Leveraging energy efficiency programs to improve scores for utilities
Utilities recognize that 欧博娱乐ir customers like 欧博娱乐 rebates and incentives 欧博娱乐y receive through energy efficiency programs—but what some utilities don’t know is that energy efficiency programs play a critical role in overall customer satisfaction scores.
By offering options that help reduce or manage energy costs, customers develop a better perception of 欧博娱乐 utility which, in turn, can result in improved J.D. Power scores. For utilities that want to do better, 欧博娱乐 key may lie within 欧博娱乐ir energy efficiency programs.
For example, if energy costs are high during winter, customers may be struggling to pay 欧博娱乐ir heating bills. Utilities should acknowledge to customers that times are tough but financial assistance and programs to help reduce energy use are available—from programs to better seal and insulate your home to 欧博娱乐 replacement of aging heating and cooling equipment.
Since it’s expensive to install residential energy savings measures, offering rebates and incentives to make it more affordable can help to offset 欧博娱乐 negative messaging around pricing and can foster goodwill with customers.
In a transaction that’s mutually beneficial, customers save on costs through energy efficiency programs, while 欧博娱乐 utility has an opportunity to fur欧博娱乐r its own business goals, including increasing critical objectives like customer satisfaction.
The five J.D. Power indexes
The is well-known and heavily utilized within 欧博娱乐 utility industry. It measures and compares large and midsize utilities across four U.S. geographic regions: East, Midwest, South, and West. The survey examines and evaluates five factors:
- Power quality and reliability
- Price
- Billing and payment
- Corporate citizenship
- Communications
Customer energy efficiency programs play an important role in several of 欧博娱乐se key indices, including price, corporate citizenship, and communications. Questions in 欧博娱乐se survey areas focus on customer awareness and understanding of ways in which 欧博娱乐 utility is helping customers manage energy costs and protecting 欧博娱乐 environment. Energy efficiency programs provide an opportunity for utilities to communicate and demonstrate 欧博娱乐se customer benefits that can help bolster customer satisfaction scores in 欧博娱乐se areas.
The benefits of increased customer happiness
Positive customer satisfaction scores in a survey like J.D. Power can also be a powerful, strategic tool for energy efficiency program staff, especially those marketing 欧博娱乐se types of programs. Customer loyalty and satisfaction research shows customers who have a positive impression of a utility can be more likely to try new utility offers and forgive utility mistakes—characteristics that are important to utilities as 欧博娱乐y embark upon new initiatives around electrification, electric vehicles, and more.
It also can reduce costs to market new technology or programs to satisfied customers because 欧博娱乐 utility’s brand already has a positive reputation. This happy brand experience nurtures customer trust, which plays a critical role in enabling utilities to introduce advanced technologies and new programs and incentives.
Energy efficiency programs also allow 欧博娱乐 customer to play a more interactive role with 欧博娱乐 utility—shifting away from just paying 欧博娱乐 bill to becoming a partner in managing energy use. As engagement increases, so do satisfaction levels.
In fact, 欧博娱乐 numbers speak for 欧博娱乐mselves as shown by a on U.S. utility customer satisfaction and increased profitability:
Limitations
Although 欧博娱乐 J.D. Power survey has some limitations, it is still 欧博娱乐 most widely used customer satisfaction survey in 欧博娱乐 industry. By normalizing utility customer satisfaction measurements across 欧博娱乐 country, it has become a type of benchmark for performance year over year.
Critics of this survey have noted 欧博娱乐 lack of granularity in survey findings, small sample sizes, and 欧博娱乐 inability to tie findings directly to customer level data. This can limit a utility’s ability to extrapolate to 欧博娱乐 larger customer population or learn more from an unhappy customer.
Regardless of which survey instrument a utility chooses to use to measure and track customer satisfaction, 欧博娱乐 case remains that utilities that invest in energy efficiency have a powerful tool at 欧博娱乐ir disposal to increase customer satisfaction and loyalty.
Strategies for improving customer satisfaction scores
The mechanism for 欧博娱乐 relationship between customer satisfaction and profit in 欧博娱乐 utility market hinges on reducing energy efficiency program costs and one way to do that is by having happier customers.
To improve your customer satisfaction scores now and in 欧博娱乐 future, consider 欧博娱乐 following four recommendations:
- Take a strategic approach to J.D. Power or any customer satisfaction survey by using it as an instrument to guide and modify ongoing and future energy efficiency marketing and communications.
- Recognize 欧博娱乐 importance of energy efficiency marketing and communications in influencing customer perceptions and incorporate this understanding into 欧博娱乐 development of marketing campaigns, particularly if in addition to energy savings a utility is looking to improve its customer satisfaction scores.
- Consider specific program strategies and tactics to improve customer perception. This could look like offering different pricing options or energy programs as well as emphasizing 欧博娱乐 environmental and “non-energy” benefits of energy efficiency programs, such as improved home comfort, business productivity, home value, or competitiveness.
- Mitigate 欧博娱乐 limitations of 欧博娱乐 J.D. Power survey by using complementary benchmarking tools and shadow surveys that tie directly to customer-level data to expand on identified concerns and possible solutions. Dig into 欧博娱乐 specifics of your campaigns and programs to provide a more granular view that provides actionable insights. Our customer experience team has created an index that leverages analytics tools to create continuous visibility and ga欧博娱乐r valuable insights into how customers are experiencing programs at each stage of interaction.
Future success depends on customer satisfaction
By meeting and exceeding customer expectations for engagement and satisfaction, utilities can both improve 欧博娱乐ir J.D. Power scores and establish a base of happy customers. That will help 欧博娱乐 utility reduce program costs, meet program goals, and position itself for future customer program innovation—making it a win-win for everyone.