HomeMy WebLinkAboutStaff Report 138-06TO:HONORABLE CITY COUNCIL
FROM:CITY )L~NAGER DEPARTMENT:UTILITIES
DATE:FEBRUARY 13, 2006 CMR:138:06
SUBJECT:STATEWIDE AND PALO ALTO BUSINESSCUSTOMER
SATISFACTION SURVEY RESULTS
This report is for the Council’s information only. No action is required.
BACKGROUND:
A sample of Palo Alto business customers were surveyed by RKS Research and Consulting as
part of a statewide customer satisfaction survey conducted by California Municipal Utilities
Association (CMUA). This is the second time City of Palo Alto Utilities (CPAU) has conducted
a survey of this type. The initial benchmark study was first done in 2003, also in conjunction
with the CMUA Statewide Survey of Business Customer Satisfaction.
Interviews for both the CMUA statewide survey and the CPAU survey were conducted by
telephone. The statewide survey was done during the summer of 2005 and the CPAU survey
was done between September 28 and October 20, 2005. The statewide CMUA survey is based on
500 telephone interviews conducted among energy decision-makers at businesses throughout
California. The City of Palo Alto over-sample consists of 100 interviews based on a list of
business customers provided by CPAU.
Interviews for the statewide SUlwey are distributed as follows:
400 interviews among businesses served by Municipal Utilities
-250 in Southern California
-150 in Northern California
,100 interviews among businesses served by California Investor-Owned Utilities
Interviews for the Palo Alto over-sample are distributed as follows:
¯11 Key Accounts (greater than $500,000 revenue)
¯20 Large Customers ( betaveen $100,000 and $500,000 revenue)
CMR:138:06 Page 1 of 4
69 Small Customers (less than $100,000 revenue)
The survey addresses business attitudes and opinions on subjects such as utility image, power
delive13,, account services, key accounts, billing services, pricing, value, public benefit programs,
and economic development.
DISCUSSION:
The results of this research confirm that the CPAU has a strong relationship with its business
customers. Business customers have a great deal of trust and confidence in CPAU as an
organization, seeing it as a well-run, service-oriented operation that values their business. Even
though many believe their electricity prices are higher than in the past, they feel good about the
value and service that CPAU provides.
Business customers also express very positive feelings about CPAU’s ability to provide them
with consistent, reliable power - its power delivery record ranks well above other California
municipal utilities. CPAU’s response to outages also plays a part - business customers give
CPAU high praise for its quick response, for notifyir)g them in advance about planned outages
and for being easy to reach for information when outages occur.
Judging by the Business Performance Record (BPR), an RKS proprietary statistical model used
to measure business customers’ satisfaction with their utility, CPAU continued to score above
the norm for California municipal utilities; however, the margin was not as wide as in 2003. The
most notable shift is in the price factor, which declined significantly over the past two years. By
contrast, CPAU customers’ perceptions of its performance on value, image and power
information have held steady, while relationship and power delivery have fallen since 2003. The
table below smnmarizes the various BPR statistics in comparison with average of other Muni’s
and CPAU’s score in 2003.
Total BPR
Price
Value I
Relationship
Image
Power Information
Power Delivery
.~ Significantly lower
CPAU
’05
8.2
3.4.[.
8.2
7.8
8.4
8.5
8.4
than CPAU 2003
Total Muni
’05
8.0
3.8
8.0
7.7
8.2
7.6
8.3
CPAU
’03
8.4
4.8
8.2
8.2
8.4
8.5
8.7
CMR:138:06 Page 2 of 4
It’s interesting to note that despite declines in some BPR factors, customers are more likely to
say their opinion of CPAU has improved over the last few years; just a handful say their opinion
has gotten worse.
Base:
Improved
Stayed about the same
Gotten worse
Not sure
CPAU ’05
(100)
%
19
78
3
Total Muni ’05
(400)
%
12
81
5
2
CPAU ’03
(loo)
%
13
71
7
9
CPAU’s performance on various components of image provides a clear view of its strengths and
weaka~esses. Business customers award it highest scores for being m.lstworthy and being a good
community citizen, scoring it well above the statewide norm. CPAU customers also award their
utility above-average scores for "values us as a customer" and "works hard to retain our
business."
