Utility Week

26 | 7TH - 13TH FEBRUARY 2020 | UTILITY WEEK Customers Event Utility Week Customer Summit 2020, Birmingham T he fundamentals of a solid customer experience are pretty straightforward. Let customers know what to expect, and then consistently deliver on that expec- tation. It's not a complicated recipe, but cross-sector indices of customer satisfaction suggest it is one that the utilities sector as a whole is still struggling to get right. What's more, this failure to get a handle on the fundamentals of customer experience now runs a serious risk of undermining the shi• to higher value, service-based business models that utilities need to execute if they are to survive a drive towards a zero marginal cost of energy and increasing water scarcity. This was the urgent message that ran across the two days of Utility Week's 2020 Customer Summit, including dedicated days for the energy and water sectors. Several Summit speakers were keen to subvert the "conventional wisdom" about poor-performing, profiteering utility com- panies who care less about customer expe- rience than reaping returns. They rightly pointed to the travails of an energy retail sec- tor where profitability seems a pipedream for some, at least while the price cap lasts. And they also shared evidence about the contri- butions to decarbonisation and community wellbeing that these private utilities consist- ently deliver. However, notwithstanding these facts, it can't be denied that utilities have occupied a bottom ranking in cross-sector indices for customer satisfaction for a long time and that some straightforward service failings are compounding the sector's persistent issue with public trust. This is clear when you take a look at the Institute of Customer Service's (ICS's) UK Customer Satisfaction Index (UKCSI), which has run since 2008. The utilities sector has The battle for customer engagement As customer expectations of their service experiences increase and become more complex, utilities are still struggling to get the fundamentals right. Jane Gray reports on insights and best practice shared at the Utility Week Customer Summit 2020. 1. Trust is a barrier to future business models. Low levels of trust are a major blocker to better customer engage- ment and successful service/business model innovation – this is worrying in the face of the climate crisis, which will require engagement and behaviour change from consumers. 2. Consistency in service experiences is key. Almost two-thirds of customers will leave a provider if they experience just one or two instances of poor/below expectations service. 3. Price is still the overwhelming factor driving consumers switching. The fear of a supplier going bust has increased in recent years, but still only ranks as fifth most cited reason. 4. Customer-centricity is easier said than done. Utilities both consciously and unconsciously create products and experiences that are based on industry workflows or organisational technology infrastructure, not what is best for the customer. 5. Customer satisfaction metrics need to keep pace with industry and consumer trends. Some network operators com- plained that Ofgem's Broad Measure of Customer Service is no longer fit for purpose. 6. Vulnerability is not a minority issue. Therefore inclusive service design should be the industry baseline. 7. Customer focus is a cultural issue. Designing customer-focused services requires culture change and empathy from the boardroom down. 8. Smart meter installation is still patchy and delivering inconsistent experiences. Ofgem suggested it would support a movement for collaboration between energy retailers to increase smart meter installations on a regional basis. 9. Smart DCC may face new service measures. Ofgem is considering the design of a new measure for customer satisfaction with the DCC. News on this is expected in February. 10. Climate stress is driving water engagement push. Water companies are trying to raise awareness about water scarcity and consumption. This is driv- ing a focus on securing more accurate consumption data to maximise the impact of these initiatives. See water retail column, p27, for customer service issues specific to the non-domestic water market. Key takeaways

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