Customer Lifecycle Example

Let's look at a simplified example of the lifecycle of a customer from the perspective of market transaction management. This example involves the following participants:

  • The Distributor
  • Two Retailers (referred to as Retailer A and Retailer B)
  • A Customer (defined in the Distributor's Customer Information System (CIS))

This example is based on a sample market. In this market, the Distributor sends bills to customers on behalf of retailers. In this market, customers pay the distributors, which in turns pays the Retailers via "Purchase of Receivables".

The market used in this example is not based directly on any existing market. It is provided for illustrative purposes only. As noted previously, it is CRITICAL that you have a firm understanding of how your market operates before you begin planning your implementation.

Customer Enrollment

The Customer chooses to enroll with Retailer A.

Retailer A sends a Historical Usage Request transaction (814) to the Distributor.

The Distributor receives the Historical Usage Request transaction, and validates that it has all the information needed to process the request.

  • If the transaction passes validation, the Distributor sends an acceptance transaction (814) to Retailer A, and the Distributor sends a Usage transaction (867) to Retailer A.
  • If the transaction fails the validation, the Distributor sends a rejection transaction (814) to Retailer A.

Retailer A sends an Enrollment transaction (814) to the Distributor.

The Distributor receives the Enrollment transaction, and validates that it has all the information needed to enroll the customer.

  • If the transaction passes validation, the Distributor sends an acceptance transaction (814) to Retailer A, and the customer information system is updated as needed to reflect the customer's enrollment with Retailer A and enable the customer for billing.
  • If the transaction fails the validation, the Distributor sends a rejection transaction (814) to Retailer A.

Billing

The customer's bill is calculated each billing period based on the customer's billing cycle (typically monthly).

When a bill is completed, the Distributor sends a Usage transaction (867) and an Invoice transaction (810) to Retailer A.

  • If either or both are invalid for some reason, Retailer A sends a rejection transaction (824) to the Distributor.

Payments

The billing system sends a AP Request Adjustment to the Financial System, which is routed to the bank.

Once the payment has cleared, the Distributor sends a Payment transaction (820) to Retailer.

The Distributor receives the Payment transaction, and validates that it has all the information needed to process the payment.

  • If the transaction passes validation, the Distributor sends an acceptance transaction (824) to Retailer A.
  • If the transaction fails the validation, the Distributor sends a rejection transaction (824) to Retailer A.

Switching Retailers

The Customer decides to switch retailers from Retailer A to Retailer B.

Retailer B sends a Historical Usage Request transaction (814) to the Distributor.

The Distributor receives the Historical Usage Request transaction, and validates that it has all the information needed to process the request.

  • If the transaction passes validation, the Distributor sends an acceptance transaction (814) to Retailer B, and the Distributor sends a Usage transaction (867) to Retailer B.
  • If the transaction fails the validation, the Distributor sends a rejection transaction (814) to Retailer B.

Retailer B sends an Enrollment transaction (814) to the Distributor.

The Distributor receives the Enrollment transaction, and validates that it has all the information needed to enroll the customer.

  • If the transaction passes validation, the Distributor sends an acceptance transaction (814) to Retailer B, and the customer information system is updated as needed to reflect the customer's enrollment with Retailer B and enable the customer for billing.
  • If the transaction fails the validation, the Distributor sends a rejection transaction (814) to Retailer B.

The Distributor sends a Drop transaction (814) to Retailer A.

The Distributor sends a Confirmation transaction (814) to Retailer B.

Customer Information Changes

The customer's phone number changes.

Retailer B sends a Change Request transaction (814) to the Distributor.

The Distributor receives the Change Request transaction, and validates that it has all the information needed to process the request.

  • If the transaction passes validation, the Distributor sends an acceptance transaction (814) to Retailer B, and the customer information system is updated as applicable.
  • If the transaction fails the validation, the Distributor sends a rejection transaction (814) to Retailer B.

Meter Exchange

The distributor changes the meter at the customer's premise.

Distributor sends a Change Request transaction (814) to Retailer B.

  • If the transaction is invalid for some reason, Retailer B sends a rejection transaction (824) to the Distributor.

Customer Drops Retailer

The customer chooses to drop their retailer and purchase direct from the distributor.

Retailer B sends a Drop transaction (814) to the Distributor.

The Distributor receives the Drop transaction, and validates that it has all the information needed to drop the customer.

  • If the transaction passes validation, the Distributor sends an acceptance transaction (814) to Retailer B, and the customer information system is updated as needed to enable the customer for billing by the distributor.
  • If the transaction fails the validation, the Distributor sends a rejection transaction (814) to Retailer B.

The Distributor sends a Drop transaction (814) to Retailer B.

Parent topic: Market Transaction Management - US Distribution