Although CPAU’s performance continues to rank at or above the statewide norm on most
measures, some declines since 2003 merit a closer look:
Customer service. Overall satisfaction with customer service reps declined significantly in
2005, indicating some opportunity for improvement. While businesses express confidence
in customer serv-ice representatives’ knowledge, they appear more frustrated with the length
of wait to speak to a representative and the time it takes to resolve problems. Given
customers’ positive feelings of CPAU, it is very important that their contact experience
confirm that view.
Website enhancement. CPAU might consider retooling its website to improve its user-
friendliness and information value to business customers. Given businesses’ interest in
obtaining energy information, it may be worthwhile to spend more time talking to
customers about the types of information they would find useful on the CPAU site, and
ways to improve its navigability. Keeping the website infon~native and up to date will also
be important as it continues to ~ow as a key customer interface. On January 23, 2006
Council approved two contracts (CMR: 102:06) for implementation of website management
and redesign.
Ener~ efficiency programs. CPAU has done an excellent job of generating awareness
and interest in its energy programs among its business customers. As a result, businesses
show a higher than average interest in energy efficiency pro~ams, demonstrated by their
high level of calls to request additional information. This area represents an important
CMR:138:06 Page 3 of 4
opportunity for CPAU to add value and forge stronger relationships with its customers. Key
accounts with plans for expansion are prime targets for these programs. It is in CPAU’s
best interest to address businesses’ needs by providing them with energy efficiency
information and advice as much as possible. In addition to giving customers a sense of
added value for their money, these pro~ams promote a sense of partnership and a feeling
that CPAU values their business.
Staff will return to the Council in spring with recommendations to address the oppommities and
shortcomings highlighted in the survey.
POLICY IMPLICATIONS
There are no policy implications.
ENVIRONMENTAL REVIEW
There is no environmental assessment required.
ATTACHMENT
A: CMUA 2005 Palo Alto Business Customer Satisfaction Survey - Presentation
B: CMUA 2005 Palo Alto Business Customer Satisfaction Survey - Report
PREPARED BY:
DEPARTMENT HEAD:
Ipek Connolly, Resource Planner /(~l--
Director of_~dminist~tative Services
CITY MANAGER APPROVAL:
~ON
Assistant CiD~ Manager
CMR:138:06 Page 4 of 4
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CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
This report summarizes and highlights the City of Palo Alto Utilities’ (CPAU) Autumn
2005 survey among business customers conducted by RKS Research & Consulting.
This effort represents the second time CPAU has conducted this survey, with its initial
benchmark study first done two years earlier in 2003, also in conjunction with the
CMUA Statewide Survey of Business Customer Satisfaction.
This survey is an oversample of the CMUA Summer 2005 Statewide Survey of Business
Customers Served by California ~Iunicipal Utilities. Interviews for both the CMUA
statewide survey and the CPAU survey were conducted by telephone. The statewide
survey was done during summer and interviewing on the CPAU survey was done
between September 28 to October 20, 2005 by RKS Research & Consulting.
The City of Palo Alto oversampIe consists of 100 interviews based on a sample provided
by CPAU. The statewide CMUA survey is based on 500 telephone interviews conducted
among energy decision-makers at businesses throughout California. Interviews for the
Statewide survey are distributed as follows:
¯400 interviews among businesses served by Municipal Utilities
250 in Southern California
150 in Northern California
I00 interviews among businesses served by California Investor-Owned Utilities
The survey addresses business attitudes and opinions on subjects such as utility image,
power delivery, account services, key accounts, billing services, pricing, value, public
benefit programs, and economic development.
CPAU results are presented in this report along with comparative results from the previous
CPUA smwey conducted in 2003. Updated results fl~om the CMUA 2005 Statewide Study
are also included to provide an additional gauge for judging CPAU’s performance. All
findings have been weighted to assure accurate trending.
Attached to this document is a questionnaire that shows results on a question-by-
question basis. RKS will provide an on-site presentation of research results at a time
that is convenient for CPAU.
