There are many issues those are intricately related with the effectiveness and economics of power supply from the viewpoint of customers. These issues are mainly customer satisfaction, quality of electric supply and services, Customer Relationship Management (CRM). Electricity Regulatory Commission (ERC) also plays an important role for the fulfilment of the objectives of stakeholders
viz. customers and power distribution companies. The quality of electric supply and services has already been discussed in previous unit. All these issues have now been briefly discussed.
viz. customers and power distribution companies. The quality of electric supply and services has already been discussed in previous unit. All these issues have now been briefly discussed.
Customer Satisfaction
Customer satisfaction measurement is a systematic process for collecting customer data (e.g. surveys, audits, etc.), analyzing these data to make it into actionable information, driving the results throughout an organization, and implementing satisfaction improvement plan. Thus, customer satisfaction measurement (CSM) is a management information system that continuously captures the voice of the customer through the assessment of performance from the customer’s point of view.Such measurement could me made by using any of the following methods:
•Surveys;
•Formal and informal feed back from customers;
•Use of customer account data; and Complaints.
However, survey is the most commonly chosen method due to its effectiveness and economy.
Customer satisfaction measurement will enable us to Understand how customers perceive your organization and whether your performance meets their expectation;
• Identify PFI’S (priorities for improvement) areas where improvement in performance will produce the greatest gain in customer satisfaction;
• Set goals for service improvement and monitor progress against a customer satisfaction index;
• Benchmark your performance against other organization; and
• Increase profits through improved customer loyalty and goodwill.
•The organization’s process for questioning, measuring and monitoring feedback of customer satisfaction and dissatisfaction should provide information on continual basis. It should address conformance to requirements, meeting needs and expectations of customers, as well as price and delivery of product.
Survey Process
The steps to be followed in any such survey process are given below. There is always a possibility of going back to any previous step through feedback system in case of any discrepancy or any change is survey objectives. These steps are self explanatory.
•Obtain Top Management Buy – In Determine Survey Objectives
•Exploratory Research
•Plan Sampling and Data Collection
•Design of Questionnaire
•Actual Survey
•Data Refining and Analysis
•Recommendation and Implementation Plan
•Plan Timing of Next Survey
Survey Methodology
Customer satisfaction measurement is a systematic process for collecting customer data (e.g. surveys, audits, etc.), analyzing these data to make it into actionable information, driving the results throughout an organization, and implementing satisfaction improvement plan. Thus, customer satisfaction measurement (CSM) is a management information system that continuously captures the voice of the customer through the assessment of performance from the customer’s point of view.Such measurement could me made by using any of the following methods:
•Surveys;
•Formal and informal feed back from customers;
•Use of customer account data; and Complaints.
However, survey is the most commonly chosen method due to its effectiveness and economy.
Customer satisfaction measurement will enable us to Understand how customers perceive your organization and whether your performance meets their expectation;
• Identify PFI’S (priorities for improvement) areas where improvement in performance will produce the greatest gain in customer satisfaction;
• Set goals for service improvement and monitor progress against a customer satisfaction index;
• Benchmark your performance against other organization; and
• Increase profits through improved customer loyalty and goodwill.
•The organization’s process for questioning, measuring and monitoring feedback of customer satisfaction and dissatisfaction should provide information on continual basis. It should address conformance to requirements, meeting needs and expectations of customers, as well as price and delivery of product.
Survey Process
The steps to be followed in any such survey process are given below. There is always a possibility of going back to any previous step through feedback system in case of any discrepancy or any change is survey objectives. These steps are self explanatory.
•Obtain Top Management Buy – In Determine Survey Objectives
•Exploratory Research
•Plan Sampling and Data Collection
•Design of Questionnaire
•Actual Survey
•Data Refining and Analysis
•Recommendation and Implementation Plan
•Plan Timing of Next Survey
Survey Methodology
The customer satisfaction survey usually conducted for the purpose “To listen to the customer”. The reasons for this survey are
1. To find out the reasons for customer dissatisfaction
2. To find out the focus of attention for process improvement
3. To determine whether previous improvement efforts have worked
4. To see whether strategic advantages or disadvantages exist.
Survey Methods and Analysis
There are two main methods of gathering information from customers: qualitative and quantitative.
