Customer Self-Service
By Gary Weseloh, Vice President - March 2004

Improving customer service was the hot topic of the late 1980s and early 1990s and tended to be the primary driver for upgrading or replacing Customer Information Systems (CIS). Everyone knew that we needed to be more in tune with our customers; we needed to be more responsive to their needs and really be more proactive rather than reactive. This awareness of customer service was enhanced as utilities started feeling the pressure coming from deregulation/competition which was “just around the corner.” While utilities still want to offer excellent customer service, economic realities associated with our economy are driving utilities into cost-cutting mode, resulting in municipalities and utilities, electric, water and gas, seeking ways to decrease costs and operate more efficiently. Some utilities that have a need for a new CIS are attempting to cost-justify the new systems. TMG Consulting has consistently told its clients that seldom can you justify a Return On Investment (ROI) on a new or upgraded CIS. However, there are many essential reasons for making this investment. Once the new technology is in place and the improved functionality is available to a utility, other systems/modules can be added which will easily demonstrate an impressive ROI and will, in the end, justify the cost of a new CIS.

We now seem to be in an era of customer self-service. While we demand convenience and "complete" service, sometimes we are forced to do it ourselves, and there are other times we would just rather do it ourselves. For example, it is hard to find a place that will pump gas for you. In fact, most of the time we don't even have to go inside to pay. And, many of us probably don't go to the bank anymore. We just use the ATM machines. I now make all of my own travel arrangements online. The airlines have enticed me to do this by giving me additional frequent flyer miles for booking the reservations online myself, not using a travel agent or calling the reservation center, thus saving them costs.

Following this trend, many utilities have been very successful implementing customer self-service through effective Interactive Voice Response (IVR) systems and Interactive Web Response (IWR) systems. And, IVR and IWR systems are easier to install and are much more cost effective if the utility has a modern, up-to-date CIS operating on new technology.

IVR is telephony technology in which someone uses a touch-tone telephone, or speech recognition technology, to interact with a CIS to acquire information from or enter data into the database. IVR technology does not require human interaction over the telephone, as the user's interaction with the CIS database is predetermined by what the IVR system will allow the user access to. For example, utilities use IVR systems so that their customers can receive up-to-date account information instantly (24 hours a day) and easily without having to speak directly to a person. Computer-Telephony Integration (CTI) can also be included where the customer's account information can be automatically presented to the CSR should the customer choose the option of talking to a CSR. This “screen popping” technology claims to save from 5 to 10 seconds per call.

IVR technology can also be used to gather information, as in the case of telephone surveys in which the user is prompted to answer questions by pushing the numbers on a touch-tone telephone, or by answering verbally with speech recognition software, with the IVR system registering the responses. Some utilities have initiated business practices to where each customer they interact with is asked if they are willing to participate in a short survey regarding the call that is being completed. If the customer is open to this, they are put into this IVR survey mode, and the utility gathers a wealth of customer care and customer satisfaction information.

Outbound Predictive Dialing is anther feature of an IVR system. The system can dial out to a selected group of customers using the CIS database to inform customers of outages, delinquent payments and termination notices. Once a customer is contacted, the system can connect the customer to a live CSR and provide the CSR with a screen pop of the customer's information.

There is no question that an IVR system can be a very effective cost-saving initiative for a utility. It is estimated that, if the system is set up properly and integrated with an efficient CIS, about 20% of the customer calls can be handled through the system without any interaction from a CSR.

The extent with which IVR systems are used within utilities varies significantly. Some, whose corporate culture dictates that customer service be very personal and person to person, have elected to give customers the option of talking to a live CSR versus going through their “automated” system. And then, if customers select the automated system, their options may be limited to only accessing their account balance, the date their next bill payment is due, and perhaps when their last payment was received. Other utilities, whose goal is to handle as many customers as possible with the fewest number of CSRs, have opened up the possibilities associated with their IVR system. Their customers can retrieve their balances and payment dates, service termination dates, and payment extensions. They have integrated screen pops so that if customers choose payment extensions, they are asked to hold for a CSR, and the choices made by the customer, along with other pertinent customer information, are displayed for the CSR once he/she is connected to the customer. Customers can access the system any time of the day. They can report trouble or outages using the IVR. They can request new service; i.e., moves or transfers to new locations. And, the utility can choose what functions will allow for immediate update in the database and what functions will require a review and approval by a CSR, such as a payment arrangement.

Utilities are also adding payment processing to their IVR systems. Many vendors will act as a network-wide payment center in handling both credit card and personal check payments. The IVR system will retrieve account information, verify credit, process the transaction and deposit the funds into the utility's account. Many systems also offer fax on demand, where static documents, such as New Account Information forms, are stored on the system and customers can ask to have these faxed directly to them.

Interactive Web Response (IWR) offers the same functionality through any standard web browser. One added feature available through IWR is internet bill delivery and bill payments. This move into E-Commerce allows utilities to offer customers the option of receiving their bills electronically via email. Or, as an option, the utility can send an email to customers directing them to the web site to look at their bill. The system will then allow the customer to make direct payments via either ACH or credit card using the internet. It is estimated that this E-Commerce saves utilities approximately 50% of the costs associated with the billing of customers.

A key to making these systems cost effective is to insure that they are user-friendly. They need to be set up correctly, with clear definitions of each path, and instructions that are easily understood and followed by the customer. I know that I have gotten lost in IVR systems, either where there doesn't seem to be an option for the problem for which I am calling in, and I can't get an exit out to talk to a CSR, or the system hangs up on me. Another pet peeve of mine is being asked to enter my account number, and then eventually reaching a CSR who then immediately asks me for my account number. I understand that this is sometimes done to ensure that the screen pop has provided the correct information to the customer, but there are better ways of validating the account and lessening the customer's stress level.

There are many good IVR/IWR system vendors serving the utility industry. Make sure that you have a well-defined business case detailing why you want a system, and that your CIS can effectively interact with such a system. Build your RFP to clearly communicate your needs and your desired results. Develop an effective evaluation criteria and perform the necessary due diligence to ensure the best system for your company. Better yet, incorporate an IVR/IWR system in your procurement of a new CIS.