12% of customers trust their utility – study
Research from UK brand intelligence firm Ello Group has found that only one in 10 (12%) customers trust their current preferred utilities supplier. This comes as the energy price cap is set to increase by 80% this month with almost a third (30%) of customers saying these rising costs are impacting their trust in brands.
The Group’s 1,000 consumer survey revealed brand switching is becoming more commonplace, with one in five admitting they have switched energy supplier, mobile provider or supermarket in the last 12-months.
Over a fifth (22%) of customers admit loyalty to the businesses and organisations they normally buy from has declined in recent months.
Respondents stated that their trust in brands would likely increase if brands offset the rising cost of living by absorbing some of the increasing costs through their supply chains (20%), offering discounts at relevant places (19%) and showing that they listen to and know their customers (14 %).
Michael Kalli, managing director of Ello Group, commented: “It’s no surprise that the rising cost of living is having a major impact on people’s purchasing choices – families and individuals are having to tighten their belts in any way they can.
“Utilities, such as water supply, gas and electricity, are essentials but our research clearly indicates customer trust and consequently customer loyalty is dwindling.”
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On the key factors influencing a consumer’s decision to stick with a utilities provider long-term, the data revealed these are the top areas of importance:
- Price (41%)
- Reliability (21%)
- Good customer service (21%)
- Quality of product/service (13%)
- Trust (13%)
Ranked in order, the research also revealed utilities are amongst the worst performing sectors when it comes to customer performance, coming in at 7th, between media and fashion retailers.
“Households are becoming more and more concerned about how they can afford their bills this winter. It is a make-or-break moment for utilities providers as this is when they can make a real difference to their customers.
“Consumers need to know that their supplier understands them and their main pressure points. Those that provide meaningful support, such as valuable discounts at useful places that help ease the pressure on wallets, despite their own supply chain challenges, really could see their loyalty ratings improve,” added Kalli.