Qualitative methods provide feedback from customers on `soft issues and opinions’ and give the organization an opportunity to probe customers’ feelings and attitudes on an in-depth basis. Typical qualitative techniques include user panels, customer groups, and personal interviews.Quantitative methods allow the organization to quantify customer opinions in a numerical fashion. Typical quantitative techniques include telephone surveys,self- completion questionnaires, the monitoring of compliments and complaints, and mystery shopping.
The questionnaire can be designed in a hierarchical structure of various dimensions (Figure ) according to the involved business processes. This will facilitate the managerial decision-making process of the organisation with the help of the information generated from this survey. The analysis determines links between the following components.
 |
| Hierarchy of Dimensions |
Customers’ Satisfaction level with any particular process is influenced by the various dimensions or sub-processes linked with that process. Similarly, the overall satisfaction level is also depends upon the achievement Level of Various processes.
Importance Performance Mapping & Implementation Plan
Another data presentation device that many managers find appealing is the importance-performance map. The idea is derived from standard quadrant analysis, as had been used for many years in business strategy. In general, this approach argues, we should be most concerned about those issues for which importance is high and performance (typically measured by average satisfaction) is poor. These yield the greatest potential for gain.
Another set of valuable recommendations could be drawn up from the analysis of importance-performance matrix. As shown in Figure , the matrix has four divisions in which values of different dimensions/factors will fall in. Depending upon which division factor is located, certain actions could be suggested. If any process/sub-process/factor is placed in a low importance and high performance quadrant, the cost reduction program needs to be undertaken for that process or factor. It is imperative for any power distribution organisation to undertake the task of monitoring of customer satisfaction for its own survival and growth and thereby to boost market goodwill.
Customer Relationship Management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers,including the capture, storage and analysis of customer, vendor, partner and internal process information. It is a process used to learn more about customer’s needs, wants and behaviours in order to develop stronger relationship with them.
There are three aspects of CRM which can be implemented in isolation from each other.
META Group developed this conceptual architecture in the late 1990s and given the name as CRM ECOSYSTEM.
i)Operational: Automation or support of customer processes that include a company’s sales or service representative. Operational CRM provides support to FRONT OFFICE business processes, including sales, marketing and service. This creates the contact history of the customers that makes it possible to establish contact without repeating past history every time.
ii) Collaborative: Direct communication with customers that does not include a company’s sales or service representative. This is done for variety of different purposes including feedback and issue reporting. Interaction can be through a variety of channel viz. Web pages, E-mail, automated Voice Response (AVR) or SMS. The objectives of collaborative CRM also include cost reduction and service improvements.
iii) Analytical: Analysis of customer data for a broad range of purposes is done at this stage through the heavy use of predictive analytics. Analysis is done for the following purposes.
a) Design and execution of targeted marketing campaigns to optimize marketing effectiveness.
b) Design and execution of specific customer campaigns, including customer acquisition, cross-selling, up-selling, retention.
c) Analysis of customer behaviour to aid product and service decision making e.g. pricing, new product development, etc.
d) Management decisions like financial forecasting, customer profitability analysis, etc.
e) Prediction of the probability of customer defection.
Strategy and CRM
CRM sometimes considers as only information technology due to availability of quite a good number of software packages in the market. But, CRM is not just a technology, rather, a holistic approach of an organization for dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Due to this all encompassing characteristics, CRM is now considered as a strategy to build a long lasting relationship with customers through the extensive usage of information technology. The following diagram(Figure ) which is known as CRM Triangle.
