It is very important to continuously analyse consumer complaints and have regular improvement programmes to ensure that the level of complaints goes down and similar complaints are not repeated. For this, it is very important to use some tools to analyse customer input on regular basis. We describe them below:
Customer Relation Management (CRM) Tools
Customer Relation Management (CRM) tools today are one of the most used systems due to their advantageous features (Fig.). CRM is a software product which is at times customised or one can use an already availablproduct from the market. This records all the transactions and customer feedback and uses statistical tools to analyse these and generates MIS reports. Some of the tools used would be mean, correlation, regression, and other charts, etc.
Customer Relation Management (CRM) Tools
Customer Relation Management (CRM) tools today are one of the most used systems due to their advantageous features (Fig.). CRM is a software product which is at times customised or one can use an already availablproduct from the market. This records all the transactions and customer feedback and uses statistical tools to analyse these and generates MIS reports. Some of the tools used would be mean, correlation, regression, and other charts, etc.
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| Features of CRM |
Using this method, the utility can rate the customer as per his/her behaviour pattern and extend differentiated services. It can also act to ensure that there is no default in payment, etc. The rating can be done based on his/her payment and consumption pattern other than the demographic and psychographic variables.
Customer Satisfaction Index Study (CSI)
Often companies conduct satisfaction study internally or by hiring an external agency to rate themselves in the eyes of the customer on various parameters like power situation, quality of power, reliability, billing efficiency and other identified variables. This is done periodically quarterly, bi-annually or annually depending on the need.We present below a case study of how the Customer Analysis Tool has been used by APTRANSCO.
Consumer Analysis Tool: A Case Study of APTRANSCO
Consumer Analysis Tool (CAT) in APTRANSCO is the central consumer database located at the utility Head Office where the entire LT data is stored and analysed (Fig.). Table presents the functional users of reports.
Customer Satisfaction Index Study (CSI)
Often companies conduct satisfaction study internally or by hiring an external agency to rate themselves in the eyes of the customer on various parameters like power situation, quality of power, reliability, billing efficiency and other identified variables. This is done periodically quarterly, bi-annually or annually depending on the need.We present below a case study of how the Customer Analysis Tool has been used by APTRANSCO.
Consumer Analysis Tool: A Case Study of APTRANSCO
Consumer Analysis Tool (CAT) in APTRANSCO is the central consumer database located at the utility Head Office where the entire LT data is stored and analysed (Fig.). Table presents the functional users of reports.
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| Functional Users of Reports |
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| Applications of CAT at APTRANSCO |
Concept – The CAT framework
For the purposes of analysis, a consumer classification methodology has been developed that considers the consumer patterns using the following parameters over the last 12 months:
− timeliness/promptness of payment by consumers, i.e., default history;
− collection of demand raised during the review period.
• The CAT Tool captures payment patterns in a matrix framework and helps in profiling consumers based on their payment patterns and default rates.It helps to focus on consumers with high default rates for action initiation.
• When combined with data related to billing and consumption, other reports(e.g., consumption patterns, exceptions, etc.) can be generated to add depth to the analysis and an action plan for targeting problem accounts can be created.
• Reports under the framework can be generated for profile analysis and action/follow-up:
− by consumer tariff category;
− by business unit levels.
Accordingly, the profiles of different categories of consumers spread across different geographical locations can be studied, trends analysed and strategies made to address business issues.
CAT Analysis and Reporting
Categorization of Consumers
• CAT framework profiles of a consumer are based on their collection and default percentages over a period of 12 months, and categorize the consumers in Classes A to F .
• An A class consumer is one who pays 100% of the demand raised in time and has 0% default history.
• F class consumer is one who does not pay any demand raised and is 100% defaulter.
• The tool targets the F class consumers first to reduce the % of F class and then slowly drives them towards the A class.
• Some of the consumers who are in class F category may still avail electricity. The tool focuses the attention of the authorities on such categories.
• These abnormalities can be reduced and the revenue can be realized if the services focused are insp Collection and Receivables
• The tool also focuses on the collections and receivables.
• It not only focuses on just how much amount is to be received, but also on how long that amount has been pending for receipt.
• The arrears can be split duration-wise which will facilitate the authorities to concentrate on the dues to be recovered since long.
− timeliness/promptness of payment by consumers, i.e., default history;
− collection of demand raised during the review period.
• The CAT Tool captures payment patterns in a matrix framework and helps in profiling consumers based on their payment patterns and default rates.It helps to focus on consumers with high default rates for action initiation.
• When combined with data related to billing and consumption, other reports(e.g., consumption patterns, exceptions, etc.) can be generated to add depth to the analysis and an action plan for targeting problem accounts can be created.
• Reports under the framework can be generated for profile analysis and action/follow-up:
− by consumer tariff category;
− by business unit levels.
