What’s happening in the Energy Sector?
With consumers on average spending less than 10 minutes per year thinking about their energy bill this low involvement sector has traditionally suffered from inertia with customers sticking with their supplier, even when the experience or price could be better elsewhere.
However, increasing regulatory involvement and growing use of price comparison sites and other services which help consumers to switch is creating new disruption in the market.
The established retailers need to work harder than before to retain customers, optimising the experience at every touchpoint - from personal interactions to digital touchpoints - while newer companies seek the fastest routes to growth - how can they reach, attract (and then keep) new customers?
When the core product - electricity or gas – is essentially the same for all suppliers, this is a sector where it can be difficult to differentiate your brand. Innovation presents opportunities in this respect, possibly through novel pricing models, using tech to help customers to manage energy or the provision of home services which seek to make life easier.
A number of similar challenges face the water utilities and energy distribution companies. Consumer involvement in these areas is even lower, and whilst the competitive landscape is different from that faced by the energy retailers, regulatory requirements mean that companies still face challenges in relation to customer experience, brand reputation and demonstrating value.
How we can help you
We have the skills and experience needed to help energy and utility companies to succeed in this challenging market:
• Understanding customer journeys – from acquisition to onboarding and through other key stages such as meter installation, billing and leaving – we can identify and map the moments that matter to customers.
• Measuring, monitoring and identifying strategies to improve the experience across these many touchpoints – ultimately improving satisfaction, loyalty and trust.
• Helping companies to understand how the market perceives their brand, how they sit alongside the competition and how to establish a stronger, more unique positioning.
• Market segmentation - defining homogenous segments based on your customers’ needs and characteristics then helping you use the segments as a focus for business activities - from marketing to customer experience to innovation.
• Innovation testing – from testing concepts for new tariffs to user testing potential digital and connected home devices, we can help to increase the chances of finding innovations which succeed.
Energy clients we have worked with……..
Our latest point of view on Energy….
Energy - the challenges of operating in a low engagement sector
17th March 2019: Our energy companies continually struggle to enthuse their customer bases and drive up engagement. What can the ‘Big Six’ learn from the ‘new kids on the block’?