The UK energy sector is hitting crisis point right now. We have already seen big names going out of business.

Customers are enduring the pain of unprecedented price rises.And there is more to come this autumn when the Ofgem price cap will increase again.

With so much attention on prices, it may seem irrelevant to talk about customer service. However, research conducted by Macro 4 suggests that utility companies should be keeping a close eye on the service they provide to customers. We found that 58 per cent of energy customers expect higher levels of service in return for having to pay higher bills. So, there is every reason to try to get a better understanding of the aspects of service they see as important.

We commissioned a survey of 1,000 household energy and water bill payers which asked them about the service they expect from suppliers. Based on the results, here are five key things they care about aside from the price they pay for their utilities.

 1. Billing accuracy

Clarity and accuracy of billing should be a given in a regulated industry, but the survey responses suggest that many people are not confident about whether their bills are a true reflection of their usage. With prices rising this is becoming an even bigger issue. After the price cap was announced, nearly three quarters (73 per cent) of bill payers we asked said they are now more likely to regularly check their energy bills for mistakes. And 42 per cent felt their current energy supplier could improve their service by making sure their bills are accurate.

One issue to address is overly complex billing. What can utilities do to make tariffs simpler and bills clearer? Nearly a third (31 per cent) of people said their energy supplier needs to make their bills easier to understand.

Thankfully in most cases bills are in fact accurate, so what people are really looking for is reassurance. The best way to address this is to make it easier for customers to check their bills for themselves, for example by giving them online access to historical billing information, together with basic analysis facilities. By allowing customers to compare billing and usage rates over time – or even benchmark against similar households that live in the same area – utilities can show that they are being more transparent and inspire greater trust.

2. More self-service

Customers are becoming more open to digital interaction, including online self-service – a trend intensified by COVID-19 lockdowns over the last two years. 61 per cent of the utility bill payers we questioned said they have become more used to interacting digitally since the pandemic. And 72 per cent now want companies to provide online resources that make it easy to find information and resolve their questions themselves. In fact, 60 per cent would prefer not to call customer services at all if they can solve issues themselves using online resources.

There is no doubt, then, that customers are ready for self-service and will welcome more online tools and resources to help them become more self-sufficient. Energy companies should therefore review their online offerings and seek to plug any gaps. For example, are all the typical everyday queries that customers call or email about adequately covered by FAQs or other online resources? Are these materials and tools easy for customers to locate and do they offer a user-friendly experience? Is it possible to provide online access to a broader range of customer data and documents (such as correspondence, contracts and meter readings as well as bills)?

3. Better complaint handling

Complaint handling is a critical area that can be a trigger for customer defections. So, it is concerning that one out of four (25 per cent) energy customers in the survey are unhappy with how quickly complaints are being resolved by their existing suppliers. For water companies it is one out of five.

At times there will be practical or technical reasons why complaints cannot be resolved immediately. However, the research suggests companies could do more to reduce the wider frustrations around customer communications and complaint handling.

For example, around a third of energy customers and a quarter of water customers want their suppliers to let them make contact in whatever way they prefer, whether by phone or using online channels including email, messaging and social media. And more than a quarter say it’s important that staff are given access to relevant customer information when taking calls.

The good news is that supporting multiple channels in a more integrated way allows companies to better prioritise agent time and resources as well as keeping customers happy. For example, online chat and messaging can be used to deal with routine queries – helping to reduce the number of incoming phone calls for the customer services team to handle. Interaction with a human customer service agent can be reserved for the most pressing or complex queries, or when frustrated customers need understanding and empathy. The key to success is linking the two channels together – monitoring automated chat and proactively handing over queries to a real person when a bot cannot provide the answer, or at the first sign that a customer is becoming frustrated.

4. Online billing

Close to two thirds of bill payers say it’s more convenient to view all their household bills online rather than on paper. This opinion is consistent across all age groups, from younger digital natives to the over 55s. However, ditching paper altogether is not yet an option for suppliers since nearly a third (31 per cent) of respondents still prefer paper bills.

