1. Digital Transformation for Utilities:
Creating a Differentiated Customer
Experience Through Mobility
In today’s deregulated marketplace, utility companies can gain
sustainable competitive advantage by embracing a mobile-first
mind-set to differentiate the experience they deliver to customers.
Read on to see our framework for getting there.
Executive Summary
It’s hardly news that the unrelenting conver-
gence of communication and computing capa-
bilities in mobile consumer devices is transform-
ing customer experience and user expectations
for nearly every service and function across
industries.
In fact, smartphone subscriptions will achieve a
compound annual growth rate (CAGR) of 25%
between 2010 and 2020, according to the Ericsson
Mobility Report.1
While only 10% of the global
mobile phone subscriber base had smartphones
in 2010, by 2020 penetration is set to reach 70%,
or 5.6 billion subscribers worldwide. This change
in consumer behavior, complemented by the rapid
evolution of mobile operating systems (OS) and
product features, has resulted in a new multi-
screen world.
For both sequential and simultaneous screening,
smartphones have become the backbone of daily
media interactions for most consumers. Conven-
tional wisdom says smartphones are the most
used computing/communications device on a
daily basis and are the common starting point for
users’ multiple screen experiences.
As modern digital technologies influence
customer experience, expectations and behaviors,
the utilities industry needs to respond in kind.
This white paper explores the opportunities
and proposes a framework for utility companies
seeking to transform their business by taking
advantage of mobile-first thinking and multi-
screen preferences to create tangible differentia-
tion in a crowded marketplace.
Emergence of the Multiscreen World
In today’s multiscreen world, context drives the
choice of device. The decision is affected by
time of the day, objective to be accomplished,
location of the user and the user’s state of
mind. On an average, 38% of daily interactions
with the Internet happen via mobile. Mobile’s
emergence as a preferred screen is the result of
its on-the-go convenience and growing commu-
nications and connectivity capabilities, as well
as users’ lack of time to use other devices. In
this multiscreen world, most users have strong
cognizant 20-20 insights | september 2016
• Cognizant 20-20 Insights
2. cognizant 20-20 insights 2
preference for mobile to either initiate contact
or accomplish an objective. Figure 1 uses Google
research2
to explain why users prefer multi-
screen engagement, while demonstrating that
mobile is the most preferred point of initiation
for all online activities.
Embracing Mobile as a Primary
Customer Engagement Channel and
Ducking the Delete Syndrome
This dynamic shift in consumers’ digital behavior
has triggered a strong realization among utilities
that they need to pivot towards mobile as a key
element in their digital strategies. However, most
companies have yet to fully embrace mobile as a
self-service channel.
According to the J.D. Power and Associates’ 2016
Utility Website Evaluation Study, although many
utilities have extended their mobile offerings,
most customers are not satisfied with their perfor-
mance.3
Out of all utilities companies in the U.S.,
approximately 29% have dedicated apps, leaving
a large upside for tighter customer engagement
and satisfaction improvement. Companies that
do not have dedicated mobile apps offer mobile-
enabled websites to deliver a mobile-optimized
experience.
There are 136 investor-owned utilities (IOUs) in
the U.S., held by 69 major utility companies of
which 17 are in the West, 20 in the Midwest, 16 in
the South and 16 in the Northeast. Our analysis
shows that the geographic distribution of utilities
that have a dedicated mobile app for customer
service varies from 23.5% to 37.5% – averaging
29% for all of the U.S. (see Figure 2).
According to customer reviews, most of these
apps have failed to live up to user expecta-
Starting Online with the Smart Phone
Source: Google
Figure 1
Dedicated Customer Service
Mobile Apps by Region
Figure 2
Utilities - 16
Apps - 6
Utilities - 20
Apps - 5
Utilities - 17
Apps - 4
Utilities - 16
Apps - 5
THE U.S.
