As the global water industry evolves, so too does its consumers. Today’s individuals are primarily focused on cost and the environment when it comes to water, while they expect an increasing amount of information and support from the utilities that provide these water and related services. Water consumption habits also vary across the consumer demographic – people who have experienced drought at a previously are more conscious about water consumption but those who did not were less concerned about playing a part in water conservation, while those who were born in developing countries are more appreciative of water infrastructure in their homes. Varying community relationships mean that utilities have to tailor solutions to specific locations – customers in regional areas are more community-focused than their urban counterparts, hence water service providers have to provide solutions that are approved by the community and are in line with the community’s needs.
“Megatrends” will impact individuals and shift future business focus
Factors ranging from technology infrastructure to availability of human capital can have a say in which businesses are poised to enter the space and successfully capture market share in the modern digital age. Shifts in environmental, social, economic and political factors are swaying customer choices on where to live and how to manage their homes.
The impact of technology will have significant implications on core service delivery for water utilities and change the way water companies and customers interact with each other. Smart meters for example, will allow for better demand management and reduce water consumption and optimize water bills for consumers. Artificial Intelligence (AI) will foster aggregate billing and support and allow consumers to manage their homes via one platform.
Economic factors will also play a huge part in consumer behavior towards water services, with rising interest rates, for example, putting pressure on current homeowners and creating “lifetime renters”.
Dynamic and evolving social demographics will mean that water companies will have to alter their business models and services to cater to an entire generation of baby boomers who are set to retire, an influx of temporary or permanent immigrants and the increasing influence of millennials. Adult kids are increasingly choosing to live with their parents in order to save up for their first homes as cost of home ownership increases, while retired parents move in with their kids as they are unable to afford mortgages on their homes.
Increasing environmental concerns due to the impact of climate change will put increasing amounts of stress on water infrastructure and security. Rising sea levels and extreme weather, flooding and drought will affect water assets and service delivery, and will be felt by service providers and customers alike.
Industry focus has to shift from assets to customers
The customer of the future wants to be at the center and their expectations are evolving at a rapid pace. The water industry will struggle to keep up if it does not change its value proposition to meet future customer needs. Customers interact with products and services on a daily basis and there is an unspoken trust that exists. Utilities have to leverage this trust to provide more focused experiences and options for its patrons. During times of water crisis, future customers will be less inclined to follow the traditional “stick vs. carrot” approach which rewards consumers for sticking to certain restrictions but penalizes them if the same restrictions are not adhered to. Customers want to be educated and rewarded for making sustainable water decisions. With accelerating technological innovations and increased interconnectivity, customers expect to be better connected with their service providers. The water industry has to have a higher focus on using technology to better engage, support and educate its users.
Empowering the individual will push the industry further forward
In order to support the future customer value proposition, the water industry has to make services more customer-centric. Working together to harness relevant insights from available data is a must as the industry prepares for evolving customer expectations.
Service providers have to put measures in place that would allow consumers to save costs and manage their bills easily. Aggregating water services with other providers to manage bills from one platform, providing flexible payment options and greater transparency on water usage and costs would go a long way towards achieving cost savings.
The industry needs to establish a deeper connection with the individual in order to better tailor services to requirements. Using advanced AI and data collection and analysis methods to gain insights into customer behavior and requirements would allow utilities to offer a better quality of service and achieve economies of scale.
In order to ensure a sustainable future, the industry has to engage with individuals and communities on a deeper level and let them have a bigger say on decisions taken within the sector. Individuals should be educated on the impact their actions can have on the efficiency and sustainability of the industry in the long-term. Utilities service providers can partner with organizations such as schools, government agencies and various community groups for outreach and actions to give individuals a bigger voice in planning the future of the water industry.
