Two Seattle Utilities Get Bright Idea
WHILE MARKETERS gathered in Seattle for the National Center for Database Marketing conference and listened to theory and case studies, two of the state’s utilities were bringing theory into action. In mid-July, Seattle Public Utilities and Seattle City Light reached an agreement to consolidate services for their 450,000 customers.
Under terms of the deal, the utilities will combine their databases, call centers, billing systems and outreach efforts into a single resource. From a logistics standpoint, the new system will be able to accommodate a series of different billing schemes for each service-billing ahead, flat rates, metered use-and has preformatted modules that allow for varying seasonal rates.
But the new arrangement has marketing benefits that go beyond consumer convenience. Once the consolidation is complete, the utilities will use Malvern, PA-based SCT System’s Banner customer management and contact coordination software to facilitate access to customer information and simplify record keeping. STC’s Customer Target+ software will then be used to design, execute and manage direct marketing programs.
“Today this is done through spreadsheets and pieces of paper,” says Joel Jeffress, Seattle’s city project director.
The new system will also allow the utilities’ customers to determine what they consider the most important value-added services. One example of a marketable service is “utility cost watch,” under which customers with multiple locations track how and where utility expenses are generated.
The Seattle agreement reflects the direction utilities are taking throughout the country. For those either in or facing deregulated environments, the challenge is not just generating a marketing structure that will enable them to retain their customers, but adding to the customer’s value.
“Utilities are shifting away from being asset-based-that is, investing in transmission lines and power plants. The utility of the future may provide energy and gas, but if it has a good reputation and offers good value, it may provide cable TV service, or Web access, or home security,” says STC Systems vice president of marketing John Gregg.
