Utilities. Utilities Online Shopping Survey. How UK consumers shop online for gas and electricity suppliers. October 2009

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2 Utilities How UK consumers shop online for gas and electricity suppliers October 2009 Author: Graham Uff With: Tim Loo and Tom Wood This report is licensed to you free of charge for individual, personal use. Foolproof Ltd retains its copyright and no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Published by Foolproof Ltd. 02

3 Acknowledgements The report was designed by and artworked by Naked Marketing ( and Creative Sponge ( Published by Foolproof Limited in October Foolproof Limited Ground Floor, Victoria House, 64 Paul Street, London, EC2A 4NG T: E: W: Conditions of use 1. Foolproof Limited is the legal owner of the copyright existing in this Report. Any use and/or copying of such document and materials which is not in accordance with Foolproof Limited s standard terms and conditions or these conditions of use is unauthorised. Any unauthorised use may give rise to Foolproof Limited bringing proceedings for copyright infringement against you and claiming an injunction, damages and costs. 2. Unless otherwise agreed in writing in advance by Foolproof Limited the Report may not be sold, nor passed on, communicated or disseminated in any form, nor access granted, to any individual, contractor or agency third party, or any subsidiary, associated or holding company of the original purchaser ( Licensee ). 3. You (the Licensee) acknowledge that all materials and information contained in Foolproof Limited s Reports are the copyright property of Foolproof Limited and are protected inter-alia by the Copyright, Designs and Patents Act 1988 and by the specific terms and conditions of purchase. As you will obtain no rights in this Report you must undertake that (unless for the permitted purposes above), you will not copy, reproduce, print or store in any manner, extract or transmit in any form or otherwise deal with any way the whole or part of this Report. 4. You agree you will not place any financial reliance upon any figure, statement or inference contained in this Report. 5. Full details can be found at OSS, ONLINE SHOPPING SURVEY and FOOLPROOF are trademarks of Foolproof Limited. 03

4 Contents Page Foreword Introduction Summary User Objectives & Shopping Behaviour Recommendations and Actions Shopping Online: Discovering the Marketplace Recruitment Approach to Shopping Search Engines Comparison Sites Supplier Sites Information Sites Shopping Outcomes Methodology Overview Industry Data Qualitative Method About OSS About Foolproof

5 Foreword Dual fuel shopping and the internet. It should be a match made in heaven. As we ve seen in other online markets such as financial services and travel, internet comparison shopping has fundamentally changed how consumers expect to shop for their domestic gas and electricity supply. Increased customer mobility and price competition in the UK market should bode well for the web as a major sales channel for UK suppliers. Unfortunately gas and electricity shoppers are being poorly served online, and the web has largely failed to fulfil its promise as the channel for both research and applying for a new energy supplier. Search engines (namely Google) are doing their job within the shopping journey in providing ready access to price and supplier content. The problems start when shoppers arrive at comparison and supplier websites. The main comparison sites are failing to adequately assist shoppers with the fundamental basis for comparison their current tariff. Until this is addressed, confidence in this process will continue to be undermined. There is a fundamental flaw in how suppliers structure their consumer websites and therefore a massive opportunity for suppliers to make their sites more useful and persuasive in getting customers to overcome the significant inertia in switching to them. This study uncovers how the online market for gas and electricity works (and doesn t work) for UK consumers. We hope our report will help provide inspiration and ideas for companies looking to improve the value of the online channel for customer acquisition and retention. Tim Loo October

6 1 1. Introduction OSS Utilities examines the way UK consumers use the web to research and switch suppliers for gas and electricity. In particular we wanted to understand: What motivates consumers to consider changing energy suppliers? How they conduct their research, including the use of online and offline channels How do consumers weigh up factors like price, customer service and other consumers opinions? What is the role of search engines in the online shopping process? Do comparison websites help or confuse the shopping process? What role do suppliers websites play in consumers decision making? Ultimately how do consumers reach a decision either to stay with their existing supplier or to switch to a different supplier? What concerns or anxieties do consumers have in switching suppliers? What is the switching channel (online or telephone) preferred by consumers, and why? Our study enables energy providers, comparison websites and other e-commerce professionals to optimise their online offering. The report presents tactical insights which can increase marketing effectiveness and improve conversion to online sale. It also offers the opportunity to look at trends which may influence the way the energy supply industry develops in the future. 06

