Communication Technology, Customer Service, Executive Insight

Utilities can use digital communication to fix a fractured CX: here’s how

For much of their history, utilities haven’t had to pay too much attention to customer experience (CX). Their focus in many areas has tended to be on technologies that supported infrastructure and reduced operational costs.

But today’s customer expects much more. Thanks to their interactions with service providers in other industries, people expect their utilities to provide the same seamless experience they encounter elsewhere. 

When it comes to providing that kind of experience, the best place to start is with customer communications. 

Digital innovation and customer expectations

While customers may continue to have a limited choice when it comes to utilities, the sector still faces disruption from innovative new players. It’s become increasingly affordable, for example, for homeowners to switch from grid-based electricity to using solar panels to take care of most of their power needs. 

If utilities are to avoid full-scale disruption, they can no longer rely on providing a reasonable service at a reasonable price. 

They must instead focus on creating better CX. 

In fact, focusing on customer experience could allow utilities to thrive in even the most disruptive environment.  In a 2017 CapGemini study  73% of respondents said they would pay for better customer service from their utility provider.

Learn from the retailers

If utilities are to provide an improved experience, turning to the retail sector for ideas on delivering a superior CX is a good idea. 

Retailers tend to understand that their customers have a few key expectations, including: 

  • Cross-channel personalized experiences
  • Seamless, consistent and connected journeys
  • Data accuracy, protection and privacy
  • Interaction where, when and how they want
  • Value exchanges above and beyond
  • Real-time interactions and responses

If utilities can actively meet and exceed those expectations, they’ll build lasting customer relationships that engender loyalty and maximize value. 

To maximize the value of a customer, utilities need to understand what their customers really want and map their strategy to provide just that. 

Digital communication is vital 

Ultimately, the best place to make an impact in CX is in digital customer communication. 

As far back as 2016, a study by Market Strategies showed that 54% of residential customers preferred digital communication over any other form of communication and that number is likely much higher today. 

Utilities can start by including valuable data and insights that are personalized to the customer’s activity in the communications that they are already sending to customers. 

These customizations are what improve the CX for customers and build the foundations for trust and a better relationship. Using data effectively and helping the customer better understand usage will not only improve the CX but increase engagement too. 

Customers expect to engage digitally with their utility provider and in a manner that is meaningful to their experience.

Betting on billing

That said, it may not be possible for utilities to overhaul all of their digital communications at once. Some areas may take longer than others to get right.

When customers have a bad experience, they typically engage less, take longer to pay bills and ignore payment reminders and past due notices. Taking this into consideration, a good start in improving the CX would be the bill-to-payment communications.

The bill-to-payment journey needs to be streamlined to remove the friction points that cause a fractured customer experience, for example where a bill is sent electronically but an overdue payment notice is sent by mail. Furthermore, tone, branding and general approach should be consistent across communications.  

Streamlining and improving this experience for customers will increase engagement and ultimately improve cash flow.

Big business benefits

It’s time for utilities to embrace a seamless, digitally transformed customer experience and improve the communications that are sent to customers as this is what will retain and maintain long-term customer relationships.