Introduction
Retail cost-to-serve has become a key focus for European energy suppliers to maintain margins. However, for many utilities understanding the relationship costs have from one part of the business to another remains unknown. This report uses Datamonitor's cost-to-serve model to provide cost-to-serve per customer, demonstrate these relationships, provide benchmarks and best practice opportunities.
Scope of this report
- Small, Medium and Large players are benchmarked against Datamonitor's Adequate Practice Assessment (APA)
- Datamonitor has used an inductive approach to identify those levers most able to deliver a 10% cost-to-serve improvement
- Datamonitor has used the cost-to-serve model to deduce benefits associated with four best practice opportunities
- A like for like comparisons to the UK average adds understanding but is not a fair comparison
Research and analysis highlights
Scale impacts on costs when comparing Large, Medium and Small European suppliers, with a EUR4.82 difference between a Large and a Small supplier
AMR, staffing and number of bills sent are the key sensitive KPI levers that can deliver a 10% saving in cost-to-serve
Smaller European suppliers can see costs fall by EUR109k by shifting 10% of their cheque payment customers to paying online and direct debit
Key reasons to read this report
- Quantify European cost-to-serve and examine its breakdown
- Understand which cost drivers impact on cost-to-serve and by what degree
- Benefit from the reports detailed examination of four best practice opportunities and what KPIs will be effected
Retail cost-to-serve has become a key focus for European energy suppliers to maintain margins. However, for many utilities understanding the relationship costs have from one part of the business to another remains unknown.