Five Reasons Retail Energy Providers Should Measure Customer Satisfaction
Customer satisfaction should never be ignored. By conducting an annual customer satisfaction survey, a brand can reduce attrition, increase new customer acquisition, design new products and offerings that can help increase market share, and increase brand equity. But five reasons stand out as most compelling:
1. You can’t manage customer satisfaction if you don’t measure customer satisfaction
Unheard customers are at-risk customers. It’s that simple. Without measuring customer satisfaction, through quarterly or annual surveys, or some other ongoing, custom-designed customer feedback tool, suppliers cannot know or understand where their brand is failing its customers. Even though a brand may offer a competitive price, poor customer service changes the “value” proposition.
Dissatisfied customers will consider other alternatives.
2. Successful brands make themselves known to prospective customers
Large, strong brands understand that the most influential factor driving brand equity is familiarity. Customers, regardless if they are satisfied or not, are frequently exposed to advertising and enticing offers. Those who are unsatisfied are more likely to consider an alternative. Companies that provide a consistently satisfactory customer experience at a fair price build customer loyalty that helps deafen its customers to competing offers. This leads to higher retention rates.
Alternative solutions are readily available.
3. Satisfaction = Loyalty. Loyalty increases retention. Advocacy increases acquisition.
Customer loyalty is gained by consistently delivering a product or service that is of value, in a satisfactory way that no other brand can. Highly satisfied customers will become brand ambassadors and recommend it to their friends, family, or cohorts whenever the opportunity arises. These recommendations improve the likelihood that the friend will become a customer.
For one energy company Tricone helped measure customer satisfaction and loyalty over a 4-year period. By making changes identified in its ongoing customer satisfaction studies, the company has increased its Net Promoter Score® from +19 (2014) to +47 (2017). Read More Here.
At no cost to you satisfied customers will promote a brand. Dissatisfied customers will disparage it, at a great cost to you.
4. Price is not the only driver of customer satisfaction
A consistently optimal customer experience, across all of a retail electricity provider’s touchpoints (physical, digital or peer-to-peer) can lead to customer loyalty, lower attrition and a stronger brand. Unfortunately, many retail electric providers try to compete solely on price and do not place much focus on other attributes that drive loyalty.
In a separate study, by utilizing MaxDiff Scaling, a research technique that requires respondents to indicate which factors are “most” and “least” important to them when considered simultaneously, we discovered that price attributes to just over half of the customer decision to stay with their current energy provider. That means that nearly half indicate that customer service and tools to help monitor/reduce consumption, billing, etc. drive their reason for renewing with their current energy provider.
Customer are willing to pay a little more for a better experience.
5. Breaking Up Isn’t That Hard to Do
In the retail electricity space, consumers have become increasingly intelligent about how to shop for and choose their electricity supplier. Sites like MyTrueCost.com takes advantage of the data that smart meter technology provides and allows consumers to compare offers and determine which is best for their usage habits. Additionally, consumers can indicate within the comparison tool what factors matter most to them, such as green energy, incentives, rebates, etc.
Brands who understand the satisfaction level of their customers, along with what drives that satisfaction can conduct customer segmentation studies to help develop offers that meet the needs of the largest customer segments. By developing offers that meet the “values” of its customer base, the company can appeal to comparison-shoppers likely to consider the brands that best meet their “value” criterion.
Customers can leave in a heartbeat. Don’t make them want to.
We listen to those we care about and value.
Measuring, understanding and taking action by conducting customer satisfaction surveys is critical to creating/maintaining a strong and viable brand. Satisfied customers are unlikely to leave, will promote a brand to others, and help a brand improve its revenue and market position.
Tricone Research builds custom satisfaction research programs that help organizations continuously monitor the satisfaction level of their customers. Our insights help organizations build customer loyalty, decrease customer attrition, increase customer acquisition, and design products and/or programs to meet the ongoing needs of its customer base. Market research survey companies.
With our insights, retail energy providers find their smartest revenues.