8 minute read
Communication Channels
Oracle research, presented to the Customer Council on April 21, 2021, (Figure 10) showed that in the next decade Generation Z (Gen. Z) is set to increase by over 140%, and by 2040 it will be twice the size of the Boomer generation. According to Oracle’s research, Gen Z is the generation that has been impacted the most by the pandemic and they continue to struggle to pay their bills. Direct contact with their utility has been crucial during the pandemic so it’s interesting to note that the phone has been a key channel across all generations. The role of CSR agents is not to be underestimated as they have been key to helping customers during these difficult times. Last year, SaskPower mobilized their CSR team to make proactive outbound calls to connect with, and help, customers while at the same time promoting e-billing as a safe alternative to receiving a paper copy of their bill. As a result, they were able to realize a conversion rate of 60,862 customers in 5 months.
Figure 10: Communication Channel preferences of Customer, Canada, 2021
0% 30% 23%
20%
13% 7% 3% 3% Gen Z (18-24 years old)
1% 26% 21% 19% 17% 7% 5% 4%
Millenials (25-39 years old)
29%
25%
1% 18% 16% 6% 2% 2%
Gen X (40-54 years old)
1% 0% 30% 27%
21%
8% 7% 6% Boomer (55+ years old)
Mail Phone
Email Website Text Mobile App Social Channels Chatbot/Digital Assistants
Source: 2021, Oracle Report: X, Y, Z - how to adapt to the generation shift and the new digital & sustainable customer? Sample Size: 506; 20% respondents included. Filter applied for Canada.
Customers globally are demanding better customer service and communication from their utility. According to Oracle’s research, 30% of Gen Z view their utility the worst compared to phone and online retailers. Close to 60% of customers surveyed in Canada stated that interacting with their energy provider feels like using an outdated cell phone.
Although there are multiple on-line and offline marketing tools available in the market today, the Customer Council surveys show that most members use an average of 3 tools to communicate paperless billing initiatives. Figure 11 reflects current e-billing marketing channels adopted by members. Hydro Ottawa, with a 56% paperless billing adoption rate, is the only utility that employs almost all methods of communication channels to promote their e-bill campaigns, including self-service portals, bill onserts/inserts, radio, bus shelters, website / My Account portal, call on hold messaging, and google ad display.
Social Media CSR Agents
Inserts/ Onserts Newsletters/ Bulletins
Google Display Website/Self Service Portals
Taditional Marketing (Radio & Bus etc.)
E-mail Communication
A monthly e-mail provides a regular touchpoint and a reliable way to remind customers about paperless billing promotions. According to the 2021 Questline Report, email newsletter engagement (measured by click toopen rate) reached a four-year high in March and April 2020, and customers engaged with coronavirus-related content at two times the rate of other content. One in four customers opened a promotional email during April 2020, an 18% higher open rate and 27% higher click-through rate than the previous year. The most successful campaigns highlighted programs that help customers save energy and money, with energy efficiency and paperless billing campaigns leading the way. Energy efficiency messages delivered a 26% open rate during the pandemic, and paperless billing campaigns had a 27% open rate during initial months of COVID-19 pandemic (20% increase since 2019). In April 2020, more than 22% of content views generated outbound clicks to program links, driving enrollment to paperless billing, My Account, energy efficiency and other programs. These findings are similar to what we’ve seen in our survey results, 64% of respondents actively engaged with their customers through email, as a marketing initiative of their e-billing campaigns.
Website / Self Service Portal Optimization
More than 56% of consumers visit a utilities’ website to pay a bill, 38% to review billing and payments, and 34% to access their bill, according to the 2014 Billing Household Survey. Additionally, according to the Enhancing Digital Adoption Strategy 2020 report published by Broadbridge, 37% of customers surveyed chose website/selfservice portals as the most effective communication tool used by utilities to promote campaigns (3rd highest after E-mail - 46%; Mobile app - 41%). Currently, 5 members who have an above average e-billing adoption rate (45% and above), namely Hydro Ottawa, BC Hydro, Newfoundland Power Manitoba Hydro, Hydro Quebec and Hydro One, have reported that they use their website and self-service portals to educate and raise customer awareness about their e-billing initiatives.
Social media can be an effective and low-cost tool to support member’s e-bill campaigns and goals. Fortis BC, Newfoundland Power, Hydro Ottawa, Alectra Utilities, Toronto Hydro and SaskPower promote e-billing campaigns on their social media platforms.
