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Customers UTILITY WEEK | 29TH SEPTEMBER - 5TH OCTOBER 2017 | 27 we believe there will still be a big focus on reducing complaints, improving complaint handling and learning from complaints to provide the best customer service outcomes. Under the new suggested measures, com- plaints made through any contact channel will be considered. This more holistic meas- ure is a good thing for the customer given the numerous ways customers can now contact their water company and the varying cus- tomer preferences when it comes to chan- nel choice. In addition, the shi could well enable water companies to develop stronger, more transparent relationships with their customers. One particular ongoing challenge for many companies is managing complaints via public social media channels, which the modern customer increasingly uses to air frustrations. However, here the potential damage goes far beyond ineffective com- plaint management. Water companies, as with businesses in other sectors, are only too aware of the reputational impact social media channels can make. Those who are already active on social media both recog- nise the need to service it well as well as the opportunities it provides to improve trans- parency with their customer bases. Given that Ofwat is advising companies to offer at least four contact channels, with at least two of them online, in another effort to bring the sector into the modern business world and improve offerings to customers, those companies not currently active on social media may need to quickly get up to speed and focus on how they make the best use of these platforms to service contacts and complaints effectively. The next few months will prove inter- esting as Ofwat publishes the responses received to its consultation on the PR19 methodology, and its final determination. We may well see some changes to the proposed WaterworCX mechanism during this time, but what is clear is that the UK water indus- try will be expected to significantly improve when it comes to customer service, as PR19 puts companies under more pressure to do better for their customers. As customers become increasingly informed via more accessible information being made available, and an increasing focus on customer engagement, this will inevitably lead to a shi from transactional interactions to a more engaging and rapport- driven relationship. The key will be to invest in both talented frontline teams and innova- tive solutions that help reduce customer fric- tion and improve customer service. Monica Mackintosh, customer services director, Echo Managed Services I n the first half of this year, the water market for non-domestic customers saw its greatest transfor- mation since privatisation. But since the floodgates for competition were opened in April, allowing more than 1.2 million businesses, charities and public sector bodies to choose their supplier, the number of organisations switching has amounted to little more than a trickle. While it is expected that the numbers will increase in the coming months, less than 2 per cent of eligible organisations have switched so far according to the 2017/18 data released by Market Operator Services Limited (MOSL). Of those that have switched, more than half are also classed as low water users – customers using less than 1,000 litres a day. This will come as a surprise to many, given the con- cerns voiced by commentators imme- diately before the market opened, that low awareness among small and medium-sized enterprises would result in the benefits of competition being seen only by a limited number of the UK's largest companies. That is not to say a lack of aware- ness is not an issue. Certainly, with a notable absence of effective awareness campaigns, the drivers for those that have switched supplier have been limited to cost. Market complexity is another issue affecting the switching rate currently, though it is seen as both a threat and an opportunity by some. Despite there being only five basic services offered by operators, including raw water, potable water, sewage, drainage, and trade effluent, there are more than 40,000 lines in the tariff table. On one hand, then, complexity is felt to be a real challenge in terms of its impact on the cost to serve, but on the other, this complexity is seen by some as a means by which retailers can add value, helping customers to under- stand and benefit from the options available, as well as offering add-on services such as water audits and on- site effluent treatment to reduce costs. Similarly, the 2019 periodic price review (PR19) will be seen as positive by some, and less so by others. The introduction by Ofwat of a new mech- anism to measure customer satisfac- tion effectively separates domestic and non-domestic customers, which creates new opportunities for retailers. But with no mechanism for retailers to comment directly on the performance of wholesalers, market codes remain the only means of redress. The ability to use these codes and messaging methods effectively and the relation- ship between retailers and wholesal- ers is therefore paramount. Meanwhile, it is almost certain that the trend of acquisitions and mergers such as United Utilities and Severn Trent will continue, with the possibil- ity of energy or other retailers entering the market through either acquisition or partnership growing. Indeed, water may be seen as an opportunity for revenue growth away from their home market where price is the subject of intense political and media scrutiny. This will bring data protection challenges and other hurdles such as combining and scaling systems while remaining market compliant – all will have to be faced and the role of robust and efficient soware is set to assume ever greater importance. It may well be some time yet before the trickle of customers actively partic- ipating in the open market becomes a flood, but with competition now a fact of life, it is certain that the sector must be ready to embrace further change if it is to realise the opportunities deregulation brings. Nic Clay-Michael, water industry and product specialist, Gentrack Water market status report Six months after the competitive water market opened, how are business customers embracing their newfound choice? Column Nic Clay-Michael