2015 Benchmarking Insights Conference Boulder, CO Key Accounts 2015 Benchmarking Insights Conference Boulder, CO This material has been optimized for the Insights Conference audience. To get the most of this material and hear a recording of this presentation go to our http://1stquartileconsulting.com/benchmarking/customer_service_b/csdocs.html and find the table for CS Insights, then click on the ”Key Accounts” link.

Agenda Overview Coverage of the Study for Key Accounts 2016 Benchmarking Results Functional-specific findings (organization, staffing, key activities, areas of future focus) External Findings Areas of Focus and Opportunity

Overview

Coverage of the 2016 Customer Service Benchmark Study Field Service Change of Account Billing Field Orders (meter investigations) Credit Field Orders Order Management Customer Contact Contact Center Local Office Self Service Contractors Credit Inbound calls Revenue Management Credit Office and Outbound calls Credit Field and Inbound Contact Policies Revenue Protection: Office and Field Back Office Billing Billing Field Policies Payment Processing Meter Reading Manual Mobile AMR Fixed Network AMI CS Support and CS IT Employees: Safety, Staffing Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management, Energy Efficiency , Outage Communications Areas excluded: Meter Change-out

Location of key account Organization All 19 responding companies have dedicated Account Reps 63% reside in Customer Service, 37% are in other organizations Legends 21 22 23 28 29 30 32 33 34 35 36 40 41 42 43 44 49 50 51 We have dedicated key account reps/mgrs that are in the Customer Service OrganizationBilling Analysis ♦ We have dedicated key account reps/mgrs that are in an organization outside of Customer Service Our company does not have dedicated key account reps or managers KA Page 2 – KA5

Key Accounts overall staffing levels by company (breakout reps, AM, admin) KA 10 Mean 19 Median : 13

1000 C&I Accounts per Account Rep, Manager and Admin (Breakout) Key Account Employees 1000 C&I Accounts per Account Rep, Manager and Admin (Breakout) 1,000 C&I Accounts per Total Mean 9 Median: 7 KA Page 4 – KA10 Note: Calculation takes all C&I accounts to make the calculation

Support staff per acct manager Average of .4 FTE of Support for each Account Manager Mean Quartile Mean 0.41 Quartile 1 0.65 Quartile 2: 0.26 Quartile 3: 0.12 KA65/KA10

Method of Assigning Accounts and Measuring Performance Method of assigning accounts…(KA15 and KA20) Multiple means. 2/3 of the companies use at least 2 methods 53% by revenue or usage: most at least >500kw 42% use geographic region 53% have national accounts Measuring the success of key account management… (KA30, KA32) 73% use Customer Satisfaction Surveys Additionally, 59% of companies rely on KPI’s to measure as well 50% of companies rely on both…

KPI’s Used for Key Account Management Numerous KPI’s are contact frequency-based; a number reported contacts based on key events such as post-outage ID Response 22 Face-to-Face visits, curtailment goals, energy efficiency goals, day sales outstanding (DSO) goals. 43 Key Stakeholder Satisfaction -Customer Satisfaction Scores Large C&I Account Management Satisfaction Index Score Financial Management -(Days Sales Outstanding) Operational Excellence -Customer Outreach Growth Initiatives Organizational Effectiveness - Safety 29 Number of customer visits 23 Outage response time and customer satisfaction survey 30 KPI of number of contacts by KA per customer is evaluated. 49 Number of contacts. 41 32 Face-to-face calls/visits, revenue recovery, audit compliance, energy efficiency, # of outage customers called back, customer contacts in CRM, account plans, load growth 40 Customer Satisfaction, number of complaints, Weekly KPI report, sales, on-time bill payment.

