has returned or finding its way into most of the businesses in emerging economy like India. Consumer 'needs'
and 'willingness to pay'
for good quality products and services is driving a whole new era of competition
. It first started in luxury industry with high economy class consumers, where there was established 'willingness to pay'
for better services and then slowly start penetrating into other sectors and also lower economic classes and raising their 'aspirations'
. These phenomenon is creating a whole new market
and driving innovations
. The aviation, telecom (mobile and internet) and various other industries has seen this Consumer cycle
. India's Power Distribution sector has begin its journey of enabling 'diversity'
and adding more 'choices'
to its electricity customers. Like other sectors, the cycle first began with high volume or developed consumers through 'top-down
' innovation like 'Open Access' and now we have started hearing of 'bottom-up'
innovation like 'Pre-paid metering', 'Net-metering' and 'Distributed Generation based Distributed Franchisee (DGBDF)'.
The to-be leaders in the Power Distribution space will soon have to learn this change that is sweeping the country and include the end-consumers into the designing
of solutions and soon also accept equally the urban and rural consumer mix
to drive bottom-top
innovation. The new saga is to forgo or overcome references like BPL, APL, agri (or rural), tariff subsidies and free power, but start innovating scalable
ventures to meet the needs and challenge. Grameen Micro Financing model first innovated at Bangladesh is now widely accepted and MFI is a very big and fast growing industry with strong developing linkages to the main streamline capital industry through various derivatives.
Remember this all begins with a 3 letter word - KYC i.e. 'Know Your Customer'
. Its an important phase after you are done with Market Analysis through KYM i.e. 'Know Your Markets'
. KYC should be a pre-cursor for high confidence KYI i.e. 'Know Your Investments'
Our recent discussions with prospective bidders for Distribution Franchisee tenders in 9 districts of Madhya Pradesh
(MP) was full of encouragement for our recently conducted 'Customer Satisfaction study for Electric Utilities'
in those regions.
- Most companies easily perceived our work's importance to operating Distribution Franchisee post the bid win for regular (internal & external) benchmarking of Customer Satisfaction to evaluate and better prioritize their system investments and efforts.
- Almost all experienced companies in running Distribution extended the applicability of our Customer Satisfaction research also to the pre-bidding phase. They found it will add an important perspective to their already on-ground technical due-diligence and help them validate their assumptions on Capex and Opex plans for bidding.