For UK Utilities, CX-Driven Data is Critical to Support High-Priority Customers

As the UK’s cost of living expenses rises in tandem with global inflation, people are looking for ways to reduce their expenditure, with many turning to energy and utility providers.

Providers are doing a good job in supporting customers, with initiatives like debt management, payment plans and smart meters becoming indispensable. However, there still remain significant challenges ahead for providers and customers. Here’s my view on some of the main concerns, and – crucially - the steps that can be taken to address them.

1.?????UK inflation challenges

The UK’s cost of living has been steadily rising since the start of 2021 and consumer prices rose 5.4% in December, representing the highest inflation rate since 1992 and further increases in prices expected in 2022.

Higher wholesale costs will spark a rise in the energy price cap when April comes around, pushing the government to announce a ￡350 support scheme for every household in the UK.

For high-priority customers, energy takes up a large proportion of their monthly outgoings. These price increases, therefore, substantially affect their lives and squeeze household incomes, compounded by the wider context of stagnant wages, tax and Universal Credit changes.

2.?????Increase in vulnerable customers

The Financial Lives 2020 survey shows that 27.7 million adults in the UK now have characteristics of vulnerability, which can limit people’s ability to make good decisions and make them susceptible to accepting unfavourable terms from their providers. Young people are also now just as likely to require financial support in post-COVID times as elderly, typically ‘vulnerable’ people.

3.?????Digital exclusion in the age of covid

Despite a government push to ensure at least 85% of UK premises have access to gigabit broadband by 2025, 1.5 million homes were still entirely offline by the end of 2021, according to Ofcom. This has left many people without the means to find employment or engage with their suppliers with issues.

Innovations like smart meters have given people in the UK a reason to engage with their gas and electricity usage, reducing their average consumption by 10%, which could be transformational for the country if the whole population used them. However, smart meters require broadband connection, ruling out 1.5 million homes.

4.?????What are utility providers doing to help?

Along with smart meters, utility providers are already initiating financial programs to support high-priority customers. British gas helped over 300,000 people manage their debt in 2021 and launches a ￡2 million fund to help customers with winter energy bills. The energy industry is also working with the government to make ￡2 million worth of emergency payments available to those “severely impacted by the fuel crisis”.

5.?????How smart use of data and technology can help further

For most digitally excluded customers, the telephone is likely their most primary source of communication. Utility organisations should focus on implementing speech analytics platforms within their customer experience. We can use the data gathered by voice analytics to design effortless journeys and make good product and service decisions using all the facts. Ultimately, the customer’s needs should be the key driver of the proposition on offer and service provided.

Tackling the challenges

In prioritising operational improvement plans and customer journey transformation, utilities companies can overcome these challenges. Areas to focus on include:

1.?????Getting the customer journey right

Mobilising teams that can flex with customer demand and strike the right balance of digital, self-serve tech and more human relationships.

2.?????Implementing digitised end-to-end-processes

This can reduce operational costs while providing capabilities to leverage data and insights to ensure optimal CX, and helps ensure transformative digital channel design.

3.?????The utilisation of data and analytics

Understanding and analysing customer data should be a critical strategic goal for 2022.

4.?????Developing human capability

With the increase in digital journeys, brands need to develop human capability to manage complex situations.

You can read my article in full at https://www.gobeyondpartners.com/our-thinking/cx-driven-data-is-critical-to-support-high-priority-customers