Because there isn’t yet a complete native cloud solution, most utilities are unable to fully migrate to the cloud.  

It’s time to learn more about how RISE with SAP‘s business transformation as a service can help the utilities sector accelerate its digital transformation!  

All about Utilities Industry  

Providing necessities like gas, electricity, water, and sewage is part of the utilities industry, which is a vital sector. These essential resources are produced, transmitted, and distributed by this industry and are necessary for both daily existence and economic activity.  

The industry can be broadly classified into four primary areas: water treatment and distribution, sewage management, natural gas extraction and delivery, and electricity generation and distribution. 

The utilities industry must update its outdated infrastructure and make adjustments to comply with environmental standards, among other difficulties.  

Strategic Priorities for the Utilities Industry 

In the utilities industry, building customer intimacy is not just a strategy for bettering service but a critical component for fostering long-term relationships and improving overall customer satisfaction 

The following are the Strategic Priorities for the Utilities Industries:

Drive Operational Excellence: To improve service delivery and cut costs across operations, optimize procedures and boost efficiency.

Achieve Regulatory Compliance and Security: To safeguard data and uphold confidence, make sure that regulations are followed and that strong security measures are in place.

Explore New Revenue Streams:  Find and create creative ways to increase revenue diversity and promote company expansion.

Build Customer Intimacy:  To increase happiness and loyalty, recognize and respond to each customer’s unique demands through individualized interactions and services. 

For the utilities industry, what does “Customer Intimacy” mean? 

A more creative and proactive customer-facing business is required as it moves from a typical utility function to a sustainable energy and water service partner. In contrast, consumers want the freedom to try new things and decide when and how to interact.

Based on their shared experiences, a number of companies in the sector have proactively developed “best-in-class” frameworks for customer experience transformation. The end user is the focus of customer journey creation.

For the energy sector, understanding customer needs and how they think will change the game when it comes to designing interaction channels and offerings that follow a similar paradigm. 

What impact does Customer Intimacy Strategy create for the Utilities Industry? 

Let’s brainstorm two distinct narratives in order to assess the impact produced, and then determine which is more effective; 

Scenario 1: Challenges and Inefficiencies 

Overview: 

The product manager aims to market a new product via the company’s partner channel. The product includes new energy pricing and hardware, but the manager encounters several difficulties in the process. 

Challenges: 

• Product Development and Partner Commissions: 

Uncertainty exists around how to build the new product and manage partner commissions effectively. This uncertainty can lead to delays and complications in the product development phase. 

• IT Synchronization: 

Integrating the new product with existing IT systems is cumbersome. Synchronizing various programs to manage the product is time-consuming and prone to errors. 

• Go-Live Delays: 

The launch date for the new product is pushed back due to difficulties in aligning and managing numerous systems and programs. 

• Invoice Consolidation Issues: 

Consolidating all product billing components into a client invoice proves challenging. This often results in delays and inaccuracies in the billing process. 

• Tracking Partner Commissions: 

After a significant delay in generating the client invoice, tracking and managing partner commissions becomes difficult, impacting the accuracy and timeliness of commission payments. 

Impact: 

The entire process becomes slow and inefficient, leading to delays in product launch, billing issues, and difficulties in managing partner relationships. Overall, this scenario reflects a fragmented and error-prone approach. 

Scenario 2: Strategic and Efficient Approach 

Overview: 

• The product manager is focused on replacing clients lost to new market entrants by launching new goods and services through the company’s partner channel. The approach is more strategic and simplified. 

Steps Taken: 

• Identifying Market Needs: The product manager evaluates the market and identifies the target consumer group for the new products. This involves determining the right mix of energy products and services to meet customer needs. 

• Creating Contracts: The manager creates sourcing contracts and service agreements with partners, establishing clear terms and expectations for collaboration. 

• Simulations and Financial Forecasts: To ensure a successful rollout, the manager conducts scenarios and simulations to forecast financial outcomes. This step helps in making informed decisions and preparing for potential challenges. 

• Customer Interaction: Customers are presented with the new offerings and can easily compare them with competitors. The signup process is streamlined through mobile devices, enhancing customer convenience. 

• Efficient Invoicing and Partner Commission Management: Once customers make their purchases, they receive a single consolidated invoice. This efficient invoicing process simplifies billing and ensures accurate and timely settlement of partner commissions. 

Impact: 

This demonstrates a proactive and integrated approach to product management and market entry. By addressing market needs, managing contracts effectively, and streamlining invoicing and partner commissions, this scenario results in a more efficient and customer-friendly process. It highlights a strategic use of data and integration to improve overall business operations and customer experience. 

I hope that after reading through all scenarios, you will select the one that involves Next-Gen techniques in order to build customer intimacy for your sector. 

Intelligent tools of SAP to build your customer intimacy for the Utilities Industry 

1. SAP Sales Cloud and SAP Service Cloud: It is mainly used for sales interaction and service experiences, respectively 

2. SAP S/4HANA Utilities and SAP S/4HANA Cloud: It designed for meter-to-cash workflows 

3. SAP Commerce Cloud solutions: It designed to support multichannel sales 

4. SAP Emarsys Customer Engagement: Designed to provide tailored multichannel engagement 

5. SAP Market Communication for Utilities: It is a data center for deregulated utilities 

6. SAP Self-Service Accelerator for Utilities by SEW: Mainly for giving self-service applications to customers 

7. SAP Customer Data Cloud: For managing identification, preferences, profiles, and access 

8. SAP Analytics Cloud: It provides improved decision-making by delivering accurate insights

Benefits offered to Utilities Industry by building customer intimacy

The following are the key benefits offered to the utilities industry by building customer intimacy: 

• Permit utilities to offer thorough customer support.
• Cut down on the time it takes to launch new energy products.
• Forward a single invoice to every customer.
• Use your network of partners to grow your revenue.
• End-to-end process execution is enabled.
• Connecting to your front- and back-office software for commodity and non-commodity goods structure and billing will be easier.
• The ability to provide a single invoice that includes the energy, service, subscription, and goods purchases made by your customers.
• Establishing an automated commissioning and accounting system for partner revenue that is configurable. 

Conclusion  

Let me sum up by saying that RISE with SAP can greatly quicken your shift to green energy and digital transformation. Together with improving compliance, it helps minimize waste, maximize asset usage, optimize environmental effect, and create sustainable products.  

Utilities can achieve remarkably improved business agility and customer-centricity by utilizing the SAP S/4HANA digital core and powerful business analytics capabilities. 

Take control of your future with an outcome-driven approach and a guided journey from RISE with SAP. Contact us to learn more about industry-specific solutions and how your company might benefit from them! 

FAQ’s

1. What is a customer intimacy strategy? 

A customer intimacy strategy focuses on creating personalized and meaningful relationships with customers to enhance satisfaction and loyalty. 

2. Why is customer intimacy important for the utilities industry? 

Customer intimacy is crucial in the utilities industry to improve customer satisfaction, reduce churn, and enhance operational efficiency through better understanding and meeting customer needs. 

3. How can utilities improve customer engagement? 

Utilities can improve customer engagement by offering transparent communication, proactive problem-solving, and leveraging digital channels for interaction. 

4. What challenges might utilities face in implementing a customer intimacy strategy? 

Challenges include data privacy concerns, integrating disparate data sources, ensuring consistent communication, and maintaining a customer-centric culture.