Top Utilities Lead The Way Out Of Residential Scoring Slump

LIVONIA, Mich., Dec. 19, 2024 (GLOBE NEWSWIRE) -- A new Cogent Syndicated report from Escalent finds that, for the first time since 2020, year-end utility customer engagement has improved. Although all major indices see year-over-year improvement, a significant Brand Trust gain has had the most impact on the Engaged Customer Relationship (ECR) score recovery, with improved scoring related to company reputation leading the index gain.

Those are some of the latest findings of the 2024 Utility Trusted Brand & Customer EngagementTM (UTBCE): Residential study , which tracks the performance of 142 gas, electric and combination utilities to identify brand and customer experience opportunities and trends in the industry. The report is published semiannually by Escalent , a top data analytics and advisory firm with extensive energy, utility and brand experience.

After reaching a peak of 728 at the end of 2020, the residential ECR score had been steadily declining until it reached a record low of 700 in the first quarter of 2024. The score showed signs of a turnaround in the second quarter and ends 2024 at 708-a statistically significant six points higher than year-end 2023.

“We expected ECR and other UTBCE indices to course-correct after the scoring surge of 2020,” said Suzanne Haggerty, director of syndicated research with the Energy industry practice at Escalent.“When scores began to slide below prepandemic levels in early 2023, however, we realized that many utilities would have to take quick and decisive actions to reverse that trend.”

While industry engagement is finally trending upward and many utilities are starting to see healthier scores, 47 utilities are scoring well above their industry peers for building engaged customer relationships and have earned the title of Escalent 2024 Utility Customer Champion.

“These aren't utilities that have suddenly started outscoring their peers in 2024,” Haggerty explained.“Most Customer Champions have higher scores now than they did prepandemic, meaning they held on to at least some of that 2020 scoring bump.”

Customer Champions outperform the industry average in several attributes, notably:

• Customer Champions have carefully guarded their company's character and built goodwill within their local communities, contributing to 6% higher Company Reputation scores and customers who are more likely to report a willingness to say positive things about their utility.
• Customer Champions are providing transparent updates on their commitment to transitioning away from fossil fuels and supporting environmental causes, leading to 4% higher Environmental Dedication Index scores. Additionally, Customer Champions have made year-over-year progress in the index, gaining eight points as the industry score drops by one point.
• Customer Champions have effectively communicated to customers about system improvement plans, contributing to the 4% higher perception that their utilities are making investments to improve infrastructure safety and reliability. This is an important perception when rate cases are underway or increased rates begin to appear on the bill, since elevated perception of those investments correlates with 12% higher trust in utilities to set and communicate fair, reasonable rates .
• Customer Champions are ensuring customer awareness and understanding of a variety of voluntary offerings that offer everything from improved customer service to energy savings, seeing 5% higher Benefits Awareness Index scores and 4% higher customer perception of related communication.

Leading utilities that have protected their company reputations and continue to illustrate their value to customers with effective programs and clear communication about improvements are building engaged relationships.

Escalent is pleased to name these 47 utilities as our 2024 Customer Champions.

* Utilities named as Customer Champions are selected based on having Engaged Customer Relationship Index scores in the top decile of the industry, the top score within their respective benchmark segment, or an Engaged Customer Relationship Index score within 20 points of the top benchmark segment score and above the industry average.

The following tables reflect regional peer benchmark Engaged Customer Relationship scores among the 142 utilities surveyed.

For more information on the full report, click here .

About the Cogent Syndicated Utility Trusted Brand & Customer EngagementTM: Residential study

Escalent conducted surveys among 59,377 residential electric, natural gas and combination utility customers of the 142 largest US utility companies (based on residential customer counts). The sample design uses a combination of quotas and weighting based on US census data to ensure a demographically balanced sample of each evaluated utility's customers based on age, gender, income, race and ethnicity. Utilities within the same region and of the same type (e.g., electric-only providers) are given equal weight to balance the influence of each utility's customers on survey results. Escalent will supply the exact wording of any survey question upon request.

About Escalent

Escalent is an award-winning data analytics and advisory firm specializing in industries facing disruption and business transformation. As catalysts of progress for more than 40 years, we accelerate growth by creating a seamless flow between primary, secondary, syndicated, and internal business data, providing consulting and advisory services from insights through implementation. We are 1,800 team members strong, following the acquisition of C Space and Hall & Partners in April 2023. Escalent is headquartered in Livonia, Michigan, with locations across the US and in Australia, Canada, China, India, Ireland, the Philippines, Singapore, South Africa, UAE, and the UK. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.

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