The report reveals that while customer acquisition is still driven by price, retention is increasingly being driven by customer service.
Datamonitor estimates that nearly £400 million of contracts will be lost in 2003 due to customer dissatisfaction, and this is exacerbating the level of switching in the market, which stood at over 60 per cent during 2002, and could reach as high as 73 per cent in the next two years.
This is not sustainable in the long term, but Datamonitor's results show that not one major UK energy supplier is currently meeting customer service expectations. All major suppliers failed to exceed 90 per cent customer satisfaction. Billing has been a particular concern, with bill accuracy, clarity and flexibility frequently being cited as being unacceptable.
Survey results reveal that 28 per cent of large energy users, consuming 14 per cent of the volume surveyed, are "unlikely" or "very unlikely" to remain with their suppliers beyond the current contracts. In addition, another 32 per cent, consuming as much as 59 per cent of the volume, remain undecided, with most respondents citing price as the main or only factor when it comes to signing a new supply contract.
Linkedin