Importance Performance Mapping & Implementation Plan
Another data presentation device that many managers find appealing is the importance-performance map. The idea is derived from standard quadrant analysis, as had been used for many years in business strategy. In general, this approach argues, we should be most concerned about those issues for which importance is high and performance (typically measured by average satisfaction) is poor. These yield the greatest potential for gain.
Another set of valuable recommendations could be drawn up from the analysis of importance-performance matrix. As shown in Figure , the matrix has four divisions in which values of different dimensions/factors will fall in. Depending upon which division factor is located, certain actions could be suggested. If any process/sub-process/factor is placed in a low importance and high performance quadrant, the cost reduction program needs to be undertaken for that process or factor. It is imperative for any power distribution organisation to undertake the task of monitoring of customer satisfaction for its own survival and growth and thereby to boost market goodwill.
Customer Relationship Management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers,including the capture, storage and analysis of customer, vendor, partner and internal process information. It is a process used to learn more about customer’s needs, wants and behaviours in order to develop stronger relationship with them.
There are three aspects of CRM which can be implemented in isolation from each other.
META Group developed this conceptual architecture in the late 1990s and given the name as CRM ECOSYSTEM.
i)Operational: Automation or support of customer processes that include a company’s sales or service representative. Operational CRM provides support to FRONT OFFICE business processes, including sales, marketing and service. This creates the contact history of the customers that makes it possible to establish contact without repeating past history every time.
ii) Collaborative: Direct communication with customers that does not include a company’s sales or service representative. This is done for variety of different purposes including feedback and issue reporting. Interaction can be through a variety of channel viz. Web pages, E-mail, automated Voice Response (AVR) or SMS. The objectives of collaborative CRM also include cost reduction and service improvements.
iii) Analytical: Analysis of customer data for a broad range of purposes is done at this stage through the heavy use of predictive analytics. Analysis is done for the following purposes.
a) Design and execution of targeted marketing campaigns to optimize marketing effectiveness.
b) Design and execution of specific customer campaigns, including customer acquisition, cross-selling, up-selling, retention.
c) Analysis of customer behaviour to aid product and service decision making e.g. pricing, new product development, etc.
d) Management decisions like financial forecasting, customer profitability analysis, etc.
e) Prediction of the probability of customer defection.
Strategy and CRM
CRM sometimes considers as only information technology due to availability of quite a good number of software packages in the market. But, CRM is not just a technology, rather, a holistic approach of an organization for dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Due to this all encompassing characteristics, CRM is now considered as a strategy to build a long lasting relationship with customers through the extensive usage of information technology. The following diagram(Figure ) which is known as CRM Triangle.
 |
| CRM Triangle |
Strategy refers to the overall stand taken by the company. It could choose a defensive posture in which it complies with the minimum requirements as stipulated by the Regulatory organization or it could be an aggressive company with newer services and better service delivery. However, it could stand between. Process is the method and the associated inputs to deliver services. People skill and knowledge along with most importantly, attitude should also be in line with the technology.Such holistic approach is particularly useful in Indian electricity Distribution business, which is presently passing through a transition form a completely regulated market to at least a partly deregulated one. Customers are nowadays more informed and demanding. Distribution companies are also becoming conscious that technology could only act as an enabler and changes in other organizational aspects are together required.
The principle of CRM is that the more information a company has about its customers, the better. According to one well known expert, Prof. Adrian Payne of Cranfield University (U.K.), CRM is “the strategic process of identifying desirable customer segments, micro-segments, or individual customers on a one to one basis and developing integrated programs that maximizes through targeted customer acquisition, profit enhancing activities, and retention’’.
CRM Framework
There exist various ways to view CRM framework. However, an operational strategic framework is more relevant to apply CRM in Indian power/electricity business systems. From the customer’s perspective, CRM should provide an affordable, reliable and responsive service. From the corporate perspective,CRM is a balancing act-managing often increasing expectation of customers while delivering value in line with what is profitable for the corporation. For the fulfilment of these objectives, it is imperative to acquire and organize information regarding all concerned stakeholders. Processes used to deliver different kinds of services are required to be redesigned or improved upon. All these aspects are integrated in a framework as shown in Figure.CRM system has two broad functions block, i.e. customer data management and customer service management.
