![]() ![]() In addition to addressing customer journeys, we helped the client pursue operational excellence by transforming shop-floor processes and performance systems. We supported the client in adopting lean ways of working in teams and processes and ensuring that the customer’s perspective was always foremost. It began by addressing commercial levers-branding, pricing, customer-life-cycle management, and online presence-before moving to operations and a customer focus. This was just one of several customer journeys that we helped the utility improve in a wide-ranging “fixing the basics” program. Forging bonds across functional boundaries-among marketing and sales, operations, and customer service-was essential in designing a process that customers would find easy to use, fast, and seamless. It also brought home where shortcomings were-not just in handoffs between groups, but also in communications, which failed to provide customers with information at key points while puzzling them with conflicting messages at other times.Īrmed with this understanding, the team sat down to rethink the entire customer journey, using pilots to test ideas and involving customers to ensure the outcome would satisfy their needs. The meeting proved to be a breakthrough: it was the first time anyone realized how complex this customer journey was, with 18 separate interactions. In the meeting room, we covered one wall with a display of images and quotes that presented the entire experience from the customer’s point of view, from deciding to move to having power switched on at their new address. One of these was moving house, an experience that affected one in seven customers every year and was a major driver of churn, with 40 percent of house movers switching to another supplier. To diagnose what was going wrong, we brought together members of the commercial and operational teams responsible for the many internal processes involved, from reading meters and preparing final bills to setting up new accounts. We helped to conduct a 2,000-strong survey that provided deep insight into customers’ needs and highlighted critical customer journeys where churn was at its highest. Discoveryīefore the utility could rethink its strategy, it needed to understand its starting point. ![]() McKinsey was asked to help the client improve its customer relationships to decrease switching rates and, at same time, increase revenues. Its future as a major energy company looked bleak unless it could reinvent itself to stand out from the competition and win-and keep-more customers. But hampered by a bland image and lacking a distinctive value proposition, it had trouble differentiating itself from the pack. With switching increasing year after year, the utility needed to improve customer attraction and retention. No longer profitable, it was struggling to break even. Despite a long history as one of the country’s leading energy suppliers, the utility was finding it difficult to adapt to the new environment and its relentless price pressures. New entrants had piled into the market, one of the most competitive in Europe, and customers could choose from more than 20 suppliers, many competing on price alone. An incumbent power utility had been suffering a steady decline in market share since the liberalization of energy retailing 5 years earlier.
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