1. A collaboration of:
CenterPoint Energy’s CRM Business Case for
Customer Vision
Stephenie Howard
CNP Business Process Improvement Manager
Kim Rich
CNP IT Solution Manager

2. 2
•Introduction – CenterPoint Energy
•Customer Engagement Strategy and Customer Vision
•Drivers
•Overview
•Business Case Strategy & Benefit Realization
•SAP CRM Solution Design
•Architecture & Data Model
•Unified Call Center and Streamlined Agent Processes
•Predictive Analytics
•Outage Interaction
•SAP HANA Segmentation & Campaign Automation
•Best Practices & Key Learnings
•Q&A
Agenda

3. 3
Summary Information
•Third largest combined electricity
and natural gas delivery company
in US
•5 million plus customers
•2.2 million electric customers
•3.2 million gas customers
•Multiple Business Segments
•Electric Transmission
& Distribution
•Natural Gas Distribution
•Competitive Natural Gas
Sales & Services
Introduction – Who is CenterPoint Energy?

4. 4
• ERCOT mandates
• Efficient use of DOE funding and exceeding targets
• Innovative ways to advance the market and promote
“smart” change
Industry
• Unified vs. integrated customer service
• Single view of the customer and the products and
services provided
• New platforms to enable DSM, energy efficiency
programs and broader product portfolios
• Customer Relationship is a new competing strategy
• Maturing of CRM and other customer solutions
• Smart Devices
• Maturing of ‘Services’
• Ability to manage growing volumes of data into
consumable and actionable information
Customer
• Significant changes in how adults prefer to
communicate
• Self Service is #1 preference for consumers for customer
service, and building loyalty – followed by text
messaging and email
• Customer wants to be delighted – “Value me”, “my
time”, “my money” and “my preferences”
Technology
Regulatory
Regulatory
Customer Vision – Drivers

5. 5
Customer Vision – Technology Drivers
Source: IBM Institute for Business Value Analysis
Societal impacts
Mobile
revolution
Connectivity, access, and participation of people
and things are growing rapidly. Mobile internet and
smart devices are exploding.
Social media
explosion
The ways in which individuals and organizations
engage, interact, and collaborate are changing.
Hyper-
digitization
Digital content is being produced and accessed
more quickly than ever before, causing growth in
digitized industries, markets, and segments.
Power of
analytics
There are new opportunities for real time
analysis and predictive analytics, which are
creating business insight from more and more
data.
Digital transformation enablers
Individuals
• Connected consumer
• Networked workforce
• Empowered citizens
Companies
• Evolved business models
• Optimized digital operations
• Connected enterprise
• Value migration
• Industry redefinition
• Fragmentation
Industries

6. 6
36.8%
projected growth in worldwide energy
demand by 2030
38 trillion
global investment in energy
supply infrastructure expected
between 2011 to 2035,
$150 billion/year
lost due to outages and
interruptions in electric power (just
in the U.S.)
1/4
proportion of worldwide CO2
emissions created by power
generation, the largest man-made
source
$70 billion
in infrastructure spending
could be saved over the next
20 years through better
management of existing
assets (in the U.S. alone)
15% reduction in peak
loads
when consumers were offered the
opportunity to save and average of
10% on their electric bills
1.3 billion
people in the world have no access
to basic energy
Customer Vision – Industry Drivers

7. 7
More knowledgeable
about products, services,
costs, and price
More savvy about
technology and
products/services
Less loyal to any given
entity due to
‘commoditization’
More self-sufficient:
demanding information
to make smart decisions
Expects multiple options
to shop, purchase
products and interact
with the same level of
service
Proud of individuality,
and expects
personalization and high
customer service in every
interaction
Driven by three chief
currencies: time, value,
and information
Wants a seamless experience:
•Synchronized and consistent service
regardless of channel
Wants to be understood:
• Needs and preferences
• One-to-one marketing
Wants increased convenience:
• Ordering
• Returns
• Refunds
Wants improved service and
support:
• Call center
• Shopping
• Customer service
Evolving Customer Characteristics
Source: IBM Institute for Business Value “Retailing in a World of Extremes”
Customer Vision – Customer Drivers

8. 8
Customer Vision - Overview
CenterPoint Energy will be recognized as a transformational
industry leader that leverages technology to provide
innovative services and solutions that are mutually beneficial
to CenterPoint Energy and our stakeholders. These solutions
will inspire confidence and peace of mind in our customers
and key market stakeholders.
CenterPoint Energy Customer Vision Statement

