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HomeMy WebLinkAboutAgenda Report - June 15, 2016 I-02CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM,.. . TM AGENDA TITLE: Receive Electric Utility Strategic Planning Customer Survey Report by GreatBlue Research, Inc. MEETING DATE: June 15, 2016 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: BACKGROUND INFORMATION: Receive Electric Utility Strategic Planning Customer Survey Report by GreatBlue Research, Inc. In December 2015, the City Council adopted a resolution authorizing the City Manager to execute an agreement for Electric Utility strategic planning and facilitation with Hometown Connections International, LLC. The first phase of this effort was the customer engagement portion performed by Hometown's market research partner, GreatBlue Research, Inc. It has more than 35 years of experience in diverse markets and has conducted thousands of research studies. GreatBlue's core competencies leverage both quantitative and qualitative research methodologies. The data produced is statistically reliable with thoughtful, concise insight into how the findings answer the study objectives. GreatBlue utilizes data analytics software that is integrated into its computer-aided interview platform ensuring quality, high-end data analysis. The goal for the Electric Utility's (EU) customer research effort was to gain an understanding of the current satisfaction levels for both residential and commercial/industrial customers in order to help strategically guide the improvement of the EU, its product and service offerings. The methodology used included customer focus groups and telephonic surveys. The purpose of the focus group meetings was to facilitate discussions within each group to determine which issues warranted addressing in the telephone surveys. These surveys allow for a deeper dive, along with the ability to uncover more comprehensive feedback while the individual is engaged and communicating. Respondents have the opportunity to interact anonymously with the researcher conducting the telephone interview and the ability to provide their feedback immediately. On March 24, 2016, GreatBlue held two 90 -minute customer focus group sessions; one for commercial customers and the other for residential customers. Staff then reviewed the transcripts and worked with GreatBlue to develop the subject matter used in the phone surveys. After completion of the telephonic interviews GreatBlue analyzed the data, and identified key findings, trends, deriving insights, and actionable recommendations. GreatBlue has incorporated the results of the focus groups as well as the telephone surveys and is prepared to present their findings to the City Council. APPROVED: orf ft./Stephen Schwabauer, C. y Manager Receive Electric Utility Strategic Planning Customer Survey Report by GreatBlue Research, Inc. June 15, 2016 Page 2of2 FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. Eli abeth A. Kirkley Electric Utility Director Customer Satisfaction Study City Council Meeting greatblue Report of Findings 15 June 2016 Table of Contents IN-' I I°ok!. Ira trir �cac411 c• - �1 4-.0 CO" kft SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations Table of Contents SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) ArLkdkri to1212‘; � :)412414fial2 ime % ILI XI *WO f Eike PI 414,2 4 i y SSS ' 4 1 Evcence- oasoc rosoarch across cvorso incusthcs Our experience in instrument design affords our clients actionable analytics to help them identify, address, and improve offerings to, and the way they communicate with, their key constituents. With more than 35 years of experience in diverse markets, our consultative approach ensures our data can be the basis to make important business decisions. Cross -functional engagement teams ensure a complete view of the issues and solutions. GreatBlue Research, Inc. Slide / Expertise in a cverse set of research methocoocer L Having conducted millions of surveys and thousands of focus groups over the past 30+ years, our experience in instrument design, data collection and the presentation of those findings in manageable, actionable ways allows us to serve our clients across the spectrum of research studies. Telephone Interviews In-house, multi-lingual interviewing capabilities Digital Surveys Web + mobile -based survey programs Focus Groups State -of -the -Art facilities in CTand MA In -Depth Interviews Trained researchers allow us to dive deep in a 1:1 setting GreatBlue Research, Inc. Slide / Awareness/Perception Market Feasibility MarComm Reg Compliance Efficiency Customer Satisfaction Solutions that focus on strategb anc ooeraUona neecs of clients Whether direct to clients or through their agencies, we apply our core research methodologies, often applying a mixed methodology to ensure a study that captures both quantitative and qualitative information, to ensure our solutions exceed client expectations. GreatBlue Research, Inc. Slide / Table of Contents SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) ■ • ti 1 Project Overview O