Utility customers are not as disloyal as the latest switching trends make out, according to research from 383 Project.
A survey of more than 2,000 people by design agency 383 questioned energy, water and telecoms customers.
The results found that while two thirds of respondents said they had switched providers, 20 per cent said they would stay if they received better service.
On average a fifth of those surveyed in each age group said the companies getting the fundamentals right would encourage them to stay.
The findings have led the commercial director of 383 to predict that the recent switching trend could be about to hit a “significant roadblock”.
When asked about ways to convince customers to stay, rewards for loyalty came out on top – with 41 per cent of respondents on average saying they would be encouraged to stay.
Half of over-55s said they would be encouraged to stay with their supplier if they were offered rewards. This compares to a quarter of 18-24 year olds, a third of 25-34 year olds, 38 per cent of 35-44 year olds and 45 per cent of 45-54 year olds, showing an upward trend.
Meanwhile 46 per cent of over 55s said stable rates would encourage them to stay, compared to just 18 per cent of 18-24 year olds.
On average, 40 per cent of consumers care about sustainable energy, but will not pay more for it. 383 says this raises the question of what energy providers need to do to better to help with sustainability agendas.
Women (43 per cent) are more likely to care about sustainable energy than men (36 per cent).
Furthermore only 16 per cent of consumers would be persuaded to stay if there was an easy to use mobile app and two thirds (66 per cent) have switched providers, with 20 per cent saying they would stay if they had better service.
The most recent figures from industry trade body Energy UK showed the total number of customers to have switched supplier so far in 2019 to be more than 3.5 million. Last year a record 5.8 million switched.
Oliver Disney, commercial director at 383, said: “While energy switching hit a new high in 2018, our new survey shows a different picture emerging.
“The energy sector in particular is under intense pressure, with more than 925,000 customers falling victim to a failed supplier in the last 18 months – with a quarter of a million of those being moved to a higher, standard variable tariff via Ofgem’s supplier of last resort system.
“The promise of smarter, cheaper, quicker energy providers isn’t as alluring as perhaps it once was, with customers becoming more savvy about the superficiality some new players are bringing to the table.
“And if the feeling is that switching isn’t saving them money, and it is actually more complicated than is necessary, then the switching trend could be heading towards a significant roadblock.”