Digitization in Oil and Gas: Transforming the Customer Experience

A national oil and gas company in Asia needed to harness digital technology to transform the way it engages customers—both consumers and businesses. With little expertise in this area, the company needed a clear roadmap for the ambitious overhaul. BCG helped the company understand where digital tools could remake the customer journey, identifying 20 initiatives that could improve the customer experience and boost the bottom line.

The company had three primary objectives in undertaking the digital transformation. First, it wanted to improve its market position and its engagement with customers. Second, it wanted to use digital to improve its customer service operations. Third, it wanted to identify new digitally-enabled business opportunities.

A key part of this effort was the analysis of customer journeys—both B2C and B2B—and the identification of the most troubling pain points. Based on that insight BCG outlined 20 digital initiatives that could be used to improve the effectiveness and efficiency of serving the company’s customer base. This included service stations as e-commerce hubs, a digital personal mechanic for consumers, a home delivery app for domestic liquefied petroleum gas (LPG), and a digital tool for distributors.

Piloting New Innovations

For each initiative, BCG developed a detailed business case that included a projection of the value that would be created for customers, the capital and operating expenses required to develop the offer, and the expected contribution to profits from the project. BCG also identified the project team that would be required to execute the offer and the skills and capabilities necessary.

As part of the effort BCG helped the company pilot three of these initiatives. The first was the home delivery of premium LPG. Through a new app the company arranged home delivery of the gas through distributors, addressing a major consumer headache associated with carrying and transporting the bulky cans themselves. The second pilot was a digital fuel forecasting tool which allowed for more accurate planning at the company’s gas stations. The third was an app for airport refueling operations. The new digital tool helped improve the management of ground operations to minimize turnaround time for refueling jets and also automated the billing process.

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