~-’RKS Research & Consulting- All Rights Reserved, 2005.Confidential
CMR:138:06 Attachment B
CITY OF PALO AL TO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Business Performance Record
The Business Performance Record (BPR) is RKS’ proprietary statistical model used to
measure business customers’ satisfaction with their utility. The BPR provides a
snapshot of utility performance in areas such as power delivery, customer service, and
image and provides an overall score that offers a consistent basis for comparison to
other utilities and to performance in prior years.
Palo _hAto’s Total BPR score encapsulates its overall performance in 2005. It continues
to score above the norm for California municipal utilities; however, the margin is not as
wide as in 2003. The most notable shift is in the Price factor, which declined
significantly over the past two years. By contrast, CPAU customers’ perceptions of its
performance on Value, Image and Power Information have held steady, while
Relationship and Power Delivery have fallen since 2003.
Total BPR
Price
Value
Relationship
Image
Power Information
Power Delivery
CPAU
’05
8.2
8.2
7.8
8.4
8.5
8.4
$ Si~omificandy lower than CPAU 2003
Total Muni
’05
8.0
3.8
8.0
7.7
8.2
7.6
8.3
CPAU
’03
8.4
4.8
8.2
8.2
8.4
8.5
8.7
2
~RKS Research & Consulting- All Rights Reserved, 2005.Confidential
RESF RCH &
CONSD-LTINC
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
California Business Climate (Q,1)
CPAU customers’ business plans are typical of other businesses across the state. The
majority (65%) expect their business activity to remain the same; a bit under one in
t.hree (30%) expect to expand their operations. Key account customers are most likely to
looking at expansion (46%), followed by Large businesses (20%) and Small (7%). [QJ-b]
Base:
Keep them the same
Exp and 21
Move to a different location 5
Reduce or close certain operations 1
Not sure 5 1 6
CPAU ’05
(100)
%
65
30
Total Muni ’05
( 00)
%
68
Utility Image (O2-3)
Asked about their overall opinion of CPAU, more than three out of four business
customers (79%) say they have an extremely positive opinion, slightly above the
average for municipal utilities across the state. [Q2a]
CPAU ’05 Total Muni ’05 CPAU ’03
Base:(100 (400)(100)
Very favorable~79%76%82%
Mean 8.3 8.4 8.4
~ Percent responding 8, 9 or i0 on a 0 (very unfavorable) to I0 (ve~.- favorable) scale
Most CPAU business customers (78%) say their opinion has stayed the same over the
past few years; another 19% say their opinion has improved. Customers cited several
reasons for their improved opinion - low rates (35%), power reliability (28%), good
customer service (22%), quick response to outages (19%), and its green energy program
(11%). Those whose opinions fell mention high electricity prices (13%).
eRKS Research & Consulting- All Rights Reserved, 2005.Confidential
RESEAB.CH &CONSL TING
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
It’s interesting to note that despite declines in some BPR factors, customers are more
likely to say their opinion of CPAU has improved over the last few years; just a handful
say their opinion has gotten worse. [Q2b-c]
Base:
CPAU ’05 Total Muni ’05
(100)(400)
%
Improved 19 12
Stayed about the same 78 81
Gotten worse 3 I 5
iNotsure .2
CPAU ’03
(lOO)
%
13
71
7
9
CPAU’s performance on various components of image provides a clear view of its .
strengths and weaknesses. Business customers award it highest scores for being
trustworthy and being a good community citizen, scoring it well above the statewide
norm. CPAU customers also award their utility above-average scores for "values us as
a customer" and "works hard to retain our business."
Comparisons to CPAU’s 2003 scores paint a somewhat different picture. While its
scores for being trustworthy and a good community citizen rose to very high levels,
ratings on all other measures fell noticeably since 2003. Those showing the greatest
declines include "values us as a customer," "prepared for the future," and "works hard
to retain our business."
