By Sandeep Simon, Energy and Utilities Lead at Medallia
The energy sector’s declining reputation has been well-documented in the media. Amidst a backdrop of soaring energy prices and mounting pressure from customers impacted by the cost-of-living crisis, the sector’s customer service provision has been subject to much scrutiny.
The latest UK Customer Satisfaction Index confirmed this discontent, reporting a steady decline in customer satisfaction ratings – particularly within the utilities sector. In fact, the sector was one of two that suffered the biggest downturn in customer opinion over the last six months.
Prioritising the customer
These findings come as no great surprise. The energy and utilities sectors have never needed to take a customer-centric approach in the past. Providers in these sectors offer necessary services, and in turn, have often taken customer loyalty for granted. Customers, however, want change – and it seems that some within the industry have been listening.
Over the last few months, energy regulator OFGEM has proposed a series of reforms aimed at improving the standards of customer service within the energy sector. These proposals form part of OFGEM’s broader, ongoing aim to drive improvements in overall customer satisfaction. The wide-ranging reform proposals include: increasing support for customers struggling to pay bills; providing round-the-clock emergency support for those cut off from power or gas due to supplier issues; extending contact hours for energy suppliers to fit with customers’ schedules and communication preferences; and reporting on customer service performance to help inform consumer choice and drive service improvements.
In today’s competitive landscape, where 32 percent of consumers are contemplating switching energy providers, delivering stellar customer service could be a key differentiator. Taking a customer-centric approach comes with certain benefits too – studies have consistently shown that organisations prioritising customer experience (CX) enjoy increased customer satisfaction and loyalty. Organisations that provide superior experiences have over five times the revenue growth of ‘CX laggards’ and are also 2.8 times more likely than them to meet financial targets.
Positive customer experiences have transformational power, and energy suppliers who harness the power of CX can enjoy these benefits and more. So, how can the energy sector take the next steps towards customer-centricity?
Leveraging technology to enhance the customer experience
The key to unlocking these benefits lies in organisational change and adopting a customer-centric corporate mindset – initiatives that must be supported from the top, and filtered down through the organisation. Technology can help too, and will play a pivotal role in implementing OFGEM’s reforms seamlessly and boosting CX within the energy sector. Energy suppliers can leverage:
● Real-time communication methods, such as web chat, email, or other digital-based platforms, to ensure customers can reach out easily when they need immediate assistance.
● Personalisation technology to create a custom-tailored journey for customers that caters to their specific needs, preferences, and behaviours. A personalised experience – which 71 percent of customers now expect – makes them feel valued, understood, and more inclined to engage with a brand.
● Data analytics to gain real-time insights and churn signals from customers so they can offer more targeted support and personalised experiences.
● AI-powered text and speech analytics to analyse call logs, live chat conversations, and more for feedback and sentiments. These allow providers to intervene proactively, preventing customer frustration such as that caused by payment struggles, and can result in customer satisfaction score improvements of at least 10 percent.
● Performance metrics to track and measure customer service metrics against industry standards and identify areas for improvement. These will also allow customers to clearly understand which suppliers are delivering a good service and better outcomes for them.
By using different technologies to capture and analyse evolving customer intent, energy companies can shift from a generalised approach to a personalised one. A better understanding of their customers’ needs will help them deliver an enhanced service that increases customer loyalty and engagement.
Transforming the energy sector for a better future
The energy sector must adapt and prioritise CX to thrive in the current competitive landscape. OFGEM’s proposed initiatives are a step in the right direction, but the key to success lies in their implementation.
Energy suppliers who embrace these reforms in the spirit in which they were intended, and combine a customer-centric approach with technology-driven solutions, are poised to achieve significant improvement in customer service standards within the sector – enhancing customer satisfaction rates and driving revenue in the process.