23.5%
29%
25% 31.25%
37.5%
Northeast
SouthMidwest
West
Search Activity 60% 65% 4%
Browsing 58% 63% 5%
Online Shopping 61% 65% 4%
Travel Planning 45% 47% 3%
Banking and Finance 56% 59% 3%
Social Networking 58% 66% 8%
Location of User
Objective
State of Mind
Time of Use
CONTINUED ON PC
SCREEN ENGAGEMENT SCREEN ENGAGEMENT SCREEN ENGAGEMENT
< >STARTED ON MOBILE CONTINUED ON TABLET
24% 38% 9%
Use in office and home On-the–go and home Used in office
Task-oriented Communicate and connect Entertainment and browsing
Serious and research intensive attitude Need quick info Relaxed and leisurely approach
Requires lot of time and focus Short burst of time available Unbound sense of time
3. cognizant 20-20 insights 3
tions. Apps built on the Android platform have
better ratings compared to those that run the
iOS operating system. The average rating for an
Android app4
is 3.59 while it is 2.62 for iOS apps.
iOS apps5
received a below average rating on
customer experience, according to our analysis.
User ratings in both platforms are found to be
skewed towards the average, leaving a major
opportunity for improvement. This disconnect
with users results in the inevitable: The utility app
is among the first to be deleted.
So, how can utilities duck the delete syndrome?
While conceptualizing their mobile service and
engagement channel, utilities need to understand
the synergies across channels. They also need to
ensure their overall digital strategy is built on a
meaningful and relevant customer experience.
Another pertinent question to ask early on is the
purpose of the mobile app. Existing mobile apps in
the market can be classified into two buckets (see
Figure 3). The first bucket includes transactional
apps built to help a customer complete a transac-
tion from a mobile device. The second is the trans-
formational group and consists of engagement
apps that are built to encourage and maintain user
adoption. Utilities should look at features that help
engage customers and drive meaningful connec-
tions.6
It is important to get it right from the start,
and then enhance key capabilities over time. This
drives the long-term adoption of the app.
It is essential to identify the key customer
engagement and transactional feature for the
mobile app in the strategic planning phase.
Along with the regular transactional features,
it’s important to focus on critical customer
engagement functions such as empowerment
tools, necessary tips and gamification (see
Figure 4, page 4).
Figure 5, on page 4, offers a few examples of
winning features that can make utility industry
mobile apps7
into an exceptional user experience.
The Move to Mobile as a Self-Serve
Channel
Digital platforms and devices have become an
integral part of our lives across industry segments,
and will continue as such for the foreseeable
future. We do so much online now – buy stuff, plan
holidays, manage funds – and frequently from our
smartphones.
Research suggests that utility companies lag
behind other industries in the adoption of digital
technologies, and particularly so in the mobile
channel.8
Strong regulatory controls and lack
of incentives for competing in the digital space
have kept utilities away from embracing digital
technologies as much as other industries have. In
recent times, however, rising costs of acquisition
and competition in the deregulated market have
incentivized utilities to look towards adopting
customer-connected technologies. With the
advent of smart grids and free markets, utilities
are undergoing not only a technological shift but
also a strong shift in customer dynamics. With
this shift, the voice of the customer and driving
Transactional and Engagement Features: An Illustrative Example
Figure 3
TRANSACTION FEATURES:
• Contact Us
• Login
• My Balance
> Account Balance
> My Energy Use
> Payment Arrangements
> Online Payments
> Service Order Status
> Outage/Gas Leak Status
• Account Alerts (e.g., Bill Due,
Overdue, Outage Alerts)
• Outage/Emergency Reporting
ENGAGEMENT FEATURES:
• Personalized Tips and Advice
Related to Energy Efficiency
and Clean Energy
• Decision-Making Tools Like Best
Rate Selector or Useful Add-On Savings
• Gamification Like Goal-Based
Savings Target and Incentivization
or Games Linked to Energy
• Proactive Alerts and Notification
Including Weather and Storm Advisory
• Active Outage and Storm
Emergency Support
