Utilities: What’s trending…
As we march through 2019, we take a look at some of the latest trends in the utilities market.
As the market diversifies, decentralises and digitises the challenges become more and more apparent…
Top Trend 1
AI investments from Energy & Utility retailers will double in 2019.
As we have discussed in a number of our previous blogs, customer experience is becoming a key differentiator for suppliers as it becomes increasingly difficult to compete on price.
Utilising AI will help in handling customers in a more efficient way, and therefore reducing costs, whilst importantly, improving their experience. A win win for suppliers willing to take on the initial investment.
Top Trend 2
For those of us who are avid readers of Utility Week, you may have seen that 47% of customers believe they gained no benefit from being loyal to an energy brand. This is reflected in the stat that 22% of customers have switched provider in the past year.
So, what can energy suppliers do? Taking note from Top Trend 1, providing a seamless and rewarding customer experience is essential, and it needs to be personal to that customer. T
These are not easy things to achieve with so many other challenges, that is why we have found that many suppliers trust in a customer service outsourcer like DDC OS to utilise their expertise. Focus on your strategy, and let a specialist implement it on the front line.
Top Trend 3
Smarter Homes and Smarter Customers
It was back in 2009 that a certain IBM employee made headlines for creating ‘The House that Tweets’. Using readily available technology in new ways, and some innovative thinking, Andy Stanford-Clark, built a home so intelligent he was alerted when dinner was ready, if someone was at the door or a mouse was caught in a trap! At the time it felt futuristic and out of reach for the everyday person.
Now many of us use our phones, or Alexa’s to create calendar entries, control our household electrics, and importantly here, control our energy consumption. It appears as well that we are still within the infancy of this growth. The internet of things is real, and customer are becoming savvier as time goes on, so which suppliers will see this an opportunity to innovate and grow with their customers and who will see it as a threat?
Top Trend 4
A Shrinking Competitive Landscape.
After an unfortunate spell of SoLR processes stealing headlines across the industry, Ofgem announced new regulations for new entrants. These changes will come in to action from June 2019. The key changes are the need for potential suppliers to:
- Demonstrate sufficient funding
- Provide a customer service plan and
- Pass a fit and proper test.
This naturally offers more security for customers but importantly for the marketplace, it will reduce the number of new suppliers appearing. Reducing the competition, although, not making it any less intense.Back