GreatBlue was commissioned by Lodi Electric Utility (hereinafter "Lodi Electric" or "LEU") to conduct comprehensive research among a cross-section of customers to gain a deeper understanding into their perceptions of the utility and satisfaction with the services provided. Cs The primary goal of this research study was to assess the effectiveness of Lodi's ability to serve its customers, identify areas for improvement, and isolate areas that may increase engagement. O In order to service this research goal, GreatBlue conducted telephone surveys among a random sampling of Lodi's residential customers. Focus groups were also conducted among a select number of residential and business customers to inform the subject matter of the survey and, where applicable, aid in elaborating on survey findings. O The outcome of this research will enable Lodi personnel to a) more clearly understand, and ultimately set, customer expectations, b) act on near term opportunities for improvement and, c) create a strategic roadmap to increase customer satisfaction. GreatBlue Research, Inc. Slide / The Lodi Electric Utility Customer Satisfaction Study leveraged a multi -mode research methodology to address the following areas of investigation: o Perception of local utilities and area organizations Rating Lodi's organizational characteristics LT) Satisfaction with customer service and/or field personnel o Preferred methods of communication o Interest in services and products offered by Lodi o Interest in Lodi having a renewable energy portfolio o Demographic profile of respondents research 1 Methodology 1 Telephone Target Residential Vethoc No. of Completes 800 Quality Assurance DuaIIeveI** oogy Sna No. of Questions 67* Margin of Error 3.4% oshot Time Compensation None Confidence Level Sample Customer list Research Dates 95% Apr2O-May9 *This represents the total possible number of questions; not all respondents will answer all questions based on skip patterns and other instrument bias. **Supervisory personnel in addition to computer-aided interviewing platform ensure the integrity of the data is accurate. GreatBlue Research, Inc. Slide / 10 Survey Res oonc ent Sna oshot This slide quantifies select data points to provide context for the quantitative research study. The following graphs provide an empirical view into the demographics of the survey respondents. Age Refused 5.0% Ec ucation Refused 5.6% H eh school,. .EL) ai.s% 2year c e, 1'st gtradute28.1% 9,.5% 4 year co �e rad 30 . 5` Genc er Roso ncy Refused 5.0% GreatBlue Research, Inc. Slide / research Vethoc Methodology Focus Groups Target Customers Length of Session oogy Sna oshot Time Compensation Sample 75/participant Customer List Discussion Moderation Research Date 0-90 minutes GreatBlue March 24 Participant Criteria Commercial Residential GreatBlue Research, Inc. Slide / Focus Grou Participants: Resc enUal Customers This slide quantifies select data points to provide context for the qualitative research study. The following graphs provide an empirical view into the segments and demographics of the participants. 3 10 6 4 2 Length of time as customer Gender Male Female Less than 10 years 11-2Oyears 21 years or more Undisclosed GreatBlue Research, Inc. Slide / Focus Grou Partici pants: Commercial Customers This slide quantifies select data points to provide context for the qualitative research study. The following graphs provide an empirical view into the segments and demographics of the participants. 3 10 6 4 2 Length of time as customer Male Female 0 Less than 10 years 11-2Oyears 21 years or more Undisclosed GreatBlue Research, Inc. Slide / Table of Contents •0• SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) M. 1. 0 4 4 T 4. 4 4. 4. 4 4. 4. 4. 4 IP a -' r _ 11 1 1 - 1 1 1 1 ✓ 1 11 1 7/\ '1 I 0 1 would still purC\R' at an increased price faint P m 1 P 1 1 . 1 r F 1 F 1 ■ Negative Impact .. . . 1. t ■ r 1 1. F .,•I r 1 7 WA Boomers 1 d . 4 a 1 i • 4. • 4. I. 4. aL I. m. 4. 4 4. aL ■ Ke y Stuc yHnc 1 inc S O When compared to other utilities (gas, phone, water, cable, etc.), respondents had a comparatively favorable perception of the service they receive from their electric utility. While the highest frequency of respondents had a favorable perception of their "gas company" (88.0%), it was followed second by their "electric utility" (75.8%). In addition, 62.8% of residential customers reported that Lodi Electric closely aligns with their perception of an ideal utility experience. O Lodi Electric was rated satisfactorily by a majority of customers when evaluated on a series of nine (9) organizational characteristics. When "don't know" responses were removed from the data, the average positive rating among residential customers was 62.7%. The top individual areas rated were "maintaining a modern and reliable infrastructure" (74.5%) and "overall satisfaction with Lodi Electric" (67.0%). O Contact resolution was the primary driver of satisfaction. When contacting Lodi Electric, only 59.4% reported having their issue or concern taken care of on the first contact. Further, when