• Social Media Connects
4. cognizant 20-20 insights 4
Figure 4
Key Customer Service Functional Modules and Activities:
An Illustrative Example
User Experience
Journey Modules
Module Features
ACCOUNT
MANAGEMENT
Log in registration
Forgotten password email journey
Create account
Account summary
Link delink accounts
Manage multiple accounts
Preference center
USAGE
Real-time consumption report
Spend to date & prepaid
Usage analytics – graphs & charts
OUTAGE
Outage reporting
Outage status
GPS location finder to report an
outage
Google map Integration for
outage center
BILL PAYMENT
Make payment – card
Make a payment – direct debit
enrollment
Make a payment – direct debit
dashboard
Paypal & Kubra payment gateway
integration
Auto debit facility – wallet
View bill details
View payment history
SOCIAL MEDIA
Integrate with social media platforms
User Experience
Journey Modules
Module Features
METER READ
SUBMISSION
Meter reads submission – user form
Submit meter read photo
Mobile number verification and SMS
reads
NOTIFICATIONS
Scheduled alerts
Real-time alerts
Usage tips
Push notifications
CUSTOMER
SERVICE
Create service appointment
Job tracking – view status of service
request
Create move-in/move-out requests
Report a problem
Contact us – connect to call center
Service chat with support center
ENERGY
EFFICIENCY
Enroll in demand response
programs
Manage programs and offers
Green button data integration
PRODUCT
FEATURES
Help & advice service
Voice recognition for app navigation
Choice of configurable modules
Cloud integration
ELECTRIC VEHICLE
Electric vehicle charge points
integration
INTERNET OF
THINGS
Add and control smart home
gadgets
Standing Out from the Pack
Account Summary Home Account
Name Here
Bill Period Nov 15 to Dec 15 2015
12% more than last month
253kwh
My Usage
Account Summary
Alerts
Current Bills
Payment History
Submit Meter Read
Usage
Outage
Book an Engineer
Contact Us
View Usage
Compare Your Usage
2015
• View consolidated
summary
• Accordion view to
avoid clutter
• Ability to swipe
between views
• Use Springboard to
navigate
• Combine with
horizontal swipe
• Ease to return to
home screen
• ‘Design for
Consumer’
• Use concise graphs
• Use filters and time
slicer
• Use icons to
prioritize
• Show time of arrival
• Provide read/
unread status
• Use metaphoric
progress status
• Show transaction
confirmations
• Push notice for
confirmations
VIEW DASHBOARD NAVIGATE VIEW GRAPHS NOTIFICATIONS STATUS UPDATE
Alerts
58 Bedford Street, NY
1 Unpaid Bill
Due in 3 Days $120
Payment Successful
Nov 12 $120
Your usage is alarmingly high
until September 13
An engineer has
been booked for service
Last Meter Read
Nov 12
Outage report received
We are working towards
resolving it.
Restoration time: 18:35
Emergency Contact:
1 800 120 0009
Outages
58 Bedford Street, NY
Figure 5
5. cognizant 20-20 insights 5
customer engagement have become paramount
to win new and retain existing customers.
Platforms such as social media and mobile apps
are rapidly becoming the preferred means for
customers to communicate with their providers.
An estimated 624 million customers will engage
with utilities via social media by the end of 2017.9
While mobile is on the roadmap of most utilities,
many are far from achieving a fully transforma-
tional state where multiscreen and mobile-spe-
cific interactions feel seamless and serve as a
market differentiating factor.
While utilities include mobile apps as a part of
their digital roadmap, few have successfully
deployed it to their consumers. But utilities
believe that with millennials being the priority
customers10
in years to come, mobile as an alter-
native channel would be a faster way to increase
adoption by leveraging the benefits of availabil-
ity (anywhere and anytime) and personalization
(relevant to the customer).
Transforming Customer Engagement:
Making Business Sense of the Mobile App
Coupled with smartphone features, many of
today’s advanced mobility solutions in our view
provide an engaging user experience (UX) to
utility customers. These solutions eliminate multi-
touch-point interactions between the company
Business Driver Traditional View New Age Imperative Case for Mobile
CUSTOMER
ACQUISITION
• Regulated markets.
• Customer stickiness.
• Limited switching
benefits.
• Market deregulation.
• Seamless switching.
• Multiple operators and
flexible customer base.
