It takes just one badly handled communication or damning national media story to denigrate a utility provider in the eyes of a customer. That same customer rarely if ever appreciates the utility at the moment they flip the light switch or turn on the tap. Moreover, with utilities a grudge purchase and a political hot potato, the companies make convenient whipping boys, with politicians and national press ever ready to do some tub thumping.
So, what’s a utility to do? With competition increasingly a feature of the sector, throwing up their hands in despair simply isn’t an option. If every touch point with a customer counts, then every touch point must be as good as it possibly can be. Utilities, with their public sector legacy, simply aren’t set up in this way. That needs to change.
Npower’s new chief executive Paul Massara has nailed his colours to this mast, publicly setting a target for his business to be the industry’s number one for customer service by 2015. That’s a tall order: our research this week puts Npower bottom of a bad bunch. But his putting the issue front and centre is a start. There are also good intentions at SSE, which announced a £20 cashback scheme this week, whereby it will compensate customers if it fails to meet its self-imposed commitments on service. SSE has also realised the pressing need to put its money where its mouth is.
Fine words and £20 vouchers will only go so far, however. The creation of a customer-centric culture where previously there has been none requires a fundamental shift in organisational culture. It requires well trained, well-managed frontline staff – and plenty of them – as well as up-to-the-minute, integrated back-end systems, and senior management skilled and experienced in delivering for customers. Given utilities’ track record, that probably means getting out the chequebook to draft in talent and experience from other sectors.
Ellen Bennett