rating the organization, those respondents who experienced first contact resolution provided an average positive rating of 72.3% compared to those that did not, who provided an average positive rating of only 22.8%. GreatBlue Research, Inc. Slide / Ke y Stuc yHnc i inc L. S, CO (,t1 od O 43.8% of residential customers reported calling or visiting a Lodi Electric office in the last 12 months, and among those respondents, 71.7% were satisfied with the customer service employee who handled their call or visit. O 6.1 % of residential customers reported having a field service representative visit their home in the last 12 months, and among those respondents, 79.6% were satisfied with the field service employee who visited their home. Cs 69.5% of residential customers reported Lodi Electric meets their expectations either "all" or "most" of the time. The top three expectations reported among respondents include "affordable prices/lower prices" (38.9%), "reliability" (25.6%), and "good service" (17.5%). Cs Lodi Electric's billing was reported to be "easy to understand" and to "accurately detail the separate charges for electric, water, wastewater, and solid waste charges" by a strong majority of residents (79.8% and 84.6%, respectively). However, it should be noted that 50.2% of respondents reported Lodi Electric's rates were "higher than surrounding towns." GreatBlue Research, Inc. Slide / Ke y Stuc yHnc 1 inc L. S, CO (,t1 od O In general, residents only provided moderate support for the expansion of solar energy in Lodi Electric's service territory. 47.0% of respondents reported Lodi Electric should be "somewhat" or "very" conservative when it comes to efforts to expand solar energy, with 67.6% reporting to be "unwilling to pay anymore" to compensate for those efforts to grow solar. However, 43.8% of residents were interested in Lodi Electric providing "solar rebates" for those customers who had the desire to develop solar energy for their individual dwelling. O Avast majority of those residents who experienced an outage in the last 12 months reported to be "satisfied" with the time it took to restore power (81.2%). O "Lodi Electric website" (31.6%) or "internet" (31.1 %), in general, were residents' preferred sources of information. O Finally, customers reported a relatively strong relationship with Lodi Electric, as the utility scored a net positive rating - defined as advocacy+loyalty+satisfaction - of 73.3% among residents. Further, 68.9% of respondents reported to have "a great deal of trust" or "some trust" in Lodi Electric. GreatBlue Research, Inc. Slide / erceotons of eecthc utility stronc While perceptions of their gas company were highest; electric utilities and, thus, Lodi Electric received comparably positive ratings among other area organizations measured. However, slightly fewer residential customers (62.8%) believed Lodi Electric compared closely to their ideal utility. As I read a list of area organizations and companies providing services to you, please rate each on the quality of their overall customer service. 25.0% (w/o "Don't Know" responses) 100.0% 75.0% 50.0% 62.8% of residents report Lodi compares closely to their ideal utility 7 I 9 73 L ')/0 Internet Provider CableTVCompany Water Company Phone Company Electric Utility Gas Company GreatBlue Research, Inc. Slide / Loc i'� service + staff c rive ratings Customers provided an average positive rating of 62.7% regarding Lodi Electric's organizational characteristics. While lack of awareness drove some lower ratings, the perception that Lodi Electric "helps customers conserve electricity" (56.0%) and "provides good service and value for the cost of electricity" (53.6%) received the lowest ratings. Furthermore, only 52.1 % of customers believed the rates they pay for electricity are "reasonable." However, most customers expressed interest in rebates that may help them conserve electricity. Item: Organizational Characteristics Maintaining modern and reliable infrastructure Overall satisfaction with Lodi Electric Helpful and knowledgeable staff Responding promptly to customers questions and complaints Communicating with customers Being open and honest about company operations and policies Community involvement Helping customers conserve electricity Providing good service and value for the cost of electricity Average positive ratings GreatBlue Research, Inc. 2016 2016 w/ "Don't Knows" w/o "Don't Knows" 59.4 65.9 51.0 50.3 56.1 46.3 32.3 44.8 50.6 50.7 74.5 67.0 66.0 64.9 64.2 59.0 58.9 56.0 53.6 62.7 52.1% of customers believe the rates they pay for electricity are "reasonable" 60.7% of customers were interested in Lodi providing "rebates for energy efficient appliances" Slide / 20 Low rate of first contact resolution In general, Lodi Electric tends to resolve 3 out of 5 issues on the first contact for residential needs; however, 28.9% of respondents reported requiring multiple contacts to have their issues resolved. 75.6% of customers Contact resolution has a strong correlation with overall satisfaction. More than 7 out of 10 customers who had to have repeated contact were dissatisfied with the Lodi Electric. 