4
CRKS Research & Consulting- All Rights Reserwed, 2005.Confidential
CMR:138:06 Attachment B
CITY OF PASO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Base:
Trustworthy
Good community citizen
Meets our expectations
Well-run utility
Values us as a customer
Progressive and cutting edge
Prepared for the future
Works hard to retain business
One of most valuable partners
CPAU ’05
(lO0)
8.9
8.8
8.2
8.1
7.9
7.7
7.7
7.6
7.4
Total Muni ’05
(400)
8.2
8.1
8.3
8.1
7.5
7.6
7.7
7.1
7.2
CPAU ’03
(lOO)
8.5
8.4
8.6
8.4
8.4
8.1
8.3
8.1
As might be expected, Key Accounts have the most positive impression of CPAU
compared to theh- smaller customer counterparts. Key Accounts see CPAU as more
trustworthy and progressive, and feel more valued as customers.
Base:
Trustworthy
One of our most valuable business partners
Progressive and cutting edge
Works hard to retain our business
Values us as a customer
Key Account
(11)
9.3
7.9
9.0
8.4
9.0
Large
(20)
8.6
7.0
6.4
7.0
7.0
Small
(69)
8.4
6.7
7.8
7.0
7.4
5
CRKS Research & Consulting- All Rights Reserved, 2005.Confidential
CMR:138:06 Attachment B
CITY OF PASO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
As a group, CPAU customers feel good about its sense of environmental commitment,
awarding it above average ratings on this measure. They are also relatively positive
when asked about CPAU’s efforts to help them use less energy and save money, giving
the utility ratings well above California state norms for its efforts to help businesses
save ener~7. [Q3c]
CPAU ’O5
(lOO)Base:
Commitment to protect the environment 8.1
Efforts at helping businesses save ener~7 and money 7.7 7.1
Providing practical information that helps yoh use 7.5 7.2less energy in your business
Mean rating on a 0 (poor) to 10 (excellent) scale
Total Muni ’05
(400)
7.7
Power Delivery (Q4-6)
CPAU boasts an impressive power delivery record, with three quarters (74%) of its
business customers saying they did not experience any outages in the past year, a
significant improvement over what was found in 2003. Those that did suffer outages
reported fewer than in the past, averaging 1.1 outages compared to 2.4 in 2003. CPAU
customers are much less likely to experience an outage or power interruption than
other business customers across the state.
CPAU ’05 Total Muni ’05 CPAU ’03
Zero outages (%)74*54 67
Average # outages 1.1 !2.9 2.4
I 4.7 6.5Average # surges 1.8
*Significantly higher than CMUA Muni 2003
6
’~RKS Research & Consulting- All Rights Reserved, 2005.Confidential
i ESE/cqCH °
CONSULTING
CMR:I38:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
When asked about its performance on different aspects of power delivery, CPAU
business customers award their utility consistently high marks. They are especially
impressed with CPAU’s work to restore power quickly; they also give it top scores for
providing reliable power during very hot and cold weather, and for its commitment to
maintaining poles and equipment. [Q5]
CPAU ’05 CPAU ’03
Restoring power as quickly as possible 9.1 8.5 8.7
Providing electricity reliably during 8.8 8.7 NAvery hot and cold periods ..
