600Minutes Accelerate Online at Essent (10 October 2013)

Accelerate Online
@ Essent

Paskal van Lomm
Business manager digital channels

Management Events 600 minutes
Zeist, October 10th 2013

Next 30 minutes
•  Me

•  Essent & the need for Accelerating Online

•  Design Principles & Approach

•  Results

Accelerate online @ Essent – 600 minutes, October 10th 2013

2

Brief introduction
Sense of urgency to accelerate online

ESSENT


3

Essent
•  Largest energy company in the Netherlands
•  Part of RWE since end 2009
•  2.500 employees
•  2.5mio customers for gas, electricity, warmth and energy
services
•  90+ years experience in production and delivery of energy
•  Largest producer of sustainable energy in the Netherlands
•  Home markets: Netherlands and Belgium


4

Changing competitive environment …

Liberated market
since 2004
40+ energy
suppliers on the
Separation of supply

market in the

and transport (grid)

Netherlands

5

loopt voorop binnen de energiesector
80%

biedt een goede prijskwaliteit verhouding

helpt haar klanten bij energiebesparing

70%

80%

biedt een goede prijskwaliteit60%
verhouding
is duurder dan andere leveranciers

70%

helpt haar klanten bij energ
80%

biedt een50% prijskwaliteit60%
goede
verhouding is innovatief

… has impacted traditional suppliers
is duurder dan andere leveranciers40%

70%

20%
30%

is gedreven

10%

50%

is betrouwbaar
20%

0%

is gedreven

10%
0%

is gedreven

is verantwoordelijk

30%
20%
10%

0%

biedt een goede prijskwaliteit verhouding

12.0 11.8

7.0 6.8
5.7 5.3

8.9 8.3

7.9 7.7

70%
60%

is duurder dan andere leveranciers

50%

Eneco

30%
20%

is gedreven

is betrouwbaar

10%
0%

heeft een visie op de toekomst

is toonaangevend in het benutten van nieuwe
energiebronnen

is sympathiek

2007

2008

2009

2010

NEM

18,1
9,2

biedt een hoog serviceniveau

draagt zorg voor een beter milieu
Eneco

Eneco

Image ratings

is produkten
draagt zorg voor een beter milieu van hoge kwaliteit biedt een hoog servicenivea
heeftsympathiek& diensten

40%

heeft produkten & diensten van hoge kwaliteit

24.5

23.5

Oxxio

Essent

23.0

22.6

2006

2007

Nuon

21.2

20.4

2008

2009

7,8
4,4

Essent
1,7

Oxxio
E.ON

0%

is sympathiek
biedt e
Eneco haar klantenOxxio
Essent
Nuon
helpt
bij energiebesparing
is sympathiek
Eneco
Oxxio
Essent
Nuon
draagt zorg voor e
is innovatief
Eneco
Oxxio
Essent

is verantwoordelijk

Nuon

0,7

RWE

0,4

Electrabel

10%

(Too) Little differentiation

Gas

2006

20%

heeft een

is toonaangevend in het benutten va
is verantwoordelijk
energiebronnen
is toonaangeven
e
is sympathiek& diensten van hoge kwaliteit biedt een hoog serviceniveau
heeft produkten

80%

2005

30%


Annual Switch in the Netherlands (%)

2004

50%

is betrou
40%

is verantwoordelijk

Increasing churn

2003

60%

heeft een visie op de toekoms

is verantwoordelijk

Electricity

80%
70%

30%

is gedreven

loopt voorop binnen
helpt h

biedt een50% prijskwaliteit verhouding is innovatief
goede
60%

0,3

Media expenses (H2 2009) (EUR millions)

2004

2005

Essent B2C1 Market Share at end of year (%)

Too low share of voice/of mind

Declining market share

1 Excl. E:D and RWE NL
Source: 2008; GfK EnergieMarktMeter Marktaandelen & Switchgedrag; ECG Analysis, Essent Customer Intelligence Data


6

Oxxio

Changing the organization step-by step
Step 2
Focus on delivery of
commercial levers
Step 1
Understand the customer

▪  Research
▪  Transformational roadmap

▪  Branding – New positioning and value

propositions
▪  Pricing – Improve pricing structures
▪  Customer Lifecycle Management – Value
maximisation of customer base
▪  Marketing & Sales Excellence
▪  Accelerate Online

2010

2009

Vision
"Become the
undisputed
commercial leader"

2011

Step 3
Improve customer focus
•  SalesBoost
Step 3
Sustaining the change,
continuous organisational
improvements
▪  Perfomance management
▪  Proces redesign based on key customer
insights à Customer Centricity

7

Started Q2, 2010 as a program – virtual team
Transformed into standing organisation October 2011
Increasing performance in 2012

ACCELERATE ONLINE


8

Online today: Largest channel
•  26,000 unique visitors per day (20% mobile)
•  1,200,000 email addresses
•  1,200,000 My Essent users
•  11,000 daily logins to My Essent (460 logins per hour)
•  550 usage manager advises per day
•  500 gross contracts sold per day
•  220,000 App downloads
•  31,200 Facebook likes
•  Social Reach: 51,000 (Twitter, Facebook, etc.)