9. 9
• Where Has CenterPoint Energy Been…
•2009 – Smart Meter Deployment for Electric Customers
•2010-2012 – Continuous Improvements to Customer Self-Service and the Customer
Experience
• My Energy Analyzer
• One-Time Payments
• Self-Service Reconnects
• Bill Reminders
• Service Order Tracking
•2013 – Initial Deployment for Power Alert Service
Customer Vision - Overview

10. 10
• Our Results of the Journey So Far…
Customer Vision - Overview

11. 11
• To Continue the Journey…
•More Preference Options for Customer Account Alerts and Channel Choice
•New Tools - Faster, More Effective Reporting and Segmentation
•Upgrade to our Customer Information Platform
•Upgrade to our Telephony Infrastructure
Customer Vision - Overview

12. 12
• Challenges that CenterPoint Energy has Worked
Through…
•Needed to build confidence in cost estimates and
benefit targets
•Limited data available to baseline the current
state
•Different and Related Projects impacting the same
KPI’s
•Scope control with different transactional systems
supporting different lines of business
Customer Vision – Business Case Strategy

13. 13
• Strategy
• Begin with Smaller Projects to Pilot Strategy and Build Confidence
• My Energy Analyzer
• Customer Self-Service Expansion
• Group Closely Related Projects under a larger program
• SAP CRM
• CHaRT – Channel Handling and Routing Technology
• Credit & Collections
• Define benefit targets at the program level
• Focus on improved reporting in the current environment to establish an accurate baseline
• Survey focus groups to benchmark current customer experiences and identify high value
opportunities for improvement
• Design a flexible solution that allows for incremental growth and expansion over time
Customer Vision – Business Case Strategy
Reduce Cost Through
Simplification
Drive
Customer
Satisfaction
Reach
Customers
in New Ways
Business
Applications

14. 14
Customer Vision’s Value to the Business
• Benefit Target Areas – Business Financial Commitment across all lines of business
• Average Handling Time (AHT) Reduction - Online scripting, guided processes, and customer
preference management
• Training Expense Reduction - Jurisdictional and procedural process guidance and simpler
screen navigation
• Bad Debt Expense Reduction - Better process monitoring (skip tracing, deposit waivers,
inconsistent execution of policy, etc.)
• HSP Benefits - Truck Roll Reduction and Sales through targeted Marketing campaigns.
• CIP Uplift Improvement - Incremental bonus on Conservation Improvement Program
• Online Adoption Improvement - Paperless Billing Savings
• Bill Inserts Decrease
• Agent Utilization Improvement
• Enhanced Customer Experience
Customer Vision – Business Case Strategy

15. 15
Customer Vision – Realizing the Benefits
Customer
Experience
Enhance
Service Learn
Choose
Connect/
Disconnect
Use
Pay
Solve
Problems
• Learn about providers and their offerings
• Understand how a provider fits my needs
• Choose services
• Confirm services will meet my
needs
• Schedule service connect/disconnect
• Activate service connect/disconnect
• Hook up appliances
• Monitor energy use
• Receive bill
• Review and understand bill
• Request help understanding bill
• Pay bill
• Obtain information on outages and
interruptions
• Report an emergency
• Request help with appliance repair
or maintenance
• Understand options for controlling costs
• Understand options for conserving energy
What options and services are most important to customers?
Source: IBM Institute for Business Value (IBV) analysis

16. 16
• Blueprinting Phase – Completed June 2013
• 159 Workshops, 91 Unique Processes across Gas, Electric, and HSP
• Design Decisions driven by Benefit Opportunity
• Low Volume, Low Value Transactions – More Out-Of-Box Functionality or Transaction Launcher
Solutions
• High Volume, High Value Transactions – More Enhancements and Customization
• The CenterPoint Energy “Super 8” Processes – Approximately 65% of the Call Volume
• Gas - Move-In/Move-Out/Transfer
• Gas - Disconnect/Reconnect – NonPay
• Gas - High Bill
• Gas - View/Pay My Bill
• Gas - Cold Weather Rule
• Electric - Outage – Report/Inquiry
• Electric - Streetlight Outage –
Report/Inquiry
• Home Service Plus - Service Order –
Create/Change/Inquiry
Customer Vision – Realizing the Benefits