Maintaining poles and equipment 8.8 8.4 NA
Easy to reach to obtain info about a 8,6 7,8 8,8power outage
Providing an accurate estimate of
restoration time 7.9 7,6
~L4 = not available. Not asked in 2003 survey
Business customers’ confidence in CPAU can be seen in other power delivery ratings,
where they give it scores well above the average for reliability and keeping them
informed of planned outages. They give lower scores than in 2003, however, for
providing reliable, clean power, falling just below the state norm. [Qe]
Providing electricity reliably, minimizing
number and duration of outages
Keeping you informed about planned
power outages for system maintenance
Providing clean power free of surges or
voltage fluctuations
CPAU ’05 Total Muni ’05 CPAU ’03
9.0
8.5 7.6 8.5
7.9 8.0 8.4
7
~rRKS Research & Consulting- All Rights Reserved, 2005.Confidential
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Account Services (Q7-9)
Nearly three out of four (73%) CPAU business customers contacted the utility in the
last 12 months, 10 points less than in 2003 (83%). CPAU’s business customers are
much more likely to be in touch with their utility than others in the state, where the
average rate is just 64%. As a group, CPAU business customers made an average of 3.8
calls to CPAU over the last 12 months, a significant drop from the average of 9.8 calls
logged in 2003 and below the state average of 5.0. [QTb]
Their reasons for calling offer good news. An unprecedented one in three of customers’
most recent calls (35%) were inquiries for information about energy efficiency
programs. Another 31% called with billing questions. New service/disconnects
accounted for 8% of calls, while 2% called about, power outages. Nine percent (9%) had
miscellaneous reasons for calling. [QTc]
Business customers’ perceptions of CPAU’s customer service reps have fallen off since
2003, dropping slightly below the state benchmark. And while they give reps high
scores for their knowledge and ability to answer all their questions in one call, CPAU
business customers are less pleased with the speed at which issues are solved and their
length of wait to speak to a rep, giving CPAU much lower ratings than in the past. [QTd]
Base:
Overall satisfaction
Knowledge
Answer all questions while on phone
Ease of understanding phone menu instructions
Resolve issues quickly
Length of wait
$ Significantly lower ~han CPAU 2003
Mean based on a 0 (not at all satisfied) to 10 (very saVisfied) scale
CPAU ’05
(5O)
7.8~
8.6
8.3
7.6
7.6
7.4~
TotaI Muni ’05
(225)
8.0
7.9
7.9
7.9
7.8
CPAU ’03
(64)
9.0
8.7
8.2
NA
8.5
8.8
8
CRKS Research & Consulting - All Rights Reserved, 2005.Confidential
RESF ARGH &CONSULTING
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPOR T OF FINDINGS
When asked what one thing CPAU could do to make it easier for business customers to
have contact with them, the majority (59%) said nothing or weren’t sure. Many of their
suggestions centered on providing a dedicated point of contact for businesses. These
included a dedicated line for businesses (6%), an assigned account rep (6%), phone calls
initiated by CPAU (5%), and contact with their account rep (5%). [QTe]
Key Accounts
Of the designated key accounts, most (95%) respond that they have a CPAU account
rep who visits them at their site. Those that do are extremely satisfied with the service
they receive, giving their reps excellent ratings for being responsive, easy to reach, and
informative. [QSa-b]
Base:
Overall satisfaction with account manager
Promptly responding to you
Being easy to get in touch with
Initiating contact with you
Providing you with useful information
Understanding your or~amzat~on s needs and operations
Helping your organization with money-saving advice
Meeting your overall needs and expectations
Being knowledgeable about your business operations
CPAU Key
Acct.
(15)
9.2
9.2
9.0
9.0
9.2
8.7
8.7
8.4
Key
(18) .......
8.9
9.0
8.8
8.5
8.9
8.8
8.9
CPAU customers are three times more likely to visit their utility’s website than others
around the state. More than two out of three (68%) have visited CPAU’s website in the
past year compared to just 22% on average for utilities across the state. Virtually all
(100%) of Key Account customers have visited the site, as well 50% of Large businesses,
and 16% of Small businesses. Visits are up within the CPAU customer base as well,
from 57% in 2003 to 68% in 2005.
~’RKS Research & Consulting- All Rights Reserved, 2005.Confidential
RESEARCH &CONSL]_TING
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Those that visit the site give it middle-of-the-road ratings (6.9) for being easy to use,
well under the 7.7 average for other municipal utility websites. These CPAU customers
are also somewhat critical of CPAU website’s information content, giving it lower than
average ratings on this measure (CPAU 7.2, Total Muni 7.8). [Qga,94
Total Muni ’05 CPAU ’03
Visited website past 12 months (%)22 57
Easy to use (mean rating)~7.7 7.7
Informative (mean rating)’~7.8 NA
~Mean rating on a 0 (difficult) to I0 (easy) scale
CPAU ’05
68*
6.9
7.2
2Mean rating on a 0 (uninformative) to 10 (very informative) scale
*Si~omificantly higher than CPAU 2003
Billing Issues
Business customers express confidence in CPAU’s billing practices, rating it at or above
state norms on all measures. Business customers are pleased with CPAU’s billing
accuracy and feel good about the variety of payment options made available.
Customers also see an improvement in bill clarity (from 7.6 to 8.1), though this
dimension still has some room to grow to meet the state average of 8.3.
