Rising Costs of Energy and the Importance of Customer Trust

In 2022, Doer/Maker, a creative marketing agency specializing in energy and sustainability, conducted a national survey in partnership with Lowfoot, a full-service data company providing analytics to energy retailers and utilities. The research had three goals:

1. Gain insights about consumer trust in their energy company or utility and its corresponding bills;
2. Explore the behavioral triggers that lead to conservation and savings; and
3. Drive improved trust outcomes between consumers and their energy provider.

The study was commissioned to learn how rising energy costs, combined with other life and societal pressures, potentially widen the gap of trust between consumers and utilities. This comes at a time when utilities are facing increased pressure to show progress towards decarbonization, rising support costs to deliver their services, and concerned stakeholders demanding more personal attention than ever before.

While the landscape may appear bleak, the research yielded behavioral insights and actionable information utilities and their partners can use to improve consumer trust, relieve some immediate pressures, and show solidarity with individuals and families faced with tight budgets and rising costs.

KEY FINDINGS

1. There is nothing more important than trust between utilities and their customers. Forward-thinking utilities should make improving it a top organizational priority. While utility customers are generally satisfied, taking active steps to improve trust and engagement leads to exponential returns and tangible benefits for utilities and customers alike.
2. Sending and receiving monthly bills should not be the only form of interaction between utilities and consumers. Proactive communication that is accurate and customized makes a big difference. Whether it’s usage reviews or bill previews, outreach that caters to individual needs lowers energy usage, increases savings, and builds trust. 
3. Technology is a powerful customer experience ally. It not only empowers consumers to take greater control over their energy usage, it allows utilities to engage more intelligently with their customers when support calls do come in. Better yet, it conclusively leads to improved consumer energy efficiency habits.
4. Utilities don’t have to work by themselves. There is a rich and diverse pool of partner resources to ensure that any steps taken are done so strategically and seamlessly. From data to insights to engagement tools to ops and support, if the goal is to engage more customers in smarter ways, partnerships are a great way to do it.

LOOKING AHEAD

Here’s what utilities can do to be – and remain – at the leading edge of change.

Build consumer trust. This should be a top priority for utilities. Between a changing climate and shifts in markets, utilities need to be ready to respond seamlessly to unpredictable rates and spikes in the need for customer support. Investing in consumer trust delivers those operational efficiencies and should be prioritized at the same level as spending on infrastructure.

Protect and nurture. While utilities are (rightly) focusing on customer trust and satisfaction, they need to remember the wellbeing of their own teams. Negative fallout from things like inaccurate bills or outages hits increasingly burnt-out support staff first, and it hits them hard. The more trust customers have in their utilities, the less likely they are to require support, and the kinder they’ll be when they do.

Simplicity works. When it comes to communicating with customers, simplicity works. But simplicity combined with nuance works even better. Customers want to hear from their providers – but they want that outreach to be on their terms and their schedule. Diligence, consistency, and transparency will always win the day.

Don't wait. Don’t let time pass. Any action you take is a step in the right direction. Both customers and support staff should be aware of the available communication options, and support staff should always be empowered to provide a positive customer experience. Consumer-focused actions can also include making sure usage and billing updates are accurate and easy to understand, while some utilities use customized incentives to encourage on-time bill payments. Personalized information can help consumers choose the right plan or reduce usage proactively, and timely alerts of rate increases builds trust between utilities and customers.

While the research shows that utility customers may be generally satisfied, increasing that level of trust offers tangible benefits and exponential returns to utilities and consumers alike. A combination of consistent outreach, empowered support staff, and a forward-thinking perspective will help utilities provide the service and support their customers want now, while establishing a foundation of trust to carry them into the future.