a therapy session for key account...
TRANSCRIPT
www.esource.com September 23rd, 2015
A Therapy Session for Key Account Managers
VP, Consulting Solutions, E Source
WEI Key Accounts
Mike Hildebrand
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I’ve been in account management
for 20 years and have more
anxiety than ever before!
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…grid connected
renewables, behind
the meter
technology, battery
deployment, solar,
solar, solar….
Aaarghh!
Customers are
demanding more
and at a much
faster pace…
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Solar Becoming Economically Viable
Source: E Source C&I Reliability, Resiliency, Storage, and Microgrids:
Understanding the Business Customer’s Perspective (2015)
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When Will You Install Your Next / First PV System?
Half of the customers expecting
to install PV in the next 5 years
anticipate that the system will
cover 50% of their electric load.
Source: E Source How Photovoltaic Systems and Distributed Generation
Will Disrupt the Utility Industry 2015 (n=802)
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New Products, New Players, New Policies, New Way of Doing Business
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And our staple ‘energy-
efficiency’ is harder to sell
than ever…
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Barriers to EE Action
Programs not a match
Up front costs
Management priorities
Leased spaceLack of
information
Not confident in the
technology
Not in budget
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,773)
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Will utilities have forced separation from EE / DSM because these folks do it better?
Third Party Implementers:
CLEAResult
Lockheed Martin
CB&I
ICF
Nexant
EnerNOC
Franklin Energy
Etc., etc, etc….
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and I have more
customers assigned
to me than ever
before….
My Boss says
Customer
Satisfaction isn’t
high enough
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Overall Business Customer Satisfaction
6.9
8.2
1
2
3
4
5
6
7
8
9
10
SMBs Large Businesses
Source: E Source Large (2015) and SMB (2015) Gap and Priority Benchmarks
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Average Number Of Key Accounts Assigned Per Rep Are Rising!
Source: E Source Account Management Assessment (Avg. N = 38)
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Are you changing as the
market changes?
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The market is defining our job for us!O
ld Account Manager
Curr
ent Facilitator?
Advocate?
Fu
ture Energy
Advisor
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RAM to
a PEA
top 10
list
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A RAM to a PEA Transformation
Be a Team Leader
Be an Advocate
Be a Communicator
Be Trustworthy
Be a Listener
Be Informed
Be a Relationship Architect
Be Compelling
Be Nimble
Be Proactive
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Do you know your
customers desires… are
you doing the right things
for the right customers?
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Utility Satisfaction Drivers
Reliability TrustworthinessWorking to keep
prices downOffers variety of
programs
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,773)
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Room For Improvement When Communicating Energy Emergencies
9.6
8.0
1 2 3 4 5 6 7 8 9 10
Effectively communicates during energyemergencies
Average rating on a 10-point scale where 1 represents the lowest score and 10 represents the highest score
Util
ity a
ttrib
ute
Performance
Importance
Base: Large business key accounts included in the benchmark (n = 1,701). Question S1_1: Using a scale of 1 to 10 where 1 = not at all
important and 10 = very important, how important is it for a utility to have the following attributes?; S1_2: Using a scale of 1 to 10 where 1 =
poor performance and 10 = excellent performance, for the same set of attributes we asked about in the previous question, now please rate
how well your utility performs.
–1.5
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,773)
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Do you know how your key account customers want to be contacted?
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,773)
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Room for Improvement with Trust
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,773)
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Price Perception
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,773)
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Nearly Half Of Customers Said They Participated In Energy-Efficiency (EE)
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=762)
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Majority of EE Program Participants Likely to Recommend it to Others
Utility EE program NPS=61
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=762)
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Half of Large Businesses
Have Specific Financial
Thresholds
Payback < 3 years:
40%
Payback 3-5 years:
46%
ROI > 30 percent:
17%
ROI 10-29 percent:
44%
N=1,620
Know your customers
decision making process!
Source: E Source How Photovoltaic Systems and Distributed Generation
Will Disrupt the Utility Industry 2015 (n=802)
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Who do large businesses trust most for energy advice?