To meet growing demand for online billing, utility companies should consider how they can enhance their digital services, for example by supporting a greater range of delivery channels, and creating new billing formats to suit different channels. For example, a bill sent by text should be short and simple, whereas presenting a bill on a website or app enables utilities to differentiate by turning the traditional static bills into a more interactive communication. Again, there is the opportunity to provide digital tools to help customers better understand their charges, manage their usage and budget for the future.

5. Commitment to environmental and social responsibility

With environmental issues now a widespread concern, it’s not surprising that a high number (70 per cent) of customers said it is important that their energy or water provider is helping to protect the environment. Over a third (37 per cent) are willing to pay a little more on their bills for suppliers to invest in becoming more environmentally friendly. And this jumps to 57 per cent among the 18-24 age group.

Similarly, 90 per cent said that providing support for people who find it hard to pay their bills is important in a water or energy provider. One in five (22 per cent) of bill payers was looking for financial support with bills from their current energy supplier and 29 per cent wanted more advice on saving energy to reduce bills.

With energy and other household bills rising significantly and the general cost of living also on the increase, it’s natural that pricing is the overriding issue when people think about the household utility sector. At the same time, it is important to recognise that meeting service expectations is essential for satisfying customers and building loyalty – particularly in a market where there is less scope for price differentiation. People are looking for more transparent billing and a joined-up customer service offering. When they interact with their utility suppliers, they want a choice of ways to get in touch, incorporating digital self-service.  If they choose to use the phone, they need to feel that the person they’re put through to will have the necessary information at their fingertips to resolve queries quickly. And today the majority of customers also expect companies to demonstrate social and environmental responsibility.

About the Author

Lynda Kershaw is marketing manager at software and services company Macro 4, a division of UNICOM Global.  A marketer with over twenty years’ experience, Lynda helps organisations use technology to personalise customer interaction, improve customer experience and make a painless transition to digital communications. www.macro4.com.

New report finds evidence of almost half (46%) of respondents do not feel loyal to their current provider. In addition, 37% of customers are looking to their provider to give advice on managing their energy as cost-of-living crisis deepens.

As energy prices reach a 40-year record high, a new survey has asked over 1,500 UK bill payers what they want – and how they feel – about their energy providers. The results, published today in ‘The Big Switch Off’ report, commissioned by experience design consultancy ELSE, found a significant gap in customer loyalty and understanding about energy bills.

Headlines from the report include:

• Poor transparency is damaging loyalty: Just 28% are clear on what they are actually paying their energy provider for.

• There is a widespread loyalty crisis: Almost half (46%) of bill payers do not feel loyal to their current provider.

• Customers left in the dark: Over a third (37%) said they want more practical advice on how to manage their energy usage.

• Sustainability concerns grow: Over half (51%) want their provider to articulate their plans to lessen their impact on the climate.

• Price not only pinch point: Only 21% of people stated affordability as the reason they were loyal to their energy supplier, suggesting other factors – such as being supported to manage usage – are also at play.

In light of the findings, the report also supplies a number of strategies energy providers could leverage in order to regain the trust of consumers.

To boost customer loyalty, energy companies will need to provide:

1. More details on changes to bills:

Over a third (34%) stated that being kept informed of price hikes encouraged them to stay with their provider, while 20% said a lack of explanation about their bill would encourage them to switch.

2. More details on their energy usage

People don’t just want to know how much they’re being charged, but what they’re being charged for; less than a third (28%) of UK bill payers are clear on what they are paying for.

3. More details on environmental footprint

Public awareness of climate change is affecting customer loyalty. Nearly a quarter of respondents (23%) cite that using or intending to use sustainable energy as reasons they are loyal to their providers. In addition almost a third (29%) want their energy provider to advise them on how to be more sustainable with their household energy usage.

Some of the strategies the report discusses to help energy suppliers improve customer loyalty include improving energy literacy and developing incentive and reward schemes, highlighting efficiency and sustainability to keep customers engaged long-term.

