September 17, 2007

There are tough business conditions out there. A gyrating stock market coupled with environmental and regulatory pressures mean that companies have to more effectively define themselves. It's a mission that not only touches the moral fiber of the enterprise, but also becomes the message that is delivered to customers and stakeholders.

In a world where products, markets and industry boundaries are in constant flux, "branding" can set companies apart. By branding, an enterprise is making both an implicit and explicit promise -- a contract with the marketplace to cement a relationship. It's about building goodwill. It's also about creating demand. Ultimately, profits should be enhanced and shareholder value should rise.

Utilities know all about branding. Most send messages trying to endear themselves to the general public. But, they are not necessarily using their goodwill to its fullest extent. Those companies could leverage their relationships with the marketplace to provide other offerings that either directly or indirectly build company value.

Keyspan Corp., for example, sends out paperless bills over the web. The idea is no longer novel. But it remains potent. The power company markets the approach by incorporating it into its environmental awareness efforts. Customers register online to receive paperless bills. After their invoices arrive, they hit a link that allows them to pay their bills right then and there, avoiding check writing and mailing costs.

"The challenge for utilities is crafting the right messages," says Joel Gilbert, chief software architect for Apogee Interactive, outside of Atlanta. "The industry has to learn to spin its information in a positive way."

Making better use of the web site is among the best techniques. If the information is accurate and sites are easy-to-navigate, consumers will respond. Companies can then take the opportunity to educate their visitors about critical energy issues and how they can become better environmental stewards. By doing so, they build goodwill and will then be given a chance to market other products and services. Apogee, for example, partners with Duquesne Light & Power to send e-mails to participating commercial and industrial customers when the price of wholesale power goes above a certain level. At that point, those customers have the option to cut their electricity usage.

Marketing experts say that branding is built through good public relations and advertising campaigns that are backed by real promises. The most powerful brands create freeze frames in the minds of consumers. A company's name and all that it represents is a valuable corporate asset that should be measured, managed and financed by those at the top of the organization. Once the word spreads about a business, it creates a buzz and more and more consumers will tune in to the message.

Doing Good

According to Boulder, Co.-based E Source, many more utilities now offer self-service functions to help support the needs of their customers. About 70 percent of utility web sites, it says, now allow customers to go online and check their account balances -- a number that is up 20 percent from two years ago. It reviewed 111 web sites in the United States and Canada and says that Pacific Gas and Electric, Florida Power & Light, Wisconsin Public Service, NW Natural, and Progress Energy have the top-rated sites.

"Some utilities have made multimillion-dollar investments in their web sites and associated online self service options," says Andrew Heath, director of E-business service. "These companies are getting benefits in terms of increased customer satisfaction from customers wanting to interact online. Getting more traditional customers to use the web site instead of the telephone is still a challenge."

Companies must recognize that their web sites are an essential means of communicating and doing business with their key constituencies. The most progressive sites are giving customers the ability to interact and providing them the opportunity to learn about other corporate offerings. Presenting news updates and allowing customers to view their account information is a good start. But it's not enough. Utilities must eventually build on their core businesses and enable consumers to buy other services from them.

NSTAR, for example, does online energy audits and then recommends the proper equipment needed to help reduce consumption. Potomac Electric Power Co., furthermore, educates consumers on how to cut energy bills while helping commercial and industrial operations retrofit or design new facilities.

Making money and doing good are not conflicted. Public relations, marketing and finance departments are all working together to promote the brand and to increase shareholder value. Employees then buy into the message. And that gets translated to the general public. Indeed, effective branding is more than a feel-good effort. It's a means of honoring an enterprise's commitment -- to itself, as well as to its customers and shareholders.

The marketplace will nearly always have room for valued products and services. But such offerings have to be promoted and marketed. Utilities may be in the unique position of being regulated monopolies. But, they still need to rethink their strategies and missions to acclimate to changing business conditions.

"To us, the idea of engaging customers is a central theme," says Apogee's Gilbert. "You have to get them interacting and then excited that they can make a difference."

In today's environment, the web is often the means by which customers will first meet the enterprises with which they intend to do business. Web sites have, indeed, become the immediate corporate image and the manifestation of a company's promise to its stakeholders. If those sites are captivating, they will draw attention. That, in turn, gives utilities new opportunities to generate even more goodwill and prosperity.

More information is available from Energy Central:

Savvy Utility Websites: Customer Service Portals, EnergyBiz, Jan/Feb 2005

Topic Center Links:

Billing & Bill Payment Topic Center

Customer Care & Business Operations Topic Center

Respond to the editor. Ken Silverstein EnergyBiz Insider Editor-in-Chief