Accordingly, the profiles of different categories of consumers spread across different geographical locations can be studied, trends analysed and strategies made to address business issues.
CAT Analysis and Reporting
Categorization of Consumers
• CAT framework profiles of a consumer are based on their collection and default percentages over a period of 12 months, and categorize the consumers in Classes A to F .
• An A class consumer is one who pays 100% of the demand raised in time and has 0% default history.
• F class consumer is one who does not pay any demand raised and is 100% defaulter.
• The tool targets the F class consumers first to reduce the % of F class and then slowly drives them towards the A class.
• Some of the consumers who are in class F category may still avail electricity. The tool focuses the attention of the authorities on such categories.
• These abnormalities can be reduced and the revenue can be realized if the services focused are insp Collection and Receivables
• The tool also focuses on the collections and receivables.
• It not only focuses on just how much amount is to be received, but also on how long that amount has been pending for receipt.
• The arrears can be split duration-wise which will facilitate the authorities to concentrate on the dues to be recovered since long.
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| Categorization of Consumers |
Billing and Consumption
• Slab-wise billing profile of consumers, variance analysis and billing abnormalities related analysis can be performed to understand the key issues affected the billing and consumption processes.
• Questions such as how the billing of consumers is being done during abrupt changes observed in meter reading.
• Variation of consumption beyond the permissible limits can also be targeted, i.e., if the consumption of the consumer is varied abnormally,the service can be inspected which may reveal some leakage of revenue.
• This analysis will target mainly the services where there is shortfall in consumption due to meter changes, etc.,
Metering Analysis
• Services with abnormal meter status can be targeted in this type of analysis, i.e., the services with Meter Status other than 1 (Live),(Meter change) and 7 (Dial completed).
• This tool reveals the facts such as for how long the service has been with this abnormal meter status.
• As the history of a consumer is being analysed for the past 12 months, the status of the meter can be tracked and any abnormality can be focused and attended.ACTION STEPS
The analysis in the processes of Metering, Billing and Collections will highlight certain critical issues, which may affect the company’s performance and require immediate action initiation. The advantages are many:
• There is a possibility to analyze why the service has failed in a test.
• Time taken to generate the reports is very less.
• Efficiency is improved.
• Once the data is ported and validated and exported to the SRT, it can be tested for various factors. Services, which failed the test, can be brought out; the problems identified can be rectified before submission of the data to the APERC.
• There is provision in the tool to drill down the observation to the actual location, i.e., which Electricity Revenue Office (ERO) or section is responsible for the cause and corrective measures can be taken up to rectify them.
• The reports are nothing but the actual progress reports for the individual business units; the deviation can be observed and rectified.
• The important reports generated through this tool are:
I. Analysis Report,
II. MIS Report,
III. Test Failed Services Report,
IV.Financial Progres
BENEFITS OF CAT TO DIFFERENT USERS
Consolidated information available across business unit levels such as:
− Discom
− Circles
− Divisions
− EROs
Further, information available in the form required by different users such as:
− Operations personnel
− Vigilance and DPE
− Finance function
− Regulatory cell
• Prioritised information for operations personnel, which is more focused and actionable.
• Information for the key business processes of metering, billing and collection.
• Reduction in the response time for generation of information for action initiation.CAT ROLLOUT
CAT rollout across the distribution companies entails development of a central consumer database to capture relevant consumer billing and collection data updated on a monthly basis, which would be analysed. Based on this data, required information can be generated for use by functional users across business unit levels.
The rollout of CAT across the four Discoms entails the following:
− establishment of a process for the Private Accounting Agencies (PAA) to transfer data to the EROs on a monthly basis from where it can be forwarded to the Discom Head Office where the central database would be located;
− creation of a consumer database where consumer information received from the PAAs and In-house Computer Cells (IHC) is consolidated,
analyzed ,stored in database and reports from databases fed to the relevant users and actions monitored;
− identification of the end users of the reports, who will ensure action is taken on the basis of the reports generated.
We see that a combination of factors keeps a customer satisfied and it is achieved by being in regular touch with the customer, i.e., keeping the communication channels open. Utilities need to ensure that customer feedback is translated into action and leads to improvement in services to them. Use of Information Technology can contribute significantly to these efforts of the utilities. On this note, we would like to conclude the discussion and summarise what you have learnt in this unit.
Very well explained dear author, many thanks for sharing with us. Looking for more interesting blogs.
ReplyDeleteI want to introduce CRM tool FLOWACE.
Customer analysis tools are essential for understanding your client base. They provide insights that can shape your strategies. When paired with Salesforce Time Tracking Integration through Flowace, you gain not only a deeper understanding of your customers but also the ability to track and manage your team's time effectively, ultimately enhancing customer relationships and business success.