7 2 2. Summary This insights report is a qualitative study of 30 depth interviews and follow up telephone interviews with people shopping for a new supplier for their gas and/or electricity. Respondents were selected because they were considering switching suppliers and intended to use the internet as part of their shopping process. These insights help us examine shopping behaviour in detail, tracking the switching process from search to sale. We have also referred to ofgem data where appropriate to support and illustrate our qualitative findings. 2.1 User objectives & shopping behaviour Fig. 1: Typical internet shopping journey for energy deals Search Comparison Validation Supplementation Predominately Google Generic terms dominate search Shoppers use this as a starting point in their research Predominately Money supermarket Users check the information they have found by referring to bills Offline clarification and reassurance often needed usually by telephone to energy companies Expert and review content plays a minor part Shoppers have a shortlist by this point but crosscheck deals and products Usually includes an approach to their incumbent supplier The shopping journey for the majority of our respondents took them from search engine, to comparison site, to supplier site. This pattern occurred so frequently throughout our sample that it strongly defines the typical journey of energy shoppers. Unfortunately, the experience and information received from comparison and supplier sites is frequently confusing to the extent that all of our respondents left their initial session needing to conduct further research. 07

8 2.2 Recommendations and actions Search Search engines (typically Google) are generally serving energy shoppers well, providing useful relevant results from both generic and site specific search terms. Google and other search engines should continue to develop the content they deliver to shoppers to meet users needs and expectations - Further advancements and improvement to predictive search terms to assist with the search process - Improved filtering of irrelevant content displayed within the search results. Comparison sites Whilst serving their purpose to a degree, comparison sites are not making it easy for shoppers to truly compare their existing energy costs with available supplier deals. This leaves shoppers confused about the savings they could make. There are several improvements comparison sites could make to simplify the comparison process for shoppers, and thereby maximise their conversion to sales. Provide greater assistance to shoppers in providing current consumption data, particularly their existing gas and electricity tariffs. In the absence of such help, shoppers are left unsure whether the results they are seeing genuinely represent a better or cheaper deal than they are currently paying. Improve the presentation of comparison results. Currently it is difficult for shoppers to see a direct comparison with their current consumption and spend. This leaves consumers in a position where supplementation and verification of prices is necessary before they are able to make a properly informed decision. Provide shoppers with options for next steps, rather than pushing them down a single online purchase route. Links to supplier sites and the ability to save or quotes would be a step in the right direction. Provide clear information to help persuade shoppers that online switching is genuinely the cheapest, most reliable and convenient method. Shoppers currently lean towards telephone contact as a preferred next step in their journey. Supplier sites It is evident that shoppers usually arrive at a supplier website having already obtained some pricing information from a comparison site. Most supplier sites do not reflect this in the navigation and signposts available from their homepage. Often shoppers want to speak directly to someone from a supplier to confirm costs and other information derived from a comparison site. Access to contact channels, including phone numbers, needs to be improved on supplier sites. 08

9 Most supplier sites lack persuasion messages to convince shoppers of the benefits of choosing them as a supplier. Instead, shoppers are driven towards a quote process which, in many cases, will be irrelevant or mistrusted. Suppliers should provide content and signposts on their sites to meet the needs and expectations of this potentially profitable shopper group: Build content specifically for switchers: e.g. a Thinking of switching? area with quote tools, benefits, additional information and contact options Provide obvious access to contact details either in the form of a telephone number or even a web-chat facility. Many shoppers want the option of engaging with a human to verify information sourced elsewhere Clearly present tariff information visitors do not necessarily want or need to go through a comparative quotation process, but they do want to be able to quickly and easily navigate to pricing information Provide reassuring switching information our study shows that consumers expect the switching process to be troublesome. Suppliers could address these concerns with a clearly visible step-by-step guide to switching and content which addresses this concern Most supplier sites have clear signposting to a comparative quote facility, though the quotation process itself is unnecessarily complicated - Minimise the amount of personal data requested during the quotation process - Assistance in identifying the consumers current tariff should be provided we suggest providing an image of an example bill from the visitors current provider with clear indication as to where to find the current tariff name - Quote details should not only show the new charge details, but also a clear side by side, line by line comparison with the visitors current supplier charges. Options to save or the quote should also be provided While suppliers are keen to promote their products they should also be mindful that many visitors to their site are looking for help and advice, and information about service as well as about price. Suppliers should direct more effort in promoting what is good about their products and their company, rather than assuming that price is the only factor that will influence the switching decision. 9