62% of large business
customers selected their utility when
asked who they trust most for energy
advice
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,641)
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Account Rep Satisfaction Drivers
Attentive to needs
Communicates when
appropriateTrustworthiness
Actual visits equal or greater
than desired
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,641)
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Utility Account Reps Receive Positive Net Promoter Score (NPS)
NPS is the difference
between the percentage of
“promoters” and the percentage of “detractors”
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,701)
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Satisfaction Improves When Actual Rep Visits Meet Customer Expectations
Source: E Source Large Business Gap and Priority Benchmark 2014 (n=1,701)
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Prioritize Your Key Accounts
Criteria to Consider:
• Political and regulatory influence
• Complexity to serve
• Annual revenue to the utility
• Type of business
• Energy load or demand
• Customer revenue
• Account activity
• Load growth
• Relationship
• Risk of Loss
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Customer Ranking Example
Criteria 1 Criteria 2 Criteria 3 Criteria 4 Criteria 5 Criteria 6
30% 10% 20% 15% 10% 15%
Customer NameAccount
Revenue
Risk of
LossDemand
Sales
Growth
Potential
Political
Influence
Lack of
Relationship
Depth &
Breadth
Weighted
Score
Tier
Ranking
Company A 3 3 3 1 3 2 2.55 1
Company ZXY 3 1 1 2 1 1 1.75 2
Company 123 2 1 1 1 2 1 1.4 3
…
Company Z 1 2 1 1 1 1 1.1 3
E Source Customer Prioritization Matrix
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How are you innovating
yourself and your
department to keep up
with the customers
demands?
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Foundations for Successful Account Management Innovation
• Know why you show up every day
• Connect with strategic vision of utilityDefine your
mission
• Elevate awareness of your role and resultsSell internally
• In customers and tasksSpecialize
• Anticipate changes and needsTeam of proactive energy advisors
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HAVE YOU CONSIDERED ACCOUNT BASED MARKETING?
Account-based marketing (ABM), is a strategic approach to business marketing in which an organization considers and communicates with individual prospect or customer accounts as markets, even markets of one.
Account-based marketing (ABM) is being adopted at a much larger scale than ever before! clickz.com 8/14
ABM delivers the highest Return on Investment of any B2B marketing strategy or tactic. Period. ITZMA.com 7/15
"ABM is fast becoming the B2B strategy of choice because it truly aligns sales and marketing while focusing their teams on the highest value accounts. I expect adoption to grow rapidly as companies that have made this switch have seen tremendous results by focusing their efforts on attracting, engaging, converting and measuring the accounts that are most likely to buy."
Peter Isaacson, CMO at Demandbase
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Day in the Life of an Account Manager
Source: E Source Account Management Assessment 2013 (n=35)
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Specialization by Task
Have non-administrative support staff,
57%
No support staff, 43%
55%
60%
65%
0% 20% 40% 60% 80% 100%
DSM program support
Billing
Rate Analysis
Source: E Source Account Management Assessment 2013 (n=35)
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Specialization by CustomerTwo-thirds of utilities see just:
vs.
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Office / Congregations
Retail / Service
Government / Education / Healthcare
Restaurants / Lodging
Groceries / C-Stores
Manufacturing / Warehouse
Etc.
Specialization by CustomerShould be consistent, value-added and focused
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Specialization by Customer49% have inside account managers for midsize customers
Placement
w/in the utility
Source: E Source Account Management Assessment 2013 (n=35)
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1. Create the plan collaboratively with the customer (88 percent do)
2. Review plans with management (56 percent do)
• Consider regular
“executive briefings”
3. 67 percent update the plans each year.
• Consider making
“live” documents
TIPS FOR SUCCESS
Strategic Customer Planning
53 percent of respondents create a customized strategic account plan for key accounts (n = 35).
Of the 18 respondents who said they create customized strategic account plans, 50 percent review them with their key account customers.
Source: E Source Account Management Assessment 2013 (n=35)
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Approach to Strategic Customer Planning
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Strategic Customer Planning
Executive presentations
Management review
“Live” document
Forward looking
Wider and deeper relationships
Co-create
Memorandum of Understanding Page
Forward looking
Elevator pitch to the CEO
Number of visits/year
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Key account management groups drive most sector-planning initiatives.
Thirty-five percent of utilities create strategic plans specific to a particular segment or industry sector for all sizes of business customers (n = 34).
Of the utilities that create strategic segment or sector plans:
4 out of 12 say that the key account management group drives most of the sector planning.
7 out of 12 gain insights from relevant business associations to inform the plans.
7 out of 12 review the plans with utility management on an annual basis.
9 out of 12 update the plans annually.
Who Owns The Segment Strategy?
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Managing business as usual
Managing for growth and
change
Reliably supply a commodity
Create strategic value
Single view of customer (i.e. kWh savings)
Holistic, energy long-term view
One size fits allPrioritization on
customer level of strategic value
Reactive account manager
Proactive energy advisor!!!
Industry Current State
Future State
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Ahhh… thanks, Doc.
I feel so much betterSorry our time is up.
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Mike HildebrandVP, E Source Consulting Solutions
303-345-9176
Thank You! Questions?