• Ability to develop an
engagement strategy for
customer segments and
have meaningful connects.
• Ability for utility to shift
from being a necessity
provider to value
enhancing partner
CUSTOMER
SATISFACTION
• Locked customers.
• Traditional channels
for negative feedback
propagation
• Extremely flexible
customer with multiple
options to switch.
• Information and negative
experiences flow rapidly
• Ability to provide all
relevant information to
the customer to reduce
information shocks.
• Ability get proactive with
communications.
CASH FLOWS
• Traditional mechanisms
for bill collections.
• Standard payment
instruments.
• Loss of the traditional
wallet and advent of new
payment platforms.
• Need to do better energy
cost analysis to drive
affirmative actions.
• Ability to cater to modern
payment methods.
• Payments anywhere
anytime.
DEMAND RESPONSE
• Supply-driven market.
• No incentives
for consumption
conditioning.
• Traditional T&D
network and devices.
• Market for demand
response.
• Home-to-grid models.
• Emergence of
SMART devices and
infrastructure.
• Ability to enable real time
responses and call to
action.
• Ability to keep track of
savings and usage on the
go.
COMPLAINT
RESOLUTION
• Driven by regulatory
mandates.
• Need to be driven by
customer experience.
• Ability to engage and get
feedback at every stage
based on scenarios.
Accessing the Mobile Imperative in Today’s Multiscreen World
Figure 6
While mobile is on the roadmap of most
utilities, many are far from achieving
a fully transformational state where
multiscreen and mobile-specific
interactions feel seamless and serve as a
market differentiating factor.
6. cognizant 20-20 insights 6
Comparing, Contrasting Mobile Apps vs. Mobile-Optimized Websites
Mobile Website Mobile AppVs.
Accessed through browsing
Static, navigational
user interface
Requires connection
Limited features
Accessed after installation
Interactive user
interface
Available offline
Can use phone features:
e.g., camera, flash torch, location service
Minimum personalization High personalization
Marginal performance lag
Responsive
and fast
Figure 7
The Customer Service Business Case for Mobile Apps
Figure 8
Functionality Service Needs & Pain-Points Mobile App Benefits
Outage
Reporting
I want to report an outage.
• “Phone line in call center is busy – cannot report the
outage.”
• ”In a meeting. Cannot talk to the customer service
immediately.”
• “It’s already been an hour since I reported the outage –
I don’t know what action they took!”
• Ability to provide all relevant information to
the customer to reduce information shocks.
• Outage reporting: call center chat support.
• Outage status monitoring dashboard using
GPS, map and camera features.
• GPS location finder to report an outage.
• Google map integration for outage center.
Bill Payment
I want to pay my bill.
• “Travelling next week; if I miss the utility bill payment,
I have to pay a penalty.”
• ”Just came back from Walmart, visiting the utility bill desk
slipped my mind.”
• “Paying utility bills can be auto debited from my
account/wallet.”
• Make payments on the go through secured
gateways.
• Make payment, with a card or direct
enrollment.
• Auto debit wallet facility.
• Check old bills at one’s fingertips.
Meter Read
Submission
I want to submit monthly meter readings so that there is no
estimated billing.
• “Cumbersome process. Note reads, go to online portal,
enter reads; time-consuming.”
• “I don’t know how to read a meter.”
• Enter the meter reads in app forms.
• Submit meter read by clicking a photo.
• View meter read using flashlight torch.
• Verify mobile number and SMS reads.
Customer
Service
I want to book an engineer for a breakdown.
• “Phone line in call center is busy – cannot report the
complaint.”
• “In a meeting. Cannot talk to service support immediately.”
• “It’s already been a week. I reported the annual check; no
update on status yet!”
• Create service appointment through app.
• Job tracking: view status of service request.
• Create move in/move out requests.
• Service chat with support center.
• Location identifier of service agents using GPS
data sharing.
Energy Efficiency
How can I reduce my electricity, water and gas consumption
and save money?
• “I want to save money by smartly using electricity and water.
But I forget to keep a track of offers and programs.”
• Enroll in track demand response programs.
