Improving the customer experience: what the energy sector can learn from successes in financial services

Transcription

1 Improving the customer experience: what the energy sector can learn from successes in financial services April 2015

2 Executive Summary This is our second white paper looking at the energy sector. We are revisiting this market as there have been recent damning reports published both by the regulator, Ofgem, and the consumer watchdog, Which?, that indicate the industry is not making enough progress in how it deals with its customers. The Which? report [1] revealed that not one of the big six [2] firms had a customer satisfaction score over 50% and Ofgem figures show a 16% rise in customer complaints over the past year. The financial services sector is rarely held up as an example of excellence in customer service, yet some financial providers have received positive customer feedback of 97% and Net Promoter Scores [3] (NPS) of over 85% after implementing the right tools for their sales and customer service processes. Given the reputational damage that the financial services sector has endured during recent years, scores like these may seem unimaginable. However, these real-world examples demonstrate that it is possible for firms in industries with a negative customer image to utilise new technology to restore trust with their customers and deliver a positive customer engagement. It is entirely feasible, therefore, for energy firms to use these examples as a basis for implementing change in their interactions with their own customers. Introduction The hike in complaints figures over 2014 suggests that consumers are becoming more aware of their rights and less willing to accept poor customer service. Lewis Shand Smith, Chief energy ombudsman, January 2015 In our last white paper we highlighted some of the specific challenges facing energy providers in delivering excellent customer service and reducing complaint figures. In each case we identified that the introduction of visuals would create greater customer engagement and a more positive customer experience. Additionally, we recognised the myriad of similarities between energy and financial services firms. Both work in a heavily regulated environment, both have to convey complicated information to customers, and both suffer from a negative public image. So how can energy firms utilise the same tools used by firms in financial services to gain customer service success? Financial services firms have invested heavily in analysing their customers journeys and specifically identifying any pain points where the customer is unable to understand or access the product that they want. The analysis of these customer journeys revealed a fundamental point: when customers could be shown information at the same time as discussing it on the phone with an agent, there was a significant increase in customer satisfaction and understanding. Our clients in the financial services sector are now enjoying NPS of over 85% and on average, positive customer feedback of over 94%. For an industry blighted by the PPI scandal and the credit crunch, this represents a genuine and substantial restoration of firms reputations and relationships with customers. In this paper we will look at the current state of customer service in the energy sector and how some of the lessons learned in the financial sector can be easily implemented. [1] Which? Energy Companies Satisfaction Survey 2015 [2] The Big Six energy suppliers are British Gas, EDF Energy, E.ON, npower, Scottish Power and SSE. [3] The Net Promoter Score is based on the fundamental perspective that every company s customers can be divided into three categories: Promoters, Passives, and Detractors. To calculate NPS you take the percentage of customers who are Promoters and subtract the percentage who are Detractors

3 The current situation Since our last white paper, two important new reports have been published, not just on complaints but customer service in the energy sector. The first, conducted by Which?, asked customers to rank 18 energy providers in certain key areas [4]. Which? Energy Companies Satisfaction Survey 2015 Supplier Customer service Value for money Bills (accuracy and clarity) Complaints handling Helping to save energy Which? Customer score out of 5 out of 5 out of 5 out of 5 out of 5 overall 1. Ecotricity % 2. Good Energy % 3. Ebico n/a 4 81% 4. Ovo Energy % 5. Utility Warehouse % 6. Flow Energy n/a 4 73% 7. The Co-operative Energy % 8. Marks & Spencer Energy % 8. Sainsbury s Energy % 10. First Utility % 11. Extra Energy 3 4 n/a n/a 4 52% 12. SSE % 12. E.ON % 12. Spark Energy % 15. British Gas % 15. EDF Energy % 17. Scottish Power % 18. Npower % Again, the Big Six are facing the biggest challenges. For customer service, which encapsulates the overall interactions customers have with firms, five of the Big Six providers scored 3 or less out of 5. Npower scored a 1 out of 5, which was the only 1 given for customer service for all firms reviewed. The company also received 1 out of 5 in three other categories. Additionally, the industry regulator, Ofgem, has recently published full 2014 statistics [5] for complaints made to energy firms. It makes sobering reading for the industry, as overall complaints for the Big Six firms have increased by 16%, with total complaints for 2014 reaching 6.5 million, an increase of over 900,000 from The top complaint reasons remain doggedly consistent with previous reports, with billing and payments being the most complained about topics (accounting for a combined 56%) and customer service coming in at 17%. Complaint Reasons 2014 Top 5 Complaint Reasons Qtr Other; 16.0% Transfers; 4.0% Metering; 9.0% Customer Service; 16.0% 6.5m Total Complaints Payments; 16.0% Billing; 39% [4] Which? Energy Companies Satisfaction Survey 2015 for England, Wales and Scotland. [5] Ofgem Supplier performance on consumer complaints

