INTERVIEW

Device flex: the untapped retention driver

Tania Barr, Head of Marketing, Podero

Household churn is on the rise, with a third of European households estimated to have switched providers in the past 2 years. We believe well-designed device flex propositions can drive long term loyalty and boost customer lifetime value – while being value generating in their own right as a trading asset.

What do utilities use to safeguard retention today?

We see current tactics range from improved digital servicing, to loyalty schemes, value added services such as device discounting, or (worst case) price drops. All of these can work really hard for a utility in terms of keeping customers for longer, but the majority are also essentially a cost to the business.

How does household device flex come into it?

There is a growing penetration of low carbon tech across households in Europe, from EVs and heat pumps to PV/battery systems. The nature of take-up varies across markets but one thing is consistent; when a household invests, they are looking for eventual return, not just a green ‘halo’.

When a customer takes their first step into EV ownership or solar panels on the roof, they immediately become a level more engaged in how they are consuming energy. This is a critical point for many, leading them to reassess what they’re paying – and whether their current tariff suits their new household profile. The natural next step is to review what their current provider has on the table… or start looking at alternatives.

No one size fits all

It’s key to start with a good understanding of your customer segments. Smart product design can ensure device flex becomes an appealing – and sticky – proposition for everyone from the prosumer to the budget-conscious. And with trading enablement, it can include the fixed contract customer base too. Podero has direct experience of this in partnership with oekostrom AG in Austria, launching a multi-device bolt-on savings proposition (‘smartSparen’) across the full dynamic and fixed tariff portfolio. Positive retention impact could be seen from the start.

Can a loyalty driver also be a profit centre?

This is the joy of device flex ‘done right’. With integrated trading enablement and smart proposition design, we see 4 stages of value generation from device flex. A utility can steadily evolve from simple spot price optimization for its dynamic base, to stronger forecasting benefits, to ultimately unlocking and stacking more advanced trading revenues. But in our experience, boosting lifetime value from stronger customer loyalty kicks in from Day One.

About Podero

Leading utilities use Podero to unlock their next generation of energy products. Podero’s fully integrated SaaS platform automatically manages device fleets, steering according to utility trading systems. Podero integrates into app, backend, trading, ERP and customer support systems to ensure a commercially scalable solution, as well as supporting go-to-market strategy and execution.

For more, download our full Retention Report here, or get in touch at hello@podero.com.