Five Ways to Become a Three-Time Utility Customer Champion

2016-12-three-peatWe recently released our 2016 Utility Customer Champions, which awards gas, electric and combination utilities nationwide that have the highest scores on our proprietary Engaged Customer Relationship index. Among this list are 26 utilities that have “three-peated,” meaning they’ve been designated as a Customer Champion every year since we started these awards in 2014.

Here’s what sets these utilities apart, and what your utility can do to get on the path of enduring customer engagement:

Focus on brand trust

The gap between utilities that three-peated and those that didn’t was greatest on our Brand Trust Index – 45 points on a 1,000-point scale. Moreover, since we began the Utility Trusted Brand and Customer Engagement™  study in 2014, this gap has grown by 3 points, slightly edging out growth in the Operational Satisfaction gap (+2 points) and Product Experience, which has actually declined around half a point during this time.

An exemplar of laser-focused  Brand Trust is TECO Peoples Gas, which led the industry in 2016 with a 789 Brand Trust Index score. It is not only the top utility nationwide in Brand Trust, but it also leads the second-highest scoring utility by 38 points!

Invest in digital customer communications

Across all three study years, there are a number of communications channels that “three-peat” utility customers recall at a significantly higher rate than the overall industry average. These channels include utility social media, utility website, online advertising and text messaging.

What’s the one channel that three-time Utility Customer Champion customers recall at a rate significantly higher than average while other utilities customers recall at a rate significantly lower? Email. And guess which channel customers prefer most for general utility communications as well as service interactions? You got it—email .

The utility that leads the pack on email communications is Florida Power & Light. It excels at using that channel, with 22% of FPL’s customers saying they recall having gotten an email from the utility in 2016.

Don’t forget about the environment

Another distinguishing factor in three-time Utility Customer Champions’ performance is customer perception that the utility is committed to using environmentally-friendly energy. While this isn’t the highest-ranked environmental dedication attribute (that honor goes to “provides tools/programs to help customers save energy”), three-peat Utility Customer Champions outperform non-three-peaters by an average of 0.46 (on a 10-point scale) on perception that they’re committed to using environmentally-friendly energy.

The fact that three-time Utility Customer Champions score so well on environmental perception helps explain why 58% of Customer Champions in 2015 were also named Environmental Champions, increasing to 61% in 2016. The top five utilities in our Environmental Dedication Index at year’s end were all three-time Utility Customer Champions, led by Portland General Electric. 29% of PGE’s customers are aware of the utility’s efforts to limit the environmental impact of its service and operations (among the highest scores in the industry).

Remember that operational excellence isn’t passé

While we don’t necessarily see huge customer engagement gains driven by operational excellence, we mean it when we say that it’s the foundation for strong customer engagement. In each of the three years we’ve run this study, the “three-peat” Utility Customer Champions’ customers report hearing about rate increases and having a service interruption at much lower rates than their peers – 13% vs. 17% for rate increases and 14% vs. 17% for outages.

As a result, when we look at operational excellence – which we define as not having or hearing of an outage or safety issue, not heard about a rate increase and not received an inaccurate bill – it’s not surprising that two of the top three utilities were Columbia Gas – South and NW Natural, both three-time Utility Customer Champions.

Although the effort required for this kind of performance (not to mention results) may not be front-page flashy, keeping a strong focus on the core business of the utility is crucial to developing the kind of trusted relationship that allows for greater overall customer engagement.

Never stop thinking about how to better serve customers

Among utility brand activities, two of the biggest gaps between three-time Utility Customer Champions and other utilities is in perception that the “utility is a great product provider” (7% difference in 2016) and that the “utility is an industry leader on innovation” (3% difference in 2016). Creating these perceptions requires doing two things successfully – actually providing great innovative products to customers (i.e., customer experience) and communicating about it (i.e., product marketing).

Innovations like the Georgia Power Marketplace make it easy for customers to take advantage of energy efficiency rebates by applying them at the point of sale through a compelling web storefront. This not only helps the utility compete for consumer mindshare but also for share-of-wallet.

Nothing about what sets three-time Utility Customer Champions apart from other utilities is somehow inherently unique to them. Rather, what ties these five factors together is that they collectively show how these utilities display a consistent ability to understand what their customers want and to deliver it. The organizational capacity required to do this simply depends on internal leadership and commitment.

Congratulations to all of our three-time Utility Customer Champions! We can’t wait to see where you take the industry next.

ELECTRIC GAS COMBINATION
Entergy
FPL
Georgia Power
Indianapolis Power & Light
Kentucky Utilities
OG&E
Pacific Power
Portland General Electric
PPL Electric Utilities
Salt River Project
Alagasco
CenterPoint Energy-Midwest
CenterPoint Energy-South
Columbia Gas-South
New Jersey Natural Gas
NW Natural
Piedmont Natural Gas
PSNC Energy
SoCalGas
Southwest Gas
TECO Peoples Gas
Texas Gas Service
Virginia Natural Gas
DTE Energy
Louisville Gas & Electric
MidAmerican Energy
This entry was posted in Brand and Messaging, CX, Energy, Industry Expertise, Product Development, Research Specialties, Segmentation and tagged , , , by K.C. Boyce. Bookmark the permalink.
K.C. Boyce

About K.C. Boyce

K.C. Boyce is senior product director for the Utility Trusted Brand & Customer Engagement studies at Market Strategies International. In this role, he manages the development and delivery of syndicated studies and best practices with a focus on helping utilities create valuable relationships with their business and residential customers. Throughout his career, K.C. has worked across industries and sectors to develop innovative solutions to complex problems and translate subject matter expertise into actionable insight. Before joining Market Strategies, K.C. was senior vice president at Chartwell, where he led industry and consumer research, conference production and marketing. He also served as the Smart Grid Consumer Collaborative’s assistant director, leading its consumer research program. K.C. holds an MBA from Georgia State’s Robinson College of Business and a bachelor’s degree in political science from Colorado College.

One thought on “Five Ways to Become a Three-Time Utility Customer Champion

  1. I agree that a quality utility consultant should have a concern for the environment especially when they are conducting predominant use studies. Because technology is rapidly changing, there may be more negative effects on the environment. It seems like a good idea to talk with your utility consultant about your concerns for the environment to make sure you both are on the same page.

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