Thinking ahead for PR19

With reviews of PR14 coming through regularly, Accent MD Rob Sheldon looks at what lessons are emerging and how these can be applied to PR19. All references leading back to PR14 conclude that Insight is increasingly highly valued and will in future be seen as integral to business development and not just something required by regulatory demands.

Accent has identified fourteen key areas to be considered for the next stage of insight development:

  1. New techniques to make the customer dialogue more engaging and ‘real’
  2. Simplification of the Willingness to Pay (WTP) approach, making it less abstract
  3. Effective engagement with future customers and on longer term investment issues
  4. Triangulation of WTP compatible approaches
  5. Development of WTP values that are valid for performance setting and also for incentive (ODI) setting
  6. Early engagement on insight programme with company challenge groups
  7. Harnessing the power of market segmentation
  8. Strengthening the communication channels between consumers and companies to enable more effective two way dialogue
  9. Inclusion of comparative performance data within surveys
  10. Understanding the role that behavioural economics can play in driving customer change
  11. Enhanced monitoring of the impact of service failures on customers
  12. More effectively building incentives into the business process
  13. Understanding business needs more fully and in the context of 2017 market reform
  14. Using previous revealed preference information more creatively

In many respects the water industry is ‘ahead of the game’ but there are many areas where the sector can learn massively from other sectors. Accent is currently talking with regulators and players in water and other related sectors to drive effective solutions for the issues raised above.