100.0% 75.0% 50.0% 25.0% Generally, when you contact Lodi Electric, are things taken care of to your satisfaction the first time, or must you have repeated contact with them? 59,4% 0 -- 11796 Takes care of things first time Must have repeated contact Varies/DK Residential (N=350) GreatBlue Research, Inc. Slide / contact resouUon im groves raUngs Interestingly, customers who had their issues resolved with first contact consistently provided a higher frequency of positive ratings for the organization. Those who required multiple contacts to resolve issues provided significantly lower scores for each of the utility's characteristics. The lowest scores recorded were, understandably, "communicating with customers" (18.3%) and "being open and honest about company operations and policies" (13.6%). Item: Organizational Characteristics 2016 Residential First -contact Multiple -contact w/o "Don't Knows" resolution resoletion Maintaining modern and reliable infrastructure 74.5 84.4 Overall satisfaction with Lodi Electric 67.0 75.2 Helpful and knowledgeable staff 66.0 80.5 Responding promptly to customers questions and complaints 64.9 73.9 Communicating with customers 64.2 72.8 Being open and honest about company operations and policies 59.0 67.2 Community involvement 58.9 73.8 Helping customers conserve electricity 56.0 59.2 Providing good service and value for the cost of electricity 53.6 63.5 Average positive ratings 62.7 72.3 37.1 24.4 22.7 23.4 18.3 13.6 :3 19.0 23.1 23.7 22.8 GreatBlue Research, Inc. Slide / 22 SaU sfl ec with offne personnel Residential customers reported contacting Lodi Electric's office personnel primarily for procedural items such as paying bills or initiating/terminating service. However, a segment of customers contacted LEU regarding a "high bill/bill error" (19.1 %). While 71.7% of customers were satisfied with the interaction, LEU's ability to resolve these contacts with a stronger rapport and willingness to assist can help mitigate reasons for dissatisfaction that are beyond control, such as long wait times. 100.0% 75.0% 50.0% 25.0% How satisfied were you with the service provided by the Lodi Electric employee? 4O4% 71.7% 7.7% -19 zi-% Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied Residential (N=350) GreatBlue Research, Inc. ( 39.4% � Make a pay To 0 21.7% 19.1% Start/stop services/ \High bill/bill error seasons for Contact 28.4% \\Rude/unfriendly To 3 20.0% Unhelpful/lack of understanding/ seasons for ( 16.8% Long wait dissatisfaction Slide / 23 ustomor sorvbo can stanc arc 1 IZP O Detailed findings from the focus groups support a sense of inconsistency in terms of customer service. This may be indicative of the low rate of first contact resolution. While customers acknowledged the quantity of inquiries that CSRs deal with on a daily basis, a standard experience was lacking for both the residential and commercial focus groups. "The purpose of the visit was to pay a bill and since then I have gone to online bill payment because they Just ruin your day. They have no empathy." - Resident "It's very interesting because depending on the reason you're there the same exact people will give you different customer service." - Resident "They need to be reminded that, for them, we're number 300 but for us it's the only time we're having that interaction. They may have heard this problem 300 times; we are saying it for the first time from our perspective. They need to remain compassionate and understand that we are one individual case; we are not number 300 even though we are 300." - Resident "They've got their script and they can't deviate from the script." - Resident "If you think about it the first day you start a job you are so overwhelmed and they are training you to do something and you can't possibly remember everything in training and you don't even know if it's going to apply to you until after the fact later on down the road when you've completely forgotten what to do." - Resident - "I do know that with Lodi Electric their customer service is very poor. Their CSR's are not trained well enough to handle the high quantity of people that walk in both residential and commercial." - Business Note: Copy in blue italics are quotes transcribed verbatim from focus group sessions. GreatBlue Research, Inc. Slide / 24 Satisfaction hgher wth fiec Residential customers reported slightly higher ratings of satisfaction with the field personnel (79.6%) than with office personnel. The top reasons respondents required a field visit included "meter reading," "service problems," and "installing service." 100.0% How satisfied were you with 75.0% the service provided by the Lodi Electric employee? 