Other Measures Mentioned… Measuring the ability to provide solutions, attain customer recognition ID Response 36 Succesful customer communication and engagement with proactice solutions 21 Executive visits, new business, hospital program, meetings 34 Face-to-face visits, KWh sales, weekly customer updates 51 Customer Recognition. Industry awards, etc. 32 Campaigns and performance metrics 40 Customer Satisfaction, number of complaints, Weekly KPI report, sales, on-time bill payment. 50, 28 Satisfied Customers, participate in Executive to Executive programs, Energy Efficiency and Economic Development, Customer Recognition

TOP 4 ACTIVITIES ACCOUNT REPS SPENT MOST OF THEIR TIME ON Adding Value Energy Reliability (issues, includes outage) Customer Relationship Building Customer Billing New Service Installation Reliability issues and relationship building are the greatest time investment 1 3 Relationship building moved up in the listing over last year, other remained the same 1 4 KA45 Note: Energy Reliability and Customer Relationship Building were selected equally as top activities

Proactive Customer Communications Top 3 EVOLVING ISSUEs THAT KEY ACCOUNTS WILL INTERACT WITH CUSTOMERS on Problem Resolution Energy Reliability Energy Efficiency Proactive Customer Communications Top evolving issues remained the same as last year 2 1 2 Reliability is an evolving issue and also involves the greatest current time investment Proactive communications (verbal) with business customers was also identified by JDP as a distinguishing factor in driving greater business customer satisfaction KA50

Additional External Research findings (1) E Source Account Management Assessment 35 utilities participated in a survey to understand account management best practices Leading utilities have developed a “customer-centric” view of their business customers and ways of serving them Developed formalized ways of gaining insights from their customers, and become particularly adept at incorporating voice-of-the-customer improvements through surveys, customer advisory panels, and trade association involvement into the services they provide. “Effective account management has never been more important as utilities seek to meet increasing energy-efficiency and customer satisfaction goals in an environment of lower growth expectations” Customer relationship-building has increased in importance (over prior year surveys. Top areas where Key Acct Execs spent time: Customer relationship building (18%), Energy efficiency (12%), Customer Billing (11%), Proactive Customer Communications (11%) Note: The hours key accounts managers spend on energy efficiency each month depends on the proportion of the energy-saving goal that the key account management team is responsible for achieving, in the survey, 10 utilities had significant portions of their company’s goals http://www.esource.com/ES-PR-AMA-2014-07/Press-Release/AMA, July 2014

Additional External Research findings (2) E Source Integrated Account Management Utility account management is in the midst of an important transformation that began a few years ago and will continue in the near future. Need to shift utility account management from a reactive stance of responding to customer inquiries and complaints to a forward-thinking, consultative approach This transition is driven by the intersection happening in customer preferences, the regulatory environment, technologies, and competitive landscapes. Biggest competitors in future: GE, Tesla, or SolarCity. 2015 E Source Survey on Account Management respondents chose interpersonal skills, personal reliability, listening, and customer service skills as the top four most important attributes for future key account representative job candidates (these soft skills rated higher than business acumem) Key areas of change identified Account Management does not = Key Accounts Managing business as usual vs. Managing for growth and change One size fits all vs. Differentiation Collect snapshots in time vs. Continuous feedback and follow-up Reactive customer service vs. Create strategic value 2015 E Source Account Management Assessment (/members/AMS-ESB MK-AMA-2015/Account-Management-Assessment-Study)—February, 2016

Example of Managing for Growth and Change: Impact of PV and Distributed Generation on Business Customers Source: How Photovoltaic Systems and Distributed Generation Will Disrupt the Utility Industry, E Source (2015) (n = 802)

Example OF Account Management: Segmentation and moving from one size fits all

Example: A Shift in Moving toward Strategic relationships Source: E Source Account Management Assessment (2015)

Thank You for Your Input and Participation! Your Presenters Ken Buckstaff Ken.Buckstaff@1QConsulting.com 310-922-0783 Debi Cook Debi.Cook@1QConsulting.com 760-272-7277 Gene Dimitrov Gene.Dimitrov@1QConsulting.com 301-535-0590 Rob Earle Rob.Earle@1QConsulting.com 315-944-7610 About 1QC First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous process improvement, change management, benchmarking and more. You can count on a proven process that assesses and optimizes your resources, processes, leadership management and technology to align your business needs with your customer’s needs. Visit us at www.1stquartileconsulting.com | Follow our updates on LinkedIn