Dave Dunlop, Partner & Chief Design Officer, ELSE commented: 

“Cultivating and maintaining customer loyalty is mission critical for energy companies. As the energy cap is expected to alter in October, there’s never been a better time to engage with customers to inform them of why they are experiencing changes in their prices. As the power still remains with bill payers to decide what is best for their household, building customer loyalty should be energy companies’ top priority.”

Download the full report here.

About ELSE

ELSE is a strategic design consultancy that helps businesses create innovative and effective products and services. From the global hub of fintech to the tea farms in Kenya, we work wherever people, brands and technology come together.

Since launching over 10 years ago we’ve worked with over 70 clients on over 300 experience design projects which span over 15 countries and 6 continents. We help business leaders with innovation and digital transformation projects — from large organisations, such as O2, UBS and Nivea, to lean start-ups, including WeFarm, 7bridges and Improbable.

We’re a lean team of experienced practitioners who are interested in the application of behavioural science through design to create positive changes in behaviour – whether that is getting someone to engage with their finances or thinking about their future health – we think big, we start small and we scale fast.

Visit www.elselondon.com to find out more about our shorter work week, our R&D programme, and our work and insights.

Carly Freeman, Head of Customer Services at Insite Energy, shares some key lessons learned while helping people at the sharp end of a crisis.

When times are hard for customers, high quality support is an absolute imperative. Nowhere is that truer than the energy sector, where soaring prices are causing financial stress for many, particularly since the price cap leapt up by 54% at the beginning of April.

For our service users who live in properties with communal heating systems (‘heat networks’), the situation is even more perilous, because they aren’t protected by a price cap and have no option to switch energy provider. As a result, some are facing kWh rate increases of almost 300%.

Companies across the energy sector should be stepping up their support in response to the cost-of-living crisis. However, a recent report from Citizens Advice shows that in fact most are allowing standards to fall as call-waiting times shoot up and websites crash under the strain.

It’s not good enough. When our customers reach out to us, we must ensure we’re there to help.

We can’t fix it, but we can listen 

As a heat network metering and billing agent, it’s sadly not within our gift to reduce energy prices, although we are actively lobbying for the introduction of a price cap that applies to shared heating systems. In the meantime, we are doing our best to ensure the systems we have in place match our customers’ needs as closely as possible.

Here are some of the things we’ve learned about helping people at the sharp end of a crisis while also supporting and developing our team, and maintaining our reputation for outstanding customer service.

1. Be available 

The number of queries we’re receiving relating to tariffs is the highest it’s ever been – 2022 figures are currently between five- and six-times higher than the previous year. It’s important that long waiting times don’t add to the stress and anxiety callers are already experiencing. We’ve done everything we can to make it quick and easy for residents to reach us by offering multiple contact routes including phone, email, and live webchat. We also have the longest contact-centre opening hours in our sector. As a result of these measures, our average call response times year-to-date have remained consistently at 1-minute 22-seconds, compared with 1-minute 21-seconds in 2021. In February, our monthly average dropped to 1-minute 8-seconds, and we remain second-best across the energy sector (gas and electricity included, based on Which? Autumn 2020 report) when it comes to response times.

2. Enable self-service  

In 2019 we underwent a digital transformation that included the creation of a customer-centric website with access to comprehensive information and a host of accessible and easy-to-use self-serve online services. This has more than halved the volume of enquiries we received – from 103,000 in 2018 to 50,000 in 2021 – on issues such as moving in/out of properties and supply status on individual housing developments. Consequently, our seven-person customer team has much more time to devote to calls dealing with complex issues. The headcount is the same, but the depth, quality, and speed of the service they can now offer has greatly improved, with knock-on benefits for job satisfaction.

3. Empower staff with topical knowledge 

The energy crisis is evolving quickly, and our team needs to be up-to-speed with the latest developments so they can inform customers confidently and accurately. We’ve introduced weekly training sessions on topics such as tariff changes and legal news.

4. Explain complex information  

We keep updated tables with breakdowns of old and new energy tariffs on file to share with customers when needed. We can also create more detailed versions, including technical information, on request. Staff have been given specific training in how to explain these tables, so people understand what they’re looking at.

