Download PDF
C5i > Case Studies > Developed model to identify utility customers at risk of seasonal defection from Time-of-Use (TOU) price plan
C5i Logo

Developed model to identify utility customers at risk of seasonal defection from Time-of-Use (TOU) price plan

Technology Category
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Utilities
Applicable Functions
  • Business Operation
Use Cases
  • Predictive Replenishment
Services
  • Data Science Services
The Challenge
The client, a large US public utility, was facing a challenge in identifying which customers on a Time-of-Use (TOU) price plan would switch to an alternate price plan. They needed to understand the factors that predict this switching behavior and create propensity scores for each of the current TOU price plan customers to identify their individual likelihood of switching to a different price plan. The goal was to correctly predict a likely switcher approximately 70% of the time.
About The Customer
The customer is a large public utility company based in the United States. They provide essential utility services to a vast number of residential customers. The company offers various price plans to its customers, including a Time-of-Use (TOU) price plan. However, they were facing a challenge in identifying which customers on the TOU price plan were likely to switch to an alternate price plan. The company needed a solution that could accurately predict this switching behavior and help them retain their customers.
The Solution
Blueocean Market Intelligence developed a predictive analytics model using the client’s data repository of residential customer information and the Meter Data Management System over a two-year period. Historical and customer demographic information was used to predict program participation and identify differences between program switchers and non-switchers. Simultaneous models were run using C5.0, CHAID, QUEST, and logistic regression. The final commissioned model had a high level of predictive accuracy of 70% for who was most likely to switch.
Operational Impact
  • Developed a model to predict which customers currently on a Time-of-Use (TOU) price plan will switch to an alternate price plan
  • Identified key factors driving the switching behavior
  • Established profiles comparing Switchers to Non-Switchers on characteristics such as energy usage, savings and monthly bill amount
Quantitative Benefit
  • The final commissioned model had a high level of predictive accuracy of 70% for who was most likely to switch

Related Case Studies.

Contact us

Let's talk!

* Required
* Required
* Required
* Invalid email address
By submitting this form, you agree that IoT ONE may contact you with insights and marketing messaging.
No thanks, I don't want to receive any marketing emails from IoT ONE.
Submit

Thank you for your message!
We will contact you soon.