• Manage and use offers from the service
provider.
• Notifications using push alerts feature in
mobile app.
E-Car Smart Home
How can I control energy consumption of my devices from
a remote location?
• “I left for the office an hour early today; did I switch off my
room heater?”
• “Where can I find charge points for my electric vehicle?”
• Add and control smart home gadgets
through app.
• Dashboard for in-home electronic appliances.
• Electric vehicle charge points integration
in app.
6cognizant 20-20 insights
7. cognizant 20-20 insights 7
and its customers by offering a single window
platform that improves process efficiency,
reduces system cost and enhances brand
loyalty by giving customers an engaging digital
experience. However, the biggest challenge for
utilities is deciding whether to build a full-fledged
engagement module (a mobile app), extend their
website suitable for a mobile (responsive design)
or use a combination of both. It is important to
understand the difference.
While the mobile app has a certain edge over
responsive websites, for utility companies that
want to improve customer service, they must
assess the pluses and minuses of providing such
capabilities via an app or the Web (see Figure 7,
page 6). For example, if a utility wants to provide
the capability to operate the flashlight feature
as a torch for meter reading, a mobile app is the
better option.
The utility’s mobility strategy should govern
the adoption of an app-based solution over a
responsively designed Web approach. Starting
with a responsive design of an existing portal,
utilities need to focus on developing dedicated
mobile apps that can leverage the best of both
worlds – Web content such as map-based outage
reporting and native mobile features such as
sensors, geolocation services, push notifications,
real-time updates, etc. There is a compelling
business case for utilities to explore a mobile app
as a channel for customer service operations.
A mobile app has the capability to be a one-stop
solution for customers seeking to manage their
utility needs.
But the question is whether the customer is ready
for the mobile channel. In a survey by Clickfox,7
77% of respondents find a customer service mobile
app from their utility service provider a useful
proposition. The insight also suggests that over
90% of respondents would replace some or all tra-
ditional customer service channels with a mobile
app if available. Today, while the Web self-service
channels struggle to meet adoption targets of
upwards of 30%, mobile as an alternative channel
would be a faster way to increase adoption.
Unlocking the Different Stages:
A Framework-Based Approach
The utilities journey for mobile app development
for customer self-service has three distinct stages
(see Figure 9).
Phase 1: Building the Digital Plan
The first step, or the initiation phase, is to develop
a strategic plan to develop the mobile channel.
This phase identifies the needs gap in current
service channels and creates the input for the
next phase – product development and testing.
Once the app is developed, the utility needs a
marketing plan to increase adoption through
promotion and incentivization beyond offering
seamless service support.
We propose a framework to be adopted in the
strategic planning phase that guides the organiza-
tion through strategic visioning, business capability
The Customer Service Mobile App: Three-Step Approach
Figure 9
Digital Strategy Roadmap
Gap Assessment – Customer Service Model
Consumer Analysis Feature Selection
Competition Analysis Product Selection
Requirements Management UX Plan
Marketing Service Support
Align Marketing Plan with Strategic Goals
Digital Marketing Campaign Management
Performance Measure Metrics Dashboard
App Usage Analytics and Upgrade Planning
App Development Testing
Requirement Analysis and Use Cases
Design and Development
Product Integration and Testing
Social Collaboration and Security
There is a compelling business case
for utilities to explore a mobile app as
a channel for customer service opera-
tions. A mobile app has the capability to
be a one-stop solution for the customers
seeking to manage their utility needs.
8. cognizant 20-20 insights 8
modeling, target modeling, creating a roadmap,
milestone identification and benefits realiza-
tion planning. The approach is to understand the
utilities’ customer service strategy and identify the
gaps in the customer service model with a focus on
the “why” questions around the need for a mobile
app. The exit criteria would be to have a clear
understanding of the ”how.”
Utilities need to consider what elements in their
app will drive engagement with the customer
so that the app is viewed as a value-enhancing
element in the crowded mobile ecosystem. The
strategy should focus on driving meaningful con-
versations and providing avenues for customers
to transact and interact whenever they need,
from their device of choice – the mobile. The
app’s goal should be to drive stickiness and be an
integral part of the utilities service proposition.