5. Share knowledge across teams 

We hold regular knowledge-sharing sessions in which team leaders from across the business lead training for contact centre staff in different topics relating to heat network technology and the way our sector operates. This deepens the team’s understanding, enabling them to advise customers on things like optimising the efficiency of their heating system and reducing their energy usage.

6. Meet customers face to face 

We always take the opportunity to go to in-person resident meetings. Combined with virtual meetings (which have grown in popularity following the pandemic) attendance at these sessions is currently the highest it’s ever been, and we’re fielding a lot of questions about tariffs and costs. Inviting feedback and using criticism to improve drives us forward. Customers see this and appreciate it too. We can’t reduce people’s bills but being present to listen to their concerns enables us to match our services to their requirements as closely as possible.

7. Acknowledge that it’s hard 

During difficult periods, customer-experience professionals often bear the full brunt of people’s angst, adding to the stress of their jobs. Research recently released by the Institute of Customer Service suggests that 25% of customer-facing professionals expect customers to become more challenging over the next six months, with 66% highlighting the escalating cost of living crisis as a potential reason.

It’s important to acknowledge this and maintain an open team dialogue about what additional support is needed, ensuring those requirements are acted on quickly and effectively. We’ve gone to a great deal of effort to recruit and train excellent people, as well as put measures in place to take action quickly when things take a difficult turn – such as those outlined in the Institute of Customer Service’s ‘Service with Respect’ campaign and our own internal policies. We want our team to enjoy their jobs and stay with us for the long term.

8. Cast your net wider 

When fuel costs rise, the efficiency of a network makes a big difference to bills. We encourage and reward excellent customer service not only amongst our call centre team, but also among our engineering team carrying out in-property maintenance. There is always the potential for inconsistencies in customer experience in our industry – but it’s well worth working to eliminate this, so customers feel satisfied with every interaction.

The benefits 

By following these steps at Insite Energy, we’ve been able to continue to meet our customers’ needs during a concerning time when they’ve needed more support from us than ever. We’ve achieved this without growing our team or lowering the quality of our service – we’re still the top-performing heat network billing provider on Trustpilot with an ‘Excellent’ rating of 4.7 stars.

What is even more important, however, is the fact that the morale of our customer service team remains high. They know they are doing important work and making a difference. We’re confident that together we’ve created the support our customers need to navigate through the difficult months of uncertainty ahead.

About the Author

Carly Freeman is Head of Customer Services at Insite Energy. Insite Energy provides heat metering, billing and payment services to landlords operating heat networks, providing a help-desk for residents of around 28,000 UK properties.

Louise Robertson, Global Marketing Director at Localz, examines the impact of the ‘IConomy’ on the customer experience.

We are in the fourth industrial revolution: the IConomy. Everything is digital, on-demand and putting consumers in control.Today’s consumers are becoming accustomed to the customer experiences delivered by the likes of Deliveroo, Amazon Prime and Uber. They want real-time transparency, two-way communication and for services to revolve around their needs. Welcome to customer experience 4.0.

Customer Experience 4.0 

Customer Experience 4.0 is the logical evolution of how we have connected with our customers historically. Translating this evolution into the field services sector:

• CX 1.0 was an arrival knock on the door from the engineer – no communication at all.

• CX 2.0 was a direct mail notification of the engineer appointment.

• CX 3.0 was disconnected SMS and email improved customer communication.

Many field service companies are still struggling to embrace CX version 3.0 even today; such is the current poor state of last mile communications within field service. These methods of communication are already outdated as we move firmly into the fourth iteration of customer expectations of last mile customer communications – real-time mobile experiences.

Our research has found that customers top three demands are:

• 89% of customers want an ‘uberized’ experience

• 32% want to be able find live locations on a map

• 54% want job status notifications

• 41% of customers want to rate customer service following on from the appointment

Localz is Uberizing Field Services

Localz has helped ‘Uberize’ s enterprises in the utilities industry including, British Gas, Welsh Water, OVO, Rentokil and Autoglass.