17. 17
Step # Step – Optimizing the Customer Interaction
0 - Proactive Communication
A Use Predictive Analytics Engine to qualify the customer and initiate Pro-active Customer Communication
1 - Self Service Containment
B Customer Calls Contact Center. IVR handles the call
C IVR calls CTI and provide the “Account Authentication” information like ANI, Drivers License, SSN
D CTI requests CRM about the Predictive Analytics Details based on Account Authenticated Information
E Predictive Analytics Engine, executes the “Analytics Algorithm” based on data from CRM / ECC / BI HANA / Legacy System
2 - Intelligent Routing
F Based on Predictive Analytics Algorithm that intelligently route to the correct agent based on Agent Skill Set/Availability, etc.
G Agent receives the call and confirms the Customer
3 - Agent Interaction
H Based on CAD, CRM raises appropriate alert messages from Alert Modeler
I Agent acknowledge the issue to the Customer based on predictive details provided
4 - Consultation/Offer
J Agent Performs “Consulting Interaction” with the Customer
5 - Wrap Up
K Customer Recap and Confirmations
Customer Vision – Realizing the Benefits

18. 18
• Development Focus in Realization
• Unified Call Center View and Streamlined Agent Processes
• IBM HATS
• CRM Contract Management
• Guided Processes
• Predictive Analytics
• Agent Alerts
• Quick Links to Processes
• Customer Preference Center
• Communication Options
• Channel Choice
• Transformational Outage Interaction
• Proactive Communications
• Blast Messaging
• HANA Segmentation and Campaign Automation
Customer Vision – CRM Solution Design

19. 19
SAP CRM Architecture
Customer Vision – CRM Solution Design

20. 20
CRM Data Model and Customer Link
New Concept – BP LINK
• Allows a Primary BP to be linked to
another BP/CA for any of the
following reasons:
• Is Same As
• Manages
• Preferences can be created for all
individual Business Partners
(accounts) by division/activity
• An Agent will be able to
create/change or remove a BP Link
using the same Guided Process
(Interactive Script)
• ANI match will identify all accounts
which are grouped (using the BP Link)
to be displayed to the CSR
Customer Vision – CRM Solution Design

21. 21
Unified Call Center View and Streamlined Agent Processes
• Implement SAP CRM to integrate customer and transactional data from multiple backend systems into a
single agent view
• Provide single-click navigation across multiple customer business services
Customer Vision – CRM Solution Design

22. 22
Unified Call Center View and Streamlined Agent Processes
• IBM® Rational® Host Access Transformation Services (HATS) is implemented to extend the legacy green screen into a Web screen
that can be presented within the CRM application area
Customer Vision – CRM Solution Design

23. 23
Unified Call Center View and Streamlined Agent Processes
Customer Vision – CRM Solution Design

24. 24
Unified Call Center View and Streamlined Agent Processes
• Implement CRM Contract Management Process for Move-in, Move-out and
Transfers
• Develop Guided Process to step agents through each activity
•Provide agents the flexibility to navigate between each step
• Include the following CNP specific
customizations:
• Enhance process for Duplicate
Partner and Debt determination
• External Credit Check
• Deposit Assessment
• Service Order creation and
scheduling
• Program enrollments
Customer Vision – CRM Solution Design

25. 25
Predictive Analytics Engine
A Framework utilizing dynamic and static variables for defined business processes in the determination of a customer contact
• Proactive Communication
• Natural Language IVR
• Intelligent Call Routing
• Proactive Customer Handling
Customer Vision – CRM Solution Design
Rule
Modeler
Alert
Modeler
BRF –
Predicative
Algorithm
BRF Plus – Predicative Algorithm
• Currently designed in CRM using Business Rules framework (BRF
Plus)
• Ability to turn on or off Business Rules
Rule Modeler
• Configurable in CRM to evaluate the qualification Criteria for
Super 8 Business process in an interaction
• Prioritize Agent Alert Messages
• Auto Insert “Categorization” in Interaction Record to track the
benefit of PAE)
Alert Modeler
• Configure Alert Messages/Dynamic Variables/Themes/Icons/tool
tip
• Navigate to Context based Web UI Screens with related Data
Populated
Predicative Analytics Engine (PAE)

26. 26
Slide 26
Customer Vision – CRM Solution Design
Demo – Predictive Analytics Engine – High Bill Scenario

