Product Type: Market Research Report
Published by: Datamonitor
Published: November 2001
Product Code: R313-9043Description The introduction of competition in the European energy market has changed the way utilities interact with their customers. Deregulation brings competition, which in turn brings consumer choice - a brand new challenge for electricity and gas companies. In this report, we assess the role of effective CRM in successful customer retention and development strategies in the MEU market. In order to help utilities better target their product offerings, we developed a model to identify profitable customers in a multi-utility environment. We then use the feedback from our survey of 1,200 MEU customers in Europe to assess suppliers’ CRM performance in sales and marketing, customer services and added-value services. The aim of this report is to provide CRM professionals with a tool to assess and develop CRM strategies in the European MEU energy market. This is based on extensive customer research and in-depth analysis of current and expected future market drivers.
Table of Contents EXECUTIVE SUMMARY
The role of account management is set to change to incorporate sales and
marketing, account management as well as market intelligence.
Brokers to increase power of buyers in the large and medium MEUs segment
eChannels to play important role in the future
Best opportunities are in the medium MEU segment
Opportunities in the extra-large and large MEU segment
Action points
INTRODUCTION
What is this report about?
Who is the target reader?
How to use this report
MARKET CONTEXT
Introduction
The power is shifting to the customer
New challenges for the utility
But it is not all doom and gloom for utilities
The first task is going to be to keep your customers
DEFINING CRM
Introduction
What is CRM, and is it relevant to utilities?
What is the main objective of CRM?
The Depth of CRM
CRM basics, a four-step process
CRM metrics
The lifetime value of the customer
Share of customer
Customer segmentation
CRM METRICS
Introduction
Key findings
Key finding 1: Best opportunities are in the medium MEU segment
Key finding 2: Opportunities in the extra-large and large MEU segment
Justification
Customer segmentation and consumption averages - an overview
Share of customer and lifetime value
Effective CRM and profit margins
Leading European dual-fuel suppliers
Appendix
Electricity consumption averages
Gas consumption averages
Added-value services - energy management
CRM AND S&M OPERATIONS
Introduction
Key findings
Key finding 1: Suppliers are failing to satisfy customers
Key finding 2: Only eight suppliers stand out
Key finding 3: The role of account management is set to change to incorporate
sales and marketing, account management as well as market intelligence.
Key finding 4: Brokers to increase power of buyers in the large and medium MEUs
segment
Key finding 5: eChannels to play important role in the future
Justification
Customer satisfaction levels-sales and marketing operations
Best performing utilities
Channels of communication - preference 2003
CRM AND CUSTOMER SERVICES
Introduction
Key findings
Key finding 1: Energy utilities are not living up to customers' expectations in
delivering satisfactory customer services
Key finding 2: Utilities need to improve their performance on key areas such as
response to queries, industry knowledge and dedicated support
Key finding 3: Account management to play important role in customer services
Justification
Customer satisfaction levels - customer services
Best performing utilities
Channels of communication
CRM AND ADDED-VALUE SERVICES
Introduction
Key findings
Key finding 1: Utilities are not being pro-active in identifying savings for
their customers
Key finding 2: The size of customer defines the level of service
Key finding 3: eChannels to play an important role in the promotion and delivery
of added-value services
Justification
Customer satisfaction levels - added-value services
Best performing utilities
ACTION POINTS
Introduction
Account management functions should reflect and support the utility's CRM
strategy
Account management functions
The account management structure
The choice of communication channel mix should reflect the level of
communication required both externally and internally
External communication channels
Internal communication channels
Utilities should continuously assess their CRM strategies to identify
competitive threats
APPENDIX
Supplementary data
Definitions
CRM-related services
Consumption categories
Research methodology - Major Energy Users' Survey
Further readings
Introduction
Published reports
Report writing team
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