In 2018, an astonishing 5.8 million customers switched to a new energy supplier – and 2019 looks set to break that record, with more than 600,000 people moving to a different company in September alone.
Price is the main driver, but customer satisfaction is also seen as hugely important, with around a third of those who switch saying they’re moving because of poor service.
Whether you’re just starting the journey and thinking about how best to set up an energy company , or are an established supplier wanting to keep customer churn to a minimum, these are all great tips.Increasingly, customers want to be able to manage their accounts online. Offering online payment and paperless billing makes it easy for them to do so. At the same time, you can provide them with information about their account – how much gas or electricity they have used, what they have paid and when, and when the next payment will be due. All of this will help them plan and avoid any unpleasant surprises. Make sure this, and other content on your website is clear and simple, with straightforward navigation.
Planning a price rise or decrease? We know that price is the most important thing for energy customers, so use the communications tools at your disposal to let them know in advance what you are planning, and why. Use your website to explain how their bills are made up – show the raw energy cost (or wholesale cost) the cost of transportation (or transmission & distribution), metering costs (or supplier operating costs) so they can see what’s happening.
You may be getting things wrong – or right! – but unless you ask your customers how you’re doing, you won’t know for sure. Consider using SMS services to get your customers to rate their last transaction with you. Make sure your customers are happy for you to contact them in this way, and be mindful of GDPR requirements. You can use the same services, as well as your website, to keep customers updated on what you’re doing to address any issues highlighted by their feedback. Be transparent and own up to any errors on your part.
If you’re set up to use SMS, it’s a great way to keep in contact with customers. Use it, not only to tell them if a bill is on its way or to collect feedback, but also to keep them informed about any technician visits, for example, to confirm appointments, advise of ETAs or warn of delays. You can use SMS too, to drive people to your website to check for billing information, industry news or energy saving tips.
Be mindful of your tone of voice in all your communications. Be friendly, approachable and considerate - and don’t be too ‘wordy’. Keep your communication simple, whether it’s website content, chatbot text or the scripts your customer service advisers use. Chasing late payment, for example, can be tricky, but get the language right and you’re more likely to get the right result. Acknowledge that a payment has been missed, remind the customer of the outstanding balance, ask for payment in a non-threatening way, and provide a link to online payment as well as to the customer service team. Be sympathetic and show you want to work with them to help them pay.
Technology is great but research shows that energy customers’ preferred mode of contact with you is still the telephone, followed by email and live chat. If you can provide a human face to your customer service, they will appreciate this – as long as you don’t keep them hanging on the telephone too long. Being kept on hold is a big bugbear, along with accurate billing and responsive and speedy complaints handling. This is really important, as customers rate ease of contact very highly on their wish list!
Don’t forget your customer once they’ve signed up with you. Find ways of engaging them on the journey. For example, send them an SMS message to confirm their account has been set up and is ‘live’. Confirm their account details, provide them with links to your website where they can see their account information. Perhaps point them to a short video from your CEO or head of customer service welcoming them to your company. Winter on its way? Message them with links to tips to save energy, along with a link to an appropriate app or third-party website where they can get more information.
Can you offer a 100% renewable tariff? Increasingly, customers (both residential and business) are looking to their energy suppliers – and not just independent energy companies – to help them reduce their carbon footprint. Energy saving advice helps, of course, but if you can demonstrate you’re truly ‘green’, this can be a hugely attractive element for customers. If you can match this to great customer service and a competitive, value for money price point, this could pay dividends - both literally and metaphorically!
For more information on how to start and manage an energy company, get in touch with Dyball Associates today.