9

Online at Essent – state of affairs 2010
•  Traditional corporate approach to online
•  Distributed pockets of online activities in Marketing, IT, HR
and Corporate Communication
•  Focus on self service and IT delivery
•  Marketers fighting for the homepage
•  No performance targets

“Just another corporate website”

10

Accelerate Online - change program
•  Goal:
–  become the leading online energy company in the
Netherlands, contributing to Essent’s business

•  Approach:
–  Clarify the role of online for Essent
–  Established a true Digital Team
–  Bring Focus on business performance
–  Educate the wider organisation


11

Five design principles for Online@Essent
Countries with >80% Intern access

1.  Our customers are already
online

!"!!!!

!10,00!!

Falkland'(Malvinas)'Is.'

!20,00!!

!30,00!!

!40,00!!

!50,00!!

!60,00!!

!70,00!!

!80,00!!

!90,00!!

!100,00!!

93% of the Dutch are online

Iceland'
Norway'
Sweden'
Denmark'
Netherlands'
Luxembourg'
Bermuda'
Finland'

2.  The internet is larger than
www.essent.nl

New'Zealand'
Liechtenstein'
Qatar'
Bahrain'
United'Kingdom'
Monaco'
Canada'
Andorra'
Faroe'Islands'
Switzerland'
United'Arab'Emirates'

3.  Traffic x Conversion = New

Korea'(Rep.)'
Germany'
AnMgua'&'Barbuda'
France'
Australia'

Customers

Niue'
Belgium'
United'States'
Austria'
Slovak'Republic'

4.  Organisational setup based on
Business KPI’s
5.  Clear split between build to
change versus build to last

Source: http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx

Regular visitors

essent.nl

SEO
SEA
Email

Gross sales

Display Ads

Landing pages

Affiliate Marketing

comparison sites

Traffic

Traffic

x

Conversion

= New Customers


12

Team structure follows Business KPI’s
… for better focus and link between work and results.
• 

Cross functional setup to
contribute to all business- and

Business
Manager Digital

service units.
• 

Digital team: three focused
teams with all online roles:
– 

Online Marketers, Online Sales
Specialist, Interaction Designers,
Graphics Designers, Metrics

Online Sales

Online Self Service
& Retention

Channel Dev. &
Formula Mgmt.

Traffic & Campaigns

Drive2Web (Trafic)

Generic content

Sales conversion

Self Service
Conversion

Email Production (EPT)

Assortment

My Essent &
Usage Manager

Online Metrics & Control

End2End sales
processes

End2End service
processes

Footprint & Social media

Campaigns

Intranet
Formula & Brand Mgmnt
Innovations

Specialist, Front-End developers, etc.

• 

Proven successful to bring

#Contracts
#Leads

Drive2web %
Cust.Satisfact.

Cust.Satisfaction
Social Reach

focus to team members.


13

Clear split between Business & IT…

Managed by Digital business team

… to enable superfast online delivery and changes. Decided now,
implemented tomorrow.
In the
cloud s
May 20 ince
11

www.essent.nl

Managed by IT

Build to change
Gateway

Build to last

Essent Backend Systems
(e.g. CRM, SAP, Finance)


14

Sales is the focus for the homepage
Conversion requires focus
Cost savings with drive2web
Upgrade contact page with high impact
High speed App development
Pragmatic approach to Social Media

SOME EXAMPLES


15

Sales is the focus for the homepage
From 01-04-10 to 30-08-10
For existing customers, no sales triggers

From 01-09-10 to 25-04-11
Focus on new customers, existing format

From 26-04-11 to 01-12-11
Real sales focus on homepage

Focus on existing customers (2010)
Focus on prospects & customers (2013)
Mid 2013: Adding persuasive design for
photography

Early 2013: Additional funnel entry
becoming a customer, +23% conversion

Since 01-12-11
Further fine-tuning with colours and content


16

Sales conversion requires focus
T x C = Nc
Dedicated team with one task: improve sales conversion on
essent.nl using fact-based multivariate testing.
Multivariate test: what incentive delivers additional sales?
1

No incentive

2

EUR 50

3

Steady increase
of conversion

EUR 100

Conversion on essent.nl 2012
Source: sales conversion team
1,00%

0,80%

0,60%

0,40%

0,20%

0,00%
wk0 wk1 wk2 wk3 wk4 wk5 wk6 wk7 wk8 wk9 wk10 wk11 wk12 wk13 wk14 wk15 wk16 wk17

EUR 50 incentive has a lower conversion than original, EUR 100 higher

From: 3 customers out of 1,000 visitors
To: 5 customers out of 1,000 visitors.


