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Industryhost:Shell Title:ReducingcustomeracquisitioncostandchurnforRetailElectricityProviders(REPs) Challenge: RetailElectricityProviders(REPs)operatinginde-regulatedpowermarketsfaceatremendousamount ofcustomerchurnandhighcustomeracquisitionscosts.Newenergyanddigitaltechnologieshavethe potentialtoimprovecustomerretention,loweracquisitioncosts,andincreaselifetimecustomervalue byenablingbetterconsumerexperience,andnewproductsandservices. Background: RetailElectricityProviders(REPs)sellpowertoresidentialandcommercialcustomersinmarketswhere utilitynetworkoperationshavebeendecoupledfromthecommercialdeliveryofpower.Theintentof de-regulationistospurcompetition,innovationandconsequentiallydrivebetteroutcomesfor consumers. Duetoahighdegreeofcompetitionandlackofapparentdifferentiation,REPsoperatinginde-regulated powermarketsfaceatremendousamountofcustomerchurnandhighrelativecustomeracquisitions costs.ThisisaproblemforREPsinadvancedde-regulatedpowermarketsglobally.TheresultforREPsis relativelylowlifetimecustomervalueandlowrelativecompanyvaluations. Keytoimprovingperformanceisatoolsettoacquireandengagecustomersmoreeffectively,anda portfolioofhighervalueproductswithlongertenure.Advancesincostandperformanceofnewenergy anddigitaltechnologiesholdthepromiseofenablingtheseefforts. Dataanalyticscansupportmoreeffectivecustomertargetingtoimproveconversionrates,sellhigher valueitemsandbuildtrust.Betterappscanimprovecustomerengagementbyproviding(realtime) insightintopowerusageandcouldbeachanneltodeliveringnewproducts.Acquiringandmaintaining accurateandrealtimecustomerusagedatamayenablethedeliveryoftailoredadviceandproducts basedoncustomerprofileandusage.Exampleenablingtechnologiesarebigdataanalytics,load disaggregation,IoTplatforms,energystorageandsolar.Withlimitedresources,whatshouldanREP focuson? BoundariesandConsiderations: • • • • TheREPmarketincludesresidential(singleandmulti-family)andcommercial. ThemostcompetitiveretailmarketintheUSinERCOT(Texas)yetretailersacrosstheboard facethesamechallenges. REPsarecurrentlynotparticipatingheavilyinpossiblyinterestingprogramssuchasNYREV demos. REPswillnothavemuchcapitaltodevelopnewproductsandplatforms,butawholesale providerholdingaportfolioREPscouldpossiblydeveloptoolsandservicesthatcouldbe providedtoitsREPsfordeploymentintoend-usermarkets(theREPisachannel).