According to research shared by Insight Software, “52 percent of organizations say they do not have a strategy for managing their data, which means they’re missing the ability to look at the bigger picture. The over-dependency on IT to generate reports and the inability to regularly add new sources of data and integrate non-financial information too often results in delays in the analysis and difficulty providing ad hoc reports.”

Those aren’t the only problems that companies in general — and utilities in particular — face. One of the most basic and vital data management tools is the customer information system (CIS). At its heart, CIS provides meter-to-cash (M2C) services, connecting specific customer accounts with amounts owed. But CIS serves as much more than just a cash register for utilities. Wondering what the benefits of information systems are? Read on to learn more about broader CIS benefits.

Operational Efficiencies

The importance of an information system in the daily life of a utility cannot be overstated, particularly since it directly translates customers’ utility usage into revenue. However, the role of these systems has greatly expanded beyond simple transactional functions, contributing significantly to increased operational efficiencies. Today’s Customer Information Systems (CIS) have evolved from basic billing tools to comprehensive operational platforms.

Recent advancements have seen many modern CIS systems integrate cutting-edge technologies such as Internet of Things (IoT) and machine learning. These technologies enable real-time data collection and analysis, enhancing the precision of service management and resource allocation. For instance, IoT devices can automatically transmit data about system usage and efficiency, allowing for proactive maintenance and faster response times to issues.

Moreover, CIS now often features advanced customer identifiers—think universal customer numbers—that seamlessly integrate individual accounts across all departments of a utility’s operations. This ensures that no matter the point of contact, every customer interaction is informed and personalized, significantly improving service delivery. The integration of customer data across platforms also facilitates the automatic generation of service orders, streamlining workflows.

This enhanced data integration enables utilities to accurately determine the specific equipment needs of customers, monitor the current status of onsite equipment, and efficiently coordinate activities related to inspection, installation, and repairs. Additionally, advancements in predictive analytics have allowed CIS to not only track but also anticipate customer needs, thereby scheduling and adjusting work orders preemptively to optimize operational efficiency.

Cost Reductions

If someone were to write advantages and disadvantage of information systems, you might expect one of the negatives to include an increased cost. After all, CIS doesn’t come free, and many utilities have continued to maintain antiquated systems because they seem to work just fine. But “just fine” may end up costing your utilities large amounts due to hidden inefficiencies. Consider that CIS can:

• Compile appropriate statistics related to accounts receivable, transaction histories, delinquent accounts, etc.
• Combat the “siloing” of applicable data by having it available via a single universal access point
• Aid in forecast generation through the automated creation of reports

When employees have to access or compile information by hand, they introduce the possibility of error. Additionally, the need to have eyes on certain aspects of the business that could be automated introduces ongoing expenses. And having employees focus on expanding the utility’s core business, implementing new projects, or reducing expenses is only possible when they aren’t preoccupied with more rote tasks.

Supply of Information to Decision Makers

The utility of Customer Information Systems (CIS) extends far beyond mere data management, especially as decision-makers benefit immensely from the automation of information. For instance, modern CIS platforms facilitate the implementation of flexible billing programs, which adapt in real-time to changes in usage patterns and pricing structures. This flexibility allows management to observe how shifts in billing parameters can benefit both the customer experience and the company’s bottom line.

A notable advancement in modern CIS is the integration of system-generated data with advanced customer engagement tools, such as real-time analytics and AI-driven insights. For example, when a customer raises a concern about a high bill, the system not only issues energy-efficiency tips but also uses predictive analytics to customize suggestions based on the customer’s specific usage patterns. This data-driven approach enables utilities to gauge the effectiveness of their communications and fine-tune their strategies based on the adoption rates of these messages.

Better Customer Service

The integration of advanced data analytics and AI technologies in CIS has significantly improved the quality of customer service in the utility sector. These technologies ensure that customer service representatives have instant access to a comprehensive record of each customer’s interactions, payment history, and service issues. This prevents the need for customers to repeat the same information during each interaction, thereby enhancing the customer experience.

