1. Customer Service Information Technology
2016 Benchmarking
Insights Conference
Boulder, CO

2. Agenda Overview Coverage of the Study for CS IT Performance Profiles
Cost
2016 Benchmarking Results
Functional-specific findings
Technology Applications
Multi-Channel Adoption
CIS Integration: Credit, Outage, Field Service
Areas of Focus and Opportunity

3. Overview

4. 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

5. Functional Cost Model – CS IT and CIS costs
Our approach to collecting cost, performance and staffing information follows customer transactions through each functional area.
CIS
CS IT

6. CIS vs. CS IT Costs
CS IT (as part of “Technology” cost) is all the encompassing technology in a broad sense so it includes any non-CIS and may include some CIS, but is specific to a functional area
for example: ACD, IVR, Work Management, Mobile Data are part of CS IT and belong in their respective functional area (ACD to Contact Center etc.)
If there is a DIRECT allocation or charge to a function of CIS charges (such as usage or system utilization), then that goes into the CS IT, otherwise it is part of CIS
Does not include any capital costs, just O&M
CIS is the system used to to maintain customer information, generate bills, issue service requests, and help “manage” customer relationships by providing utility representatives data, information and insight about each customer's accounts, individual needs and preferences.
Examples of vendor's products include: Accenture's C/1 (Customer-1), Oracle Utilities Customer Care, SAP For Utilities.
CIS costs may be costs allocated to or associated with Customer Service but not to specific functions, such as usage charges, data transfer charges, and/or system maintenance charges. If such charges cannot be allocated to a specific function, they would go into the CIS cost column.
Everything else such as the Work Management, Mobile Data, Dispatch, ACD, IVR is Customer Service IT and should be specific to a function

7. CIS vs. CS IT Costs
CS IT (as part of “Technology” cost) is all the encompassing technology in a broad sense so it includes any non-CIS and may include some CIS, but is specific to a functional area
for example: ACD, IVR, Work Management, Mobile Data are part of CS IT and belong in their respective functional area (ACD to Contact Center etc.)
If there is a DIRECT allocation or charge to a function of CIS charges (such as usage or system utilization), then that goes into the CS IT, otherwise it is part of CIS
CIS is the system used to to maintain customer information, generate bills, issue service requests, and help “manage” customer relationships by providing utility representatives data, information and insight about each customer's accounts, individual needs and preferences.
Examples of vendor's products include: Accenture's C/1 (Customer-1), Oracle Utilities Customer Care, SAP For Utilities.
CIS costs may be costs allocated to or associated with Customer Service but not to specific functions, such as usage charges, data transfer charges, and/or system maintenance charges. If such charges cannot be allocated to a specific function, they would go into the CIS cost column.
Everything else such as the Work Management, Mobile Data, Dispatch, ACD, IVR is Customer Service IT and should be specific to a function

8. Technology Cost Within Function
Any technology specifically used for a function such as meter reading devices, mobile data technology, telephone switch or call routing software, call monitoring software etc.
Contact Center:
IVR (Interactive Voice Response)
ACD (Automatic Call Distributor)
Scheduling Software
Workforce Management (WFM)
Multi-channel processing
Web, Social Media technology costs
VOIP (Voice Over Internet Protocol)
Web/ routers
Virtual Hold technology costs
3rd party applications (OMS interface etc.)
Field:
Mobile data (software and hardware)
Scheduling
GPS (Global Positioning System)
Routing software
Dispatching software
Revenue Protection
Tamper plug
Data mining and analytics for revenue protection software
Meter:
Handhelds
Routing software
Remote disconnect
MV 90
GPS (Global Positioning System)
Bills:
Inserters
Web/ , bill presentment
C/I billing software
O&M costs associated w/ mobile billing
Payment:
Image processer
Slitter/sorter
Interface w/kiosks
Routing software for off-site payments
Payment Kiosks
Credit:
Behavioral scoring
Predictive dialer
Credit optimization software 8