27. 27
Predictive Analytics Engine – Additional Message Samples
• Disconnect/Re-Connect
• Electric Outage
Slide 27
Customer Vision – CRM Solution Design

28. 28
• Account-specific preference setting
• Multiple email/mobile #’s associated
with each preference
• Providing the ability to add/edit
additional ID’s without leaving the
preference center
Customer Vision – CRM Solution Design
Proactive Communication
and Contact Preferences

29. 29
• Preferences for all customer account
relationships maintained in a single
profile
Customer Vision – CRM Solution Design
Proactive Communication
and Contact Preferences

30. 30
Transformational Outage Management – Planned and Unplanned
• Two way communication
• Blast Messages
• Real time restoration or service order status updates
Customer Vision – CRM Solution Design
From To
• Company Driven • Customer Driven
• Human Interaction Based • Technical, automated capabilities
based
• Availability of general information
in a few channels
• Availability of personalized
information in multiple channels
• Reactive • Proactive
• System Wide Standard EOTs • Region-Based Data Driven EOTs
• Static Messaging • Dynamic Messaging
• Limited Channel communication on
few Outage Scenarios
• Multi-Channel communication on
most Outage Scenarios
Example: Current State
Outage Reporting via phone/IVR
Dispatch Operations updates GIS
to populate Outage Tracker
IVR/Mail/Phone
CNP pre-storm puts messaging on
the Web site
Default single address EOT: 4
Hours
Power Outage at your Location
Planned and Unplanned Outage
Example: Future State
Customer reports outage via text,
e-mail, mobile web/app
System updates Outage Tracker
Based on business rules
IVR/Mail/Phone/E-Mail, Social
Media/Web
CNP Pre-Storm “push” notification
across channels
Single Address EOT – Sugarland SC
(Trouble Level 3) 2:15 minutes
Outage due to vehicle wreckage in
area – EOT 3 hours
Planned and Unplanned Service
Center follow Up Work

31. 31
Hana Segmentation and De-duplication
• Segmentation is Performed on HANA and Final Target Group imported to SAP CRM for Campaign Execution
• Benefits include Segmentation on Real Time Data
• Quick Real Time Response from Predictive Analytics Engine using ABAP 2nd DB Connection
• Standard SAP De-Duplication logic identifies duplicate partners in a target group, CNP added other custom criteria
Customer Vision – CRM Solution Design

32. 32
Campaign Automation
• Event Driven Campaigns with rules to trigger automated follow-up communications
Customer Vision – CRM Solution Design

33. 33
Slide 33
Customer Vision – CRM Solution Design
Campaign Execution
• SAP CRM Target Group exported to an email aggregator for execution through an email connector. Campaign Tracking and Statistics
are pushed back to SAP CRM and are available on both a Campaign and an individual Business Partner level.
STEP 3: In CRM Campaign Automation
Tool, define all Campaign Events and
also connect Subsequent Campaign
Events.
STEP 4: For Each Campaign create the
Target Group. Release Campaign for
Execution
STEP 10: Execute Subsequent Campaign
From CRM to Email Aggregator
STEP 5: Exports Target Group to Email
Aggregator
From Email Aggregator to CRM
STEP 2: Retrieve the Email Template available in
Email Aggregator for Selection in Campaign
STEP 8: Retrieves Customer Response for the
Email Campaign and Upload the data to CRM
STEP 9: Trigger Subsequent Campaign Event
STEP 1: Define the Email Template
STEP 6: Send the Email with
Personalized Response Code to the
Customer
STEP 7: Tracks the Response for the
Email (i.e., Delivery / Read Receipt /
Open Rate, etc.)

34. 34
• Customers want to be treated as an individual - “Value me”, “my
time”, “my money” and “my preferences”
• Establish a vision and a clear strategic plan before making any detail
decisions on project scope and requirements
• Grouping integrated projects at a program level will simplify the
benefit components of the business case
• Pilot customer strategies with smaller projects to build confidence
and validate direction
• Enhancement and Customization hours should be focused on high
volume, high value processes
Best Practices and Key Lessons

35. 3535
Thank you
Questions & Answers
Contact Information
Stephenie.Howard@CenterPointEnergy.com and Kim.Rich@CenterPointEnergy.com

36. A collaboration of:
Stephenie Howard
CNP Business Process Improvement Manager
Stephenie.Howard@CenterPointEnergy.com
Kim Rich
CNP IT Solution Manager
Kim.Rich@CenterPointEnergy.com