PowerPoint Presentation

Presented by Gregory KnightSVP and Chief Customer OfficerEstablishing Alignment Between the Sales, Marketing and Customer Service Functions to Support Customer Outcomes

January 31, 2017Legal Disclaimer: This presentation is being provided for informational purposes only and does not purport to be comprehensive. Neither CenterPoint Energy, Inc., together with its subsidiaries and affiliates (the Company), nor its employees or representatives, make any representation or warranty (express or implied) relating to this information. By reviewing this presentation, you agree that the Company will not have any liability related to this information or any omissions or misstatements contained herein. You are encouraged to perform your own independent evaluation and analysis.

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CenterPoint Energy2

Regulated electric & Gas5.8M Energy utility B2C/B2B customers2.4M Electric-Houston metro3.4M Natural gas spanning 6 statesCompetitive natural gas B2C/B2B sales customersRetail appliance sales & repair B2C/B2B customersRetail digital B2C/B2B competitive electric Texas shoppers

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Our Vision: Refreshed To Support Our Core Gas And Electric Utility Businesses3Lead the nation in delivering energy, service and valueOur Vision

DELIVERINGENERGYDELIVERINGSERVICE AND VALUEDelivering service and value applies to all stakeholdersDelivering energy is CenterPoint Energys core businessLEAD THE NATIONWe are the premier domestic energy delivery company

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Critical Corporate Success Factors

1234Preserve and enhance the brandfor customers, shareholders, regulators, and employeesRetain current customers and build deeper customer relationshipsContinue to invest in providing superior customer serviceAcquire additional customersSustain existing and create new sources of revenue by providing additional servicesManage Expenses4

In View of Market Forces Impacting CNP, Current Customer Engagement approach Is Insufficient5CEC concluded that the current approach will not enable CNP to retain customer relationships Creating a customer-focused organization will better position CNP for future success and relevance Market ForcesIncreased Cost to ServeIncreased Customer ExpectationAbundance of Gas SupplyIncreasing ComplexityValue RealizationNew Market EntrantsAlternative Energy SourcesConsolidation/rationalization of the industry (M&A)CNP ImplicationsPotential loss of existing revenue as customers seek alternative energy sourcesPotential miss of new revenue opportunities due to changing customer expectations and needsPotential damage to brand as customers hold CNP accountable for reliability, regardless of cause of service disruptionsPotential erosion of customer relationship and insight unless CNP accelerates investment in foundational capabilities to meet changing needs and expectations

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Maximizing Customer Value Requires Deft Coordination Across Multiple Functional Areas The desire to deliver a single brand needs to take into account overlapping customer base, the business unit structure and the choice of channels used to reach customers6

In Person Bill PhoneSMS/MMSInternet In Home DeviceOther

In Person Sales / Education Field ServiceKey Account Mgrs

IVR

Call Center

InternetSocial Media

Website

Aggregators

Email

Search EngineMobile App

Closed MicroBlogsOpen MicroBlogsBlogs

Open Social Networks

Commentable User Generated Content

Closed Social Networks

Discussion Forums

Crowd SourcingElectric vehicle

Prepayment DevicesLocal Retail Outlet

BillLetter, Fax& Printed

IVR

Consumer GasElectricUnreg Communications Marketing Customer ServiceSales/Operations - IT (Impacts All)

Source: Accenture INC

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Functional View of CNPs Customer OrganizationEstablishing Alignment7

Drive single accountability for customer strategy and execution of objectives, plans and tactics to achieve financial objectives Alignment of key functional areas to achieve financial targets and ensure communication, execution and customer experience consistency Social MediaAdvertisingBrandingNew Product/ServicesMarcomRegulated MarketingChannel StrategyHSP MarketingMarket ResearchChannel StrategyMarket AnalyticsVOCWEBBrand