9. Performance Profile
Cost

10. Median* CIS Costs represent $2.34 of the $34.91 Median Cost, or 6.7%
TOTAL CUSTOMER SERVICE COST (EXCLUDING WRITE-OFFS, P&B, OVERHEADS) PER ACCOUNT * Commodity
Median* CIS Costs represent $2.34 of the $34.91 Median Cost, or 6.7%
CIS Costs have been in the range of 5-8% CS costs (ex Write-offs) over the past 4 years
Companies 30, 41, 42 and 49 report significantly higher costs
Mean
$40.05
Quartile 1
$31.55
Quartile 2:
$34.91
Quartile 3:
$41.37
FL5
Not reporting CIS costs: 23, 33, 35, and 44
* Mean costs are 13% including all reporting companies

11. CIS COST PER ACCOUNT * COMMODITY
Mean of $5.20 per Account * Commodity represents a significant increase over over 2015’s mean
Mean cost driven by significant reported O&M by 5 companies
Median costs are flat versus 2015
Several companies report few/no CIS costs
Companies within the same holding company structure should be able to discuss and explain variability in costs
Mean
$5.20
Quartile 1
$2.26
Quartile 2:
$2.34
Quartile 3:
$3.46
IT Page 2– FL5
Not reporting CIS costs: 23, 33, 35, and 44

12. Benchmarking Results Functional-specific findings
Technology Applications
Multi-Channel Adoption

13. Technology Application Profile: Changes and Recent Upgrades
CIS Systems Installed (DC115)…upgrades are continuing
In the past 3 years, companies in our Community have moved away from mainframe-based systems of the 90’s and early 2000’s toward much more flexible systems, allowing for more data capture and use
Mean age of install or upgrade= 2008
Newer systems have been primarily SAP
Recent implementations or upgrades are Companies 29, 30, 41, 49, 50 and 51
2/3 of our companies have installed new IVRs or major upgrades since 2012;
10 of 12 companies reporting have installed new Automated Call Distribution (ACD) since 2012
7 of 11 companies reporting have installed new Work Force Management (WFM)
12 of 12 reporting have new Quality Monitoring Systems since 2012
6 companies have new Meter Data Management systems since 2012
10 companies have implemented new text messaging/SMS systems since 2013
Numerous changes in mobile, web, and multi-channel management are also coming for at least 7 companies in the next 2 years (see next slides)
Contact Handling and Management (DC115)…most companies now have IVRs that have been implemented in the past 2-3 years. Other contact handling and management systems (ACD, WFM, QM), are also new as are Quality Monitoring
Multi-channel technology applications (IT10)
Report: CS IT and Operational

14. CUSTOMER INFORMATION SYSTEM: YEAR INSTALLED Or Last Major Upgrade
Oracle
SAP
Accenture
C-1
In-House
Cayenta (Harris)
DC115
Company 42 and 44 did not provide
The average year of install/upgrade of the CIS in our Community is 2008
Migration and transition time periods are 2-3 years…how are companies leveraging?
Impact of systems on companies ability to mine and capture data, have flexible reporting and integrate with new applications should be noted

15. Interactive Voice Response (IVR): YEAR INSTALLED Or Major Upgrade
Centurion
Siemens
Avaya
TFCC
Nuance
In-House
West
DC115
Avaya
Avaya
Avaya
The median year of install/upgrade of the IVR in our Community is 2012
At least 1/3 of the companies have installed new IVRs 3 years
What cost and live call reduction benefits have been derived?
What are we understanding about our self-service calls?

16. MAJOR UPGRADE OR REPLACEMENT IN NEXT 2 YEARS
For those remaining companies that have not upgraded, CIS, Quality Monitoring changes along with mobile web and SMS applications are occurring in the next 2 year window. How to best leverage the technology change?
Total Respondents 18
Primary CIS Customer Information System
38.89%
Quality Monitoring and Reporting Software
33.33%
Mobile Website Mobile Application
50%
SMS Messaging Text
44.44%
Legends 21 22 24 28 29 30 31 32 33 34 36 40 41 42 43 49 50 51
Primary CIS Customer Information System ♦
ACD Automatic Call Distributor
IVR Interactive Voice Response
CMS Call Management System
Scheduling WFM Software call forecast work
Quality Monitoring and Reporting Software
Multi Channel Blended Contact management software
Meter data management system (MDMS)
Training Elearning software
Mobile Data (Field Scheduling or Order Mgmt)
Mobile Website Mobile Application
SMS Messaging Text
IT5