4 White Paper The problems facing the sector As we stated in our previous white paper, there seems to be a continuing fundamental disconnect between the Big Six energy firms and their customers. The industry is investing in conferences, reports, training and innovation to try to address the key issues in delivering better customer service, but with year-on-year increases in complaints, it is clear that more is needed in order to effect genuine change. We identified four key challenges facing energy suppliers: 1. Improving customer satisfaction 2. Adhering to regulatory compliance 3. Explaining complex information such as tariffs over the phone 4. Helping customers embrace the benefits of new technology In each of these cases a lack of understanding and engagement was a root cause of a customer complaints. Customers did not have a mechanism to engage fully to understand complex data such as tariff options or how their usage translated into their bills. Additionally, firms seemed unable to successfully convey the benefits and ease of implementation of new technology such as the government s smart meter initiative. This disconnect between firms and their customers leads, almost inevitably, to poor customer satisfaction and as a result a breakdown in the relationship. How the financial services sector can offer a template for change Within the financial services sector, firms have been quick to identify and implement customer service improvements. This includes investing in people, but more importantly, an investment in the technology that is used to deliver a more rounded customer experience. We are currently working with four of the top five UK banks and two of the top five UK insurance providers, all of whom have recognised the benefits that adding visuals can provide. There is little doubt in the positive power of visuals: Increased Effectiveness Greater Retention Shorter meetings No visuals +43% No visuals 10% Retention No visuals 26.7 Minutes +43% With Visuals 10% 65% over 6x With Visuals 65% Retention over 6x With Visuals 18.6 Minutes 26.8% Quicker Presenters who use visual aids are 43% more effective in persuading audience members to take a desired course of action than presenters who don t use visuals. Source: University of Minnesota Adding a visual increases retention of information over six fold, from 10% to 65%. Source: U.S. Department of Labor The average length of meetings in which visuals were used were 26.8% shorter than meetings in which no visuals were used. Source: University of Minnesota

5 How the financial services sector can offer a template for change (cont d) Technologies such as vscreen have provided financial services firms with a simple, ready-made solution to embed a robust, visual process that call centre agents can use with customers. Firms in the financial services sector also identified two key factors for successfully implementing a new way of supporting customers via their contact centres. First, there had to be little or no IT involvement, so that improvements were immediate and not a part of a lengthy IT integration and deployment project. Secondly, customers should not need to download any software. The ability for customers to engage instantly with the contact centre agent is vital, so any solution has to work first time, every time, irrespective of what device, browser or operating system the customer was using. Where a customer download is required, evidence from existing users shows that there are a plethora of issues related to operating systems, admin permissions, firewalls and anti-virus programs. In these cases, the customer service agent was suddenly turned into tech support and risked a negative customer engagement for a situation completely beyond their control. A number of financial services firms recognised that digitising the contact centre processes is not about investing in new channels; it s about leveraging their people and existing infrastructure to engage with customers in the way they expect, by offering a digital experience that is visual, easy, convenient and immediate. Why customer journeys are disrupted Our experience of working with clients in the financial services sector has revealed the main challenges that disrupt the customer journey, including: Friction Not being able to complete a transaction on one call Multi-stage processes handled by different people and departments Stopping the sales process to physically post documents and gather signatures How visuals will help: Contact centres have to handle all of the issues raised and are currently in the unenviable position of not having the right tools at their disposal. They can talk customers through information but not display it visually. Let us take the example of a customer ringing in to query their bill (which accounts for 39% of complaints in 2014 [6] ). The telephony agent, by having the ability to share a screen with the customer, can explain how billing works, upload the customer s bill and can explain the various items shown on it. This ensures greater understanding, a first call resolution of the issue and higher level of customer satisfaction. In this way customer service agents can also show and explain details such as the price of energy, exit fees, unit rates and standing charges. They can show tariff choices and the conditions associated with each option ensuring that customers select the most appropriate option. Managing these issues better will raise customer satisfaction and lower the number of complaints being received. Communication High levels of product or service complexity Most common problems were related to communication and distribution, so the ability to optimise the call centre can make all the difference. [6] Energy ombudsman releases complaints figures 14 July 2014

