Blog Post

How to convince consumers to switch to a smaller energy supplier

Richard Simmonds • Feb 12, 2021

Even with smaller energy suppliers consistently beating the larger (formerly known as the Big Six) suppliers in awards, many consumers are still hesitant about switching to them. We take a look at just some of the benefits and advantages small suppliers should promote.

Highlight the benefits

Smaller energy suppliers have exceeded all expectations in the domestic energy market since it was opened up to increased competition and repeatedly beat the bigger suppliers when it comes to cheaper energy tariffs and better customer service.

Just look at the latest Uswitch awards results and you will see that smaller challenger energy suppliers swept the board with the larger players scoring the worst scores. Thousands of consumers were asked their views as to who they trust the most when it comes to providing them with electricity and gas.

Smaller energy suppliers take advantage of their smaller size as it makes them far more flexible than behemoths like British Gas or Scottish Power. They can react to market changes and new technologies faster and often implement them easier and with less cost.

Over the last few years smaller energy suppliers have proven better at offering:

Excellent customer service (both online and over the phone)
Have greater ability to deal with customer complaints due to their smaller customer bases and via the utilisation of man-hour saving technology
Are better value for money as they can offer more flexible and cheaper energy tariffs
By using technology such as Dyball’s CRM they can ensure energy bills are accurate and any issues can be dealt with quickly and professionally
By being smaller they can devote more time to their customers with many offering advice and education as to how customers can better use their energy

Also read: Octopus Energy wins big at the 2021 Uswitch energy awards as challenger energy suppliers dominate

Snapping up market share

Smaller energy suppliers are slowly but steadily eating away at the dominance the former Big Six companies used to have and it's all down to offering better customer service.

The increased competition in the energy market has seen the Big Six energy companies lose their market share. Since 2013 they have lost over eight million consumers to smaller challenger energy supply companies. Before that, they supplied the energy for 98% of all UK households.

While it's true that smaller energy suppliers are more likely to exit the market (it’s highly competitive after all) it also means that those who do survive and thrive have won the battle of the fittest by adopting good practices and via innovation. Read our tips on how to improve consumer trust in your business HERE

Also read: Smaller Energy Suppliers continued to snap up market share in 2020 shows new report

Smaller Suppliers can better support consumers

With the grim news regarding the state of the UK economy, smaller energy suppliers should highlight how they can help consumers struggling to pay their energy bills.

According to the Office for National Statistics (ONS), the UK economy shrank by a record 9.9% last year as coronavirus restrictions hit output, the biggest economic slump recorded since 1709.

Hit home that your tariffs are cheaper and particularly highlight that your prices aren’t affected by Ofgem’s decision to hike the energy price cap.

Many consumers are worried about their finances. If you can ease those worries by offering cheaper tariffs and customer support than highlight those facts in your marketing messaging. Now is a good time to attract new customers as well as put them at ease that you’ve got their back in these tough times.

Highlight there’s little to no risk to consumers

Sadly due to the highly competitive nature of the energy industry, there are always casualties. Numerous smaller energy suppliers have exited the market in recent years a fact that the media often pushes as reasons to be wary of them.

While smaller suppliers are more prone to failure due to the often tight financial margins, they operate with consumers should not be deterred from giving them a chance.

Energy suppliers wanting to grow their customer base should highlight that there are protections in place for consumers should the worst occur such as Ofgem’s Supplier of last resort.

SoLR means that there will be no disruption to service should the worst happen, and customers will automatically be moved to a new supplier.

As soon as a new supplier has been appointed, a customer can compare prices and switch to a new deal – and because they’ve been placed with a SoLR, you’ll be able to switch immediately.

Advertising this fact and educating customers as to how the process works should set their minds at ease and make them more inclined to give your energy supply company a chance.

If you’re considering entering the energy supply market get in touch of Dyball today. Our team of industry experts can help you get started and give you the advice and services required to thrive in the energy supply market.