Seven out of 10 adults are “switching sceptics” and do not believe changing suppliers makes any lasting difference, according to new research.
The research by the customer contact centre company Echo Managed Services found 58 per cent of people surveyed did not notice a significant financial benefit when switching service providers.
But the research also found the energy sector experiences the greatest number of switches, with 38 per cent of consumers saying they have changed provider in the last 12 months, compared to just 14 per cent of credit card customers.
The most recent figures from Energy UK show that more than 550,000 customers switched electricity supplier in September.
That figure is up by nearly a half (46 per cent) on September 2016 and means over four million customers have changed electricity supplier so far this year.
According to the Echo Managed Services research, the most common reason for people switching is when a supplier increases their prices (61 per cent), while the 40 per cent of respondents said they switch as part of a regular check on the best deals.
“These results make interesting reading following on from the CMA’s advice and ongoing investigations,” said Echo Managed Services’ head of sales and marketing, Chris Cullen.
“It reinforces the suspicion that many ‘switching sceptics’ have – that what at first seems like a better deal rarely turns out to have long-lasting benefits.
“With the expectation of big savings being fuelled by price comparison site advertising, it’s not surprising that the relatively meagre returns are causing a rise in skepticism,’ added Cullen.
“It should create an incentive for providers to fight harder to keep hold of their customers, using better service, transparent pricing and extra perks and benefits to encourage customers to see the long-term value in loyalty.”