10 3 3. Shopping Online: Discovering the marketplace 3.1 Recruitment The 30 respondents for our qualitative study were recruited on the basis they were considering changing their gas or electricity supplier, and were intending to use the internet as part of their shopping or research process. All of our respondents were regular internet users. They were the main or joint decision-maker for financial matters in their household. Approximately a quarter of our sample had started their investigation process but only on a casual basis, and no one was predisposed towards any particular supplier at the time of our interview with them. Age, Gender, SEG Current suppliers Our sample covered a range of ages between 19 and 66 years old weighted towards the year old age range, with five respondents in the year old range, and six respondents in the 46+ year old range. There was an even split between male and female respondents. 26 out of our 30 respondents (87%) were dual-fuel customers, meaning they had the same supplier for both gas and electricity. British Gas was the most common supplier partially a reflection of the fact it has retained 50% of the domestic gas market since deregulation. Fig. 2: Current electricity and gas suppliers of our qualitative sample Supplier Electric Gas % BRITISH GAS % NPOWER % E.ON % EDF ENERGY % SOUTHERN ELECTRIC 2 1 5% ATLANTIC ELECTRIC AND GAS 1 1 3% TOTAL % Previous switching experience Of our 30 respondents, 18 (60%) had previously changed energy suppliers. We asked them to rate their switching experience on a 1-10 satisfaction scale, taking into account the smoothness of the process including any communication and handover issues between suppliers. The average rating was 7.5 / 10, within a rating range of between 4 and

11 Respondents who provided lower ratings had generally experienced problems with their existing rather than new supplier in the form of continuing to receive bills, disputed meter readings, and what some described as harassment during the switching process to remain with their incumbent supplier. This finding is also borne out by ofgem s 2008 research which reported that approximately 50% of consumers are concerned that switching will go wrong, or the new service may be worse. The higher ratings came from respondents where the new supplier had handled all communication with the incumbent supplier, resulting in a trouble-free switching process. Within the respondent group who had previously switched energy suppliers, the average length of time with their current supplier was 2 years 2 months. Motivation to switch Saving money / seeking a better deal was the motivation for 26 (87%) of our respondents. Two respondents were in the process of moving home, which was their main trigger for shopping around, and a further two respondents were dissatisfied with the level of customer service they were receiving from their current supplier. Price is clearly the dominant factor in consumers motivation to switch energy suppliers. Some had seen their bills rise in recent months which has prompted them to investigate cheaper deals. For others it was reports in the media about falling energy prices which were not being reflected in reduced charges from their energy supplier. There was no distinction between gas and electricity suppliers in this regard; respondents intended to review both their energy accounts rather than only electricity or only gas. 3.2 Approach to Shopping During the interviews with our 30 respondents in this study (and in common with online shopping behaviour we ve observed in different industries), we identified three phases of the supplier switching process; Alertness, Shopping and Decision-making. The shopping phase was the subject of particular scrutiny during our study. Within this shopping phase we have identified an online journey that users generally follow when shopping for new energy suppliers. We also identified five information objectives that users are generally focussed on during this phase. 11

12 1. Alertness Increases in energy bills, active selling from field sales people, advertising campaigns from energy providers 2. Shopping Shopping journey for switching energy suppliers: Search > Comparison > Validation > Supplementation i. find or navigate to relevant websites Fig. 3: Approach to shopping: overview ii. examine a range of energy deals iii. create shortlist of potential suppliers Users objectives: iv. check on supplier site for confirmation of deal v. obtain reassurance from customer reviews 3. Decision making Many online shoppers expect to use offline channels to inform their final decision. Some also expect to come back online to execute the switch 1. Alertness: This precedes actively shopping around for new energy suppliers, and is a period in which consumers are alert to information about energy pricing and suppliers. They become interested in marketing messages and contact. A small number of our respondents (less than 20%) actively monitor energy prices on a periodic, usually annual, basis. For this group there is the feeling that by regularly changing energy providers they will obtain the most competitive. It is also this group who are more likely to be attracted by time-bound fixed-price deals, and generally they will have a greater level of awareness of what is happening within the domestic energy marketplace. For the majority of respondents however, it is the trigger of an external event which leads them to start thinking about how much they are paying for their gas and electricity and whether they should switch to a new supplier: Increases in energy bills Almost two thirds of our sample pay for their energy on a monthly direct debit basis. Many had noticed their monthly payments increasing in recent months. In some cases previously lower payments had been artificially suppressed as a result of inaccurate estimated meter readings, which in turn caused a significant monthly increase when actual readings were taken. It was this jump in monthly payments which prompted these respondents to investigate cheaper deals. In other cases respondents direct debit payments had been automatically increased by their energy supplier without apparent notification. When these increases came to light they not only prompted an investigation into other energy deals, but also caused a level of disgruntlement that there had been no communication regarding the increased payments from their energy company. 12

