Exhibit to Agenda Item #1

Transcription

1 Exhibit to Agenda Item #1 Board Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting Wednesday, August 2, 2017, scheduled to begin at 5:30 p.m. Customer Service Center, Rubicon Room Powering forward. Together.

2 Utility Trusted Brand & Customer Engagement Study Overview Presented by: Prepared for: Chris Oberle Senior Vice President August 2, 2017 Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting

3 About Market Strategies Largest Utility Research Firm Since Energy as clients utility in 2016 companies 30 1 dedicated Utility Research projects energy in 2016 researchers mission Deliver meaningful results so Clients can make confident business decisions and drive change throughout their organization 8/2/2017 Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting 3

4 About Market Strategies Going a mile wide and a mile Deep Cogent Reports UTBCE Benchmark Study Diagnose Performance and Areas of Focus Brand Trending Positioning Value Benchmarking Trusted Adviser Product Usage Demand / Opportunities Conversion Potential Matrix Selling Benchmarking Satisfaction Trending Operations Service Rankings CIS Custom Work Qualitative / Qualitative for Deeper Understanding Brand Testing Focus Group Logos / Color Message Testing Value Proposition Product Message Testing Feature Testing Best Practice Market Share Development Satisfaction Post-transactor Outage Re-contact Tracking Goal Setting Best Practice 8/2/2017 Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting 4

5 Background

6 Maslow defined a customer engagement model Actualized Relationship Engaged Customer Relationships Esteem and Purchases Product means Delighting Customers Product Demand and Experience Customers want to do business with you Love and Belonging Brand means Wow-ing Customers Brand Trust Safety and Security Basic Needs Satisfaction means Being Average Safety and Reliability Billing, Payment and Service Customers don t mind doing business with you 6

7 Managing Customer Engagement requires a complete customer relationship review - Customer Management Balanced Scorecard Goal Weighting 360 o Residential Customer Engagement Evaluation 36 Rating Questions Strategic Factors % Importance on Brand Trust 39 Rating Questions Strategic Factors % Importance on Operational Satisfaction 42% Safety & Reliability 35% Billing & Payment Customer Focus 19% Company Reputation & Advocacy 19% Communications Effectiveness 18% Reliable Quality 17% Community Support 14% Environmental Dedication 13% Brand Trust 30% Engaged Customer Relationship (ECR) Product Experience 31% Operational Satisfaction 39% 23% Customer & Field Service 21 Rating Questions Strategic Factors % Importance on Product Experience 71% Design Features 21% Benefits Awareness 8% Usage Performance 7

8 Maslow s model in action Brand and Product excellence gain higher scores than Satisfaction excellence SMUD Customer scoring from achieving top performances Engaged Customer Relationship Index Service Satisfaction Brand Trust Product Experience Top 3 Box Scoring Data collected since

9 Customers Must Trust Their Utility Before Supporting a Rate Increase 8.00 Utility should invest in Quality/Reliability of its Operations even if it means raising rates Completely disagree Neither agree nor disagree Trust Utility to Set Fair and Reasonable Rates Completely agree 8/2/2017 Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting 9

10 Residential Utility Trusted Brand & Customer Engagement studies approach Market Market Data collection Sampling Survey length Fielding waves Readouts Benchmark segments External communication The largest and leading customer relationship benchmarking measurement study in the industry - Service, non-service, brand positioning, product management and customer engagement 130 Residential electric, natural gas and combination utility customers Web-based survey utilizing 7 panels including Spanish-speaking Almost 60,000 responses collected in 2016 Demographically representative quotas based upon age, income and race at individual utility level (according to census data) 19 minutes average (approximately 150 questions) Calendar year quarters Reporting Period 1: June (Most Trusted Brands Designations) - Readout: Brand positioning and performance Reporting Period 2: December (Customer Champions Designations) - Readout: Customer engagement benchmarking and performance 12 standard ranking segments: Four regions (East, Midwest, South, West) by three utility types (electric only, natural gas only and combination) and custom peer setting Press Release and External media claim included in subscription fee Most Trusted Brand, Environmental Champions and Customer Champion designations, if earned 10