Localz’s highly configurable platform has been built from the ground up to help large enterprises solve for the main Day of Service pains and make the day of service awesome. Localz address the needs of the key stakeholders within the last mile chain:

Customers: Can track their engineers arrival times with real-time estimates, geo- triggered automatic email/SMS notifications reducing anxiety calls and improving their happiness with the service.

Technicians: Can provide a consistent and quality service experience without needing to spend precious time stopping to call and receive up to the minute accurate information that assists them in getting the job completed first time, every time.

Office personnel: Gain real time visibility and insight into the performance of their service operations from their desk. They’re able to intervene and communicate from one simple interface and dashboard.

The map keeps updating and breaking geo fences send real-time notification. A typical starting point for Localz customers is to use the simple, useful, real-time Day of Service communications.

Without needing to change anything in the existing business process and workflow, the addition of this layer of smart, location and order-status triggered communications provides immediate business benefits of:

• Improving first time access rate

• Reducing expensive calls to contact centres

• Increasing customer advocacy

HSS “Uberizes” Services with Localz  

Hire companies felt the pressure to meet their on-demand delivery promises. The business of hire is more complex than traditional retail with damaged returns, no access at sites and extended or missing goods impacting the bottom-line.

Using the Localz dashboard its 2,000+ employees, those in the office or mobile in the field can all gain access to an operational dashboard with real-time visibility of jobs. Real-time map tracking  and push notifications keep customers updated on the ETA of their technician.

Customers and technicians can also directly communicate with one another, reducing the number of calls made to contact centres. The mobile worker app allows technicians to upload images or video when completing a job as proof of completion. The app can also be used for vehicle inspection and accident reports.

Dave Raywood, Group Procurement and Marketing Director – HSS Hire commented:

“We have seen a huge impact on our business by communicating more. If we text a customer to let them know what time we will be there and then text them again five minutes before arrival, then the delivery or collection is likely to be much quicker and easier for both parties.

Our drivers are ecstatic. For the first time, customers are actually waiting at the gate for them. That’s never happened before and it means we’re able to collect and deliver more kit to more customers every day.”

About the Author

Louise Robertson is Global Marketing Director at Localz. Localz takes the communication complexity out of on the day service, providing businesses with mobile workforce solutions to deliver a frictionless last mile customer experience. ‘Uberized’ consumers expect real-time transparency and control.

The Localz operational platform enables real-time tracking of the service technician, accurate ETAs and two-way communication. Localz “on my way” messaging increases customer satisfaction and first time access rates. The Localz platform is being used by the RAC, DPD, OVO Energy, Autoglass, Safelite, HSS, Clarion and British Gas.

For more information visit localz.com

For much of their history, utilities haven’t had to pay too much attention to customer experience (CX). The focus in many areas, has tended to be on technologies that supported infrastructure and reduced operational costs.

But today’s customer expects much more. Thanks to their interactions with service providers in other industries, people expect their utilities to provide the same seamless experience they encounter elsewhere.

When it comes to providing that kind of experience, the best place to start is with customer communications.

Digital innovation and customer expectations

While customers may continue to have a limited choice when it comes to utilities, the sector still faces disruption from innovative new players. It’s become increasingly affordable, for example, for homeowners to switch from grid-based electricity to using solar panels to take care of most of their power needs.

If utilities are to avoid full-scale disruption, they can no longer rely on providing a reasonable service at a reasonable price.

They need to focus on creating a better customer experience.

In fact, focusing on customer experience could see utilities thrive in even the most disruptive environment. A 2017 CapGemini study revealed that as many as 73% of respondents said they would pay for better customer service from their utility provider.

Learn from the retailers

If utilities are to provide an improved experience, turning to the retail sector for ideas on delivering a superior CX is a good idea.

Retailers tend to understand that their customers have a few key expectations, including:

• Cross-channel personalized experiences
• Seamless, consistent and connected journeys
• Data accuracy, protection and privacy
• Interaction where, when and how they want
• Value exchanges above and beyond
• Real-time interactions and responses

If utilities can actively meet and exceed those expectations, they’ll build lasting customer relationships that engender loyalty and maximize value.