13 Respondents who pay for their energy on a quarterly basis also reported increases in bills. This group are more likely to check, and in some cases correct, estimated meter readings on their bills but nevertheless perceived that prices had increased motivating them to look for cheaper suppliers. It seems clear that payment volatility is a trigger for the switching process even if actual unit charges stay the same. It may be possible to reduce switching if consumers are reassured that unit prices aren t increasing when being told about changes to regular payments. Direct sales approach More than a third of our respondents had been approached by a representative from an energy supplier knocking on their door. Most found this approach intrusive, although there is strong evidence that it is effective. From ofgem s 2008 figures, over 50% of consumers who switched supplier did so as a result of a direct approach from an energy company sales person. Despite the stated annoyance factor of this approach, and even amongst the consumers who do not switch suppliers by this means, it can act as a trigger to consumers to carry out their own research into whether they could obtain a better deal than they currently receive. Other direct sales approaches come in the form of energy companies having manned stalls in supermarket foyers some respondents mentioned EDF Energy s Nectar point scheme in association with Sainsbury s to incentivise consumers to switch to them. Media advertising Advertising is an essential activity for the energy companies. Not only is it one of the triggers for consumers to investigate the benefits of switching to a particular supplier, but as ofgem notes, it is also as effective as price in reducing the churn rate of customers moving to competitor suppliers. With promises of reduced energy bills, frozen prices, and selective statistics about being cheaper than their competitors, suppliers use newspaper, television and other media to get their message across to consumers. Approximately one quarter of our respondents mentioned (unprompted) that they had seen advertisements which, in addition to their awareness of rising energy bills, formed part of their motivation to investigate cheaper deals for their gas and electricity. 13

14 2. Shopping: Whilst we were also interested in multi-channel activity, the primary focus of our interviews was to observe how they used the internet to research potential new energy suppliers. We asked each respondent to use the internet in whichever way they liked to carry out their research. Respondents varied to some extent in their approach to this research, but the prevalent journey through the shopping process is shown below: Fig. 4: Typical internet shopping journey for energy deals Search Comparison Validation Supplementation Predominately Google Generic terms dominate search Shoppers use this as a starting point in their research Predominately Money supermarket Users check the information they have found by referring to bills Offline clarification and reassurance often needed usually by telephone to energy companies Expert and review content plays a minor part Shoppers have a shortlist by this point but crosscheck deals and products Usually includes an approach to their incumbent supplier Search Search engines are generally used as the first port of call for users who are unsure which websites they need to visit to find the information they are looking for, or as a means of navigating to a particular website. 16 of our 30 respondents initially used a generic search term (e.g. cheap energy deals ) as their starting point, with all but two of the remaining respondents typing the name of a website (e.g. moneysupermarket ) as their first search term. Google was the preferred starting point for 27 of our respondents. Comparison For 22 (73%) of our respondents, a price comparison site was the first website visited as a result of their initial search. Only 2 respondents did not visit a price comparison site at any time during their internet session. Comparison sites in this context allow users to obtain an overview of energy prices and deals being offered by the energy suppliers. The comparison experience varied from site to site. As we will see in later sections of this study, respondents were sometimes confused by the information they saw; comparison sites still have some way to go in guiding users through the process of energy price shopping. 14

