Utility Week

28 | 28TH JUNE - 4TH JULY 2019 | UTILITY WEEK Customers Customer loyalty in the price comparison age "It is in utility brands' best interests to come up with new and innovative methods to feature more prominently in the daily lives of their customers." Opinion Michael Kalli, managing director, Ello Media C onsumers are now more informed, engaged and empowered than ever before when it comes to making decisions surrounding their utility provid- ers. People want a good deal, and are not afraid to shop around to nd one. As such, it should come as no sur- prise that recent research into customer loyalty by Ello Media revealed that more than a quarter of UK consum- ers feel no loyalty to utility providers, with more than one in ve switching their provider over the past year. Traditionally, customer loyalty has never been high on the agenda for the industry, with price o• en taking precedence. Competing on price alone, however, can be a risky premise. Not only does it restrict margins, but it also incentivises consumers to keep switching providers again and again while brands end up losing sight of the value of a loyal customer. It is important to understand that customer loyalty in the utilities industry di€ ers from other sectors, with energy and water purchases considered by the majority of consumers as a basic and essential commodity, o• en purchased annually, with few opportunities for one-to- one communication. In fact, a recent Accenture report revealed that consumers give utility companies just ten minutes of their time per year on average. This comes in sharp contrast to sectors such as retail, where providers have oppor- tunities to use multiple customer touchpoints relating to purchases, new o€ ers and product launches, to push their brand to the forefront of their minds and obtain mass customer engagement data, o• en within a single day. With it now costing on average ve times more to attract a new cus- tomer than it does to retain an exist- ing one, it is in utility brands' best interests to come up with new and innova- tive methods to feature more promi- nently in the daily lives of their customers, to both raise brand aware- ness and inform future engagement strategies through capturing customer data. Perhaps the most e€ ective way of achieving this is by integrating everyday relevant, value-added extras and rewards into customer engagement strategies, such as dining memberships, cinema tickets and experiences – reminding customers of your brand while saving money doing the things they love. Through reward schemes, behavioural data can be gathered by providers identifying trends and habits Through these rewards, behavioural data can be gathered by providers, identifying trends and habits to re ne services and communications further, ensuring customers are targeted with relevant content, in the right place, at the right time, developing trust and building brand loyalty. Brands can not only capture engagement data but also combat concerns surrounding the infrequent nature of utility communications by slotting seamlessly into the wider, day-to-day lives of their customers, re inforcing positive brand association through enjoyable experiences. Despite the necessity of utilities, liberalisation of the industry has created an increasingly saturated and competitive market, meaning customers will not stick around unless they receive true value for their loyalty. In light of climate change and deregulation, the util- ity sector has proven to be highly adaptable time and time again, and it is vital the industry is just as reactive to ever-evolving consumer habits and demands. Using rewards as mutually bene cial customer brand touchpoints not only positions and positively reinforces your brand in the daily lives of your customers and those around them, but also unlocks access to previ- ously unattainable data to understand exactly how your customers behave. And ultimately this is by far the most e€ ective way of retaining them.

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