To maximize the value of a customer, utilities need to understand what their customers really want and map their strategy to provide just that.

Digital communication is vital

Ultimately, the best place to make an impact in CX is in digital customer communication.

According to a 2016 study by Market Strategies, 54% of residential customers preferred digital communication over any other form of communication.

Utilities can start by using the communications already sent to customers and include valuable data and insights that are personalized to the customer’s activity.

These customizations are what improve the CX for customers and build the foundations for trust and a better relationship. Using data effectively and helping the customer better understand usage will not only improve the CX, but increase engagement too.

Customers expect to engage digitally with their utility provider and in a manner that is meaningful to their experience.

Betting on billing

That said, it may not be possible for utilities to overhaul all of their digital communications at once. Some areas may take longer than others to get right.

When customers have a bad experience, they typically engage less, take longer to pay bills and ignore payment reminders and past due notices. Taking this into consideration, a good start in improving the CX would be the bill-to-payment communications.

The bill-to-payment journey needs to be streamlined to remove the friction points that cause a fractured customer experience, for example where a bill is sent electronically but an overdue payment notice is sent by mail. Furthermore, tone, branding and general approach should be consistent across communications.

Streamlining and improving this experience for customers will increase engagement and ultimately improve cash flow.

Big business benefits

It’s time for utilities to embrace a seamless, digitally transformed customer experience and improve the communications that are sent to clients as this is what will retain and maintain long term client relationships.

About the Author

Mia Papanicoloau is COO at Striata. Mia heads up the North, Central and South American operations, providing strategy and direction for both internal teams and clients alike.

Striata provides strategy, software and professional services that enable digital communication across multiple channels and devices.

Mia Papanicolaou is a regular speaker on digital customer communication and improving the customer experience.

She started her career in South Africa in the media sector before moving to the electronic messaging space, where she served as business director for email marketing eMessageX. She joined Striata in 2006 as Head of Email Marketing. Mia moved to the UK as Head of Operations in 2010, whereafter she moved to the US in 2013 to take up the post of General Manager of the US region, prior to her appointment as COO.

Effective complaints handling is essential for fostering customer loyalty new research by resourcing and complaints handling specialists at Huntswood has revealed.

When asked, almost two thirds (62%) of utilities customers said that poor customer service is enough to make them switch to another provider, while 80% would also let a negative experience change their overall impression of a company.

Polling 3,000 consumers across the UK, the study reveals that current complaints procedures are falling flat with customers. 73% of respondents admitted they are not satisfied with the way their energy company handles complaints, while 65% feel the same way about their water supplier.

Furthermore, 63% of energy customers, and 55% of water customers believe that staff within the complaints department lack the knowledge required to help them find a resolution.

The research should act as a warning to utility companies, especially during winter months when severe weather could bring with it a huge spike in the volume, complexity and urgency of consumer complaints. During these periods, it will be important to have a thorough plan for continued operational resilience in place.

When it comes to fixing the problem, one in two customers (53%) believe that having their issue dealt with quickly is the most important outcome when lodging a complaint, with half of consumers (55%) expecting a reply within the first 24 hours.

Steve Kitchen, Managing Director of Client Resource at Huntswood, said: “Our research proves how pivotal quick and efficient complaints handling is to business success. Having a contingency plan in place is especially important during challenging periods such as the winter months, when the number of complaints can multiply.

While the issues caused by extreme weather are often unavoidable, there are steps that every provider can take to ensure that they do not fall short of customer expectations. Finding a solution which provides the right blend of resource, infrastructure and technology is key.

This will not only help utility providers to reduce the overall number of disputes, but also ensure stronger customer relationships in the future.”

Huntswood has extensive experience of working within the utilities sector, helping to improve suppliers’ complaints handling processes on a long- or short-term basis, or as part of an ongoing outsourced arrangement. Huntswood is also able to provide firms contingency solutions based on a managed shared-resource pool model.

For more information on how businesses can better support customers through extreme winter, download Huntswood’s latest whitepaper, Surviving the Winter Surge.