Analytics are not only required post implementation of smart meters but can be of great help in the pre implementation phase as well. Analytics can be used to identify the right set of geographic locations and the target customers within the identified location. The right approach can not only lead to an increase in overall revenue but can impact market penetration, customer acceptance, customer loyalty and brand reputation.
Analytics can be applied in two stages for the implementation of smart meters:
- Stage one: Various statistical and analytical tools can be used to identify the right set of geographies to be targeted first. The right set of geographies can be picked based on sampling techniques and various criteria such as stratified (region, number of appliances and household size), disproportionate (over-sampled groups with higher variance) and random sampling (equal chance of selection).
- Stage two: Once the geographical locations have been identified, analytics can help identify a select group of customers to be targeted within the specified location. This may include those who contribute the most to the revenue or the ones that are most likely to churn, resulting in increased returns and enhance customer retention.
Read on to find out how utility providers can leverage voluminous data collected from smart meters to reduce cost imbalances and improve customer services.