Accuracy of your monthly bill
Variety of options available for paying bill
Length of time to pay bill without penalties
Clarity of information
Mean based on a 0 (poor) to 10 (excellent) scale
CPAU’05 Total Muni’05
8.7 8.7
8.6 8.2
8.3 i 8.3
8.1 ~8.3
CPAU ’03
NA
~N,TA
NA
7.6
10
C~RKS Research & Consulting- All Rights Reserved, 2005.Confidential
RESF &RCH &CONSULTING
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Pricing and Value (Ql1-12)
CPAU business customers’ price perceptions have shifted considerably over the past
two years. On a 10-point scale where 0 means the price is low and 10 means the price
is high, CPAU customers give their electricity price an average rating of 6.6, much
higher than its 2003 rating of 5.2. (On this one scab a higher rating = a more critical or
negative assessment.) One in three (34%) believe CPAU prices are high, compared to
just 21% who responded this way in 2003. At this time, CPAU business customers tend
to believe their electricity prices are higher than others around the state (CPAU 6.6,
Total ~[uni 6.2).
\Vhen asked to rate the total value of what they receive f~’om theh" utflity, customers place
CPAU on par with its peers. Customers give it.an average rating of 7.7 for the value it
provides in electricity and associated services. In comparison, the average statewide is
7.8. Despite similar average scores, it’s worth noting that 70% of CPAU customers gave
it an 8, 9 or i0 for the value it provides, compared to 59% of customers statewide. [Q12~]
Delving into specific aspects of pricing provides a clearer indication of CPAU’s
strengths and weaknesses. Business customers feel they receive good service,
competitive prices, and good value for their money on a par with state benchmarks. In
addition, they rate CPAU much higher than the average for offering easy to understand
pricing, helping manage their business’ monthly energy usage, and offering pricing
options to meet their needs.
CPAU receives slightly lower ratings than 2003 for having competitive prices and
pro~dding a good value for the money - not a surprising finding, in light of the higher
price perceptions noted earlier. [@n]
Total Muni
’05
8.0
7.8
8.1
6.9
6.7
Pricing options to meet your needs 6.7
Mean based on a 0 (poor) ~o I0 (excellent) scale
Ii
¢’RKS Research & Consulting- All Rights Reserved, 2005.
CPAU
’03
8.5
8.5
8.0
NA
NA
Confidential
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Energy Efficiency/Public Benefit Programs (Q13)
Palo Alto has done an outstanding job of educating its customers about its energy
efficiency programs. In addition to the unusually high number of customers who called
CPAU for program information, its business customers demonstrate a high level of
awareness of all the programs it offers, far above state benchmarks. Its ener~-
efficiency rebate program is best known, with 75% aware. [Q13a]
Base:
Energy efficiency rebate programs
Ability to view your consumption on website
Energy audits
Green ener~ programs
Solar energy or photo-voltaic rebates
Advanced metering with in-depth consumption information
Seminars on the latest energy advances
CPAU ’05
(100)
%
75*
70*
68*
66*
59*
59*
56*
Total Muni ’05
(400)
%
51
31
33
34
28
19
33
CPAU business customers show much stronger interest in energy efficiency programs
than others around the state. They are most interested in energy efficiency rebates
(8.2) and the ability to view their organization’s consumption on CPAU’s website (8.0).
[e13b]
CPAU’05 I Total Muni’05
Energy efficiency rebate programs 8.2*6.5
Ability to view your consumption on website 8.0*6.1
Advanced metering 7.6*,5.7
Seminars on the latest energy advances 7.4*4.9
Energy audits 7.0*5.0
Green energy 7.0*t 5.5
Solar energy 5.9 5.1
Rating on a 0 (no interest) to 10 (a ~o-reat deal of interesi) scale
12
~RKS Research & Consulting- All Rights Reserved, 2005.Confidential
RESE}d .CH &CONSL-LTING
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Communications (Q14)
As a group, CPAU business customers feel much more strongly than other business
customers about the need to receive energy information from their utility - 87%
consider it "very important" that their utility keep them up to date on energy issues,
significantly more compared to 68% of those statewide.
