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UTILITY WEEK | 22ND - 28TH MAY 2015 | 25 Customers While the introduction of competition for non-household customers will be introduced in April 2017, contacts for those customers will remain in the sample data, and will be filtered out at interview stage by the ques- tion: "Was this contact in regard to [water company name] supplying you as a domestic or business user?" There has been a visible shi in Ofwat's approach to capturing customer feedback. For example, multiple choice questions regarding the nature of contact have been changed to open-ended questions. Clearly, Ofwat is interested in the quality of the experience beyond mere numbers. Ofwat conducted a pilot survey of all 18 water companies' customers using the new survey earlier this year. The initial findings make concerning reading for WASCs, whose over- all customer satisfaction scores have dipped under the new approach, seeing them over- taken by water-only companies (WOCs) in the customer satisfaction league table. • 79 per cent of water customers are satis- fied in comparison with a maximum of 69 per cent of those contacting other types of organisations. • Of these, WOCs achieved a significantly higher SIM score than WASCs. • With the inclusion of unresolved con- tacts, customer satisfaction scores for WASCs have seen a slight dip. • Higher SIM scores were seen for bill- ing queries than either clean water or wastewater. The pilot revealed low customer satis- faction levels on the speed of response and resolution from the water company. Data indicates customers want to be kept in the loop at all times, through progress reports, updates and outcomes. WASCs leading the new league table resulting from the pilot survey are: Wessex Water (4.45 out 5) and Northumbrian Water (4.40). Thames and Southern Water closed the table with overall satisfaction scores of 3.94 and 3.88 out of 5, respectively. Event Customer service in the water sector? SIMples A t Utility Week Live a roundtable debate explored the role of the service incentive mechanism (SIM) as a driver for improving customer service. The introduction of SIM in 2010 has coincided with an improvement in the level of customer satisfaction with water companies, but was SIM responsible? The Utility Week Intelligence report Secrets of SIM shows that the previous customer service model, the overall performance assessment (OPI) had "plateaued in terms of the level of improvement" in 2009. Since then, SIM has recorded a 0.39 point improvement in customer satisfaction, up to 4.49 out of 5. The roundtable discussion examined whether SIM was responsible, and the two three points were: • SIM was not the game changer. The general consensus of the group, which featured representatives from Ofwat and water companies, was that while SIM was a catalyst for change, improvement momentum can be attributed to other factors. Among the other factors companies felt had spurred improvement was cash and the realisation that, as Wes- sex Water's chief executive Colin Skellett put it in a Util- ity Week Live keynote presentation, "delivering crap services costs money". • SIM needs leadership. Maintaining momentum, aer the kick-start to customer service improvements SIM pro- vided, required good leadership, delegates agreed. If the top brass of a water company listens to feedback – from customers and staff – and acts on it, culture change and improved customer service will ensue. It "empowers staff to deal with issues", said one attendee. The group also agreed that this would help staff become brand ambassadors, in the way Andrew McMil- lan, former head of customer service at John Lewis, had portrayed in an earlier presentation. The leaders of the water companies also said it was time for a more proactive approach to customer service, "sometimes letting them know of a problem before they can tell us". • Market opening will drive services. The final point, and one that was acknowledged as a growing influence over customer service, was the looming introduction of non- domestic retail competition. The monopoly status of water companies removes competitive motivations. And while regulation is meant to ape the competitive element and keep the companies on their toes, the introduction of real competition, albeit in just one segment of the market, is expected to have a positive impact on customer service as a whole. The debate stated that, with customer service set to be the main differential for business customers, the ethos of good customer service will "filter through" to the domestic retail arm as well. Mathew Beech reports on the insights into SIM revealed by a Utility Week Live roundtable discussion last month. 0.19 point The largest improvement in performance score, achieved by Southern Water 89% The percentage of usable and valid records in Northumbrian Water data 79% Percentage of water customers satisfied in the pilot survey STAND OUT FIGURES FIGURE 3: SIM PERFORMANCE SCORES BY COMPANY IN SIX KEY AREAS 5 4 3 2 1 0 n Northumbrian n Anglian n Yorkshire n UU n Wessex n Southern n Severn Trent n South West n Thames Being kept informed Staff knowledge and professionalism Satisfaction with visits Staff helpfulness and attitude Ease of contacting call centre Time taken to resolve Utility Week Intelligence Secrets of SIM: Customer service in the UK water industry is avail- able in full, right now, from the Utility Week Intelligence plat- form. Published quarterly, these high-level Intelligence reports focus on a key industry trend or development. They analyse the very latest regulatory and mar- ket data to create fresh insights and ideas, delivering Utility Week's award-winning expertise at a granular level. Intelligence delivers a unique combination of insightful research, real-time news alerts and stories from a curated list of trusted sources, including Utility Week. To arrange your free five-week trial, contact Paul Tweedale on PaulTweedale@fav- house.com or 01342 332099.