Furthermore, modern CIS solutions feature advanced segmentation and data integration capabilities that prevent information from being siloed within different departments. They also include sophisticated escalation routines programmed to automatically forward issues to the appropriate personnel based on predefined criteria, such as the nature of the complaint or the customer’s history. This ensures that all customer issues are addressed promptly and efficiently.

By harnessing these technological advancements, CIS not only simplifies the management of customer data but also transforms it into actionable insights, enabling utilities to deliver exceptional service consistently. This approach not only meets current customer expectations but also adapts to future demands, setting new standards in customer engagement within the utility industry.

Growth in Communication Capabilities and Methods

A major part of any utility’s job is to manage meter-based tasks and the associated equipment needs. This gets complicated when one factors in customers’ payment histories and their unique geographies, which can put strain on operations. Improving communications across the utility can help alleviate those troubles.

How? In addition to determining customers’ payment status, a CIS can also sort tasks according to times of necessary completion (i.e., when one thing must be done prior to another), link service orders to specific accounts and specific contingencies, and automatically schedule service calls. What’s more, many CIS allow end users to sort related information by various data segments. This turns CIS into an analytic tool rather than simply a payment processing and job batching tool.

Efficient Customer Information Gathering and Management

When either utility employees (or even customers themselves) have to enter in data, information gets missed. In fact, it’s incredibly easy not only to overlook helpful data, but also to fail to enter it into the system, to fail to analyze it in the light of other applicable data, and to introduce redundant data. The end result? Frustration and inefficiency on every end.

We have already touched upon many of the related advantages offered by how efficiently CIS can gather customer information, such as greater customer satisfaction, improved marketing efforts, and improved analytics. But another advantage of efficient information gathering includes the ability to outsource a CIS to a third party. How? When utilities attempt to maintain a legacy system, which often happens as a part of a desire to minimize costs, they end up hindering future upgrade efforts. Trying to integrate an outdated system with new technology is often impossible, incredibly difficult, or cost prohibitive.

Fortunately, managed CIS is efficient enough to serve as an effective, economical substitute. Not only is managed CIS incredibly efficient, but it’s also often far less expensive than having to rework an antiquated IT system from the ground up. Additionally, not every utility possesses the technical know-how to install a CIS. In such cases, the efficiencies offered by managed CIS will end up improving the utility’s managerial situation as a whole.

Supporting New Marketing Initiatives

With the integration of advanced analytics and AI, CIS now supports dynamic marketing initiatives more effectively. These systems can leverage consumer data to personalize marketing efforts, predict customer needs, and manage targeted campaigns that promote new and existing services. This ability allows utilities to engage customers at the right time with the right offers, enhancing customer satisfaction and increasing revenue.

Providing Flexible Billing of Services and Multiple Commodities

Modern CIS solutions offer utilities the flexibility to bill for multiple services and commodities on a single platform. This flexibility extends to variable pricing models, discounts, and bundled services, which can be customized to meet diverse customer needs. By simplifying the billing process, utilities can improve the customer experience, reduce administrative costs, and adapt quickly to changes in the market or regulatory environment.

Continuous Availability of Systems

The continuous availability of CIS is crucial for maintaining uninterrupted service and customer satisfaction. Today’s CIS solutions are designed with high availability and disaster recovery in mind. Redundant systems, cloud-based technologies, and real-time data replication ensure that critical customer and operational data is always accessible, even in the event of hardware failures or natural disasters. This resilience is essential for utilities to maintain trust and reliability among their customers.

Enhancing Regulatory Compliance and Reporting

In the utility sector, adhering to evolving regulatory requirements is not just about compliance but also about seizing opportunities to enhance efficiency and transparency. Modern Customer Information Systems (CIS) are equipped to help utilities manage regulatory reporting and compliance more effectively. These systems can automatically generate reports that meet regulatory standards, reducing the risk of non-compliance and the associated penalties.