15 Validation In addition to using comparison sites for an initial overview of energy prices and deals available, 17 of our 30 respondents visited one or more individual energy company websites to confirm the prices they had seen on the comparison sites. In many cases the supplier sites did not clearly set out their prices in the way our respondents were expecting to see. Most of our sample said they were likely to telephone shortlisted suppliers to confirm prices they had found either on the supplier s site or on price comparison sites. Later in this report we will examine in more detail the reasons for our respondents preference for telephone contact at some stage of their shopping journey. Supplementation All of our respondents ended their research session with the stated intention of carrying out further research. This would help them to reach a definite decision about whether or not to switch suppliers. Many intended to confirm their own energy consumption by looking at past bills in order to be sure exactly what savings they could make by changing suppliers. Approximately half our sample stated an intention to contact their existing energy provider(s) to see if they would match the cheaper prices found during their research. This creates an important opportunity for incumbent suppliers to hold onto their customers. 90% of our respondents had constructed a shortlist of suppliers during their shopping session. The supplemental research they intended to carry out was to enable them to further refine this list i.e. get to a decision between two options: incumbent and challenger. 3.3 Search Engines Number of searches 28 of our 30 respondents used a search engine at least once during their session. Google is by far the most dominant of the search engines and was the preferred search engine for 25 of the 28 respondents (89%) who performed an internet search during their session. Our 28 search engine users conducted 69 distinct searches, (i.e. used a different search keyword or phrase), an average of 2.5 search terms per user. This is lower than in similar studies we have conducted in other markets, (e.g. Mortgages, Travel, Personal loans). Across all of our shopping research we are seeing a downward trend in the number of searches made. 15

16 We suspect that this trend in is partly due to improvements that Google has made to not only the delivery of search results, but also the search process itself. In 2008 Google introduced a drop-down list containing predictive search terms based on the progression of the term being typed by the user. Fig. 5: Google predictive search terms As can be seen in the example above, early on in the process of typing a search term, Google offers ten suggestions together with the approximate number of results each search term would yield. More than two thirds of our respondents who used search clicked on one or more of the Google suggestions. For some it undoubtedly provides a degree of efficiency, saving them the trouble of having to type the full phrase they intended to use if they can see it in the list. For others it provides both suggestion and direction. From the example above, someone originally intending to type gas and electricity suppliers may easily be inclined to click on the Google suggestion of gas and electricity comparison sites, thus taking them to a different set of results than their original intended search. 16

17 Search terms The table below shows the different search terms used by each of our respondents in chronological order of interview. Terms have been categorised and colour coded according to the key shown. Fig. 6: Table of search terms colour-coded by category Shopper 1st search term 2nd search term 3rd search term 4th search term 5th search term 1 gas & electric comparison 2 gas and electricity suppliers 3 money supermarket 4 gas and electricity [comparison] eon edf 5 energy provider comparison British gas energy provider Eon energy provider 6 comparethemarket [.com] 7 utility companies [uk] moneysupermarket.com comparethemarket [.com] go compare.com 8 compare electricity prices edf eon british gas scottish power 9 change gas supply atlantic electric and gas atlantic electric and gas discount 10 Electricity suppliers uk british gas southern electric 11 Atlantic gas [and electricity prices] eon [energy] npower ga [s and electricity prices] 12 british gas moneysavingexpert 13 moneysavingexpert [.com] 14 cheap energy suppliers energy supplier news energy reviews which magazine energy reviews 15 edf energy + costs units a month 16 cheap gas prices in my area cheap gas 17 DID NOT USE SEARCH 18 gas and electricity suppliers 19 uswitch [h.com energy] e-on [energy] 20 uswit [ch] 21 uswitch 22 moneysup [ermarket] npower 23 gas / electric price sites 24 electricity and gas [price comparison] british gas confused.com cheap gas and e [lectricity prices] gas and electricity providers reviews 25 UK gas sup [pliers] UK gas suppliers Scottish Power N Power EBICO 26 money sav [ing expert] 27 n power edf [energy] souther [n electric] yorkshire energy company ebico 28 Gas suppliers Gas sup [pliers] energy suplliers comparison 29 Dual providers British gas dual providers Scottis [h Power] Top dual energy providers 30 DID NOT USE SEARCH Spelling errors have not been corrected Square brackets [#] indicate the Google prompted search term element used Specific comparison site General energy term Specific information site Specific energy company General comparison term The table illustrates that there is a tendency towards site-specific searches, with 64% of search terms including the name of a particular company or website. Within this sub-set, almost 70% of site-specific searches were for utility companies. This reflects a general increase in search engines being used as a means of navigating to a particular site, as compared with users directly typing a URL into their browser. The remaining 36% of search terms were of a more general or generic nature, tending towards a search for cheap energy deals. 17

