Powergen on target with CRM

Customer Relationship Management software helps differentiation in commodity market

More targeted marketing is more effective

Energy company Powergen is doubling its marketing campaigns thanks to customer relationship management (CRM) systems that allow more careful targeting.

The software from Aprimo helps the company avoid chasing disinterested customers and enables more co-ordinated marketing activities so a single customer does not receive a letter, telephone call and email all in the same week.

The aim is to avoid a scattergun approach to direct marketing, says Mark Perrett, CRM manager for E.ON, Powergen's parent company.

'We wanted to introduce more rigour,' said Perrett.

'We wanted to be sure that we were offering propositions to people who actually might what to take them up, and avoid calling people who don't want to hear from us,' he said.

The software will also help identify customers more likely to switch suppliers, says Perrett.

'We have a low amount of facts about people, but CRM systems will help us interpret those facts into a coherent profile group.

'We look at people who are the most likely to switch supplier in the next six months and target them,' he said.

Relatively few of the major energy companies are exploiting the potential of CRM software, says Ovum analyst David Bradshaw.

'There are lots of systems around that improve capabilities and reduce costs, but CRM investment needs forward-thinking senior management who want to understand their customers,' said Bradshaw.

'Energy is a commodity therefore supplier cannot distinguish themselves with the quality of the product, so this is a way to set themselves apart as a provider,' he said.