The switching threat
Disrupters-turned-household-staples such as Netflix and Amazon have made technology mainstream. For energy providers, this translates as app trackers, paperless billing and price comparison sites.
The impact of the latter cannot be understated. Around a third (31 per cent) of all energy customers have used a price comparison service to switch suppliers, with 19 per cent having researched prices and offers in the past three months. So, even if consumers aren’t actively switching, a proportion are on the lookout for the next best deal.
Price comparison websites may be embedded in the mainstream, but the same cannot be said of energy auto-switching services. Just 7 per cent of all energy consumers have used one. Suppliers can’t afford to be complacent, but for all the talk of the threat of auto-switching, the reality is that the public at large aren’t yet adopting it.
Taking on trust
Eleven emerging energy suppliers have gone bankrupt since 2018 and the trend has not gone unnoticed by consumers. Just under half (44 per cent) of all energy consumers believe that small and emerging suppliers will go bankrupt and leave customers without electricity for a period of time.
The opportunity for small providers lies in customer communications; over half (55 per cent) of customers say smaller energy suppliers provide competition to the larger companies in the energy market and even those with the big six are compelled to agree (48 per cent). Green energy and investing in a sustainable infrastructure is viewed as important by customers across the board. All providers should adopt this, and communicate about it, in order to appeal to the broad spectrum of customers.
How can suppliers survive, and thrive?
In a consumer environment in which people are increasingly willing to switch energy providers, it’s vital that providers develop a nuanced understanding of customers.
Suppliers that embrace changing consumer attitudes are likely to thrive in the new energy landscape. However, delivering good customer service – a key rating on price comparison sites – remains paramount. In previous research, 94 per cent of respondents told us that resolving problems quickly is the most important factor in a good customer experience.
Ultimately suppliers that embed the latest consumer insight into their strategies are the ones that will survive, and thrive, in the post price comparison website landscape. Research is a vital part of better understanding the UK public’s behaviours. Populus unlocks the critical knowledge needed to better understand the utility sector. We add value to our findings by applying expert analysis to uncover clear, actionable insight.
Find out more by calling:
020 7253 9900 or emailing:
info@populus.co.uk.
Methodology: Populus interviewed 2,004 adults
(aged 18+) in Great Britain online between 1 and
3 March 2019. Populus is a member of the British
Polling Council and abides by its rules. For more
information, see www.populus.co.uk.