Like many other household goods, the average monthly residence bill in the US continues to grow. In 2024, bills reached an average of $ 182, an 8% increase over the last two years.
Although the causes of growth are well documented – inflation, the hottest ever recorded wine and an increased need to strengthen the infrastructure due to the heavy weather – the reaction of consumers to these increases seems proportionally negative than the providers of the provider others of goods services.
COMMENTARY
In fact, JD Power Electrical Service Satisfaction Study in 2024 of the US Electricity found that the pleasure among electrical service clients was reduced for the fourth consecutive year. Especially in regulated markets, customers can keep energy companies to a higher standard due to the lack of perceived choice. Therefore, it becomes even more important to display value.
According to the JD energy study, one of the areas with the most important decline in satisfaction was customer care. This creates an opportunity for service services to implement proactive communication strategies that mitigate the decline in satisfaction, protect the market share and open doors for new programs and projects.
A detachment between the price and the perceived value
Consumer perception of value plays an important role here. Customers estimate the value of a service based on the benefits and costs regarding its price. In the energy sector, this process is influenced by factors such as reliability, customer service and emotional satisfaction arising from energy consumption.
As power costs continue to climb, it becomes difficult for customers to reconcile the highest bills with the same level of service they have received in previous years. Unlike industries where customers can easily pass between providers, many services operate in a regulated environment. And, in every industry, limited options create clients who are more willing to express their dissatisfaction. This exacerbates negative perceptions even when service companies are making important investments in new technologies, strengthening the system and increasing reliability.
The possibility is then that municipal services provide the client’s expectations and perceptions of the cost they see in their bills, especially as the industry faces increasing complexity, external pressure and instability.
Why does value matter to municipal services?
The good news is that the adult customer satisfaction has a tangible value, the bottom line for the utilities.
For example, a study conducted by the PWC found that customer satisfaction may have a direct impact on regulatory results. A minimal level of satisfaction can affect the success when you should seek a rate increase.
Further, in most industries, customer satisfaction serves as a competitive differentiation. For highly regulated industries, satisfaction translates into an easier way for new unregulated services and products that can be presented in the market.
Future of Energy: Approximation of Value
When the perceived price and value is approximated, the customer’s satisfaction is practically guaranteed. Municipal services can implement specific and measurable programs to ensure that customers understand that the value they receive is reflected in the price they pay for energy.
Research by PWC underlines the importance of creating a 360 degree view of customers to provide a tailored, customers -focused experience. This data -driven approach can help municipal services better understand customer needs and preferences, finally improving satisfaction.
Simplifying interactions, personalizing customer experiences through data analytics and proactive engagement with customers to promote loyalty is essential for closing the gap between value and price perception.
Improving customer experience: key priorities for municipal services
While the energy sector accumulates with developing challenges, there are four main advantages that main services should take into account when aiming to improve customer experience (CX):
1. Changing culture and internal behavior – a shift in organizational culture is needed to prioritize customer satisfaction at all levels of business.
2. Financing and Budgeting-Security of adequate resources have been allocated for customer experience initiatives is essential for long-term success.
3. Technology – Investing in advanced technology and data analytics will allow service services to better personalize interactions and improve the overall customer experience.
4. Evolution of client expectations-Wayites must be adapted to changing needs and expectations of today’s technology-conscious customers, environmental.
Case Study: Florida Power & Light Virtual House of Savings
Summerso summer, floridians tighten for the hot summer months, where the temperature can reach over 90f for consecutive days and residents explode air conditioning to stay cool. The highest energy bills that result are not surprising, but they still irritate some customers.
Florida Power & Light Company (FPL) works year -round to educate customers in all the ways they can save on their monthly energy bill. After many years of offering written tips to help customers be more efficient energy, FPL wanted to provide customers a new way, engaging to absorb savings tips and help them save money, especially After the research revealed that customers preferred information that is presented visually and also accessible on their mobile devices.
FPL brought these tips on energy saving in life using an increased experience of reality (AR) and virtual reality (VR), where participants learned easy energy saving tips by interacting with various accessories within a virtual home. When clients entered the Savings House through the QR Code, they learned how to apply better energy saving habits within three different rooms, and answering all questions properly, they realized how to save up to 30 dollars on their monthly bill, depending on where they live and the time of the year. Further, whenever customers ended up the savings room saving experience, $ 2 was donated to support urgency bill payments to customers in the financial crisis.
The savings house continues to evolve and is open year -round to help clients learn how to conserve energy and save money. It also adapts to the customer’s needs. When temperatures cool in northwestern Florida during the winter months, the interactive house contains new tips for saving energy specifically for the winter season.
By giving customers tools to control costs in an attractive format, the savings house has had a tremendous impact. In its first year, 94,000 clients visited the savings house to learn easy ways to save energy and money. More than 5,000 of those who chose FPL free energy saving tools at the end of the experience to learn more and engage further.
Case Study: DHL Express’ Gogreen Plus Program
Municipal services can also look at the example of other customer -centered businesses. To address the needs of its main customers-small and medium-sized business, or SMBS-DHL Express recently expanded its sustainable service offers to meet a need that customers were looking for.
This expansion followed a study in which 95% of the respondents said that sustainability is important for their business, with nearly half (48%) believing it is extremely important. However, when asked about the biggest challenge to achieve sustainable goals, 42% said that overall investment is the main obstacle, and 11% said they had no idea where to start.
DHL began its initiative Gogreen Plus which allows customers to reduce (“Inset”) carbon emissions associated with their DHL deliveries through the use of stable aviation fuel (SAF). In partnership with SAF BP and NESTE providers, sustainable fuel is supplied to DHL Express centers worldwide and can provide reduction in greenhouse gas emissions up to 80% during its life cycle compared to conventional aircraft fuel that replaces.
Customers across the globe have the opportunity to add Gogreen Plus when choosing their transport preferences for individual shipments through the HIDHL+. This option comes with a standard collaboration2And 20%landing. Or, with a DHL account and contract, carriers have the opportunity to fit together2Reduce them they want to reach and the amount of SAF they use, until 80% reduction (compared to fossil fuels). To support the client’s confidence, an independent auditor verifies each year the value of lowering saf -purchased emissions, and verifies that all investments are used exclusively for SAF. Companies also receive a certificate with their emission landing value.
Discovering the advantages of its clients and providing them with relevant elections, DHL has been able to close the gap between perceived value and prices, also supporting its goal of reaching Neto-Zero emissions by 2050.
Now is the time
While electricity costs continue to rise due to today’s challenges, municipal services must meet their clients’ expectations by focusing on customer satisfaction and approximation of prices with perceived value. By improving communication, embracing technology and the advantage of customer experience, municipal services can not only facilitate dissatisfaction, but also create long -term value for both consumers and business.
The ability of the energy sector to respond to the customer’s needs, communicate transparently, and provide reliable, affordable service will determine its success in the years ahead. Now is the time for municipal services to invest in strategies that will help them meet the challenges forward and build stronger, more reliable relationships with their customers.
–Sandra Ericson He is an executive vice president, energy practice leader and partner at RBB Communications.