New Podcast Episode: Innovation to Execution – Transforming CX with Utility Mobile Apps

In our latest podcast episode, we welcomed Lem Satamkar, Senior Product Marketing Manager at KUBRA, and Erind Shkurti, Director of Client Solutions and Mobile Apps at KUBRA, to explore the fascinating world of mobile apps in the utility industry. They covered topics ranging from user engagement and adoption to the challenges and trends shaping the future. Tune in to the episode below or read the transcript to discover how mobile technology is set to revolutionize customer interactions within the sector.

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Lemuel Satamkar:
Welcome back to Experience Better, the CX Podcast. I'm Lem, Senior Product Marketing Manager at KUBRA. For this episode, I'll be subbing for Shaun Jackson, our SVP of Marketing and resident host on the podcast.

Today, I have the pleasure of speaking with Erind Shkurti, Director of Client Solutions and Mobile Apps at KUBRA, who brings a wealth of knowledge and passion for technology and mobile app innovation.

We'll explore the utility industry's intriguing world of mobile apps, from user engagement and adoption to the challenges and trends shaping the future. Erind will also share his unique insights into how mobile technology revolutionizes customer interactions within the sector.

So, can you give us a quick overview of the current state of mobile app adoption among utility providers and their customers?

Current State of Mobile App Adoption

Erind:
It's been slow historically, and there are reasons for it. We had a recent client conference called iConnect in 2023 at Hilton Head, where we ran a survey in one of the sessions. The survey results matched with other research showing that less than 50% of all the utilities were either building an app or creating an app. So, adoption has been slow to date. They're changing, but there's no doubt it's been slow.

Lem:
I find that interesting because I was brushing up on some of the numbers in preparation for this topic. I looked at a recent Chartwell report stating that the share of web traffic through mobile apps was 40% in 2020. When you're talking about all customer interactions, that number has gone up to 55% in 2023.

So clearly, customers are interacting with their utilities through mobile apps more than before. It's common knowledge that mobile apps are the best way to deliver a mobile-first experience. What is your take on why utilities have not reacted appropriately to this shift?

Erind:
For ten years, people have been operating more and more in mobile apps. Our market research states that mobile apps are the most preferred channel by a huge margin. In our latest research, the mobile app took the number one spot in the utility space as the number one item users want their utilities to provide.

It's not a matter of user preference; many reasons have slowed adoption. Even with that, we are seeing a trend. The number of users in the utilities that have adopted the mobile app is increasing. It was about 6% in 2017 but grew to double digits in 2019. See that growth, and it is beyond the 20% mark in 2023. That's almost a quarter of your user base, which is significant. You also have to consider your population segmentation; some older generations are used to more traditional channels, and you'll always have people who prefer those channels.

Lem:
And I would add to the adoption bit, the same report I just spoke about stated that only 43% of customers know that their utility provider even provides a mobile app. So, a little effort in promoting the app and getting the word out there can make a big difference. For instance, we recently worked with a large utility, and 27% of their customer base used their mobile app within the 16-month mark of their launch. They've done great getting the word out through digital channels and social media. Promoting the app can help drive those adoption numbers, but only time will tell. Aside from user adoption, what other challenges do you think utilities face when implementing mobile app strategies?

Overcoming Implementation Challenges

Erind:
You bring up a good point about adoption and promotion; we've experienced this firsthand in recent deployments. There's a difference in outcomes following more aggressive marketing campaigns and promoting the mobile app across channels. Some clients take more of a backseat, and you see the results. We bake those best practices and recommendations into our mobile app launches, advising clients on how best to market the app.

As for challenges, several factors come to mind. The regulatory nature of utilities is one. Utilities are a heavily regulated industry and very mission-critical. There has been a tendency to take a backseat when adopting new technologies, waiting for the technology to mature before integrating it into the utility space. That is changing, with utilities investing heavily in partnerships like KUBRA and hiring IT staff. However, the regulatory nature has been a significant factor.

Another challenge is cost considerations. Whether utilities decide to develop mobile resources in-house or outsource, there are caveats. Mobile developer resources are among the most expensive. Android developers using Kotlin and iOS using Swift are relatively scarce and costly. Technical complexity is another angle to consider. Launching an app is just the beginning; continuous iteration and innovation are essential.

Lem:
It's true. Utilities that update their mobile apps monthly demonstrate that it’s not a one-time project. Continued effort is required to meet customer expectations and industry standards.

Erind:
Absolutely. With the pace of technological advancement, a solution can become stale within a year or two. It's vital to keep innovating and staying up to date with industry trends. Another important aspect is user demographics; younger generations are more willing to adopt new technology, even if it's not fully fleshed out. This trend will become apparent as younger customers become the primary billpayers.

Prioritizing Mobile App Features

Lem:
You mentioned outage communications as a significant use case. Mobile phones are often the primary way to stay connected when lights go out. During events like Hurricane Idalia and the North American winter storm, a large share of web traffic for our storm center outage map came from mobile phones. Opting for outage notifications through mobile apps has grown consistently.

Erind:
Absolutely. Outage communications are crucial, and feature development should focus on billing history, payment capabilities, alerts, usage insights, and service interruption information. Utilities should prioritize these areas when developing their mobile apps.

Deploying a Mobile App - Build Versus Buy

Lem:

Deploying a mobile app is a huge undertaking. What advice would you give about deciding to build or buy?

Erind:
There are several angles to consider. Outsourcing can offer built-in expertise, development speed, and cost savings due to economies of scale. In-house development might not offer the same financial benefits. Compliance and security are critical, and outsourcing can shift some of that responsibility. Looking ahead, it’s not just about building an app but about maintaining and improving it. Partnering with vendors who understand the utility space and offer comprehensive services can be beneficial.

Lem:
Working with a vendor that provides a comprehensive service ensures that updates to standalone products also benefit the mobile app. What are your thoughts on this?

Erind:
It is crucial to choose a provider that goes beyond basic app development. Providers like KUBRA bring valuable perspectives and experience from the utility space. They incorporate lessons learned from other utilities, which is a huge plus.

Future Trends in Mobile Apps 

Lem:

What trends do you foresee in mobile apps for utilities, and how should billers prepare for them?

Erind:
Utility apps will integrate with broader smart city initiatives as cities become smarter. Smart home functionalities within the app can enhance energy management. The advances in generative AI also present opportunities, such as custom GPTs within an app to assist users with energy usage insights and recommendations. Staying ahead of these trends is essential.

Lem:
Thank you for your insights, Erind. It's been a great conversation, and hopefully, we'll see you again in a future podcast.

Erind:
Thanks, Lem. It’s been great, and I look forward to more frequent appearances. Cheers.