Phase 2: App Development Testing Phase
One of the key challenges in the development
phase is to ensure an intuitive design and
usability aspect. However, the development
phase has a unique attribute specific to the
utility industry. Utility companies typically face
a challenge in that their main product (electric-
ity, gas or water) is not seen as “cool” as, say,
ordering a pizza or a movie ticket online. To
Testing
Go Live
App
Development
Requirements
Analysis
Product
Integration
Interface
Planning
Social
Integration
App Module
Design
Security Design
1
2
3
45
6
7
8
Mobile App
Development
Phase
The Mobile App Software Development Lifecycle
Figure 11
The strategy should focus on driving
meaningful conversations and providing
avenues for customers to transact and
interact whenever they need, from their
device of choice – the mobile.
Understand and
Agree on
‘Why’ an App
Makes Sense
Review Existing
Self-Serve Channels
Understand
Strengths
Understand Voice
of Customer
Voice of Business
to Formulate
Future State
Plan on
‘How’ the Vision
Will Be Realized
Decide and
Agree on KPIs
That Will Establish
Success or Failure
1
Strategic
Visioning
2
Business
Capability
Modeling
3
Target
Operating
Model
4
Roadmap
5
Benefit
Realization
Tracking
The Strategic Planning Progression
Figure 10
9. cognizant 20-20 insights 9
overcome this challenge, utilities must adopt
a structured approach to combine the transac-
tional and engagement features specific to their
customers’ needs. Making the customer central
to the design will ensure that the resulting app
is an engaging and intuitive solution for their
customers’ problems.
Phase 3: Marketing Service Support Phase
Developing a mobile app and making it available
in an app store is only the journey’s starting point.
Utilitiesunderstandhowandwhydigitalmarketing
can drive awareness and build adoption. The most
critical success parameter for a mobile app is the
total number of downloads and the engagement
duration of consumers.
Digital marketing plays a key role to ensure that
customers are aware of the app, interested in
downloading it, have a desire to try the app
features and want to develop an engaged
and sustainable relationship. To succeed, it is
essential to identify app marketing benchmarks
and continually enhance the engagement with
consumers. Utilities face their biggest challenge
in this phase in terms of devising mechanisms
to prevent the delete syndrome. Utilities must
continuously manage customer engagements
and evolve features and functionality to remain
relevant in a space where the frequency of
usage of a utilities mobile app is low compared
with other aps. It thus becomes very important
to make every touch point as meaningful and
as value-adding as possible to avoid the delete
syndrome (see Figure 12).
Looking Ahead
Technology capabilities are impacting utility
customer service by creating a differentiation in
user experience. As a starting point, the mobile
app UX provides a transition from multiple touch
points between customers and the utility to
a convenient single window solution at users’
fingertips. In addition, there is a wider scope
of mobility applications in the utility customer
self-service channel as digital and industry
boundaries become seamless and smartphones
become the digital link. Utilities are exploring
the mobile channel for engaging consumers with
energy efficiency initiatives through gamification
and other advanced engagement principles.
By leveraging the power of social, mobile,
analytics and cloud solutions (known as the SMAC
Stack), utility companies can develop an Internet
of Things ecosystem where consumers can use
mobile apps not only to manage their smart
home devices but also to engage with the utility
seamlessly, through a window of their choice.
STRATEGIZE
Identify App marketing
benchmarks and
best practices
IDENTIFY
MARKETING MIX
Determine marketing
and promotional
activities
MANAGE
CAMPAIGNS
Outline campaign to
promote mobile app
to the target group
MONITOR AND
MEASURE
Measure KPI against
the stated goals
and objectives
ANALYZE
Analyze App
download, trial,
adoption usage
INTEGRATE
Integrate results
and plan course
for the future
1 3 5
2 4 6
The Path Towards Digital Marketing Excellence
Figure 12
Utilities must continuously manage
customer engagements and evolve
features and functionality to remain
relevant in a space where the frequency
of usage of a utilities mobile app
is low compared with other aps.