The power of energy management: how to save costs and influence people

• 6 months ago (2023-10-17)
• Junior Isles

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By David Sheldrake , SVP of Sales360, POWWR

It is fair to say that in recent years, the energy sector has experienced unprecedented growth and change. Much of it was unforeseen. By continually having to evolve, the industry has been forced to become highly dynamic. Once dominated by a few key players, the sector has opened up significantly. As a result, there is mounting pressure on suppliers to offer the best deals for their customers. However, consumer expectations have also surged, with demand for quick, efficient services and competitive pricing.

This competitive market requires suppliers to demonstrate both speed and efficiency. The ability to rapidly adapt to changing market conditions and consumer preferences is crucial to not only survive but thrive. This is where energy management solutions come in. They help energy suppliers juggle energy procurement, distribution, and customer service. All the while, streamlining the customer experience.

A complex sector

The energy sector remains extraordinarily complex, with numerous factors influencing market rates and energy consumption. Energy prices are based on multiple variables, such as supply and demand, geopolitical issues, regulatory changes, weather patterns, and technological advances.

It is imperative that energy suppliers can harness the information they have at their fingertips to secure the best business rates. This could empower them to buy energy when prices are low or hedging against future price increases. They must also understand energy consumption patterns and implement strategies to minimise waste, enhancing their environmental credentials.

An intricate relationship

The intricate relationship between resource management, cost savings, and performance improvement cannot be overstated. Economic pressures, customer expectations, and the increasing focus on sustainability all play pivotal roles in driving energy businesses to seek ways to cut costs.

Resource conservation and efficiency are extremely important in the energy industry. And it runs deep. Remember that every aspect of the business, from procurement to distribution, depends on energy itself. Therefore, the implications of energy waste go beyond simply missed cost-saving opportunities. Unplanned outages, equipment glitches, poor power quality, or inefficient usage can all have significant repercussions on the business. Not least of which, they could affect the company’s hard-earned reputation.

Optimising resource use should be thought of as a key differentiator for energy businesses. More and more consumers seek energy suppliers that prioritise sustainability and efficiency. Demonstrating a commitment to conserving resources and reducing waste can massively enhance a brand image, attract eco-conscious customers, and even have the potential for them to command higher prices.

Tailored strategies for all

Cost savings in the energy sector requires a tailored strategy that aligns with each business's unique needs and operational realities. Yet, the practical strategies that can most help reduce costs and optimise resources include:

• Reduce spending – whether that be including optimising energy procurement strategies to secure the best rates, investing in energy-efficient technology, or minimising waste through improved operational processes. However, make sure any cost-cutting measures do not compromise service quality.
• Facility usage checks – conducting audits of facilities can help identify energy waste, equipment inefficiencies, or operational bottlenecks. It can also help increase equipment lifespan.
• Alter products to use less and get more. Rethinking a product or services portfolio can lead to significant cost savings. Think about redesigning existing energy products to be more efficient or introducing new services that leverage existing resources.
• Evaluate sources with clientele – keep an open line of communication with customers about their energy needs and preferences. More closely aligning procurement strategies with customer needs helps avoid overbuying energy or investing in unwanted services. It also helps the business stay ahead of market trends and become more agile.

Becoming a trusted partner

Understanding customer needs is vital to any business's success. In the energy sector, it can help guide strategies, shape offerings, and dictate the best approach to customer service. Consumers today crave assurance that they can depend on their energy supplier to provide uninterrupted service. Energy is necessary, and any disruption can have severe implications. Make reliability non-negotiable. Reliability extends beyond just consistent energy supply, though. It is about delivering on promises, meeting customer expectations, and being a trusted partner. Quick, accurate communication is often the bedrock of developing that trust.

Remember that everyone loves a good deal. Offering competitive rates is crucial. Helping customers reduce their energy consumption and providing them with tools and advice to manage their energy use more efficiently is a fantastic way to show customers that you care. In a competitive market, offering such value-added services can set the business apart. Whether it means providing energy management advice, flexible payment options, grace periods, or exceptional customer service.

Different energy management procurement companies offer different contract types. However, all customers appreciate transparency and flexibility regarding contract terms. Whether it is a fixed-rate, variable-rate, or time-of-use contract, it is essential to explain the details, benefits, and potential drawbacks clearly. That way it is easier for the customers to choose the contract type that best suits their needs and minimise any nasty surprises in the future.

Game-changing technology

In an era of increasing competition and heightened customer expectations, managing an energy supply business requires an in-depth understanding of the industry, a commitment to efficiency, and a customer-centric approach. Thankfully, technology can help. By managing energy resources more effectively, it is possible for energy businesses to reduce costs, enhance operational performance, increase customer satisfaction, and differentiate in a crowded market.

Utilising energy management software can prove to be a game-changer. Such tools provide a wealth of data that helps to inform decisions, optimise resource use, and enable the business to foresee potential issues before they escalate. Plus, it allows teams to work confidently and precisely, as they are equipped with the information required to drive performance and customer satisfaction forward.