11 130 Largest Electric, Natural Gas and Combination Utility Brands are Covered for Residential Peer Benchmarking Electric-only utilities (300K or more residential customers) AEP Ohio Alabama Power Ameren Missouri Appalachian Power APS Atlantic City Electric Austin Energy Central Maine Power ComEd Dayton Power & Light Dominion Energy Virginia Duke Energy Carolinas Duke Energy Florida Duke Energy Progress Duquesne Light El Paso Electric Entergy FPL Georgia Power Gulf Power Hawaiian Electric Idaho Power Indiana Michigan Power Indianapolis Power & Light JEA Jersey Central Power & Light KCP&L Kentucky Power Kentucky Utilities LADWP MetEd Mississippi Power Monongahela Power Nashville Electric Service NV Energy Ohio Edison OGE OPPD OUC Pacific Power Penelec PennPower Pepco PNM Portland General Electric Potomac Edison PPL Electric Utilities PSEG Long Island Public Service Company of Oklahoma Rocky Mountain Power SMUD Salt River Project Seattle City Light Southern California Edison Southwestern Electric Power Company TECO Tampa Electric The Illuminating Company Toledo Edison Tucson Electric Power Westar Energy West Penn Power Xcel Energy South Gas-only utilities (230K or more residential customers) Alagasco Atmos Energy Midwest Atmos Energy South Cascade Natural Gas CenterPoint Energy Midwest CenterPoint Energy South Citizens Energy Group Columbia Gas East Columbia Gas of Ohio Columbia Gas South Dominion Energy Ohio Elizabethtown Gas Intermountain Gas Company Kansas Gas Service Laclede Gas Missouri Gas Energy National Fuel Gas New Jersey Natural Gas New Mexico Gas Company Nicor Gas NW Natural Oklahoma Natural Gas Peoples Gas Peoples Philadelphia Gas Works Piedmont Natural Gas PSNC Energy Questar Gas SEMCO Energy Gas Company South Jersey Gas Company SoCalGas Southwest Gas TECO Peoples Gas Texas Gas Service UGI Utilities Virginia Natural Gas Washington Gas Combination utilities (550K or more combined residential service customers) Alliant Energy Ameren Illinois Avista BGE Black Hills Energy Midwest Black Hills Energy West Con Edison Consumers Energy CPS Energy Delmarva Power DTE Energy Duke Energy Midwest Eversource Louisville Gas & Electric MidAmerican Energy MLGW NIPSCO National Grid NorthWestern Energy NYSEG PECO PG&E PSE PSE&G RG&E SCE&G SDG&E Vectren We Energies Wisconsin Public Service Xcel Energy Midwest Xcel Energy West East Midwest South West 11

12 The Utility Champions

13 2017 Residential Most Trusted Brands Electric Natural Gas Combination Utility Region Brand Trust Index Utility Region Brand Trust Index Utility Region Brand Trust Index SMUD West 744 Georgia Power South 738 Idaho Power West 729 Salt River Project West 726 Florida Power & Light South 724 PPL Electric Utilities East 718 Kentucky Utilities South 717 Seattle City Light West 716 OG&E South 710 ComEd Midwest 702 Duquesne Light Company East 700 Ohio Edison Midwest 696 TECO Peoples Gas South 777 Piedmont Natural Gas South 748 Questar Gas West 743 Cascade Natural Gas West 742 SoCalGas West 738 CenterPoint Energy South 734 NW Natural West 733 PSNC Energy South 732 Alagasco South 729 Virginia Natural Gas South 727 Southwest Gas West 726 New Jersey Natural Gas East 724 National Fuel Gas East 722 Atmos Energy Midwest 721 Columbia Gas South 720 Oklahoma Natural Gas South 716 Peoples East 715 UGI Utilities East 709 Washington Gas East 709 Philadelphia Gas Works East 708 Nicor Gas Midwest 702 Columbia Gas of Ohio Midwest 701 MidAmerican Energy Midwest 730 NYSEG East 713 RG&E East 710 Consumers Energy Midwest 708 Xcel Energy West 699 CPS Energy South 698 PSE&G East 698 SDG&E West 692 Louisville Gas & Electric South 690 SCE&G South

