Deregulation is a reality in many areas of the country. This means some
customers can choose who will provide their power. Utilities that face
deregulation must now be proactive to retain one of their most valuable assets
- their customer base.
Many power companies seem to think the answer is to throw more money into
technology. Surely, with the newest software, all the bells and whistles in
computer hardware and all the cutting-edge Internet applications, customer
retention should be easy, right?
Maybe not. The American Customer Satisfaction
Index has been measuring customer satisfaction in the power utilities industry
since 1995. As of the first quarter of 2002, customer satisfaction with power
utilities had decreased 2.7% since the index began tracking this important
mood.
So it appears that even with the sizeable investment companies are making
in new technology and software, customers are not experiencing an improvement
in the service they receive and they’re not happy.
Perhaps more utilities should be evaluating what their customers think
about their customer service. If your customer has a choice of his or her
power provider, will it be you or will it be your competition? Do you know
why?
Most consumers don’t make buying decisions based solely on price and the
recent turmoil and corruption in some of our largest corporations has only
strengthened this tendency. Consumers are evaluating much closer with whom
they choose to spend those hard-earned dollars. They want a company they can
trust, one where the customer is appreciated, valued and treated with respect.
Consider these ideas to improve customer loyalty:
Lead by example. The old adage “lead by example” couldn’t be truer than
in this situation. Employees will emulate management’s approach to customer
service.
Is your management team demonstrating in their interactions with
customers and employees just how valuable each customer is to the bottom
line?
Is providing a consistent, high-quality customer experience a mantra for
your management team?
Do managers and employees have the skills to improve customer loyalty
and are they using them?
Don’t expect employees to be the perfect model of customer service if your
management isn’t living it daily.
Do you have a customer-retention plan? That’s right, a
customer-retention plan! Most companies have a business plan and a marketing
plan. Ironically, very few have a strategy for retaining customers.
If your customers are your most important asset, what steps do you take
every month to increase the value of that asset?
In a competitive market, what are you doing to strengthen the
relationship with your customers?
Don’t think you “own the market.” With the changes taking place in the
utility industry today, your best customers could be doing business with your
competition.
Invest in your people. Companies in the utility industry spend large
sums of money on computer technology that gathers
information about customers’ needs. Yet many find it difficult to make a
continual investment in the human side of the business - employees who
customers interact with daily.
Employees with the fastest computers and cutting-edge software systems
drive customers away with poor service skills. Help your staff.
Teach them the skills they need to provide consistent and
friendly service with every interaction.
Teach them how to deal with unhappy customers.
Handling an angry or dissatisfied customer appropriately can make the
difference between losing a customer or keeping them.
Give employees the skills and knowledge they need to make
recommendations about other products your customers can purchase from you.
Skill development should not be an annual event but rather a continual
process to improve the skills and tools that will keep your customers doing
business with you!
Measure customer satisfaction. Are you afraid to ask your customers
this question: “Would you continue to do business with us if other companies
offered the same service?”
How would your customers rate their experiences with your staff?
How well do your employees listen to customers’ needs?
How effective are your employees in providing solutions to customers’
problems?
Do your employees express appreciation to your customers for their
business?
So how certain are you that your customers will continue doing business
with you if given a choice? PECO Energy in Philadelphia is listening to its
customers. PECO has established a program in which each of its call center
representatives in the residential and business
sectors is proactively calling 10 customers a month. PECO conducts regular
focus groups to obtain customer feedback.
Listening to your customers is critical to exceeding their expectations.
Taking care of the customer is everyone‘s responsibility. Get your staff
involved in establishing goals and objectives for improving customer loyalty.
Establish recognition programs to reward their results.
The winning combination for customer care and retention is empowering your
staff with solid customer service skills and the authority to go the extra
mile to satisfy the customer.
David Saxby is president of Measure-X, a Phoenix company that specializes
in customer service and sales skills training for utilities. He can be reached
at 888-644-5499 or via e-mail at
david@measure-x.com.
