Utilities Should Prioritize Customer Engagement. Here's Why.
We at Virtual Peaker talk a lot about customer engagement - and with good reason. There is a rising tide of realization within the utility space that the transition from "ratepayer" to "customer" can't just be a labeling exercise. The customer model must be supported by actionable strategies that result in measurable improvements in engagement and ultimately, satisfaction.
Why does this matter? A common approach is to look at utilities as monopolies. Since customers outside of retail choice markets can't choose their electricity provider, why spend time, effort, and unrecoverable dollars to satisfy customers who have no alternative?
PwC has put out a great study to talk about exactly why customer engagement matters in regulated monopolies. The punchline? Utilities with higher customer satisfaction perform better during rate cases, giving them higher rates of regulatory return. The chart below tells it all:
As electricity demand continues to fall and the needs for new infrastructure wane, this study is a powerful reminder of why utilities must push customer engagement to the top of their priority list.
Disclosure: Virtual Peaker has no outstanding business relationship with PwC and has not independently validated the data contained within this study.