18 Fig. 7: Proportion of energy utility search terms by type 80% % of Search Term Type 70% 60% 50% 40% 30% 20% 10% 0% 1st Search Term 2nd Search Term 3rd Search Term Specific comparison site General energy term Specific information site Specific energy company General comparison term The above chart shows the relative proportion of search terms used on the first, second and third searches. Relative to the other types of search, specific energy company terms increase over each wave of searches. This evidence illustrates the browsing behaviour exhibited by the majority of respondents, which was to firstly visit one or more price comparison sites, followed by verification and validation of price information by visiting energy supplier sites. This is an important insight for energy suppliers: most visitors arriving at their site following a company specific search will have probably already visited one or more sites usually a comparison site in that shopping session. Search engine effectiveness Another reason our respondents used a low average number of search terms is that the returned search results generally provided relevant website links matching the expectations and requirements of our shoppers. This is undoubtedly the case for site-specific searches, but even with search terms of a more generic nature, the results were generally relevant to the users needs. The extract below shows the results obtained from a Google search on gas and electricity suppliers. 18

19 Fig. 8: Google search results on the search term gas and electricity suppliers (02/09/09) 16 of our 30 respondents used a general search term (such as the one above) relating to gas and/or electricity suppliers. Some expressed surprise that the results contained more price comparison site links than actual energy supplier sites, though they were not disappointed by this. Most of these respondents followed a link to a comparison website. It would appear that Google is doing a good job in delivering appropriate results to its users in this context. We saw no examples where respondents navigated to subsequent pages of results listings, and only rarely did any respondent conduct a second search without first clicking through to a site from their initial search. 19

20 Misspellings In previous studies we have seen numerous examples of misspelled search terms which have led to results listings of little relevance to users and the source of considerable frustration and confusion. Such was not the case in this study. Of all the 69 search terms entered over the course of our 30 interviews, only one misspelling occurred compasison instead of comparison. This is either because our respondents were accurate in their spelling or Google s predictive drop-down prevented misspelling. Fig. 9: Google search results from a misspelled search term Sponsored links Approximately one quarter of our respondents clicked on a sponsored link during their internet session. Most of the people within this group fell within a lower frequency internet usage category. Within the three quarters of respondents who did not click on a sponsored link, the majority when questioned stated that they actively avoided sponsored links where possible. This suggests more experienced, regular internet users learn to avoid paid-for search results. 20

21 Fig. 10: Google search results highlighting sponsored links Within the group who did select a sponsored link, all chose from the links at the top of the page. None of our respondents selected a link from the right hand side of the search results page. Further questioning of our sample revealed that there is some underlying mistrust of sponsored links, many shoppers seeing them as paid-for advertising and not necessarily relevant to the search which has been carried out. For this reason more trust is placed on the natural search results. More experienced users of Google automatically ignore the right hand side of the page and anything within the sponsored shaded area at the top of the results listing. There is clearly a strong business case for pay-per-click search results, and undoubtedly a large number of web users do indeed click through. However, more web experienced users are less likely to be attracted to this form of advertising and this may be a useful insight for landing page design and content. Summary In summary, Google is serving users well within this community. Natural search results seem relevant and useful. New tools help users avoid typing errors and also mitigate their effect if they do happen. Whilst this may be partly due to the specific focus and goals of this group, it is also a reflection of efforts by Google to improve the content being delivered to its users, and thereby providing a positive user experience. 21

