center point energy's crm business case & customer vision

A collaboration of:

CenterPoint Energy’s CRM Business Case for Customer Vision

Stephenie Howard CNP Business Process Improvement Manager

Kim Rich CNP IT Solution Manager

2

•Introduction – CenterPoint Energy •Customer Engagement Strategy and Customer Vision

• Drivers • Overview • Business Case Strategy & Benefit Realization

•SAP CRM Solution Design • Architecture & Data Model • Unified Call Center and Streamlined Agent Processes • Predictive Analytics • Outage Interaction • SAP HANA Segmentation & Campaign Automation

•Best Practices & Key Learnings •Q&A

Agenda

3

Summary Information •Third largest combined electricity

and natural gas delivery company in US

•5 million plus customers •2.2 million electric customers •3.2 million gas customers

•Multiple Business Segments •Electric Transmission

& Distribution •Natural Gas Distribution •Competitive Natural Gas

Sales & Services

Introduction – Who is CenterPoint Energy?

4

• ERCOT mandates • Efficient use of DOE funding and exceeding targets • Innovative ways to advance the market and promote

“smart” change

Industry

• Unified vs. integrated customer service • Single view of the customer and the products and

services provided

• New platforms to enable DSM, energy efficiency programs and broader product portfolios

• Customer Relationship is a new competing strategy

• Maturing of CRM and other customer solutions

• Smart Devices

• Maturing of ‘Services’

• Ability to manage growing volumes of data into consumable and actionable information

Customer

• Significant changes in how adults prefer to communicate

• Self Service is #1 preference for consumers for customer

service, and building loyalty – followed by text messaging and email

• Customer wants to be delighted – “Value me”, “my

time”, “my money” and “my preferences”

Technology

Regulatory Regulatory

Customer Vision – Drivers

5

Customer Vision – Technology Drivers

Source: IBM Institute for Business Value Analysis

Societal impacts

Mobile revolution

Connectivity, access, and participation of people and things are growing rapidly. Mobile internet and smart devices are exploding.

Social media explosion

The ways in which individuals and organizations engage, interact, and collaborate are changing.

Hyper- digitization

Digital content is being produced and accessed more quickly than ever before, causing growth in digitized industries, markets, and segments.

Power of analytics

There are new opportunities for real time analysis and predictive analytics, which are creating business insight from more and more data.

Digital transformation enablers

Individuals

• Connected consumer

• Networked workforce

• Empowered citizens

Companies

• Evolved business models

• Optimized digital operations

• Connected enterprise

• Value migration

• Industry redefinition

• Fragmentation

Industries

6

36.8% projected growth in worldwide energy demand by 2030

38 trillion global investment in energy supply infrastructure expected between 2011 to 2035,

$150 billion/year lost due to outages and

interruptions in electric power (just in the U.S.)

1/4 proportion of worldwide CO2 emissions created by power

generation, the largest man-made source

$70 billion in infrastructure spending

could be saved over the next 20 years through better management of existing assets (in the U.S. alone)

15% reduction in peak loads when consumers were offered the opportunity to save and average of 10% on their electric bills 1.3 billion

people in the world have no access to basic energy

Customer Vision – Industry Drivers

7

More knowledgeable about products, services, costs, and price

More savvy about technology and products/services

Less loyal to any given entity due to ‘commoditization’

More self-sufficient: demanding information to make smart decisions

Expects multiple options to shop, purchase products and interact with the same level of service

Proud of individuality, and expects personalization and high customer service in every interaction

Driven by three chief currencies: time, value, and information

Wants a seamless experience:

•Synchronized and consistent service regardless of channel

Wants to be understood:

• Needs and preferences

• One-to-one marketing

Wants increased convenience:

• Ordering

• Returns

• Refunds

Wants improved service and support:

• Call center

• Shopping

• Customer service

Evolving Customer Characteristics

Source: IBM Institute for Business Value “Retailing in a World of Extremes”

Customer Vision – Customer Drivers

8

Customer Vision - Overview

CenterPoint Energy will be recognized as a transformational industry leader that leverages technology to provide

innovative services and solutions that are mutually beneficial to CenterPoint Energy and our stakeholders. These solutions will inspire confidence and peace of mind in our customers

and key market stakeholders.