When asked about the overall effectiveness of CPAU’s current communications to
commercial and business customers, 70% of CPAU business customers characterized
them as "very effective," far above the state average of 43%. Key accounts are
especially pleased with CPAU communications, with 91% saying they are "very
effective." About half (55%) of Large businesses and 51% of Small businesses feel the
same. Overall, CPAU customers give its communications an average rating of 7.6 for
their effectiveness, wel! above the state average of 6.7.
When asked about their preference, most CPAU business customers say they prefer to
receive this information by email (67%) while some would like a newsletter (23%).. They
are divided on its frequency- 39% prefer a quarterly notice, while 38% would like to
receive information monthly.
In other communications, about 62% of CPAU respondents say they received a call from
a utility representative which was initiated by the utility, over three times the state
average of 20%. The majority (87%) felt these contacts were a good idea.
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~RKS Research & Consulting- All Rights Reserved, 2005.Confidential
RESEAIqCH &
CONSL TINO
CMR:138:06 Attachment B
CITY OF PALO ALTO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Utility Preference(Q15a)
By far, most business customers served by CPAU still say they would prefer to obtain
their electricity from a municipal utility, at levels even higher than in 2003 and
customers statewide. They show much less interest in service from IOUs than other
businesses across the state -just 10% state a preference for an investor-owned utility
compared to 16% statewide. [O15a]
(100)
%
Municipal (community-owned)75
Investor-owned 10
Neither 2
Not sure 12
Total Muni ’05
(400)
%
67
16
16
CPAU ’03
(100)
%
66
10
4
20
Summary and Conclusions
The results of this research confirm that the City of Palo Alto Utilities has a strong
relationship with its business customers. They have a great deal of trust and
confidence in CPAU as an organization, seeing it as a well-run, service-oriented
operation that values their business. Even though many believe their electricity prices
are higher than in the past, they feel good about the value and service that CPAU
provides.
Business customers also express very positive feelings about CPAU’s ability to provide
them with consistent, reliable power - its power delivery record ranks well above other
California municipal utilities. Their response to outages also plays a part - they give
CPAU high praise for its quick response, for noti~dng them in advance about planned
outages and for being easy to reach for information when outages occur.
14
~RKS Research & Consulting- All Rights Reserved, 2005.Confidential
RES GH &CONSULTING
CMR:138:06 Attachment B
CITY OF PALO AL TO UTILITIES
FALL 2005
BUSINESS CUSTOMER SURVEY
REPORT OF FINDINGS
Although CPAU!s performance continues to rank at or above the statewide norm on
most measures, these declines since 2003 merit a closer look:
Customer service. Overall satisfaction with customer service reps declined
significantly in 2005, indicating some opportunity for improvement. While
businesses express confidence in customer service reps’ knowledge, they appear
more frustrated with the length of wait to speak to a rep and the time it takes to
resolve their problem. Given customers’ positive feelings of CPAU as a company, it
is very important that their contact experience confirm that view. Although most
business customers are satisfied with their overall contact experience, there is
clearly an opportunity to bridge a gap in this area.
Website enhancement. CPAU might consider retooling its website to improve
its user-friendliness and information value to business customers. Given this
group’s interest in obtaining energy information, it may be worthwhile to spend
more time talking to customers about the types of information they would find
useful on the CPAU site, and ways to improve its navigability. Keeping the .
website informative and up to date will also be important as it continues to grow
as a key customer interface.
Energy efficiency programs. CPAU has done an excellent job of generating
awareness and interest in its energy programs among its business customers. As a
result, they show a higher than average interest in energy efficiency programs,
demonstrated by their high level of calls to request additional information. This
area represents an important opportunity for CPAU to add value and forge
stronger relationships with its customers.
Key accounts with plans for expansion are prime targets for these programs. It’s
in CPAU’s best interest to address their needs by providing them with energy
efficiency information and advice as much as possible. In addition to giving
customers a sense of added value for their money, these programs promote a sense
of partnership and a feeling that CPAU values their business.
15
~RKS Research & Consulting- All Rights Reserved, 2005.Confidential