22 3.4 Comparison Sites As we have already seen, comparison sites feature heavily in the typical user journey for investigating new gas and electricity deals. Of our 30 respondents an overwhelming 29 visited a comparison site during their internet session. Of those respondents 13 visited two or more comparison sites. Energy comparison sites fall into two broad categories those dealing only in gas and electricity (e.g. Energy Helpline, Simply Switch, Tesco energy), and the more general price comparison sites which include an energy section (e.g. uswitch, Money Supermarket, Compare the Market, Confused, Go Compare). Although it s no longer solely an energy comparison site, uswitch was strongly associated with gas and electricity switching by many of our respondents. It benefits from good brand awareness within this field, features high up the natural search results when gas or electricity are used within the search term. It is linked to from Moneysavingexpert.com (a trusted impartial information site), and it was the only specialist comparison site mentioned by respondents as having been recommended by family or friends. Within the generic comparison sites, Moneysupermarket was the second most dominant brand, with many respondents navigating specifically to the site. This is due to a combination of brand awareness, and previous positive experiences in using the Moneysupermarket site for financial services. However, approximately a third of our respondents were initially unaware that Moneysupermarket, or any of the other generic comparison sites (excluding uswitch), covered gas and electricity. This indicates there is potential for these sites to more effectively promote the range of their services. Fig. 11: Comparison sites visited by our respondents Comparison Site Respondents visiting site Uswitch.com 17 Moneysupermarket.com 15 Energyhelpline.com 4 Simplyswitch.com 4 Gocompare.com 2 Confused.com 2 Comparethemarket.com 2 Theenergyshop.com 1 Ukpower.co.uk 1 Switchwise.com 1 Tescoenergy.com 1 Thepowerswitch.com 1 Total number of visits 51 22

23 How comparison sites work As a general rule all the comparison sites, whether general or energy specific, operate in the same way. Users are required to enter their postcode to identify the region where they live, followed by current consumption information either in the form of monthly or annual spend or kilowatts used, the identity of their existing supplier, and the name of their existing tariff. The comparison site then returns a table of suppliers and tariffs showing for each one how much the consumer could save. There are usually links to customer ratings, and most importantly a button to initiate the switching process. This is where the comparison sites make their money. Typically for every consumer who switches supplier through the link provided, the comparison site gets from the new supplier. This is of course hidden from the user, but is a relevant factor as the cause of some confusion for consumers as we will discuss later. The process sounds quite simple in theory, but there are numerous pitfalls throughout, often making for a frustrating experience for the user and very often a no sale event for the comparison site. Pros and cons of using comparison sites We will examine the experiences of our respondents in more detail, referring to the individual comparison sites they used, but by way of a summary here are the main issues they encountered: Some sites ask for too much personal information before providing quotes, resulting in users abandoning the process The process of providing consumption information is often overly complex Identifying the shopper s current gas or electric tariff is difficult even if referring to a printed copy of their latest energy bill Pricing tables, though generally clear, do not readily display unit (kw) prices in their results Different comparison sites quote different figures for the same supplier despite identical consumption data Comparison sites offer only one next step to sign up with a particular provider which is a commitment most users are not prepared to make in the early stages of shopping Telephone numbers for suppliers are not displayed. 23

24 The comparison sites certainly have a prominent place within this marketplace as indicated by the high numbers of our respondents using them. Nevertheless there is considerable room for improvement in the way they deliver their content to their audience. The benefits of using comparison sites, as commented upon by our respondents are these: All suppliers prices, and therefore savings, are displayed on a single website It is a much more efficient process than visiting each of the individual supplier sites There is a greater element of trust in the comparative figures being displayed than would be felt if seeing competitor prices being shown on an individual supplier site Moneysupermarket As already mentioned, 15 of our 30 respondents visited Moneysupermarket at least once, 4 of these navigating directly to the site. The majority of the other visits were the result of respondents following links from a Google search, (although three respondents linked through from the Moneysavingexpert website). Those navigating directly to the site were presented with the homepage rather than the gas and electricity specific section. However signposting on the homepage is clear, and none of our respondents experienced any difficulties finding the appropriate section of the site. Fig. 12: Moneysupermarket homepage 24

25 The first page of the gas and electricity section requires users to enter their postcode and to select either a detailed or quick search: Fig. 13: Moneysupermarket gas and electricity starting page Even though this page extends below the fold to reveal a number of additional information links, all our respondents were task-focused at this stage and immediately entered their postcode. There was an element of confusion as to whether to conduct a detailed or quick search; and it was not clear what the difference between the options would be. Approximately two thirds of our respondents opted for the detailed search, which requires entry of consumption data. The quick search simply asks users to define themselves as high, medium or low consumption consumers. The disadvantage with the quick option is that the resulting table of prices leaves users with generic information which, in the case of most respondents who selected this, does not feel as if it is personalised enough to inform a switching decision. Half of our respondents who selected the quick option went back and conducted a detailed search. 25