CenterPoint Energy Customer Vision Statement

9

• Where Has CenterPoint Energy Been…

• 2009 – Smart Meter Deployment for Electric Customers

• 2010-2012 – Continuous Improvements to Customer Self-Service and the Customer Experience

• My Energy Analyzer

• One-Time Payments

• Self-Service Reconnects

• Bill Reminders

• Service Order Tracking

• 2013 – Initial Deployment for Power Alert Service


10

• Our Results of the Journey So Far…


11

• To Continue the Journey…

• More Preference Options for Customer Account Alerts and Channel Choice

• New Tools - Faster, More Effective Reporting and Segmentation

• Upgrade to our Customer Information Platform

• Upgrade to our Telephony Infrastructure


12

• Challenges that CenterPoint Energy has Worked Through…

• Needed to build confidence in cost estimates and benefit targets

• Limited data available to baseline the current state

• Different and Related Projects impacting the same KPI’s

• Scope control with different transactional systems supporting different lines of business

Customer Vision – Business Case Strategy

13

• Strategy

• Begin with Smaller Projects to Pilot Strategy and Build Confidence

• My Energy Analyzer

• Customer Self-Service Expansion

• Group Closely Related Projects under a larger program

• SAP CRM

• CHaRT – Channel Handling and Routing Technology

• Credit & Collections

• Define benefit targets at the program level

• Focus on improved reporting in the current environment to establish an accurate baseline

• Survey focus groups to benchmark current customer experiences and identify high value opportunities for improvement

• Design a flexible solution that allows for incremental growth and expansion over time


Reduce Cost Through Simplification

Drive Customer

Satisfaction

Reach Customers in New Ways

Business Applications

14

Customer Vision’s Value to the Business • Benefit Target Areas – Business Financial Commitment across all lines of business

• Average Handling Time (AHT) Reduction - Online scripting, guided processes, and customer preference management

• Training Expense Reduction - Jurisdictional and procedural process guidance and simpler screen navigation

• Bad Debt Expense Reduction - Better process monitoring (skip tracing, deposit waivers, inconsistent execution of policy, etc.)

• HSP Benefits - Truck Roll Reduction and Sales through targeted Marketing campaigns.

• CIP Uplift Improvement - Incremental bonus on Conservation Improvement Program

• Online Adoption Improvement - Paperless Billing Savings

• Bill Inserts Decrease

• Agent Utilization Improvement

• Enhanced Customer Experience


15

Customer Vision – Realizing the Benefits

Customer Experience

Enhance Service Learn

Choose

Connect/ Disconnect

Use

Pay

Solve Problems

• Learn about providers and their offerings

• Understand how a provider fits my needs

• Choose services

• Confirm services will meet my needs

• Schedule service connect/disconnect

• Activate service connect/disconnect

• Hook up appliances

• Monitor energy use

• Receive bill

• Review and understand bill

• Request help understanding bill

• Pay bill

• Obtain information on outages and interruptions

• Report an emergency

• Request help with appliance repair or maintenance

• Understand options for controlling costs

• Understand options for conserving energy

What options and services are most important to customers?

Source: IBM Institute for Business Value (IBV) analysis

16

• Blueprinting Phase – Completed June 2013

• 159 Workshops, 91 Unique Processes across Gas, Electric, and HSP

• Design Decisions driven by Benefit Opportunity

• Low Volume, Low Value Transactions – More Out-Of-Box Functionality or Transaction Launcher Solutions

• High Volume, High Value Transactions – More Enhancements and Customization

• The CenterPoint Energy “Super 8” Processes – Approximately 65% of the Call Volume

