How can utility suppliers gain customers' trust?

With the cost of living crisis impacting most households and rising energy prices worrying many, it's unsurprising that customers are looking to their current utility supplier to offer a helping hand to relieve some pressure. 

With prices rising and budgets tightening, our research found that brand loyalty is waning, especially in the sectors seeing the biggest price hikes – like utilities. Consumer trust in the utility industry is currently only 12% – unsurprising considering the increasingly challenging terrain the sector is operating in. 

Our 1,000-consumer survey also revealed brand switching is becoming more common, with one in five admitting they've switched supermarkets, energy suppliers, or mobile providers in the last 12-months. While over a fifth (22%) of customers admit loyalty to businesses and organisations they usually buy from has fallen in recent months. 

Building back trust in the utility sector.

Customers don't just want to feel valued; they want to see the brands they usually buy from supporting them in difficult times. How can brands build this trust? Well, customers think there are a few easy ways.

Predictably, price plays a vital part in this. Customers are looking to businesses to absorb rising supply chain costs rather than passing them onto the consumer and offering discounts. The latter provides a brilliant opportunity for marketers and companies to improve trust by helping offset some rising costs through other avenues. Think about cost savings on meals/days out or discounts on products they frequently purchase.  

Respondents stated that their trust in brands would likely increase if brands offset the rising cost of living by absorbing some of the increasing costs through their supply chains (20%), offering discounts at relevant places (19%), and showing that they listen to and know their customers (14%).

It's no surprise that the rising cost of living is having a massive impact on people's purchasing choices – families and individuals have to tighten their purse strings in any way they can. Utilities – such as water supply, gas and electricity – are essentials. But our research clearly shows that customer trust and, consequently, customer loyalty is dwindling. 

On the key factors influencing a consumer's decision to stick with a utility provider long-term, our data revealed these are the top areas of importance: 

1. Price (41%) 

2. Reliability (21%) 

3. Good customer service (21%) 

4. Quality of product/service (13%) 

5. Trust (13%)  
    

Ranked in order, the research also revealed these were the best-performing sectors when it comes to customer loyalty - with utilities amongst the worst-performing sectors:  

1. Supermarkets 

2. Mobile provider 

3. Finance/banking 

4. Food services/restaurants 

5. Telecoms (landline, at-home broadband provider) 

6. Media (streaming services incl. TV, music, entertainment) 

7. Utilities (gas and electricity suppliers) 

8. Fashion retailers 

9. Insurers (home, car, life/health) 

10. Hotels/Hospitality 

11. Travel (airlines, trains) 

12. Leisure (gyms, cinemas) 

Households are more and more concerned about how they can afford their bills this winter. It's make-or-break for utility providers. This is when they can make a real difference to their customers. Consumers want to know that their supplier understands them and their main pressure points. Those who put aside their own supply chain challenges and provide meaningful support, like genuinely useful discounts at places to help ease the pressure on wallets, could really see their loyalty ratings improve. 

For more insights, download our full 'Driving customer connections during challenging times' report here and our 'Evolution of brand trust' report here.