Issue

An electric utility wanted to provide information about rate increases to mitigate concerns of its customers and other stakeholders. The goal was to determine how the utility's reputation and credibility have been affected by significant rate increases over the past five years, and to understand the economic issues the utility's customers faced to inform effective communications about future rate increases.

Process

We conducted telephone research with 600 residential customers, 300 small business customers and 50 opinion leaders across the client's footprint, followed by ten focus groups with targeted customers. Then, we conducted additional waves of quantitative and qualitative research to track the impact of the client's ongoing communications on customer perceptions and to determine if the messaging needed to be altered.

Result

Market Strategies' research revealed several key messages that resonated with customers as the most effective, credible explanation for rate increases. The research also impressed on the utility's management that filling the current information gap with proactive, compassionate and honest communications could affect how people perceive electricity costs and the utility overall. After the communications campaign, the utility experienced improvements in customer satisfaction and reputation in one of its primary service areas.

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