Background & Challenge
A major Energy Company was looking at how to attract and retain higher value residential customers. This company had two major divisions that operated in silos, Commercial & Industrial (C&I) and Residential.
The challenge with the divisions operating in silos was that there was no real inter-relationship between the two organizations and there was some historical missteps between the two that caused legacy distrust.
Approach & Solution
As we looked at how we can attract new customers, we had to really drill down into how to retain them before we looked at how to attract them.
Referrals are one of the strongest ways to accomplish both. In this particular case, we looked at how could we leverage the existing C&I relationship to drive Residential growth. Employees of companies value discount type benefits that their employer provides and engage well.
Having this insight, we developed a VIP Program where C&I customers were presented with an employee benefit where their employees would receive an exclusive energy plan that was not available to the general public. As part of this solution, we also built a bridge between the C&I and Residential groups with transparency so that the C&I group would begin to feel comfortable in presenting this VIP Program to their existing and prospective customers.
A deeper and trusting relationship was formed between the two groups resulting in about 25% of the C&I customers participating in the VIP Program.
The positive impact to retention was not limited to the Residential side, but also to the C&I side. The C&I customers valued this offering and balanced this with pricing when shopping for new energy contracts.
The employees of the C&I customers were on the higher end of the lifetime value spectrum where they stayed longer and engaged more with any new products that came out.
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