Moreover, CIS can be configured to track changes in regulations and adjust billing or operational procedures accordingly. This proactive approach ensures that utilities can quickly adapt to new requirements without significant overhauls to their systems. By integrating compliance into the daily operations managed by CIS, utilities can also gain insights into operational impacts of regulatory changes, aiding in strategic planning and risk management.

Exploring the vast benefits of modern Customer Information Systems (CIS), it’s evident that Milsoft’s solutions are essential for transforming utility operations and enhancing customer interactions. Our advanced CIS technologies ensure seamless efficiency and superior service management.

Discover the advantages of partnering with Milsoft. Let us help you optimize your operations with solutions tailored to your needs. Contact us for a demo and see how our systems can drive your utility’s success both today and in the future.

Everyone understands that technology is advancing at breakneck speed, but sometimes it’s hard to quantify the rate of change. One way to measure technological advancement involves examining patent records, and when The Atlantic did so, it noted that “in the first decade of the patent office, the U.S. granted 229 patents—the same amount today’s America grants every 7.2 hours.” What’s more, consumers have come to expect that businesses will stay ahead of the technological curve. A survey conducted by Microsoft discovered that 80 percent of users will leave a website prior to making a purchase if it is out of date, and nearly two-thirds stated that they would be likely to repeatedly purchase from a technologically savvy business.

Of course, expecting technological advancement in a retail or corporate context is far different than when dealing with a utility company — right? After all, isn’t it true that utilities don’t need to be quite as technologically nimble as other organizations? Not at all. While it’s true that utilities often have a more secure customer base, the cost of using old technology impacts them just as much as any other business, if not more so. In this article, we will discuss the specific expenses incurred by the use of obsolete technology and the risk of using outdated technology.

The Main Costs Behind Outdated Technology

Businesses that don’t use technology in an effective or efficient manner rarely intend to fall behind the curve. Instead, they often get so caught up in their day-to-day affairs that they fail to notice how out of date their technology has become. For example, industry periodical Government Technology reported, “In April 2020, New Jersey’s governor, Phil Murphy, stepped up to a microphone and told journalists that he was amazed the state still ran its unemployment system on COBOL — a 60-year-old programming language. The state was having trouble keeping up with the massive surge of unemployment insurance applications coming in amid pandemic lockdowns, and it needed volunteers who knew that archaic language to use its own decrepit technology!”

The consequences of using COBOL was hardly a hidden cost of technology for the Garden State; its impact was obvious. But you may be surprised to learn what the cost of not upgrading software and hardware — especially when it comes to utilities.

Data Security

The Identity Theft Resource Center noted that there were 1,108 tracked U.S. data breaches in 2020, stating that “ransomware and phishing attacks directed at organizations are now the preferred data theft method by cyberthieves.” However, those aren’t the only tools that bad actors can aim at utilities. Using software that’s unapproved or no longer updated represents a substantial security risk. Security Intelligence reported that hackers used an employee-installed VPN to gain access to the networks of Colonial Pipeline Co. in 2021. This led to the company shutting down its operations, which prompted a region-wide energy crisis.

It’s tempting to think that such crises are isolated instances that your utility will never have to face. Sadly, though, security breaches in the utility sector are more common than you might think. A white paper published by information technology company Zones revealed that 73 percent of utility IT professionals have had to manage at least one security breach. Using outdated software greatly increases that risk.

Migration/Installation

Outdated technology can appear to work just fine — at least until the time to change it arrives. Virtually all utilities will reach a point where they need to introduce new systems or try to migrate old services or data to a different platform. That’s the point at which the real cost of old software and old computers still in use become apparent.

Sometimes new tech or new software won’t talk to the old equipment. Sometimes migration may require the introduction of a third-party bridging solution or manual re-entering of information or costly specialized technical support. (See the “Cost of Support” section below.) All of these difficulties can be easily avoided with a little forward focus and willingness to invest in staying technologically current.

Data Loss

Sometimes, utilities lose data due to old technology because they simply can’t collect it in the first place. The Santa Fe New Mexican reported that the Public Service Company of New Mexico ran into trouble in its campaign to replace burnt-out lights simply because it couldn’t identify them. “Until the city and PNM complete the sweeping streetlight conversion project, the utility company has no way to know if streetlights are out unless residents report them, PNM spokesman Raymond Sandoval said.”