• Gas - Move-In/Move-Out/Transfer

• Gas - Disconnect/Reconnect – NonPay

• Gas - High Bill

• Gas - View/Pay My Bill

• Gas - Cold Weather Rule

• Electric - Outage – Report/Inquiry

• Electric - Streetlight Outage – Report/Inquiry

• Home Service Plus - Service Order – Create/Change/Inquiry


17

Step # Step – Optimizing the Customer Interaction

0 - Proactive Communication

A Use Predictive Analytics Engine to qualify the customer and initiate Pro-active Customer Communication

1 - Self Service Containment

B Customer Calls Contact Center. IVR handles the call

C IVR calls CTI and provide the “Account Authentication” information like ANI, Drivers License, SSN

D CTI requests CRM about the Predictive Analytics Details based on Account Authenticated Information

E Predictive Analytics Engine, executes the “Analytics Algorithm” based on data from CRM / ECC / BI HANA / Legacy System

2 - Intelligent Routing

F Based on Predictive Analytics Algorithm that intelligently route to the correct agent based on Agent Skill Set/Availability, etc.

G Agent receives the call and confirms the Customer

3 - Agent Interaction

H Based on CAD, CRM raises appropriate alert messages from Alert Modeler

I Agent acknowledge the issue to the Customer based on predictive details provided

4 - Consultation/Offer

J Agent Performs “Consulting Interaction” with the Customer

5 - Wrap Up

K Customer Recap and Confirmations


18

• Development Focus in Realization

• Unified Call Center View and Streamlined Agent Processes

• IBM HATS

• CRM Contract Management

• Guided Processes

• Predictive Analytics

• Agent Alerts

• Quick Links to Processes

• Customer Preference Center

• Communication Options

• Channel Choice

• Transformational Outage Interaction

• Proactive Communications

• Blast Messaging

• HANA Segmentation and Campaign Automation

Customer Vision – CRM Solution Design

19

SAP CRM Architecture


20

CRM Data Model and Customer Link

New Concept – BP LINK • Allows a Primary BP to be linked to

another BP/CA for any of the following reasons:

• Is Same As • Manages

• Preferences can be created for all individual Business Partners (accounts) by division/activity

• An Agent will be able to create/change or remove a BP Link using the same Guided Process (Interactive Script)

• ANI match will identify all accounts which are grouped (using the BP Link) to be displayed to the CSR


21

Unified Call Center View and Streamlined Agent Processes • Implement SAP CRM to integrate customer and transactional data from multiple backend systems into a

single agent view • Provide single-click navigation across multiple customer business services


22

Unified Call Center View and Streamlined Agent Processes • IBM® Rational® Host Access Transformation Services (HATS) is implemented to extend the legacy green screen into a Web screen

that can be presented within the CRM application area


23

Unified Call Center View and Streamlined Agent Processes


24

Unified Call Center View and Streamlined Agent Processes

• Implement CRM Contract Management Process for Move-in, Move-out and Transfers

• Develop Guided Process to step agents through each activity •Provide agents the flexibility to navigate between each step

• Include the following CNP specific customizations:

• Enhance process for Duplicate Partner and Debt determination

• External Credit Check • Deposit Assessment • Service Order creation and

scheduling • Program enrollments


25

Predictive Analytics Engine A Framework utilizing dynamic and static variables for defined business processes in the determination of a customer contact

• Proactive Communication • Natural Language IVR

• Intelligent Call Routing • Proactive Customer Handling


Rule

Modeler

Alert

Modeler

BRF –

Predicative

Algorithm

BRF Plus – Predicative Algorithm • Currently designed in CRM using Business Rules framework (BRF

Plus) • Ability to turn on or off Business Rules Rule Modeler • Configurable in CRM to evaluate the qualification Criteria for

Super 8 Business process in an interaction • Prioritize Agent Alert Messages • Auto Insert “Categorization” in Interaction Record to track the

benefit of PAE) Alert Modeler • Configure Alert Messages/Dynamic Variables/Themes/Icons/tool

tip • Navigate to Context based Web UI Screens with related Data

Populated

Predicative Analytics Engine (PAE)

26

Slide 26

Customer Vision – CRM Solution Design Demo – Predictive Analytics Engine – High Bill Scenario

