Interview with Andrew Heath: Utilities, Smart Grid Technology and Social Media
Andrew Heath leads customer service research at E Source, a leading research firm for the utilities industry. In this role, Heath manages a number of business units, including the E Source Resource Center, which provides access to a comprehensive library of research, analysis, and tools – including the 2009 Review of North American Electric and Gas Company Web Sites. He has more than 17 years’ experience working in the electric and gas sector and has worked with utilities in both the U.S. and the UK.
Brian Bierbaum: How is smart grid technology changing the relationship between utilities and their customers?
Andrew Heath: It might change things. Right now smart grid is a very topical area. We are finding that smart grid is very much technology-driven and has a potential to change the relationship for certain customer types. Since this technology is new, nobody really knows what the customer wants or needs yet. Therefore, it is still a huge risk as the industry massively moves forward with these smart grid projects. In many cases the customer does not care. If you talk to a utility customer, they don’t necessarily want a relationship with their utility. That is not likely to change quickly.
Brian Bierbaum: What are the communication challenges and how are utilities adapting their communication strategies?
Andrew Heath: It depends on what they are trying to accomplish. Some utilities are trying to apply the thought leadership and best practices from other sectors to their marketing and it doesn’t always apply to the utilities industry. In some cases, communications can even be the source of consumer confusion.
Utilities have a number of challenges, and there are two extremes. The first challenge is image. The strategy for most utilities is to show a presence in the community – position the utility in the community and create a positive image of the utility with the customer. Today, utilities are trying to take that even further by adding an environmentally responsible image. The second challenge is in customer service. They are being inundated with transactions by phone, email, customers writing to them, sending in money, power outage concerns and the continual communication management. Customer service is typically where social media experimentation is occurring.
Brian Bierbaum: How is social media changing the way utilities reach and interact with their customers?
Andrew Heath: They are really just starting and exploring what makes sense. Some utilities are trying to use Facebook and blogs to help with the corporate image we discussed earlier. Unfortunately, I’m not sure that the first communications challenge (image) can really be handled through social media. I believe there may be potential with YouTube channels that act as extensions of the existing website to provide relevant content to people searching for it – but who is going to consistently read a utilities blog or follow a Facebook fan page?
I do think utilities are making some great strides in using social media for customer service or crisis issues, though. Duke Energy is very progressive – they are doing some really good work and are focused on getting it right. As winter storms were going through the East Coast earlier this year, they did a great job keeping customers informed of what to do, who to contact, and what was being done to get the energy back on.
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