Consolidation of key execution functions in each area to drive accountability, ownership and operational coordination Structure key marketing functions in Marketing Advertising, New Products/Service, HSP Marketing, Customer Communication & Brand Integrate customer insights Market Research, VOC and analytics Combine key sales functions C&I Trans. & Energy, HSP Sales and Energy Efficiency Consolidate Customer Service operations Credit & Collections, Billing, CNP 3rd party damage collect and CNP Bill Print C&I TransportationC&I Energy SalesRegional Sales - ResidentialCustomer RelationshipManagementTechnical Sales/Trade Ally RelationsHSP SalesEnergy Efficiency Economic DevelopmentClean Air Technology

Digital CSClaimsCustomer CarePerformance ManagementReceivables ManagementRemittanceGas 3rd Party DamageService Delivery (Call Center)Bill PrintBilling ExceptionOrg. Structure HighlightsOrg. Structure Roles

= Moved function= New responsibility

= Consolidated function

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Theres no longer any real distinction between business strategy and the design of the user experience. The last best experience that anyone has anywhere, becomes the minimum expectation for the experience they want everywhere.

- Bridget van KralingenSenior Vice PresidentIBM Global Business ServicesYour Experience is Your Brand8

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Marcom Strategy Begins by Framing All Communications Through a Strategic Belief Journey FrameworkI know CNPS role in delivering electricityCNP connects me to energy thats essential to life CNP is a well run company that offers Gas related services and valueStakeholder Sentiment ELECTRIC

I know CNP is making investments to serve meCNP connects me to energy and services that matter to meCNP is a well run company that offers Gas related services and valueStakeholder Sentiment GAS

Strategic Theme: Reliability & SafetyCNP Belief JourneyKNOWCNP UNDERSTAND 1-2 Benefits CNP EnablesBELIEVECNP Performs Role Excellently

ExperiencesCommunicationsMARCOM 9

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Intelligent Self-Healing Grid

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1111 Key Marketing, Sales and Service Strategies Identified to Achieve HSP Customer Journey Strategy1Expand low entry price point product offeringsIntroduce lower price point offerings to appeal to broader audience2Develop propensity modelingUse model to monitor and improve marketing effectiveness3Convert T&M jobs to contractCreate campaigns to increase conversions of T&M jobs to contracts4Enhance the customer journeyIdentify and leverage key customer interactions to upsell/cross-sell5Maximize leverage of the home move callMobilize operations to optimize the conversion and upsell opportunities through the home move journey6Design contract renewal strategyDevelop communications and product strategy to engage customers at the end of their contract period7Develop win-back campaign strategyBuild an action driven win-back campaign that looks to minimize cancellations and drive win-backs

Learn about HSPMoving homeEnquire about servicesSign up for a serviceQuestion about accountReceive informationUnderstand & pay my billPay my past due billWant to complainWant to disconnectProspectAcquireServiceNurtureRetainReceive confirmation

Have an issue & contact HSPSchedule appointmentReceive product/servicePurchase additional products12576438Expand products and services offeringsDevelop electricity and water related home services products through third party provider89Improve elapsed timeMeet or exceed industry best practice for repair service delivery

Improve appointments metEstablish customer focused appointment windows10

Achieving Tech Compliment service techniciansDevelop long-term strategy to mitigate impacts from tech attrition119

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Keeps Promises

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Design with Customers in Mind (VOC)12IBM Design ThinkingThe PrinciplesA focus on user outcomesMultidisciplinary teamsRestless reinvention

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Problem Statement 1How Might CenterPoint offer a digital experience that inspires its customers (VOC) to use it as a trusted guide in their energy lives?13

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Empathy Map14

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As-Is Scenario Map

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Big Ideas16

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Prioritization Grid

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Experience-Based Roadmap

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Writing Hills

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High Marks from JD Power & Associates 2015 Study

CenterPoint Energy South rankedFIRST Among ALL Large Gas Utilities inOverall Satisfaction Among Millennials(aged 19-35)20Source: 2015 Gas Utility Residential Customer Satisfaction Study SM, October 21, 2015

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Cogent Residential TDSP UtilityTrusted Brand & Customer Engagement Studies21

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Cogent Residential TDSP UtilityTrusted Brand & Customer Engagement Studies22

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Questions and AnswersQQ&A23