Retaining utility customers in a recessionary environment

The unprecedented nature of the coronavirus pandemic has left utility suppliers grappling with the cascading impacts of an unforeseen economic downturn.

With unemployment cases climbing each week, many energy suppliers are fearing a surge in bad debts and have expressed concerns over a rise in households defaulting on their bills. According to Citizens Advice, 2.1 million energy customers are currently behind on their energy bills, 600,000 more than in February.

This comes at a challenging time for the energy sector. Even pre-pandemic, suppliers were struggling to meet deadlines to pay for policies that support the transition and development of green energy – forcing many out of business. More than 20 suppliers have declared bankruptcy since 2016, in a sector that suffers from tough competition and thin margins.

With tech giants like Google entering the utility space, all suppliers will need to rethink their current business models amid a backdrop of a severe economic downturn in order to retain new and existing customers. They must integrate competitors’ services alongside their own and harness technology to appeal to the new age consumer – one who is conscious of and takes an active interest in personal energy consumption.

With that in mind, what can utility companies do to remain relevant in a competitive pandemic landscape?

Develop a multichannel connection

Since the pandemic erupted, we have witnessed a digital revolution, with more access to online services than ever before. According to McKinsey & Company, we have leaped five years ahead in consumer and business digital adoption (in a matter of around eight weeks), in order to protect employees and better serve customers who were impacted by Covid-19.

Previously, passive utility consumers who paid a bill each month without regard or concern, now have a variety of digital devices and channels available to help track energy consumption, manage accounts and interact with the supplier. Digital transformation is dramatically changing the expectations and behaviours of utility customers, with greater choice leading to preferences for a multichannel approach – with nearly 90 per cent of customers preferring to contact their supplier in a way that suits them.

When it comes to customer service channels, the more, the better; but understand that you will get duplication and increased work load if you don’t answer the customer query efficiently and effectively. Customers who don’t get answered immediately via a call, will opt for the next quickest option and that’s normally email, and if they don’t get an answer on email, they might try and call again of use social media.

Customers who did get answered quickly and had the option of a variety of channel options were not only more loyal to brands, but were more satisfied – customers who used 10 channels or more to contact customer service had a 14 per cent higher overall satisfaction and 53 per cent higher advocacy.

Accessibility also impacts the perception of a brand, and directly impacts customer loyalty. Therefore, utility companies should consider how and when they offer information to customers. An example would be offering useful FAQ information on Google and smart speaker systems, because customers will often search for help before contacting a supplier directly.

Improve your customer support

To enhance customer satisfaction for utility customers in a pandemic-stricken environment, businesses must respond to requests in real time and provide a fast first contact issue resolution. With over 30 per cent of consumers expecting a response from a business within 15 minutes or less, suppliers must ensure they have the infrastructure in place to handle and process enquiries quickly.

Chatbots are fast becoming commonplace in business operations for this very reason due to their ability for reflex-like reactions to customer enquiries and chat is arguably becoming a preferred channel for consumers globally. If integrated with back and front office systems correctly, a bot should be able to speed up response times, and help perform more complex tasks without the need for a human to step in.

AI also has the ability to identify when more empathy is required by detecting the mood of a customer. In doing so, AI can then decide whether it’s appropriate to move the request to a human agent, who is better equipped to resolve more complex or serious issues.

A bot, however, can become a source of customer dissatisfaction if it causes friction for the customer. An agent should be able to continue the conversation – in context – from where the chatbot left off if the technology is integrated correctly into the overall customer journey.

The future of the utility sector

All suppliers in the industry are now battling to retain their customer base and keep in step with what consumers expect from their service under unique and challenging circumstances. Only those suppliers that lead in the field of customer experience, or use customer experience to differentiate themselves, will thrive and survive long term. People buy on trust, so if their customer experience is positive and what they expected, then they’ll trust you and stay with you.