How can data science be applied to energy usage communications?

We provide consumer engagement platforms for the energy retail industry in order to transform the way in which they communicate with their customers and hopefully build more profitable longer relationships with their customers. We are data scientists at heart and we help our energy retail customers use data to deliver insights on and enrich energy usage.

We’ve pioneered the use of behavioural science in the context of energy industry communications. We use the tenets of behavioural sciene to take the insights from the data analytics and communicate it in a way that makes sense to the householder and that motivates and sustains behavioural change. It’s also about using data, using insights to provide personalised information to the energy user at the point they want it.

Can communications make a difference?

When you look at where we came from – North America – the industry is heavily regulated and monopolistic. They have a mandate to deliver energy efficiency to residential consumers. Using communications only to reduce energy has been a huge value. There has been a sustained 2-3% savings across North America. Internationally, in EMEA and Asia Pacific, they don’t have the same energy efficiency goals.

What are the benefits for transparency and brand loyalty?

E.ON didn’t do it because of energy efficiency mandates, they offered this insight to their customer because they believed it was the new expectation of the energy consumer. It would provide a level of insight and a level of control and understand to empower users. The benefits are obvious in terms of customer satisfaction and that drives customer loyalty.

Through outbound communications and inbound digital channels and more informed customer service representatives, they’re the moments that really matter. If you can digitise that and personalise that with relevant information for the consumer, what we find is you are meeting an expectation of service provision and, by meeting the expectation, you drive real increases in customer loyalty. If you do not meet basic service expectations you are punished by lower loyalty and a higher switching propensity

Does this fall in line with Ofgem’s sustainability efforts?

There have been lots of very well meaning efforts to try and help through green deals and eco-programmes for householders to take steps to reduce their energy usage. But most are installed measures that involve the process of acquiring actual physical goods. There’s an opportunity for the UK with the imminent roll out of smart metres. Data available to the retailer is going to explode. There is a business case for smart metre roll outs as the fact that the cost is going to be shouldered by the consumer. The cost recouped is going to be in energy reduction. Ofgem has to realise how to leverage smart metres to leverage energy efficiency outcomes. Behavioural change and energy efficiency have a core role in that.

Why is digitising the relationship between provider and user good for communications?

They expect their providers to provide proactive consumer information at the time and through the channel that they require. The average energy consumer thinks about their retailer for nine minutes a year, no more. Normally that’s been a negative nine minutes. If you can digitise that and personalise that with relevant information, you are meeting an expectation of service provision and by meeting the expectation, you drive real increases in customer loyalty. If you do not meet basic service expectations you are punished by lower customer loyalty and higher switching propensity.

Utilities are also thinking about how to be relevant to the customer outside of just pure electricity metre services. As the retailers look to the way they digitise their communications, it’s about general trust. If you can build digital trust, you can actually build out a broader set of services. That’s what the retailer is looking for in this whole way of engaging the customer – becoming relevant to energy products beyond just the metre.