25.0% 50.0% L c C) 79.6% 71 personnel 20.4% Meter reading 16.3°/a Service problem Install service To 0 Roasons for Visit Very satisfied Somewhat satisfied 6.1% 10,2c Somewhat dissatisfied Residential (N=49) Very dissatisfied GreatBlue Research, Inc. Slide / 25 Cx oeotaUons oonsstent amonc all v Residential and commercial customers were generally in agreement about their top expectations of Lodi Electric. "Affordable prices/lower prices," "reliability," and "good service" or "customer service," were the common themes that drive a good experience working with LEU, which was reiterated by business customers in the focus groups. In addition, 69.5% of residential customers reported Lodi Electric met their expectations of the utility either "all" or "most" of the time. 100.0% 75.0% 50.0% 25.0% What are your top three expectations of Lodi Electric? 38 9 6 of residential customers report Lodi meets their expectations "all" or "most" of the time r YL Affordable prices/lower prices Reliability Residential Good service "1 think price stability is a big one for us; knowing what we're going to pay month to month and keeping that stable. When you annualize it out over 12, 18, 24 months it's pretty steady but the month to month swings are very concerning." - Business "Reliability, knowing that you have your electricity every day when you come in and turn the switch on it's going to work, cost of what your utility is and customer service. If you ever have a problem you'll know that they will be there for you." - Business "1 think reliability is number one, cost probably number two and customer service but as long as the power is on I really don't need it." - Business GreatBlue Research, Inc. Slide / 26 RoHa offity anc rato s ro at v 0 cc As affordable prices and reliability were top expectations of residential and commercial customers in both the survey and focus group findings, it is understandable that customers would believe these aspects are intertwined. As such, while residential customers leaned towards a balance of reliability and rates, a slightly higher frequency of customers placed importance on reliability (55.6%) than rates (44.4%). 100.0% 75.0% 50.0% 25.0% Which of the following statements best describes how you feel about the importance of reliable electric service and rates? 3 t 29,4 Reliability significantly more important Reliability somewhat more important Residential Rates somewhat more important Rates significantly more important GreatBlue Research, Inc. Slide / RoHa offity stronc, orom ot res oonse Umo O Residential customers were appreciative that the reliability of their electric service was consistently a strength of LEU. Focus group participants reflected on past rolling blackouts throughout California in which they were not subject to a loss of power, and recognized the benefit of that service. "I think the service itself is pretty good. We don't get black outs; the power stays on." - Resident "I was living here when we had that big powershortage and the state sent rolling blackouts throughout the state Lodi Electricsaid not us; we don't have to do that and they didn't. That was a plus for the consumer but environmentally negative." - Resident O Business customers participating in the focus groups cited the same instances of maintaining power while the rest of the State experienced blackouts. In addition, when there were outages due to ancillary problems, commercial customers noted that LEU responds promptly to get their power back up and operating smoothly. "We had a contractor that backed up and knocked our pole down in our back lot and the City was out there in pretty quick time and had it back up. I've had really good luck with the City ofLodi."- Business "I will say I like it when California was experiencing rolling blackouts we never did; we have very few problems. We don't usually have a huge loss in service and when we do they're back up immediately." - Business - "If you have a problem and you call they're there. They're really easy." - Business GreatBlue Research, Inc. Slide / 28 Outace restoration satisfactory Very promisingly, 81.2% of residential customers' who experienced an outage in the past 12 months were satisfied with the amount of time it took to restore power. In addition, customers indicated strong preferences to enroll in automated, digital communication for outage updates should they become available. 100.0% 75.0% 50.0% 25.0% How satisfied were you with the outage restoration time? 1 4B,1% 81.2% 1 72% 6.1% 5.5% Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied DK Residential (N=181) GreatBlue Research, Inc. LkeytoenroHn... 39.3% \ Text messaging 34.6% Telephone/ Robo-calls 23.8% Email Slide / 29 Dostvo reaUonshi 3 with Loc 1 1 Lodi Electric scored a net positive score (advocate + loyal + satisfied customers) of 73.3% in 2016. While a similar percentage of customers reported having "trust" in the utility (68.9%), a segment of customers identified as "less than satisfied" (20.8%) which could jeopardize potential initiatives that require a great deal of trust in Lodi. 100.0% 75.0% 50.0% 25.0% How would you best describe your relationship with Lodi Electric? 