27

Predictive Analytics Engine – Additional Message Samples

• Disconnect/Re-Connect

• Electric Outage

Slide 27


28

• Account-specific preference setting • Multiple email/mobile #’s associated

with each preference • Providing the ability to add/edit

additional ID’s without leaving the preference center

Customer Vision – CRM Solution Design Proactive Communication and Contact Preferences

29

• Preferences for all customer account relationships maintained in a single profile


Proactive Communication and Contact Preferences

30

Transformational Outage Management – Planned and Unplanned • Two way communication

• Blast Messages

• Real time restoration or service order status updates


From To

• Company Driven • Customer Driven

• Human Interaction Based • Technical, automated capabilities based

• Availability of general information in a few channels

• Availability of personalized information in multiple channels

• Reactive • Proactive

• System Wide Standard EOTs • Region-Based Data Driven EOTs

• Static Messaging • Dynamic Messaging

• Limited Channel communication on few Outage Scenarios

• Multi-Channel communication on most Outage Scenarios

Example: Current State

Outage Reporting via phone/IVR

Dispatch Operations updates GIS to populate Outage Tracker

IVR/Mail/Phone

CNP pre-storm puts messaging on the Web site

Default single address EOT: 4 Hours

Power Outage at your Location

Planned and Unplanned Outage

Example: Future State

Customer reports outage via text, e-mail, mobile web/app

System updates Outage Tracker Based on business rules

IVR/Mail/Phone/E-Mail, Social Media/Web

CNP Pre-Storm “push” notification across channels

Single Address EOT – Sugarland SC (Trouble Level 3) 2:15 minutes

Outage due to vehicle wreckage in area – EOT 3 hours

Planned and Unplanned Service Center follow Up Work

31

Hana Segmentation and De-duplication • Segmentation is Performed on HANA and Final Target Group imported to SAP CRM for Campaign Execution

• Benefits include Segmentation on Real Time Data • Quick Real Time Response from Predictive Analytics Engine using ABAP 2nd DB Connection

• Standard SAP De-Duplication logic identifies duplicate partners in a target group, CNP added other custom criteria


32

Campaign Automation • Event Driven Campaigns with rules to trigger automated follow-up communications


33

Slide 33

Customer Vision – CRM Solution Design Campaign Execution • SAP CRM Target Group exported to an email aggregator for execution through an email connector. Campaign Tracking and Statistics

are pushed back to SAP CRM and are available on both a Campaign and an individual Business Partner level.

STEP 3: In CRM Campaign Automation Tool, define all Campaign Events and also connect Subsequent Campaign Events.

STEP 4: For Each Campaign create the Target Group. Release Campaign for Execution

STEP 10: Execute Subsequent Campaign

From CRM to Email Aggregator

STEP 5: Exports Target Group to Email Aggregator

From Email Aggregator to CRM

STEP 2: Retrieve the Email Template available in Email Aggregator for Selection in Campaign

STEP 8: Retrieves Customer Response for the Email Campaign and Upload the data to CRM

STEP 9: Trigger Subsequent Campaign Event

STEP 1: Define the Email Template

STEP 6: Send the Email with Personalized Response Code to the Customer

STEP 7: Tracks the Response for the Email (i.e., Delivery / Read Receipt / Open Rate, etc.)

34

• Customers want to be treated as an individual - “Value me”, “my time”, “my money” and “my preferences”

• Establish a vision and a clear strategic plan before making any detail decisions on project scope and requirements

• Grouping integrated projects at a program level will simplify the benefit components of the business case

• Pilot customer strategies with smaller projects to build confidence and validate direction

• Enhancement and Customization hours should be focused on high volume, high value processes

Best Practices and Key Lessons

35 35

Thank you

Questions & Answers

Contact Information [email protected] and [email protected]

mailto:[email protected]

mailto:[email protected]

A collaboration of:

Stephenie Howard CNP Business Process Improvement Manager [email protected]

Kim Rich CNP IT Solution Manager

[email protected]

center point energy's crm business case & customer vision

Business

customer experience

email customer

high customer service

energy analyzer

improved service

consistent service

self service

electric customers