Whether we are shopping for experiences, products or services, the digital world and our ability to connect have given us greater information and ability to choose. As our latest study of more than 10,000 utility customers worldwide shows, “The energy landscape is increasingly defined by the values and preferences of the new energy consumer,” and the utility of the future may offer consumers a range of choices with a different mix of products and services than today.

 

Still, 49 percent of consumers today receive, “just electricity,” from their providers which reminds me of what futurist and author Gerd Leonard said at our recent Accenture International Utilities and Energy Conference (IUEC), that the “harsh reality and bottom line {for utilities} is … you can be a disrupter or can be disrupted. Those are the two choices you have.” In a similar way, it seems we have a split between utilities that just sell a commodity and “others.”  Interestingly, while only 7 percent of consumers currently receive “devices or services to automate home energy management” and 8 percent receive “warranty and/or financing plans for home energy devices,” 52 percent and 46 percent, respectively, say they would be interested in getting those things from their utility. That’s a significant gap and an opportunity.

 

Our latest research also shows that consumers are coming to expect other types of retail offerings that may seem to have little to do with utilities, but have everything to do with consumer values and convenience. Consumers would be interested in receiving the following from their electricity provider: “home repair services” (52 percent), “communications services” - TV, phone, Internet – (49 percent) and “banking services” (29 percent). Did somebody say “disruption”? The research also shows a correlation between the number of services a utility provides and customer satisfaction and we know from experience that in competitive markets, signing a customer up for more products and services significantly reduces churn. So, getting more help with their busy lives seems to make consumers happier with their provider.

 

By leveraging other retail services such as home repair or communications, utilities could open doors to increase customer relationships, loyalty and revenues in completely new ways. Do you know anyone who bundles phone, TV or internet to get savings and simplify their lives? Couldn't utilities do the same, cutting out steps and saving time for the consumer along the way? What choices will your utility provide?