Other times, data can simply disappear. Antiquated storage methods can cause data corruption, also known as bit rot or data rot. If that information isn’t supported by redundant systems, it’s gone forever.

Team Efficacy

When systems fail to talk with one another, collaboration suffers. Too often, information gets siloed into spreadsheets or has to be manually transmitted from one utility department to another. This means that teams have to work much harder just to connect with one another and do ordinary work — if they attempt to work together at all.

Cost of Support

In his 1987 science fiction novel Count Zero, William Gibson wrote about an online-savvy conman dubbed The Wig who realized one day that “silicon doesn’t wear out; microchips were effectively immortal. The Wig took notice of the fact. Like every other child of his age, however, he knew that silicon became obsolete, which was worse than wearing out.” Indeed, obsolescence can prove worse than breakage and not just because it allows ne’er-do-wells like The Wig to commit cybertheft.

The cost of support for such outmoded equipment may not seem as sinister as online crime, but it can be just as expensive. Companies can’t afford to support older products forever, and when troubles arise with them (as they inevitably will), the price tag for someone who can deal with them will inevitably be high.

Productivity Takes a Big Hit

Old tech invariably leads to delays, frustration, and general inefficiency. We’ve discussed at some length how utility companies must endure the expense of antiquated software and hardware. However, it’s employees who must interact with it on a daily basis, and that can cause serious morale problems. In some instances, a refusal to transition to more up-to-date solutions can even increase employee turnover.

You’ll Lose Customers to the Competition

Utility deregulation is a reality only in a minority of markets. However, in those spaces where private companies supply utility services, falling behind on the technological front can spell doom. Customers don’t want to stick around when they’re being serviced by lackluster tech.

Calculating the Risk of Running Old Software and Technology

How much of a risk does running old software pose to your utility? While that’s a difficult question to answer, we think we have a few quantifiable sums that you can measure against the cost of new technology. They include the following:

• CNBC reports that cyberattacks now cost companies $200,000 on average.
• HR consulting firm Robert Half reports that “professionals waste 22 minutes each day, on average, dealing with IT-related issues.” (Increase that number for antiquated technology and then compare it to employees’ salaries to get a better handle on the expense.)
• PricewaterhouseCoopers reports that “73 percent of people surveyed say they know of systems that would help them produce higher quality work,” and SHRM reports that the average cost per hire of a new employee is $4,425.
• Technology consultant Orion notes that the cost of keeping an outdated Windows Server 2003 running annually is $200,000.

Is the Cost of Running Old Software Worth It?

A simple consideration of the numbers in the previous section will lead you to an unavoidable conclusion: Continuing to use old technology simply isn’t worth it. This goes double for utilities, an industry where complexity meets governmental regulation and a need for efficiency. If your utility still relies on old legacy software suites, consider upgrading to a Milsoft solution. We provide top of the line software for engineering and operations, enterprise accounting and utility billing, and interactive voice response communications. Reach out today to learn more.

Decisions made around money and valuable goods tend to follow certain patterns, and those patterns can make or break people and businesses. Just consider the case of utility rate increases.

Utility usage is considered inelastic in economic terms, meaning that the amount demanded doesn’t proportionally decrease when the cost increases. In other words, even if COVID-19 rate hikes or some similar increase in pricing squeezes consumers, consumers will continue to consume utilities — and they often grow irate at the greater cost. Such anger may hinder utilities’ long-running goals, such as completing vital infrastructure improvements.

This post will discuss the most effective techniques for communicating a rate increase, how to minimize negative customer reactions, and a sample letter that will help you craft your own unique rate-increase notice.

Messaging is the Most Important Factor to Successful Rate Increases

While those associated with utilities understand that they can’t simply raise rates on a whim and must obtain approval from an applicable Public Utility Commission, fewer consumers understand that reality. It’s no wonder why. Reporting on a study conducted by Hahn Public, industry periodical WaterWorld reported that roughly two-thirds of consumers have seen at least one utility bill increase over the past five years and only one-fifth believe those bills are essentially fair.

