Smart utility systems revenue5/1/2023 ![]() Likewise, new electric technologies such as cold-climate heat pumps, advanced process heating, and indoor farming, are expanding the market potential for electricity consumption in buildings, industry, and agriculture. ![]() In transportation, for example, battery electric vehicles (EVs) are a viable and sustainable alternative for consumers and businesses alike. ![]() ![]() Some are a natural extension of the current utility business model, while others represent a greater degree of change.Īdvancements in electric end-use technologies have created opportunities for utilities to increase sales in all market sectors. We’ve outlined four paths that lead to new growth opportunities, each with risks and rewards. As that trusted advisor, utilities are well-positioned to be the preferred provider of new products and services-leading to new revenue and earnings opportunities, as well as continued relevance in a rapidly-changing market. Utilities have the opportunity to be a beacon in a crowded marketplace and strengthen customer loyalty. Many customers will be left asking, “Who can I trust?” In a world of growing options and market actors, there is the potential for heightened customer confusion and inertia as decisions become more complex and require greater time and resources to vet. Customers want a menu of options that they can customize to meet their energy preferences, whether those are focused on controlling energy costs, improving the comfort of their homes and businesses, promoting environmental stewardship, or other interests. The framework discussed here helps clearly define strategic objectives, identify options that align with those objectives, and screen and prioritize opportunities based on the metrics that matter most.įorward-thinking companies from the tech sphere, like Amazon and Apple, are changing what customers expect from their service providers. ICF experts have identified four paths for growing revenue through the provision of new customer offerings, providing illustrative examples as well. The best fit for a given utility business depends on several factors, including (but not limited to) the utility’s strategic priorities, regulatory environment, customer base, and existing capabilities. Increasingly, as electric utilities modernize and add capabilities to the grid, new program options are doing double or triple duty-providing benefits to customers, serving as a grid resource, and potentially growing earnings through capital investment or regulatory incentives. Utilities can create new sources of revenue that hedge against declining sales growth and other competitive pressures, as well as improve customer satisfaction. As customer expectations rise, the one-size-fits-all service model of the past is shifting toward greater segmentation, customization, and innovation-with an expanded portfolio of customer programs, products, and services smartly targeted to the customers most likely to benefit.įor the utilities sector, value creation is increasingly driven by anticipating and satisfying these changing customer needs and enhancing the customer experience. Today’s customers are increasingly interested in new energy choices that give them greater control, comfort, and convenience.
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