There exist various ways to view CRM framework. However, an operational strategic framework is more relevant to apply CRM in Indian power/electricity business systems. From the customer’s perspective, CRM should provide an affordable, reliable and responsive service. From the corporate perspective,CRM is a balancing act-managing often increasing expectation of customers while delivering value in line with what is profitable for the corporation. For the fulfilment of these objectives, it is imperative to acquire and organize information regarding all concerned stakeholders. Processes used to deliver different kinds of services are required to be redesigned or improved upon. All these aspects are integrated in a framework as shown in Figure.CRM system has two broad functions block, i.e. customer data management and customer service management.
 |
| CRM Framework |
Customer Data Management
The concept of data warehouse and data mining can be very useful for the management of customer data. A data warehouse is a powerful database which combines information from smaller databases.Data mining is used to analyse the information contain in data warehouse to
identify previously unseen pattern in customer characteristics and behaviour.Data mining can perform the following tasks.
1. Classification and segmentation of customer data according to a set of characteristics.
2. Regression to extract relationships useful for both predictive and descriptive purposes.
3. Link Analysis to expose patterns and trends.
4. Rule induction, a process of inducting general rules from a database.
5. Deviation detection to find out variation.
A few Indian electricity distribution companies like Andhra Pradesh have been benefited by applying this concept or tools of their customer data management.
Customer Service Management
CRM includes several activities related to planning – both long terms and short terms, measurement and control, improvement and innovation of all aspects of relationship with customers. The following aspect will have significant impact on electric utility business.
Customer Segmentation
Understanding requirements of various segments
The concept of data warehouse and data mining can be very useful for the management of customer data. A data warehouse is a powerful database which combines information from smaller databases.Data mining is used to analyse the information contain in data warehouse to
identify previously unseen pattern in customer characteristics and behaviour.Data mining can perform the following tasks.
1. Classification and segmentation of customer data according to a set of characteristics.
2. Regression to extract relationships useful for both predictive and descriptive purposes.
3. Link Analysis to expose patterns and trends.
4. Rule induction, a process of inducting general rules from a database.
5. Deviation detection to find out variation.
A few Indian electricity distribution companies like Andhra Pradesh have been benefited by applying this concept or tools of their customer data management.
Customer Service Management
CRM includes several activities related to planning – both long terms and short terms, measurement and control, improvement and innovation of all aspects of relationship with customers. The following aspect will have significant impact on electric utility business.
Customer Segmentation
Understanding requirements of various segments
- Customer Satisfaction Measurement
- Feedback Analysis
- Problem Solving
The service delivery companies are usually follow the following sets for solving problem.
1. Select the problem identified through feedback analysis
2. Collect and analyze the data regarding the relevant aspects of the problem
3. Analyze causes especially with the help of cause and effect diagram
4. Evolve solution
5. Implement the solution in collaboration with management
1. Select the problem identified through feedback analysis
2. Collect and analyze the data regarding the relevant aspects of the problem
3. Analyze causes especially with the help of cause and effect diagram
4. Evolve solution
5. Implement the solution in collaboration with management
6. Evaluate effects
7. Standardize solution
8. Reflect on the whole exercise for lessons in the future.
CRM Software
CRM software products are most varied and variable in functionality and cost.
The important CRM software application include:
Contact Management
Database management
Data warehousing
Data mining
Decision support
E-mail
7. Standardize solution
8. Reflect on the whole exercise for lessons in the future.
CRM Software
CRM software products are most varied and variable in functionality and cost.
The important CRM software application include:
Contact Management
Database management
Data warehousing
Data mining
Decision support
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