Utility Week

UTILITY WEEK | MARCH 2022 | 27 Talking Points… dividends as employees will be well informed about how to deal with challenging customers and circumstances. Overall, our index tells us that organisations have got better at using a blend of technology and human intervention to improve customer experience. Average satisfaction is higher than in 2021 for experiences conducted in all channels except in writing, with some of the biggest improvements in webchat, text, app and social media experiences. With the use of technology accel- erating during the pandemic, there is potential that further, effective imple- mentation may hold the key to better standards of service and increased cus- tomer satisfaction in the utilities sector. Businesses need to provide adequate development opportunities for their people to ensure they are equipped with the relevant skills and sufficiently prepared for the future world where digital and in-person interactions are increasingly interwoven. The utilities sector has come under particular strain over the past year. With solutions to the cost of living and the energy price crisis facing many in short supply, customer service will need to prepare for some very challenging interactions with people who may be facing difficult situations. As evidenced in our UKCSI top 10, excellent customer service matters because it delivers better financial results, helps improve productivity and builds trust. Customers are likely to be more discerning about how and where they spend and to seek relationships with organisations they trust. Jo Causon, chief executive, Institute of Customer Service The customer service crisis continues for utilities O ur latest UK customer satisfaction index (UKCSI) revealed that customer satisfaction in the utilities sector has improved by 1.8 points over the past year. This is good news when you consider the challenges the sector has faced, but a closer look at the results reveals a more complex picture. Despite the overall rise in satisfaction, one in five (20.8%) customers have experienced a problem with a utility company in the past 12 months – the highest level ever. Furthermore, customer satisfaction levels in the utilities sector continue to lag behind the UK all-sector by quite a margin. As customer frustrations grow, the proportion of customers willing to pay more for excellent service, even if it costs more, has risen from 24.6% to 31.1%. This presents a clear indication that cost is not the only factor and this is perhaps an opportunity for brands to harness the power of an improved customer experience to boost their financial results in a difficult climate. So what can utilities organisations do to improve their service experience? The truth is, it depends on the relative strengths and weaknesses of your organisation – something which our UKCSI utilities sector report sheds some light on. Organisations need to look carefully at their processes, supplier relationships, business continuity and resilience to reduce problems and develop contingencies. Effective training and development and the quality of communications with customers and suppliers are key differentiators of customer service and business performance – investing in such training will pay Comment: Price is an important factor for consumers but that does not mean you can ignore the importance of customer service. The news in numbers: 17% of businesses were unhappy with the service from their water retailer in 2021, compared to 6% in 2020 and 8% in 2019 82MW Amount of flexibility being sought by Northern Powergrid in its latest procurement exercise 27 Sewage treatment works being upgraded by Northumbrian Water with a focus on phosphorus removal 1.4m Customers due to take part in a domestic flexibility trial launched by National Grid and Octopus Energy Utility Week presents the latest people moves across the utilities sector Southern Water Ian McAulay, chief executive of Southern Water, will retire from the company by the end of 2022 a†er appointing a successor. The outgoing chief executive said it was the "appropriate time" for the company to have a new leader and for him to step down. McAulay, 56, joined the company in 2016 tasked with turn- ing around the underperforming organisation. Shell Energy Jodie Eaton has been appointed the new chief executive of Shell's B2B energy supply arm. She first joined the company as chief operating officer in September 2020 and was previously a board member at Npower where she led its business solutions division. She replaces Paul Hellings, who stepped down in December. Energy Networks Association Former Ofgem partner and Utility Week contributor Maxine Frerk has been appointed to chair a new stakeholder group for the Energy Networks Association's Open Networks project. The challenge group, conveing at the end of February, will scrutinise the pro- gramme's work to make networks smarter and more flexible to facilitate the decarbonisation of the energy system. ON THE MOVE

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