With almost 20% of utility customers now switching year-on-year at an estimated $5billion in projected lost revenue, the requirement to minimise customer churn has never been greater. Innovation never stops and energy providers need to keep up with transformation and their customers’ needs. However, many providers are now challenged with increased customer churn. This results in increased acquisition costs and reduced profitability. So how can you address customer churn and thrive in the new normal?
Dermot Nolan, chief executive of Ofgem, said: “The largest suppliers are under pressure as more consumers switch away to small and medium-sized suppliers….With more customers voting with their feet, the message is clear: suppliers need to look at what they are offering to their customers or risk losing them.
Now is the time companies need to work on their customer hyper-segmentation strategy by using traditional customer data, SMART data, and new digital information. This strategy can enable companies to achieve a new level of customer segmentation that is based on both consumption and behavior. By fulfilling the customer’s demand for individual and unique recognition (not being part of a generic segment) energy providers can reduce churn. Customers want to be able to receive personal attention as well as customized offerings that are adapted to their own specific needs. How can you identify vulnerable customers and improve the customer experience?
Join Innova and a select group of industry thought leaders to discuss your customer hyper-segmentation strategy and how data helps you remain competitive in the current climate.