6 The financial services sector So, how has the use of visuals worked in financial services and what lessons can be learned? Vizolution is currently being used by four of the top five UK lenders and two of the top five UK insurance providers. Vizolution s vscreen technology offers proven results, with improvements in sales productivity of more than 20%, customer satisfaction ratings of 94%, and reduced compliance risk, thanks to a time and date stamped audit trail. Additionally, using electronic signatures during the session allows for real-time acknowledgement and acceptance of terms and conditions. Client (product area) Global Retail Bank (Credit Cards) Global Retail Bank (Loans) Global Retail Bank (Mortgages) Outcomes from adding vscreen to the process Raised customer satisfaction to 97%, Cut credit card fulfilment times by 75% Revenue increased by 17% Reduced fulfilment costs 85% Net Promoter Score The end-to-end process was reduced from 15 days to 15 minutes Reduced fulfilment costs 97% positive customer responses in surveys Mortgage call to application conversion rates increased by 14% Cross-sales increased over 50% for home insurance, life insurance and critical illness 8.5% reduction in Average Handling Times (AHT) UK Insurer (Life) Streamlined the end-to-end customer journey by replacing paper fulfilment with electronic signatures Able to provide medical declaration forms and information packs during the call Made the sales process more engaging through visuals Reduced the end-to-end customer journey by days Increased conversion rates through immediacy and better communication (10-15%) Reduced fulfilment costs ( 5 per sale) In all of the examples above, vscreen s innovative features have enabled firms to establish greater customer engagement instantly on a call and create a one and done experience. Visuals in the energy sector The delivery of information via vscreen is largely consistent across industries, but the content can also be customised quickly and easily. Whether this is completing a Direct Debit mandate, explaining items on a bill, displaying statutory compliance text that a customer can acknowledge with a digital signature or just showing tariff options. Customer engagement is difficult when the agent is just a voice on the phone. The simple presentation of an agent s business card and their picture on the screen creates a more engaging and personal relationship.

7 Use of visuals for energy firms Advisers can present customers with their business card to build rapport Customers can upload documents to the adviser, such as a photo of their meter Product options can be displayed visually to ensure the right choice is made Advisers can show the customer their bill while explaining the content in order to improve understanding Customers can confirm agreements with an electronic signature and download the document The customer can complete forms such as Direct Debit mandates during the session Conclusion By looking again at the energy sector and the latest statistics relating to customer satisfaction, it is clear that customer complaints are not going to go away on their own. Whist some energy firms may be investing heavily in various customer service initiatives, there is an opportunity for all firms to take some of the documented successes from the financial services sector and transfer the processes, procedures and benefits into the energy sector. Adding visuals to a telephone call will address a number of key issues facing the energy sector and can improve the customer experience. Contact centre agents using vscreen can show calculators and images to help them illustrate and explain complex information such as product options, billing queries and smart meters to customers in an engaging way. In addition, the recording of all the visuals being shown to the customer during the call will ensure that energy companies can prove that they are compliant. Furthermore, the use of visuals can also help increase customer satisfaction when dealing with complaints. For more information or to arrange a demonstration, please call or visit For more information and to arrange a demo please call or visit