0 68.9% of residential customers have "a great deal" or "some" trust in Lodi 7 A t 0 t 2.9% 6.0% Advocate Loyal Satisfied Less than Satisfied DK/neutral/no relationship Residential GreatBlue Research, Inc. Slide / 30 Soar growTh may 30 SOW. r oRtcs necessary A small segment of residential customers (37.0%) reported an aggressive approach to develop solar energy would be desired if it ultimately incurred a cost. Furthermore, 67.6% of customers were unwilling to pay additional costs to cover the expansion of solar; however, rebates may sway those unsure of their commitment to solar. Commercial customers who participated in the focus group were generally aware of, and had taken advantage of, many of the rebate programs and incentives available to help businesses operate more efficiently. 100.0% 75.0% 50.0% 25.0% How aggressive would you like Lodi Electricto be in their efforts to expand solar energy throughout their service territory considering that more aggressive measures typically result in a higher cost? 67 of residential customers were "not willing to pay anymore" to compensate for efforts to / expand solar 43,8% of residential customers were interested in Lodi providing "solar rebates" / 5,5-'0 r co ) Li (-X) L 113LO% Very aggressive Somewhat aggressive Somewhat conservative Very conservative DK "We're a fairly sizeable industrial consumer and in the past several years Lodi Electric has done a good job of being aggressive when it comes to rebates and incentives to keep the cost competitive. - Business - "There were rebate programs that we capitalized on." - Business "LED, energy efficiency stuff, new hire stuff; we were able to capitalize on all of that." - Business GreatBlue Research, Inc. Slide / Renewa ol encrgy c manc may c O Residential customers in the focus groups expressed an interest in renewable energy, such as wind or solar, as long as there is a clearly outlined plan for implementing the alternative. In addition, there was a general consensus that the City of Lodi could be trusted to offer alternative energy; there was a general distrust of third -party vendors. Further, both residential and commercial customers saw the perceived return on their investment. - "I think it needs to be very well outlined. We need baby steps, maybe we're going to implement this in this part of Lodi which seems to have the highest bills. Because of how old the houses are or because the electrical might be old and wired differently or less efficiently or something of that nature so maybe they are going to implement it and we're all going to be onboard and maybe be a 3yearplan."- Resident "California already has a bunch of regulations and we're pushing harder regulations as time goes on so I think it's in our best interest." - Resident - "There are so many third parties and some of them are legitimate, but others are not. The City of Lodi has checks and balances and regulations that it does have to show proof of and such. Those third party suppliers and the third party gas suppliers do not have the same regulations and they kind of own you and it's hard to take them to court and sue them. Yes and I think everyone agrees that the City of Lodi we can at least put our trust in them." - Resident - "Hydroelectric is great and wind turbine is great but they talk about how you have to do this bio gas stuff and that's not sustainable. I think Lodi Electric should maybe get more involved in solar and not have to buy as much power." - Business - "But like everything else we're all looking at returns right. Returns on our investments so like you were saying; if you have to pay the piper a little bit up front to get it back later." - Business GreatBlue Research, Inc. Slide / 32 easy to unc erstanc bs; C scounts less so While residential customers generally understood their bills (79.8%) and how the separate charges are delineated (84.6%), fewer customers believed the programs designed to provide energy assistance or discounts were adequate. However, significantly fewer customers were able to provide a rating, indicating there may be a lack of awareness regarding the energy assistance and medical discount programs. Raising awareness of the programs available to assist with bills may assuage the perception that the prices they pay are "higher than surrounding towns," especially in comparison to PG&E. Statement.. Lodi Electric bills are easy to understand Lodi Electric bills accurately detail the separate charges for electric, water, wastewater, and solid waste charges Lodi Electric has adequate energy assistance programs to help low and/or fixed income customers with bills Lodi Electric has an adequate medical discount program 2016 w/ DK 2016 w/o DK 77.4 79.8 80.4 84.6 27.2 66.6 15.6 64.8 believe the prices they currently pay for electric service are "higher than surrounding towns" 3(.8% of customers were thinking about PG&E when comparing GreatBlue Research, Inc. Slide / 33 ommunbaUons aHgn wth preferences Residential customers' current means of receiving information from Lodi aligned with their communication preferences, with a tendency to prefer the company's website. However, focus group participants were in nearly full agreement that the LEU website had caused issues for them in the past, especially in regards to navigation and ease of finding information. Item: