Customer satisfaction survey for the utility sector

December 1, 2011

A new consumer survey conducted by EcoAlign in conjunction with the Customer Care Research Consortium (CCRC), has found the need for a more nuanced view of customer satisfaction in the utility sector. The survey examined the customer metrics used in the energy utility sector, including customer satisfaction scores and alternative customer metrics.

Customer satisfaction scores are used to understand the customers’ needs and measure the utility’s customer service. This is important for internal purposes, with customer satisfaction often included on executive scorecards, and externally, closely watched by regulators and other stakeholders.

Utilities use a wide variety of operational metrics to gauge the efficiency and cost effectiveness of customer operations. Both customer satisfaction and operational metrics are bench-marked against regional peer companies to provide a further understanding of performance. However, analysts are now questioning the reliance on traditional customer metrics as useful guides to the future of utility customer operations and what customers really want.

There is also an increasing recognition that metrics which measure intangibles of the customer relationship are important. The traditional focus on customer satisfaction has produced a paradox. The utility may be doing an excellent job in regard to customer service and yet experience dramatic drops in customer satisfaction levels due to outside factors such as rate increases (due to market prices) or reliability issues (unforeseeable storms).

Survey findings included:

• A strong foundation of customer satisfaction and consumer trust in the utility sector which utilities can build on, consumers also are more willing to engage with their utility than in the past.

• In general consumers appear to be satisfied with the customer service they are receiving. Customers were asked to describe their satisfaction levels with one word, “good” and “expensive” were mentioned most frequently. Other terms mentioned at lower levels were “OK,” “happy,” “helpful,” and “reliable.”

• Nearly six out of ten consumers felt it was easy to do business with their local electric company.

• Between five and six out of ten consumers rated their utility company as being trustworthy, with those over age 55 and homeowners the most likely to feel this way.

• The majority (87%) indicated they would be likely to share the news of utility programs, incentives or information that they find to be attractive and useful with family and friends. Homeowners and those over age 55 would be the most likely to share news of this type.