Studying customer behavior has become an essential financial management and research component for most commercial enterprises. Should customer sales analyses play a role in shaping or preparing for water utility management decisions, such as changing pricing or providing a new customer program? In this paper, we investigate how individual customer sales information can be collected and analyzed, using billing data, in a way that supports water services management decisions. We conduct customer sales analyses for three large utilities in North Carolina, and by tracking each customer’s history and billing experience, we examine trends and relationships related to usage patterns and fluctuations, irrigation and capacity use, timeliness of payment and cutoff patterns, and geographic variation within communities. The variation in the results for each of the utility studied reinforces the necessity of customizing pricing and policy to local conditions. Customer level analysis also permits utilities to carry out targeted marketing so that they communicate messages directly to customers most likely to respond or need the message.
Click the link here to download Residential Customer Water and Wastewater Sales Analyses and Profiles
Linked below is a collection of various resources that address similar issues of residential water and wastewater sales.
A Better Understanding Of Nonresidential Water Customers Through Analysis
Refining Residential: Using Customer Consumption Records To Tell A Story Of Utility Management
Shifting Baselines In Water Utility Management: Using Customer-Level Analysis To Understand The Interplay Between Utility Policy, Pricing, And Household Demand
Studying customer behavior has become an essential financial management and research component for most commercial enterprises. Currently, most water utilities could better use the extensive database of customer metering and billing records to study the implications of their pricing and policies, as well as factors outside utility control, like weather.
Billing Analysis For Revenue Stability
Different rate and pricing structures expose a utility to different levels of revenue volatility. Increasing block rate structures, or rate structures with a very low fixed charge component, can lead to much more significant revenue swings than uniform rate structures or rate structures with high base charges.