CONNECTING WITH UTILITIES ON FACEBOOK

Social Media in the Utility Industry; State of the Market and Best Practices for Utility Customer Engagement Strategies in the Age of Social Media
Neil Strother and Clint Wheelock, 4Q 2011 (Pike Research)

"Social media has penetrated many utility companies in the past few years, bringing a new level of customer engagement through Facebook, Twitter, YouTube, and company blogs. However, since not all utilities have embraced social media in the same fashion, the landscape is somewhat chaotic. Some utility managers remain fearful of the potential risk involved as the business connects with customers in open dialogues where control of the message is in doubt…Pike Research offers strategies and best practices for utilities seeking to avoid mistakes and minimize risks as they increasingly engage…

"The key drivers inducing utilities to get involved with social media include…Customers expect to see their utilities available and engaging…Low cost to utilities to engage…Powerful networks like Twitter…keep customers up to date during power outages…Customer intelligence from [mined] data… Customer recruitment…Increased brand image and customer loyalty…Competitive pressure…"

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"The key inhibitors…Where to start…Fear of the unknown [and less control]…Regulatory concerns…[U]ncertainty over the ROI…Customer bases that are not ready…An inability by the utility to supply valuable information…A [too demanding] learning curve…Concerns about customer privacy…[P]otential friction between younger [and older] employees…

"In 2011, more than 57 million utility customers worldwide will use some form of social media to engage with their electricity providers, according to Pike Research’s forecast. That number will grow to 624 million by the end of 2017 at a compound annual growth rate (CAGR) of 81%. This growth will be fueled by utilities meeting customer demand for social engagements when power outages occur or when customers have a need for information about energy-saving solutions. Smart utilities should have sound strategies in place…"