17. INTEGRATIVE TECHNOLOGIES EMPLOYED at the Agent Level
Nearly ¾ of companies are reporting high levels of technology aids to help agents support customers. Significant growth since 2014
Total Respondents 25
Screen pops with customer information prepopulated
96%
Information to the agent on what path the customer has taken in the IVR to get to the agent
28%
Most appropriate agent to handle call based on skill customer history etc. based on data mining
72%
Provide the agent the ability to see realtime status of service orders or other pending customer work for informational
purposes
Enhanced intranet capability to allow agents to see quick tips or content specific areas
Other 0%
Legends 20 22 23 25 26 27 28 30 31 32 34 35 37 38 39 40 41 43 45 46 47 48 49 50 51
Screen pops with customer information prepopulated ♦
Information to the agent on what path the customer has taken in the IVR to get to the agent
Most appropriate agent to handle call based on skill customer history etc. based on data mining
Provide the agent the ability to see realtime status of service orders or other pending customer work for informational purposes
Enhanced intranet capability to allow agents to see quick tips or content specific areas
Other
DCY Page 67– DC125

18. INITIATIVES TO MANAGE THE HANDLING OF CUSTOMER INFO NEEDED TO ENABLE MULTICHANNEL ADOPTION
Companies are focusing on communication, verification and informational aspects in their initiatives
We have begun the process of implementing a Preference Management Tool., allowing customers the opportunity to choose communication avenues for outages and service orders. (Company 33)
Security upgrades for the masking of PII data (SSN, Bank Account and Drivers License are under consideration). Encryption of the PII data will also being implemented. (29)
Volume Reduction efforts, Customer Self Service increased options efforts (36)
Currently reviewing SalesForce as an option to manage , fax, web to contact and more. SalesForce would need to integrate with SAP to be front face CRM. (23)
Data Governance, Data Warehouse, Data Handling all in progress. (42)
Laying the groundwork for our omni-channel project in (21)
Web profile page update (click to update; web wizard for solar and wind; Customer preferences page on website, where we collect , text info and allow customers to opt-in to outage text
alerts. Pop up requesting updated contact information on web. (34)
The Move-In Process script was modified to ask a customer for their address and to immediately sign them up for e-bill and phone alert notices. (51)
(Company) has undertaken customer contact data acquisition and cleansing initiatives through both frontline (contact center, website, etc.) and systemic processes. (32)
IT35

19. areas of Focus and Opportunity
Volume
Is the upgrade/ replacement of your CIS allowing you to support customer contacts more effectively and efficiently
Is the development and use of self service (Web, IVR, Mobile etc.) helping your company reduce the volume of live transactions/ work?
Are you able to measure the volume changes, where and why they are happening? Are you able to measure customer satisfaction (and importantly dissatisfaction and fixes) with new applications?
Cost
CIS spending (FL5) – can you quantify it and what are getting for your spend in this area?
Service
Are your customers getting the level of service in your IVR and Web without having to call twice/ transfer/ use alternate live contacts?
Are you measuring to understand if you are attaining the benefits promised in business cases/ justification for CIS/ IT investment?

20. 1QC Community Key Success Factors Information Technology and CIS
Effectively communicate plans and changes internally
Leverage regulatory support in making changes service and customer friendly; incorporate a regulatory strategy as part of implementations (AMI or CIS)
Maintain process consistency and improvement as a driver of change and preparation for systems implementations
Link initiatives to better provide service, data management and information flow to and from customers…don’t confuse your customers
Develop internal expertise to parallel and augment the use of external vendors in implementations
Manage expectations and targets to allow for assimilation of technology (people -learning, project “burnout”, work load; process- application and testing, quality)

21. Thank You for Your Input and Participation!
Your Presenters
Ken Buckstaff
Debi Cook
Gene Dimitrov
Rob Earle
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.
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