How well versed is your utility in customer segmentation? Does your organization fully realize the value that this particular piece of insight has the potential to deliver? Customer segmentation refers to the practice of separating a utility’s customer base into specific cohorts based on their preferences, behaviors, and personal attributes. This is rooted in maximizing value for the customer, as knowing their granular traits allows your utility to relate to them according to their specific, personal characteristics and offer solutions purpose-built to suit their unique needs.
Our latest customer success story explores how JEA, the largest community-owned electric utility in Florida, worked with VertexOne Analytics to better understand their customers’ behaviors, motivations, and expectations, reduce customer service costs, and create a differentiated and targeted approach to marketing and customer engagement.
Segments can vary widely across demographics, geographic location, and other related factors, and they are constantly changing with shifts in customer tastes and preferences. Beside basic demographics, some examples of useful segments include customers’ bill payment ability (based on credit scores and similar factors), customers more prone to outages, inclination toward digital features, opinions toward conservation or green initiatives, likelihood to utilize in-person or telephone support, and many more. The more segmented you can get your customer base, the better you can engage each customer in ways that are meaningful to them personally while reducing overall customer service costs. Our video breaks down the details of our work with JEA in more detail:
JEA provides electricity, water, and water treatment services for over a million customers in the Jacksonville, Florida, area. Using advanced analytics, Vertex developed a custom machine learning algorithm to examine JEA’s base of customers. We then identified eight specific customer segments, each with key attributes, to which all existing and new customers are assigned.
To find out more about how this segmentation process worked and how it has helped JEA provide personalized and relevant information to its customers, increase customer engagement, enhance revenue, and reduce overall cost of service, download the full case study now.