Utility companies are at a crossroads as the demand for instant information becomes the norm: should they take the step of automatically enrolling customers in outage notifications? Chartwell Inc.’s latest report, “A Guide to Auto-Enrollment for Outage Notifications,” explores this evolving trend and its far-reaching implications for both utilities and their customers.
The Current Landscape
The utility industry stands divided on the issue of auto-enrollment. According to Chartwell’s 2024 Outage Communications Survey, which gathered responses from 44 utilities between February and April 2024:
- Over one-third of respondents have adopted auto-enrollment as standard practice
- 18% are sticking with an opt-in approach
- Another 18% are still weighing their options
This split reflects the complex considerations utilities must navigate when deciding on their outage communication strategies.
What Customers Want
Understanding customer preferences is crucial in this debate. Chartwell’s 2023 Residential Consumer Survey revealed that customers have a strong desire for regular updates during outages:
- 40% of respondents prefer hourly communications for outages exceeding six hours
- 36% want information as soon as it becomes available
Moreover, the survey uncovered a direct correlation between outage notifications and customer satisfaction. While no one enjoys power outages, utilities can significantly improve the customer experience by keeping them informed throughout the restoration process.
Overcoming Hurdles to Auto-Enrollment
Despite the clear benefits, many utilities hesitate to implement auto-enrollment. The primary concerns include:
- Data Integrity: 61% of utilities planning or engaged in auto-enrollment expressed concerns about the accuracy of their contact information.
- Legal Compliance: Some utilities worry about violating Federal Communications Commission (FCC) guidelines, particularly the Telephone Consumer Protection Act (TCPA).
- Customer Satisfaction Risks: There is a fear that auto-enrolling customers might negatively impact satisfaction levels.
- Systems Integration: Ensuring seamless connectivity between various data systems poses a challenge for some utilities.
However, many of these concerns can be addressed with proper planning and execution.
Demystifying TCPA Guidelines
One of the most significant barriers to auto-enrollment has been confusion surrounding TCPA compliance. However, as clarified in a Chartwell webinar featuring legal expert William Raney, TCPA rules are primarily directed at telemarketing practices, not outage notifications.
Emergency calls and texts affecting consumers’ health and safety are considered lawful under TCPA, and both planned and unplanned outages fall under this category. This clarification removes a major roadblock for utilities considering auto-enrollment.
Success Stories: Utilities Leading the Way
Several utilities have successfully implemented auto-enrollment, reaping benefits for both their operations and customer satisfaction. Following are illustrative case studies:
Alabama Power: Cautious Entry, Significant Gains
Alabama Power’s journey to auto-enrollment began with the implementation of an advanced meter data management system in 2014. Initially cautious due to TCPA concerns, they opted for a customer opt-in approach. However, faced with declining customer satisfaction scores, they revisited their decision.
After conducting voice of customer (VOC) surveys in 2020 and gaining executive and regulatory support, Alabama Power launched its auto-enrollment initiative in August 2022. By October 2022, they had enrolled approximately 1.1 million customers.
The results? A positive influence on customer satisfaction and improved employee satisfaction. Alabama Power’s experience demonstrates that careful planning and customer feedback can pave the way for successful auto-enrollment implementation.
Southern California Edison (SCE): Mass Enrollment with Minimal Pushback
Recognizing that 40% of its customer base was not enrolled in outage or emergency notifications, SCE took bold action in 2023. They began auto-enrolling customers in batches of 100,000, focusing on strengthening safety precautions and achieving regulatory compliance.
As of April 2024, an impressive 99.9% of SCE’s customers were enrolled in outage and emergency alerts. Notably, they have received very few opt-out requests, indicating high customer acceptance of the initiative.
ComEd: Immediate Impact on Contact Center Operations
In June 2023, ComEd auto enrolled 1.6 million customers, bringing their total enrollment to 3 million. Their key drivers were enhancing customer self-service and strengthening communications.
The impact was almost immediate. ComEd recorded a decrease of 12,000 calls from June through September 2023, along with improvements in customer effort and satisfaction scores. This case clearly illustrates the operational benefits of auto-enrollment.
Idaho Power: Strategic Implementation with a Focus on Accuracy
Idaho Power’s approach to auto-enrollment is noteworthy for its strategic implementation and focus on message accuracy. They began with a successful pilot of 30,000 customers in 2021, paving the way for a full-scale deployment.
In April 2024, they started auto enrolling all residential customers using a phased approach, prioritizing those in Public Safety Power Shutoff (PSPS) risk zones. As of May 1, 2024, over 73,000 customers were auto-enrolled, with minimal opt-outs even among those who had experienced outages.
Idaho Power’s experience underscores the importance of system integration, accurate and timely communications, and tailored messaging for different outage scenarios.
The Future of Outage Communications
As we move forward, auto-enrollment for outage notifications is poised to become the new standard in utility communications. The benefits – improved customer satisfaction, reduced call volumes, and enhanced safety during emergencies – are too significant to ignore.
However, success hinges on several key factors:
- Data Integrity: Utilities must prioritize the accuracy and ongoing validation of customer contact information.
- Clear Communication: Customers should be informed about the auto-enrollment process and given easy opt-out options.
- Tailored Messaging: Notifications should be specific to various outage scenarios, providing relevant and actionable information.
- System Integration: Ensuring seamless communication between various utility systems is crucial for accurate and timely notifications.
- Continuous Improvement: Regular customer feedback and performance metrics should guide ongoing refinements to the notification system.
As severe weather events become more frequent and the need for public safety power shutoffs increases, the imperative for robust outage communication systems grows stronger. Auto-enrollment offers a powerful tool for utilities to keep their customers informed, safe, and satisfied.
In conclusion, while the path to auto-enrollment may require careful navigation of technical, legal, and customer-relations challenges, the experiences of pioneering utilities demonstrate that the benefits far outweigh the initial hurdles. As we move into an increasingly connected future, auto-enrollment for outage notifications is set to become not just a best practice, but an essential component of modern utility operations.