17

Cost savings with Drive2Web
Break common patterns and mental models in the organisation to
dramatically move from offline to online customer interaction.

Traffic: More customers to online

Paper to digital


18

Upgrade contact page (HH/SME)
Successful UX redesign of one page to decrease phone contacts.
From

To

Complaint form:
-52% (500/m)

Contact form:
-24% (5,000/m)

50.000
visits/
month

Heleen:
+67% (2,500/m)

My Essent:
+44% (3,500/m)

Twitter
??

+
Impact: annual savings > EUR 200k

19

Annual bill from paper to digital
Change communication approach from ‘please apply’ to
‘here you are’. Impact: annual savings: > EUR 330K
Bounceletter (post)

Annual bill
via paper

Pre-notification

Notification

Select:
•  Direct debit
(82%)
•  e-mail (63%)
Annual bill in
My Essent
E-mail confirmation opt-out

Annual bill
via paper


20

High speed app development
Enabled due to clear split between frontend and backend
•  Boot Camp approach

•  Fully equipped and enabled
team (mkt + design + dev)

•  Developed 1st App in a week

•  For Android + iOS


21

Mature social media deployment
Central steering, distributed delivery, started September 2010
Sales & Retention

Recruitment

Customer service

Public Relations

# contracts

# applications

# complaints

# share online buzz

•  social media new
channel to claim
thought leadership

•  social media
fuctions as a new
sales channel to
reach our targets

•  social media
fuctions as a new
channel to reach
new emplyees

•  social media
fuctions as a new
channel to reach our
customers

•  complementing the
existing channel
mix

•  complementing the
existing channel mix

•  and provide
excellent service

•  and be present there
where important
issues are discussed

•  to increase the
number of hires and
applications

•  starting with
question and
complaint handling

•  to increase our
share in the
discussion

•  and can also be
used for retention.


22

ONLINE TURNED INTO
EFFECTIVE DIGITAL TEAM

23

Approach is delivering expected results
Focus on online delivered results in all relevant areas
More sales online (gross)

More self service transactions

Online sales

200.000

Drive2Web Ratio

70%

Online sales
Less sales via
price comparisson sites

150.000

More satisfied customers online
Customer Satisfaction

8,0

Drive2Web ratio

53%

7,7

100.000

35%

7,5

50.000

18%

7,2

0

0%

Customer satisfaction

Cons. - Drive2Web
SME. - Drive2Web

2009

2010

2011

2012

4th in social media Top 100
1. 
2. 
3. 
4. 
5. 

Vodafone
HEMA
Tele2
Essent
ABN AMRO

2013

jan-11

apr-11

jul-11

okt-11

jan-12

apr-12

Nominated NCCA Award
April 2012: Nominee
National Contact Center

jul-12

okt-12

jan-13

apr-13

jul-13

okt-13

Customer Satisfaction

6,9

jan-11

jul-11

2nd – 2012 Affiliate Award

okt-11

jan-12

apr-12

jul-12

okt-12

jan-13

apr-13

jul-13

okt-13

#1 website in energy

June 2013, chosen

1.

best performing

Award for Self Service
Online

apr-11

website in energy

2.

sector in the NL

3.
Source: #SMM4, Sep 2011

Source: www.ncca.nl

Source: www.affiliatedag.nl

Source: www.wua.nl


24

Looking back
•  Essent found itself in competitive market circumstances
due to energy market liberalisation in the Netherlands.
•  Online was seen as one of the opportunities to boost
commercial performance – for sales and self service.
•  Bringing together all online experts into one team brougth
the necessary focus and delivered results at high speed
and is still a novelty in the digital space.
•  The performance of the online team grew as expected – a
true effective digital team.


25

Paskal van Lomm
Business manager digital channels @ Essent
paskal.van.lomm@essent.nl | www.paskalvanlomm.nl

THANK YOU!


26

600Minutes Accelerate Online at Essent (10 October 2013)

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