14 Jan Empowering Your Customer Through New Experiences: Shattering Old Value Propositions
By Alissa Abramson-Densky
Energy companies are recognizing the strategic benefits of defining and commercializing Smart Home solutions that make customers feel empowered while realizing the financial benefits of retail growth.
The market is evolving; Customer demands are changing across all industries as customer expect personalization from their service providers. The need to establish and maintain relevance to your customers is more important now than ever as technology enables competition in new ways.
For energy companies, customer engagement was simple. Customers felt satisfied with the service being provided by their energy company and expectation was limited to a competitive rate and reliability. Innovative ideas have morphed into ubiquitous offerings and strategic roadmaps are being executed. Technology has pushed the market to provide customers more of what they need, expect and can shop for. Research has proven that energy companies are positioned to leverage their role as trusted advisors to expand and strengthen their roles to “own the home”.
INNOVATION TO MEET EVOLVING CUSTOMER EXPECTATIONS
Advances in technology are driving innovation, bringing lower cost and risk allowing energy companies to provide customers more of what they want and need from a trusted service provider. With customers allowing energy companies to playing a broader role in the value chain, they expect a seamless service experience across the products and services they are receiving.
Historically separate solutions, energy management and smart home, are converging by taking advantage of new third-party technology platforms that allows them to provide a premium integrated service offering at a lower cost. These solutions provide 3 key benefits that directly increase relevancy to your customers:
- COMPELLING SOLUTIONS: Combining energy management with smart home into a single customer-facing application makes the customer experience more compelling. Data suggest that frequent customer interaction typically found with Smart Home mobile apps, energy management would be more present which drives customer engagement and relevance.
- INDIVIDUALIZATION: A customer experience that aggregates Energy Management with Smart Home through a smart phone application allows the service provider to deliver individualized experiences that drives customer satisfaction, retention and revenue. This also permits stronger, regular and more relevant direct marketing and communications to your customers and an interactive experience for them to become immersed and take action.
- STRONG VALUE / HIGH DEMAND: To date, most attention has been limited to the thermostat, with little to none paid to the remaining 40% of energy usage. After HVAC, the marginal effort to manage energy increases as the impact falls. The real question is how to efficiently drive incremental energy savings with DECREASING effort through greater solution intelligence. Research shows that the market, in terms of what customers will pay for, is miniscule for stand-alone energy management experiences (services, apps, etc.). Integrating energy management with an anchor smart home services such as home security creates a stronger value proposition at a price that customer continue to demonstrate a willingness to pay for.
Many businesses face digital advances and innovative changes with fear, getting stuck in the swirl about how to grow and innovate. Lack of understanding of technology platforms that deliver the smart home experience leaves many businesses stagnant. This is often the result of overestimating the risk and cost of implementation. Given the options available today, launching a Platform solution isn’t daunting, time-consuming or expensive.
- Platforms exist today and do not have to be built from scratch
- Platforms are flexible and customizable
- Platforms are simple to stand up
- Platforms offer a Low Risk / Low Cost integrated solution
Delivering a Smart Home and Energy Management platform experience allows businesses to build and provide a differentiated customer experience; the experience designed around the current and future capabilities of your company. The platform allows customers convenience and control. Customers can manage all home devices from one application allowing flexibility to expand remotely managed devices and appliances, maximize home security, increase energy efficiency and reference home management insights.
Alissa Abramson-Densky is Senior Manager of Sprosty Network.