EDINBURGH, Scotland, October 6, 2016 /PRNewswire/ --
75% of energy retailers participating in Delta-ee research say that customer data analytics is one of the key priorities in their retail business. However only 8% have customer data analytics strategies that are fit for purpose.
"The recognition of the importance of data analytics is encouraging," says Delta-ee director Jon Slowe. "European energy companies are realising that to succeed in the new energy world embracing data analytics is critical. It is a vital ingredient to help them grow revenues and profits at the customer end of the value chain."
The survey, carried out with energy companies from across Europe, found that acquisition and retention, customer engagement, and business decision making were the most common benefits that energy retailers were using customer data analytics for. Despite several European energy companies having strategies to grow revenues, cross-sell and up-sell was surprisingly low down the priority list.
"There are no shortage of trials of analytics in the industry," said Slowe. "For example, half of our participants have experimented with analysing smart meter or consumption data - but in our view many energy retailers are only at the start of their data analytics journey."
Delta-ee's new research into using analytics for cross-selling and up-selling added value services shows that there is a broad spectrum of sophistication in use of analytics. "Our research shows that cutting edge best practice in the energy sector is hard to find. Identifying and adapting best practice is a key challenge for the energy sector," says Slowe. Delta-ee has developed a framework for five ways that data analytics can be used to drive cross-sell and up-sell revenues. They are:
- Simple campaign return on investment
- Tailored business case / quote
- Marketplace techniques
- Dynamic action, message or price
Most energy companies that are using data analytics to cross-sell and up-sell are at relatively basic levels of simple campaign return on investment. Delta-ee's new Customer Data Analytics Service helps companies in the energy sector in their approaches to harnessing the power of customer data analytics.
- Delta-ee is a specialist research and consulting company focusing on distributed energy. It helps the energy sector navigate the transition to a more distributed, customer-centric, service orientated future. See more at http://www.delta-ee.com
- The Customer Data Analytics Service was launched in September 2016, and is one of 8 subscription-based research services provided by Delta-ee.
- The first wave of the survey of engagement with customer data analytics was carried out with 12 utilities during the summer of 2016.