14 2017 Environmental Champions Combination Service Utilities Electric Utilities Natural Gas Utilities Consumers Energy Florida Power & Light Alagasco CPS Energy Georgia Power Cascade Natural Gas DTE Energy Idaho Power CenterPoint Energy - South Louisville Gas & Electric Indianapolis Power & Light Citizens Energy Puget Sound Energy Kentucky Utilities Columbia Gas of Ohio RG&E MidAmerican Energy National Fuel Gas SDG&E Nashville Electric Service New Jersey Natural Gas Vectren OG&E NW Natural Xcel Energy - West Pacific Power Oklahoma Natural Gas Portland General Electric Piedmont Natural Gas PPL Electric Utilities Questar Gas Salt River Project SoCalGas Seattle City Light South Jersey Gas Company SMUD Southwest Gas Southern California Edison TECO Peoples Gas Virginia Natural Gas

15 Performance Highlights & Rankings

16 SMUD has seen strong growth over the past four quarters, led by Service Satisfaction SMUD Residential Customer Management Trending Q2'16 Q3'16 Q4'16 Q1'17 Q2' Engaged Customer Relationship Index Brand Trust Index Product Experience Index Service Satisfaction Index Scoring is on 1000-point scale and based upon trailing 4 quarter averages 16

17 SMUD has become the Electric utility national leader on Customer Engagement NATIONAL: ELECTRIC: Q TTM ENGAGED CUSTOMER RELATIONSHIP SCORES Electric national rank Utility Utility region Engaged Customer Relationship score Brand Trust Service Satisfaction Product Experience Q TTM Q TTM Q TTM Q TTM Rank Score Tie Rank Score Rank Score r Tier Tier SMUD West Georgia Power South Florida Power & Light South Salt River Project West Kentucky Utilities South Idaho Power West PPL Electric Utilities East OG&E South Seattle City Light West ComEd Midwest Pacific Power West OUC South Tucson Electric Power West Entergy South JEA South Base: Electric Customers Dark border indicates Engaged Customer Relationship score tier break. Top tier Second tier Third tier Bottom tier 17

18 SMUD is tied among top West Region Utilities West Region Utility Brand Engaged Customer Relationship Brand Trust Product Experience Service Satisfaction SoCalGas Questar Gas SMUD Top Tier Cascade Natural Gas Salt River Project NW Natural Southwest Gas Idaho Power Seattle City Light Pacific Power Tucson Electric Power New Mexico Gas Company SDG&E APS Intermountain Gas Company Xcel Energy- West Southern California Edison Rocky Mountain Power Portland General Electric Avista Puget Sound Energy NV Energy PG&E Los Angeles Department of Water & Power NorthWestern Energy PNM /2/2017 Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting 18

19 Not much separates utilities on Satisfaction most are within a significant difference of each other WEST: ELECTRIC: Q TTM SERVICE SATISFACTION STRATEGIC FACTOR PERFORMANCE SCORES Electric best-in-class* Electric average Regional average Safety & Reliability Billing & Payment Customer & Field Service vs. Q2 '16 TTM vs. Q2 '16 TTM vs. Q2 '16 TTM SMUD Salt River Project Idaho Power Seattle City Light Pacific Power Tucson Electric Power APS Southern California Edison Rocky Mountain Power Portland General Electric NV Energy Los Angeles Department of Water & Power PNM Hawaiian Electric

20 90% of Customer Satisfaction is tied to Customer Effort - SMUD s Service Satisfaction ranking is due to Customer Effort excellence Mobile App Service Effort, 4.0% Bill Easy to Understand, 10.9% Easy to Enroll in Programs/ Products, 9.6% Customer Effort Scoring Model Products Make it Easy to Be Customer, 10.8% Easy to Obtain Product Information, 10.8% Phone Service Effort, 10.0% Bill Pay Effort, 11.0% Easy to Use Offerings, 9.5% [CATEGORY NAME], [VALUE] Online Service Effort, 7.3% Combo East Utility Customer Effort Index Score SMUD 810 Salt River Project 796 Tucson Electric Power 788 Idaho Power 782 Southern California Edison 774 APS 771 Rocky Mountain Power 770 Xcel Energy- West 769 Pacific Power 765 Seattle City Light 760 SDG&E 757 Portland General Electric 751 Puget Sound Energy 747 NV Energy 745 PG&E 738 Avista 737 NorthWestern Energy 733 Los Angeles Department of Water & Power 726 PNM 705 8/2/2017 Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting 20

