LONDON--(BUSINESS WIRE)--According to the 2011 National Customer Satisfaction Index results, more than one in five households are considering switching energy suppliers. The majority of these customers say that they would do so because of prices. But as prices continue to rise, and calls for more competition get louder, energy firms may have no choice but to make sure that customer relationships improve and customer satisfaction climbs: Only 6 per cent of highly satisfied customers are considering switching energy suppliers.
Several hundred thousand people switch energy suppliers at a fairly regular pace, which should encourage – if not force – suppliers to focus on customer satisfaction. It doesn’t happen in the utility market because it is a solid oligopoly with just six firms supplying energy to nearly 99 per cent of households – and utilities remain the lowest scoring industry on the National Customer Satisfaction Index.
As pressure increases on the big firms to make prices more transparent and allow smaller companies to enter the market, additional suppliers may lead to better service, greater consumer choice, and perhaps more competitive pricing. Although smaller suppliers have not been able to compete on price, they score higher on average than any of the “Big Six” on customer satisfaction, loyalty, recommendations, and corporate social responsibility.
“It’s important for energy companies to start managing customer satisfaction better,” said James Rudd, Managing Director of CFI Group UK. “The customer relationship is a crucial part of improving and developing their offering, and by measuring and monitoring the different elements of the customer experience, suppliers can prioritise the improvements that will have the most impact on future behaviour, business goals, and financial results.”
Download the full report from CFI Group.
About the National Customer Satisfaction Index (www.ncsiuk.com)
The National Customer Satisfaction Index (NCSI UK) applies the technology and methodology of the American Customer Satisfaction Index (ACSI), which was developed at the University of Michigan and CFI Group. This methodology has been adopted worldwide as a leading indicator by universities, governments, and countries including the United States, the United Kingdom, Sweden, Singapore, Korea, Turkey, South Africa, Mexico, Colombia, Dominican Republic, Indonesia, and Barbados.
About CFI Group (http://www.cfigroup.com)
CFI Group is a global leader in customer satisfaction measurement and management. Founded in 1988, CFI Group brings the precision and predictive power of the American Customer Satisfaction Index and the National Customer Satisfaction Index UK to help clients capture and analyse the ‘Voice of the Customer’, benchmark performance, and identify improvements that drive customer satisfaction, loyalty, recommendations, revenue, and shareholder value.