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For many years, sales and marketing strategies have included the management of multi-channels. Thus energy industry customer service groups have been inundated with the complexities of building, managing, and optimizing the effectiveness of adding self service and social media while enhancing traditional service methods. More than 120 utilities operate at least one Twitter site, over 80 have Facebook pages, numerous utilities use blogs and at least a dozen utilities post videos on YouTube to communicate with customers on energy efficiency and storm recovery.

An effective multi-channel service strategy is based on well-defined goals that are aligned with corporate as well as IT strategies. Many utilities are confronting the challenges of leveraging existing technology while introducing new systems, programs, infrastructure requirements, and security. The strategy must be communicated and accepted throughout the organization. It should also be responsive to customer needs while considering efficiency, costs and budget constraints. The communication must be proactive, as well as reactive, for internal and external stakeholders.

When service strategies are not aligned with corporate and IT strategies customers experience inconsistencies in messages, terminology, and processes across channels. Customers who call the contact center should expect to be provided with the same information and follow the same process they would use on the website for the same inquiry. When different channels have different procedures and requirements it causes confusion. The confusion causes inefficiencies in service, which can lead to increases in cost. This can first show up in customer satisfaction scores, which is why tracking scores by channel will help identify and isolate problems.

Utilities benefit most by focusing on high volume and high cost transactions. This focus can help reduce calls into the contact center and operational efficiencies can be achieved to reach O&M targets. Website transaction experiences need to capture all items that would be covered by a live CSR. Next, focus on “needy” customers and try and shift them from live CSRs to Self Service. Following up live CSR contacts with an invitation to self serve through e-mail can help promote Self Service channels. Utilities should also proactively communicate with customers, not just wait for them to call. An aggressive outreach communication program is critical to increasing activity in other service channels.

Satisfaction should be tracked by type of service and channel, as well as overall effectiveness. Overall service scores are not as useful in measuring and improving service levels as segmented scores. Scores segmented by channel provide the information necessary to improve the effectiveness of each service method. Although some utilities have spread their resources thin by trying to integrate all possible channels, the satisfaction scores can help focus teams on the most effective service applications for meeting their customer needs and expectations. The data collected will direct and refine improvements in service strategies, so organizations must ensure the right tracking and measurements are in place from the beginning.

Multi-channel service strategies are carried out by cross-functional teams that include representatives from the contact center, IT, web, marketing, billing, and others. These teams are most effective when they share goals, and any goals not shared between functions are aligned to support the service strategy. Clearly defining responsibilities for reaching goals is important for achieving success.

How do utilities determine the success of new programs? The measurements and targets for determining success should be formulated prior to implementing a new service channel. Considering each service channel will yield different levels of success, utilities must track and measure the return on investment (ROI) separately. ROI is typically calculated by dividing earnings before interest and taxes by the average invested capital. For measuring the ROI for improving existing service or introducing new programs take the program benefits minus the program cost divided by the program cost.

Include the value of gains in efficiency, reductions in contact center costs, and improvements in cash flow as a result of things like reduced days sales outstanding (DSO) when calculating program benefits. When calculating program cost, include the technical investments, development effort, additional education required manage CSR training and customer education.

As utilities design the functionality of various service channels it becomes clear that every self-service option should not be used for every customer contact type. Some web content serves the sole purpose of educating customers about energy efficiency, while other applications are used for bill viewing and paying. A carefully designed strategy uses the right channel for each type of inquiry. Just like sales and marketing, the effectiveness of different channels is related to the demographics of the utility territory. Understanding and using segmentation are critical to developing the right programs and achieving the activity necessary for a positive ROI. For example, lower income customers might not have Internet access, so targeting low income customers via the Internet may not achieve high volumes of activity. Another example of using segmentation to plan would be if 10 percent of your incoming calls require a Spanish speaking CSR and you develop web service that doesn't include the option to interact with the website in Spanish, then benefit projections should reflect that the Spanish speaking 10 percent will not switch to web service.

Segmenting businesses from residential customers to develop strategies is particularly critical because commercial and industrial end users are notoriously more demanding, require more research and analysis in problem solving, and may have more interaction with an account manager than the contact center. Utilities typically offer commercial and industrial customers a portal to account information where business related tools and complex reports are available. These same tools and reports may not be available to residential customers for various reasons (complex rate specific reports, data not available, etc.). More importantly, many utilities have policies and procedures that differ between residential and business customers that make it appropriate to have separate applications available.

Utilities that outsource customer service can benefit from the knowledge the outsource vendor has from other clients who moved to multi-channel service functions earlier. Utilities that do not outsource customer service can outsource these new programs in part or whole to get to the market more quickly and benefit significantly from the hired know-how. Many utilities using outsourcers were able to improve IVR handle rates from 15 percent to as high as 30 percent to 40 percent within a couple years. Outsourcers are typically also successful at improving customer usage of web inquiries and chat. Encouraging usage of service tools other than speaking to a CSR is the key to realizing the potential benefits. CSR's can encourage usage by being trained to direct customers and walk customers through how to use new channels. The bottom line for customers is they want the experience to be easy … they don't want to feel like they have to learn a new job to use an alternative method for inquires or billing payment.

There are many opportunities for utilities to use various social networks and self-service channels with new projects such as smart grid initiatives and energy efficiency programs, as well as existing functions like billing, collections, inquiry handling, payment arrangements and education programs. The key is to learn as you go and apply the knowledge to future developments and improvements. Listen to what customers are discussing to identify opportunities and take advantage of tools like “hashtags,” TweetDeck to track topics and monitor activity. Many customers are always connected and expect their utility to be as well.