That poses a problem for utilities, because they face numerous circumstances that would seem to call for rate increases. Still, rate increases don’t have to turn into wars between utilities and customers. In the following sections, we will show how customer-focused messaging can help you successfully sell a rate increase.

Framing and Justifying the Rate Increase

One of the biggest problems with rate increases is that they’re compulsory, requiring customers to accept them no matter if they want to or not. That’s why the way in which you frame your rate increase is of utmost importance.

In a 1981 study published in Science, Amos Tversky and Daniel Kahneman discovered that they could obtain “systematic reversals of preference by variations in the framing of acts, contingencies, or outcomes.” In other words, by describing a problem in one way or another, they could change the ways in which individuals responded. This simple insight opens up a wealth of persuasive possibilities — and a useful tool for utilities seeking to navigate rate increases.

In its study, Hahn Public found that four communication frames did little to convince customers about the importance of raising rates. They included stating that new rates:

• Were required to continue service (30 percent convinced)
• Part of a regular pattern of small increases (28 percent)
• Are in line with what others pay (24 percent)
• Bring in better jobs (23 percent)

By contrast, the most successful framings stated that new rates:

• Were guided by safety as a top priority (73 percent)
• Still included savings if consumers followed utilities’ tips (72 percent)
• Were needed to help consumers benefit in a rapidly changing field (66 percent)
• Partially supported renewable energy (65 percent)

These latter four should form the focus of your outreach efforts.

Hone Your Messaging to Customers and Be Clear

After selecting one or more of the above framing messages, you should ensure that you carefully formulate it in a clear manner that all staff can succinctly communicate to clients. (See the section “Make Sure Your Team Is Aware of the Increase” for more information.) Once you’ve done so, communicate directly to consumers well before the new pricing comes into effect, using means such as:

• Bill inserts
• Websites
• Social media
• Announcements printed directly on statements
• Announcements connected to online bill calculators
• Direct mailers

Time Your Announcements with Customers in Mind

The timing of rate-increase announcements may vary from one utility to another, but they all should follow a single, simple rule: You must give your customers ample warning prior to any rate adjustment. A large margin between the initial communication of price changes and their implementation allows end users to reassess their own personal budgets and mentally adjust to the coming changes.

Equate Higher Pricing with Better Service and Quality

In addition to implementing the frames mentioned above, make sure your customers know that higher pricing does more than merely guarantee that service continues. It also means that they will receive better and higher-quality service. Note that many customers have a high opinion about renewable energy sources such as wind and solar, and if your utility plans to implement, improve, or maintain some of these, you should consider highlighting that fact.

Make Sure Your Team is Aware of the Increase

Few things make utility customers as angry as hearing conflicting reasons for a rate increase from different utility employees. Whether or not you believe you might face stiff resistance to a price change, unifying your message across your team simply makes sense. Not only does it facilitate goodwill with your customers, it avoids exacerbating any irritable reactions.

Putting it all Together: Rate Increase Letter Template

What does all of this look like in practice? Well, below you will find a short sample letter from the hypothetical utility Bryte4U Power that may give you a place to start communicating with your customers:

Dear [CUSTOMER NAME],

Due to Bryte4U Power’s ongoing commitment to making safety our top priority, we will be increasing our power rates by [PERCENTAGE INCREASE] starting on [DATE].

We know that no one enjoys receiving news of increased rates. Please note that this increase will help fund infrastructure improvements that will provide you with safer, more reliable, and more efficient power. Additionally, these investments will be partially backed by renewable energy sources that will safeguard our environment and the wider world.

In order to minimize the impact of this rate increase, we’ve published a number of power- and money-saving tips at StayBryte.com/save. We truly appreciate your business, and you can reach us with any questions you may have by calling (888) 555-1212.

Sincerely,

[SENDER NAME]

Customer Care Advocate

Bryte4U Power