The cost-of-living crisis is affecting people right across the UK. Whether it is in response to the price of food, energy or fuel, people are being forced to reassess their finances. For those most affected, individuals and families are having to make incredibly difficult choices about how to spend their money. When David Black, CEO of Ofwat said that no one should have to choose between food and water, it was surely a sentiment shared across the water industry.
We believe in the power of businesses as a force for good, and for many, like those in the water industry, the cost-of-living crisis is a moment where they can look past commercial priorities and show up in people’s lives in a way that truly makes a difference, without it being motivated by burst pipes or digging up roads.
Water companies are already switched on to the need for effective customer engagement as they prepare and execute their plans for PR24. This timing affords them a unique way into the opportunity to engage their customers in response to the cost of living crisis. Understanding what is important in people’s lives is an essential first step in engaging them on issues that water companies want to be discussing for PR24. As a result, they should be better placed than most businesses to deliver meaningful, targeted and effective customer engagement.
The recent example of Severn Trent Water’s £30 million support package, which stands to benefit the most vulnerable, is an act that has received lots of positive coverage and is a great example of support that targets the most in need.
What remains to be seen is whether other companies follow suit with financial help, which for many people will be the most effective means of support, or whether we see more innovative approaches to customer engagement alongside it.
The Severn Trent Water support package is a great move, but what is less clear, is the extent to which it has actually engaged people or will engage them in the future. Severn Trent Water should use this as an opportunity to gain the sort of insights that could help the business understand its customers even better so that it can undertake further improvements and begin dialogue on other important issues in the future. Gaining insights into customers’ lives could unlock even more targeted support. The cost-of-living crisis is a chance for water companies to start a dialogue with customers. An opportunity for engagement which could lead to continued conversation on other issues they have historically struggled to engage customers about once the immediate issue has passed.
This isn’t to lose sight of the incredible power and relevance of financial solutions in response to the cost-of-living crisis. For the people that are most at risk and likely to benefit the most, financial support is priceless. Looking past that though, there is a unique opportunity for water companies to have an even bigger positive impact on people’s lives because of how much they should know about their customers at this time in their preparations for PR24.
How many of them are going to take advantage of this opportunity and shed a positive light on the water industry?
The challenge
Experiences across the water industry suggest that customer engagement is difficult when it concerns a utility that comes with little choice and is considered a basic human necessity. As we know, for most people in the UK, turning on a tap and expecting clean, potable water isn’t even a conscious act.
The extent of this challenge can be seen within Ofwat’s strategic priorities which include, transforming performance for customers, meeting long-term challenges through collaboration and partnership, and for water companies to serve a wider public purpose.
With such an emphasis on improving customer engagement it is evident that this is not currently an area of strength within the industry, something that Ofwat’s new C-MeX scores, to measure customer experience specifically, seek to address as well.
All of this added together though presents an even more compelling incentive for water companies than businesses in other industries. There is not just a powerful human element to the impact effective customer engagement and support around the cost of living crisis can provide, but also a strategic opportunity to help deliver against all three of the regulator’s strategic priorities.
The opportunity for great customer engagement
Ofwat’s strategic priorities encapsulate the opportunities the water industry has to respond to the cost of living crisis in an impactful way.
Transform performance for customers
Many customers are facing this crisis as adults, homeowners, parents and employees with no comparable frame of reference in their adult lives. Getting customer engagement right can position water companies, previously largely hidden from view, in a positive light when their customers need them most and at a time when their customers might be more willing than ever to engage. Getting this right could generate the insights and relationships needed to create a genuine continuum of engagement that would benefit businesses and customers alike.
Meet challenges through collaboration and partnership
Working together offers a great way to amplify impact, and with businesses in every industry in a position to respond in some capacity to helping people cope with the cost of living crisis, the scope for collaboration and partnership is immense. Whether it is by acting as a beacon for collaboration for other region-based businesses, or being proactive in response to collaborative opportunities coming from elsewhere, helping people at this difficult time is an opportunity to unite around a common cause.
Serve a wider public purpose
We believe that purpose-driven brands are more effective and successful than other businesses. A brilliant approach to customer engagement in response to the cost of living crisis isn’t just about financial support, as effective as that can be. Companies that really set themselves apart today will have a response as part of a wider company purpose that is authentic, effective and delivers something that they are uniquely, or best able, to deliver.