21 SMUD s product innovation, branding and targeting provides a performance lead on Benefits Awareness and Product Usage WEST: ELECTRIC: Q TTM PRODUCT EXPERIENCE STRATEGIC FACTOR PERFORMANCE SCORES Electric best-in-class* Electric average Regional average Design Features Benefits Awareness Product Usage vs. Q2 '16 TTM vs. Q2 '16 TTM vs. Q2 '16 TTM SMUD Salt River Project Idaho Power Seattle City Light Pacific Power Tucson Electric Power APS Southern California Edison Rocky Mountain Power Portland General Electric NV Energy Los Angeles Department of Water & Power PNM Hawaiian Electric

22 Brand Trust builds Enhanced Product Usage 63 Offerings Profiled for Usage and Demand SMUD Brand Trust by Offering Usage Billing and Payment Options Consumption Management Programs Online/Digital Account Services Overall 84% 73% 50% 59% 50% 31% 31% 12% 14% 4% 7% 18% Low Brand Trust (0 to 500) Middle Brand Trust (500 to 800) High Brand Trust (800 or more) 22

23 Brand Emotional Attachment: Top scoring utilities have brands with strong attachment to the brand would prefer to do business with them WEST: ELECTRIC: Q TTM BRAND TRUST STRATEGIC FACTOR PERFORMANCE SCORES Electric best-in-class* Electric average Regional average Customer Focus Company Reputation & Advocacy Community Support vs. Q2 '16 TTM vs. Q2 '16 TTM vs. Q2 '16 TTM SMUD Salt River Project Idaho Power Seattle City Light Pacific Power Tucson Electric Power APS Southern California Edison Rocky Mountain Power Portland General Electric NV Energy Los Angeles Department of Water & Power PNM Hawaiian Electric

24 SMUD is 76% of the way to an Ideal utility Achievement as an Ideal Utility Questar Gas Cascade Natural Gas Intermountain Gas Company Southwest Gas New Mexico Gas Company SoCalGas SMUD Seattle City Light NW Natural Salt River Project Rocky Mountain Power Idaho Power Xcel Energy- West Tucson Electric Power Southern California Edison Pacific Power Puget Sound Energy APS SDG&E Portland General Electric NorthWestern Energy Los Angeles Department of Water & Power Avista NV Energy PG&E PNM Hawaiian Electric 61% 80% 80% 78% 78% 78% 77% 76% 76% 75% 74% 73% 73% 73% 100% = Very Close to Ideal 72% 72% 72% 71% 71% 69% 68% 68% 67% 67% 66% 66% 65% 24

25 Brand Management Performance: Salt River Project s brand strength remains weak after a significant decline in 2016 WEST: ELECTRIC: Q TTM BRAND TRUST STRATEGIC FACTOR PERFORMANCE SCORES (CONTINUED) Electric best-in-class* Electric average Regional average Reliable Quality Communications Effectiveness Environmental Dedication vs. Q2 '16 TTM vs. Q2 '16 TTM vs. Q2 '16 TTM SMUD Salt River Project Idaho Power Seattle City Light Pacific Power Tucson Electric Power APS Southern California Edison Rocky Mountain Power Portland General Electric NV Energy Los Angeles Department of Water & Power PNM Hawaiian Electric

26 SMUD ranks very highly versus other service providers in overall engagement Engaged Customer Relationship Rating SMUD Amazon 7.85 Google 7.73 Primary bank 7.62 SMUD 7.61 Wireless carrier 7.25 Apple 7.23 Walmart 6.69 Waste management/removal 6.65 Internet provider 6.65 Home Security Company 6.53 Water utility/sewage mgmnt 6.49 Satellite TV 6.35 Cable TV 6.29 Phone company 6.21 Considering your relationship with each of the companies you may receive service from below and everything you know about them, to what extent do you agree or disagree with this statement: Overall, this company engages me in a manner that enhances my relationship with them. 26

27 Strategic Directions Satisfaction is maximized at SMUD Gains in customer scoring will come from positioning brand and offerings Engage in continued local outreach Continue to utilize tactical communication Establish a balanced customer management goal to maintain industry leadership Target Brand Value, Customer Engagement and Advocacy 8/2/2017 Energy Resources & Customer Services Committee Meeting and Special SMUD Board of Directors Meeting 27

28 Questions?