Switching Energy suppliers is at a six year high
Posted by danielle.gamage | 16 March
This week, SSE revealed they will be raising their prices by 7%, adding, on average, £73 to three million SSE customer bills. E.ON, ScottishPower, npower and EDF Energy have all recently upped their prices without showing customers anything in return and with account switching at a six year high it leaves us wondering what energy companies are planning on doing to retain those all important customers.
7.7 million Energy accounts were switched in 2016 representing a 1.7 million increase on 2015. Almost half of the 7.7 million switchers have opted for smaller suppliers as they tend to offer some of the most competitive deals in the market.
With customers switching more than ever, it’s increasingly important for big industry players to offer value that transcends price in order to remain competitive. After all, it costs six times as much to acquire new customers than it does to retain an existing one.
Developing a strong loyalty offering in the energy sector is necessary if your brand is going to survive this high churn customer base. Customers are savvier than ever, shopping online for the best deals and value for money. The energy industry is an acquisition battle field which is why companies should be focusing on retaining those customers and adding real value for increased brand perception and value for money.
You can’t stop every customer from shopping around, but with a strong loyalty offering you can reduce the amount of customers wanting to shop around. Brands should be using this as an opportunity to create customer-centric retention campaigns that create true value exchange.
It's obvious. Keep customers happy and they’ll stay with you through the unavoidable price increases.
The energy sector needs customer loyalty more than ever. Building a scheme can seem daunting but, with the right team behind you, you can build a programme in stages including the creative concept, soft and hard benefits, surprise and delight and tailored rewards. Read our 5 Rules to a Successful Loyalty Scheme for more information.