Future Shock in Customer Service

Abstract

Some utilities still regard customer service as an adjunct, not a core, function. Although a water utility's customers are “captive,” well‐served customers generate the goodwill “reserve” against which the utility borrows when it has to raise rates, pay competitive salaries, site a new facility, or inconvenience customers in order to maintain the distribution system. In the future, water utility customer service operations will be both highly automated and at least partially outsourced. Customer service departments will consist of contract managers, technology specialists, and subject matter experts, and customers will be likely to use web‐ or phone‐based self‐service. Customer service will be much more capital‐intensive rather than labor‐intensive, and managing performance will be distinctly different. This article presents three customer service scenarios for utility managers to consider, a “status quo” approach, automation, and outsourcing, to help them develop strategic plans to move their organizations forward.