Communication Methods 2016 2016 Current Preferred Lodi Electric website Internet Bill inserts 5 provided a positive rating for "ease of finding information" on LodiElectric.com 32.3 30.4 26.0 31.6 60.5% 31.1 24.4 provided a positive rating for "quality of information" on LodiElectric.com - "Going out to the website isnot exactly easy; I don't even know what website to go to." - Resident "I pay my bills online also. I find the City of Lodi's website very customer unfriendly; user unfriendly." - Resident "I couldn't find my bill from this last billing and 1 never logged in online and the only way you can register is with your account number and your customer number. I would like another alternate way like my social security number or my address." - Resident - "PG&E their online billing and being able to go in there and pay a bill and look at my statement was very easy. With Lodi Electric it's very difficult; I've had some problems trying to get into the website and look at my bill." - Business - "On the website there is not a lot of information on who to contact and how for what you're looking for and you then have to call the city." - Business GreatBlue Research, Inc. Slide / VooUeaoousefufor / 36.1% account information While only 1 out of 3 customers expressed initial interest in downloading a mobile app for Lodi Electric, residential customers reported an interest in accessing information related to their account. Most importantly, the ability to make bill payments was the most desired feature (53.2%) should an app be developed. GreatBlue Research, Inc. : ( • • • were interested in downloading and using a mobile app from Lodi Ty 53.2% Bill pay 3o of information. , , 14.6% Usage/monthly comparisons 6.5% Rates/payment options Slide / 35 Table of Contents • • SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) 44•LL e 4 r . Iv_= il 4 sirk, Consc eraUons CI Improve contact resolution. Overwhelmingly, contact resolution was the key driver in satisfaction, or lack thereof, with Lodi Electric. While technological and infrastructure improvements may be necessary to improve contact resolution in the long run, providing explanations and setting expectations are key stop -gaps to improving customer experience when reaching out to Lodi Electric. CSRs should inform customers of the process in which their issue will be resolved, including additional personnel - such as field reps - that will be required to assist. One additional option may be improving the self-service offerings contained on Lodi Electric's website. This may help reduce incoming call traffic to Lodi's offices along with providing a preferred option for those customers that favor self -servicing their issues or concerns. CI Develop and promote energy efficiency services. While Lodi Electric offers several programs and rebates related to energy efficiency, the residential energy efficiency audit is, currently, the only option that has prominent placement on Lodi Electric's website homepage. This may be leading to the perception Lodi could be doing more to help customers conserve energy. Rotating services and offerings to list other customer programs on the home page may help Lodi Electric communicate their diverse energy efficiency rebates and services. Heavy promotion of these rebates and services may also help mitigate the perception of Lodi Electric having higher rates than surrounding areas. GreatBlue Research, Inc. Slide / Consc eraUons O Continue to investigate solar. While initial support for expanding solar energy was moderate, this support and desire may grow in the coming months or years. Additional research, directed towards customers currently using solar energy or in the process of developing solar, may be beneficial to understanding any difficulties or issues that arose during the process of incorporating solar. This may help Lodi Electric proactively correct any procedural issues customers experienced as they attempted to incorporate solar power into their residence, as well as anticipate organizational difficulties such as net metering or load response should the demand rise in the coming years. This may also provide an opportunity to train Lodi Electric's CSRs on solar related issues and FAQs, as customers had a higher level of trust in Lodi Electric compared to third -party solar vendors. Cs Mobile has merit. There is a moderate initial demand for a Lodi Electric mobile app. Features could include: paperless billing and account details, monthly usage and comparisons, and available rebates/incentives. Many apps are downloaded and underutilized, thus research and user experience testing prior to any development should be prioritized should this be an option Lodi Electric considers. While Lodi Electric may project out the development of a mobile app for the distant future, improvements to the website should be mindful of mobile -friendly features to accommodate customers accessing website information via a smart phone on mobile device in lieu of a mobile app. GreatBlue Research, Inc. Slide / 38 (860) 740-4000 MJV@GreatBlueResearch.com