The service incentive mechanism, continuing pressure from the Consumer Council for Water and the introduction of a stepped-up customer engagement process for the 2014 price review have provided water companies with both the need and the opportunity to gain deeper insights into their customers’ requirements.
Many have consequently initiated customer experience improvement programmes with an initial focus on getting the basics right. But what do customers actually want from their water company? Deloitte and Ipsos Mori asked 1,000 customers across the UK about their perceptions of water services.
Seventy-one per cent said customer service is an important factor, with only reliability and quality of supply rating significantly higher in importance. This puts customer service on a par with factors such as price (73 per cent) and billing accuracy (75 per cent).
Perceptions of service did, however, vary between different groups. For instance, only 58 per cent of under-25s, compared with up to 78 per cent of the middle-aged, consider customer service important (see graph). Across the socio-economic groups, those rating customer service highest, at 80 per cent, were group E (casual labourers, pensioners and the unemployed).
Forty-three per cent of respondents thought their water services were good value for money, although statistically significant regional variations were reported (see bar chart). Some of these regional differences can be explained by macro-economic trends. For example, the lower ratings were found in regions where either water bills represent a higher proportion of a family budget (typically in areas with the lowest gross domestic household income) or in areas with low adoption of water meters (assuming there is a reduced perception of usage and cost of water in these areas).
So, let us go back to the original question: what do customers actually want from their water utility? Our survey confirms that customers want service providers to get the basics right and have a safe and secure water supply. But in terms of customer service, it is clear that one size does not fit all. The challenge lies in the fact that different customer groups have differing views of what great customer service looks like.
What can we learn from other industries? According to the 2012 UK Customer Satisfaction Index, consumers rate the retail sector highest. We know that leading organisations in retail have developed a clear understanding of their customers, using insight and analytics to tailor the services they offer. They use this customer insight to focus on making tangible improvements that have the most impact on the customer experience, using a combination of agile technologies, real-time feedback and multi-channel deployment to deliver the outcomes customers want.
To improve customer service levels, many water companies have already started to introduce online payment and self-service. The danger is that without a sufficiently detailed understanding of customer needs – by segment and by channel – such improvements will fail to deliver the expected service improvements.
Moreover, analysis of customer needs requires continual refinement – it cannot be a single exercise. This is particularly true of the use of technology, where the pace of smartphone and tablet adoption is changing the way that customers access information. Over the next 12 months, we expect many water companies to embrace these technological changes, for example by introducing mobile-specific websites to support key customer transactions.
If details such as when (at home, work or on the move) and how (type of device) customers will be accessing an online service are not fully considered, any new mobile channel offering could have, at best, a limited uptake. At worst, it could drive an increase in unwanted contact through traditional, expensive channels such as contact centres.
Duncan Barnes is a director and Matthew Saunders a senior manager at Deloitte
This article first appeared in Utility Week’s print edition of 22nd March 2013.
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