Utility Week

UTILITY WEEK | 29TH JUNE - 5TH JULY 2018 | 27 Customers CUSTOMER SATISFACTION IN THE UK, BY SECTOR (JANUARY 2018) CUSTOMER SATISFACTION NATIONALLY social media as an outpost for complaints. Smart technologies might help utilities facili- tate interactions with customers, but without any substantial content, they won't necessar- ily improve customer satisfaction." But Haines is more optimistic: "We believe smart meters in particular will help to increase customer awareness of usage and cost, providing them with accurate, up- to-date information that will facilitate better engagement in the market." Smart tech has the potential to revolu- tionise the energy market's engagement lev- els, but it cannot and will not do this without the correct delivery, handling and support. It presents something of a Catch 22, as iden- tified in the government's response to the Smart Metering Implementation programme. It said: "Engagement has an essential role to play in ensuring consumers accept smart meters and use them to change their energy consuming behaviours, and in turn, levels of engagement." Ways that work Providing consumers with advice and solu- tions in advance of their "pain points" of interacting with utilities can help motivate people to adjust their behaviours to mitigate the problem. By personalising that advice, consumers can relate to the information eas- ily, and are more likely to have a heightened social awareness around sustainability, as well as how to change their habits. This gives them an incentive to ask the right questions and be a more sustainable consumer. There are now myriad digital options for customers to interact with brands: through email, mobile apps and web, to name but three. Conversations will happen when peo- ple get the right types of relevant insights and messages, because this will mean they're able learn from them and see their value as a result. With changes in regulation, emerg- ing technologies and a renewed call for improvement in customer satisfaction driven by other industries, it is now time to change the industry's narrative on customer engagement. Or as Lancha puts it, "to deliver true cus- tomer engagement, you need a combination of behavioural science and data science to generate proactive and very personalised insights for customers about their consump- tion and bills. These insights can help build a mutually informative conversation between the company and its customers. Although these conversations are not just about an exchange of words but also an exchange of content and ideas. It is essentially a feedback loop whereby companies and their custom- ers change their actions as a result of input from one another." How it's done… Other industries have paved the way and set new standards for others to follow. This has affected utilities because customers have much higher expectations when it comes to engagement. Now utilities need to respond by ensuring these new demands are met and by providing a personalised experience. Who: John Lewis How: As the 70,000 employees or "partners" jointly own the business, they get a profit share based on how much is generated by the business as a whole. All feel involved and incentivised. This encourages them to give sparkling service because they feel a sense of ownership for the business. Who: Amazon How: The internet retail giant has topped the UKCSI for the past three years. A spokes- person tells Utility Week this is because it "fosters a culture of innovation and inven- tion and is always trying to find ways to simplify processes, meaning everything hap- pens as quickly and smoothly as possible in terms of customer experience". Amazon is an example of how the internet and technology can be used in a customer-centric way – digital doesn't have to mean detached. Amazon says it is reactive to all customer feedback and is constantly evolving and improving as a result. Who: First Direct How: In a world where banks are still largely considered the bad guys, First Direct bucks the trend and has topped customer service polls for over six years, beating not just its peers but also companies from other sectors with a far more friendly reputation. Joe Gordon, head of First Direct, says this is attributable to "having the right people and empowering them to make the right deci- sions, and if things do go wrong then sort it quickly and sort it well." The four rules of customer engagement According to David Walters, director of home services and propositions at SSE Personalisation: greater customer expectations – there's no longer a one-size-fits-all solution Simplification: reduction in friction and simplifi- cation of processes Always on: always be there for customers, 24/7, 365 days a year Integrity: customers get organised and vote with their feet if they are dissatisfied" Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Institute of Customer Service analysis: Although still stable, the growth of customer satisfaction from utilities companies has levelled off. This paints a clear picture for the sector: in order to benefit from long-term returns, organisations must continue to invest in customer service and place it at the heart of their business strategy. The temptation may be to hold back amid an uncertain economic climate, but we know that where satisfaction is maintained, organisations will see a direct link to turnover growth, profitability and productivity.

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