our customers; we needed to be more responsive to their
needs and really be more proactive rather than reactive.
This awareness of customer service was enhanced as utilities
started feeling the pressure coming from deregulation/competition
which was “just around the corner.” While utilities
still want to offer excellent customer service, economic
realities associated with our economy are driving utilities
into cost-cutting mode, resulting in municipalities and
utilities, electric, water and gas, seeking ways to decrease
costs and operate more efficiently. Some utilities that
have a need for a new CIS are attempting to cost-justify
the new systems. TMG Consulting has consistently told its
clients that seldom can you justify a Return-On-Investment
(ROI) on a new or upgraded CIS. However, there are many
essential reasons for making this investment. Once the new
technology is in place and the improved functionality is
available to a utility, other systems/modules can be added
which will easily demonstrate an impressive ROI and will,
in the end, justify the cost of a new CIS.
We now seem to be in an era of customer self-service. While
we demand convenience and “complete” service,
sometimes we are forced to do it ourselves, and there are
other times we would just rather do it ourselves. For example,
it is hard to find a place that will pump gas for you. In
fact, most of the time we don't even have to go inside to
pay. And, many of us probably don't go to the bank anymore.
We just use the ATM machines. I now make all of my own travel
arrangements online. The airlines have enticed me to do
this by giving me additional frequent flyer miles for booking
the reservations online myself, not using a travel agent
or calling the reservation center, thus saving them costs.
Following this trend, many utilities have been very successful
implementing customer self-service through effective Interactive
Voice Response (IVR) systems and Interactive Web Response
(IWR) systems. And, IVR and IWR systems are easier to install
and are much more cost effective if the utility has a modern,
up-to-date CIS operating on new technology.
IVR is telephony technology in which someone uses a touch-tone
telephone, or speech recognition technology, to interact
with a CIS to acquire information from or enter data into
the database. IVR technology does not require human interaction
over the telephone, as the user's interaction with the CIS
database is predetermined by what the IVR system will allow
the user access to. For example, utilities use IVR systems
so that their customers can receive up-to-date account information
instantly (24 hours a day) and easily without having to
speak directly to a person. Computer-Telephony Integration
(CTI) can also be included where the customer's account
information can be automatically presented to the CSR should
the customer choose the option of talking to a CSR. This
“screen popping” technology claims to save from
5 to 10 seconds per call.
IVR technology can also be used to gather information,
as in the case of telephone surveys in which the user is
prompted to answer questions by pushing the numbers on a
touch-tone telephone, or by answering verbally with speech
recognition software, with the IVR system registering the
responses. Some utilities have initiated business practices
to where each customer they interact with is asked if they
are willing to participate in a short survey regarding the
call that is being completed. If the customer is open to
this, they are put into this IVR survey mode, and the utility
gathers a wealth of customer care and customer satisfaction
information.
Outbound Predictive Dialing is anther feature of an IVR
system. The system can dial out to a selected group of customers
using the CIS database to inform customers of outages, delinquent
payments and termination notices. Once a customer is contacted,
the system can connect the customer to a live CSR and provide
the CSR with a screen pop of the customer's information.
There is no question that an IVR system can be a very effective
cost-saving initiative for a utility. It is estimated that,
if the system is set up properly and intergraded with an
efficient CIS, about 20% of the customer calls can be handled
through the system without any interaction from a CSR.
The extent with which IVR systems are used within utilities
varies significantly. Some, whose corporate culture dictates
that customer service be very personal and person to person,
have elected to give customers the option of talking to
a live CSR versus going through their “automated”
system. And then, if customers select the automated system,
their options may be limited to only accessing their account
balance, the date their next bill payment is due, and perhaps
when their last payment was received. Other utilities, whose
goal is to handle as many customers as possible with the
fewest number of CSRs, have opened up the possibilities
associated with their IVR system. Their customers can retrieve
their balances and payment dates, service termination dates,
and payment extensions. They have integrated screen pops
so that if customers choose payment extensions, they are
asked to hold for a CSR, and the choices made by the customer,
along with other pertinent customer information, are displayed
for the CSR once he/she is connected to the customer. Customers
can access the system any time of the day. They can report
trouble or outages using the IVR. They can request new service;
i.e., moves or transfers to new locations. And, the utility
can choose what functions will allow for immediate update
in the database and what functions will require a review
and approval by a CSR, such as a payment arrangement.
Utilities are also adding payment processing to their IVR
systems. Many vendors will act as a network-wide payment
center in handling both credit card and personal check payments.
The IVR system will retrieve account information, verify
credit, process the transaction and deposit the funds into
the utility's account. Many systems also offer fax on demand,
where static documents, such as New Account Information
forms, are stored on the system and customers can ask to
have these faxed directly to them.
Interactive Web Response (IWR) offers the same functionality
through any standard web browser. One added feature available
through IWR is internet bill delivery and bill payments.
This move into E-Commerce allows utilities to offer customers
the option of receiving their bills electronically via email.
Or, as an option, the utility can send an email to customers
directing them to the web site to look at their bill. The
system will then allow the customer to make direct payments
via either ACH or credit card using the internet. It is
estimated that this E-Commerce saves utilities approximately
50% of the costs associated with the billing of customers.
A key to making these systems cost effective is to insure
that they are user-friendly. They need to be set up correctly,
with clear definitions of each path, and instructions that
are easily understood and followed by the customer. I know
that I have gotten lost in IVR systems, either where there
doesn't seem to be an option for the problem for which I
am calling in, and I can't get an exit out to talk to a
CSR, or the system hangs up on me. Another pet peeve of
mine is being asked to enter my account number, and then
eventually reaching a CSR who then immediately asks me for
my account number. I understand that this is sometimes done
to ensure that the screen pop has provided the correct information
to the customer, but there are better ways of validating
the account and lessening the customer's stress level.
There are many good IVR/IWR system vendors serving the
utility industry. Make sure that you have a well-defined
business case detailing why you want a system, and that
your CIS can effectively interact with such a system. Build
your RFP to clearly communicate your needs and your desired
results. Develop an effective evaluation criteria and perform
the necessary due diligence to ensure the best system for
your company. Or, better yet, incorporate an IVR/IWR system
in your procurement of a new CIS.
Gary Weseloh is a Vice President and Senior
Consultant with TMG Consulting. He has over 30 years of
utility experience, including the management of customer
systems (CIS, meter reading, remittance processing, complex
billing) at a large combination utility, consulting on mobile
computing/field work automation, and extensive selection,
evaluation and installation oversight projects with TMG
Consulting. He can be reached at garyw@tmgconsulting.com.