Most members have an active social media presence and communicate with customers on topics such as power outages, but they are not as active in promoting paperless campaigns on these platforms. Communicating e-bill value propositions on social media can enhance a campaign however, according to recent research from Oracle, Gen. Z and Millennials do not consider utilities as part of their social network, therefore investing heavily in digital campaigns on these platforms may not be as effective compared to investments in other channels.
CSR Agents
We found that highlighting the benefits of going paperless through a CSR team has produced proven results in customer conversion. The best-case example for this was when BC Hydro’s conversion rate plateaued after they had crossed 50% customer penetration mark. BC Hydro targeted a list of top commercial customers who had an online account but were still on paper and made calls to educate them on the benefits of e-billing. Based on customer feedback, additional support, like live demonstration sessions, was provided to those customers who found it difficult to navigate an online space. This initiative produced positive results for the organization and has enabled an additional 10% increase, the utility is the first CEA survey participant to hit the 60% mark.
Positioning e-bill enrollment when a customer calls has proven to be an effective method adopted by some members, BC Hydro, SaskPower and Fortis BC train their agents to promote e-billing enrollment during the initial account set-up phase. BC Hydro believes that among all their other marketing initiatives, this has proved to be the most affordable and fastest way to enable customers to adopt e-billing.
Some members have also incentivized their CSR agents to achieve monthly or annual e-billing goals. For example, FortisBC increased their e-bill enrollment by incentivizing their agents for every e-bill conversion. Agents would make outbound calls and send promotional e-mails to customers not receiving e-bills to encourage them to make the switch. A similar approach was taken by Alectra Utilities, in order to ‘upsell’ e-billing to customers, contact center agents are able to enroll in an opt-in incentive program where the company provides weekly and monthly draws for company products to agents who participate.
Digital has increasingly become the marketing channel for companies trying to reach more customers, connecting on social media and through mobile apps. However, traditional methods, like mail inserts and onserts, are proving to still be effective. Approximately 50% of inserts or add-ins accompanying a utility bill or providing notifications as part of the bill, are read compared to email marketing which has an average open rate of under 20% (Kubra report).
With over 60% of Canadian consumers still on paper bills, our research concludes that bill inserts are still an effective marketing channel. Similarly, onserts and brochures are also effective because it increases customer engagement by making e-billing messages more personal. Creating targeted (even regional) messaging and making recommendations or offers based on customer activity and preferences allows members to better connect with customers. It also works seamlessly with both print bills and e-bills, which increases flexibility for customers while maximizing reach. Onserts are more likely to be read because there is less danger of them getting tossed with the envelope. Used in tandem, inserts, brochures and onserts can greatly enhance member marketing initiatives.
Our surveys reveal that Fortis BC, Newfoundland Power, Hydro Ottawa and Toronto Hydro use bill inserts and onserts to effectively promote paperless billing campaigns. Secondary to website marketing, Hydro Ottawa indicated that bill inserts, and bill envelopes were the most leveraged marketing tool used to promote digital billing campaigns. In 2017, as part of their diversity and inclusion initiative, Hydro Ottawa produced and e-billing brochure in Chinese for customers whose first language was not English/ French. In 2018, this initiative was expanded to Arabic.
Traditional marketing techniques continue to be critical in reaching local or regional audiences. Despite the costs associated with traditional marketing channels, members find that these channels are particularly helpful when dealing with increasing scams and fraudsters. For example, London Hydro believes that although Radio Ads and billboards may not persuade consumers to instantly enroll in ebilling, they still play a significant role because they promote awareness of the local utility and the e-billing initiatives thereby increasing trust when outbound promotional calls are made. Hydro Ottawa is also a key proponent of Radio Ads.
Figure 12: E-billing Marketing Initiatives, Canada
Digital Campaign
Company Website, Social Media. Google Display Ads
O ine Campaigns
Bill Inserts, Envelops, Brochure, Community Association Newsletter. Outreach Posters, Facebook Ads, Bus Shelter Ads, Radio Ads, Weather Network Website, Oc Transpo Ads
Key Partnerships
CHEO, Environics, Creative Marketing Agencies
Future Platforms
Mobile Apps, Text Messages, Alexa and Siri
E-Billing Marketing Channels Digital Campaign
No current digital campaigns are running.
O ine Campaigns
Bill Inserts, Bus Shelter Ads, Radio Ads, Billboards, Public Transport Ads
Key Partnerships
Billboard Companies, Media Companies, Local Radio Station
Future Platforms
SMS/Text, IVR