26 The detailed option requires current consumption data: Fig. 14: Moneysupermarket detailed search entry form This form gives the option to compare both gas and electricity prices, or just electricity prices. There is no option to compare just gas prices. In our study this was not an issue for any of our respondents, as everybody using Moneysupermarket wanted to compare both gas and electricity. There were three elements of confusion with this form, two minor and one major. Firstly, the form is pre-filled with British Gas as the current gas supplier and E.ON as the current electricity supplier. Whilst not a serious impediment, it cause some respondents to query why these were pre-filled. Secondly, half our respondents did not know what Economy 7 was, or whether it applied to them. Those who were unsure left the default selection of No selected. The third confusion arose from the drop down boxes where users are required to select their current tariff: 26

27 Fig. 15: Moneysupermarket gas tariff drop down Note: The example above shows the various tariffs for gas which British Gas currently maintains. Similarly complex lists apply to all other suppliers both for their gas and electricity tariffs. Without exception, all our respondents were baffled by these tariff selection lists, and were not sure what to select as illustrated by a selection of their comments: I have no idea what tariff I m on, and this list certainly isn t helping This makes no sense to me at all I m going to select Standard but I m really not sure if that s right Even respondents who had copies of their energy bills to hand were unable to identify from their bill which tariff they were currently on. Every respondent, after some deliberation, selected the Standard tariff as they did not know the precise tariff they were on. This issue is not exclusive to Moneysupermarket. All the comparison sites use a similar model, and all cause a similar degree of confusion to users. 27

28 As we will see later in this report, this issue is a significant factor in why most of our respondents felt that at the end of their internet session they needed to conduct further research involving looking at their previous energy bills, or contacting their current supplier to determine their existing tariff. This is a major factor in pushing shoppers offline. Results page After entering consumption details, users are presented with a table of suppliers and tariffs with the comparable annual prices and savings which could be made by switching. Fig. 16: Moneysupermarket results page extract Less than half our respondents proceded beyond this page to look at any further details relating to the individual offers. Only two respondents clicked through on the Apply button, but quickly abandoned the process when they were asked either to provide personal details, or realised this was the start of a formal application process. 6 respondents noticed that their incumbent supplier was offering cheaper deals than the tariff they themselves were on. This caused some comment: 4 of the 6 respondents said they would have expected proactive communication from their supplier informing them that they could save money by switching tariffs, and 2 of these respondents resolved to switch to another supplier as a result of this lack of communication. It should be noted, of course, that these shoppers had possibly wrongly selected Standard tariff in the preceding form. 28

29 The value of customer reviews was regarded with scepticism by two thirds of respondents, on the basis that they felt that in most cases comments were likely to be left by dissatisfied rather than satisfied customers. In any event, customer ratings are taken as a secondary consideration, the primary consideration being price in almost all cases. Those respondents who did look at the detailed tariff information were presented with the following page: Fig. 17: Moneysupermarket tariff detail page Typically at this point, respondents either made a note of the pricing information or printed the page. However, a number of pieces of information are missing thus preventing a clear comparison with the user s existing package: The overall annual cost/saving from the results table on the previous page is not displayed Users existing tariff data, e.g. pence/kilowatt hour is missing Cost information is displayed in multiple formats, i.e. quarterly standing charge, annual discount, and pence per kilowatt hour. 29

30 Next steps From this point respondents were roughly equally divided as to how they would proceed. Approximately half backed up to their search engine in order to find and visit a supplier s website in an effort to confirm prices quoted. The other half intended to contact the supplier directly by telephone, preferring voice contact over internet communication. For this telephone group, there are no contact numbers provided on the Moneysupermarket website, leaving respondents to obtain telephone numbers by other means. For Moneysupermarket, this potentially cuts them out of a future switching fee as a phone sale is unlikely to be rewarded. uswitch 17 of our 30 respondents visited the uswitch website, though only one respondent navigated directly to the site the majority following a link from a more general Google search. uswitch was generally regarded as a utilities focussed price comparison / switching site rather than a general comparison site such as Moneysupermarket. This is partially due to previous experience from some respondents, and recommendations from family or friends who have used the site. The process on uswitch is almost identical to that on Moneysupermarket, and consequently respondents had a similar experience, both in terms of the usefulness of the information available, and the issues encountered. There were however a few differences between these two sites. Initially uswitch asks for more upfront information from users in the form of a telephone number and address, albeit that these are optional fields: Fig. 18: uswitch initial data capture screen Only 2 respondents entered phone number or address information, although 7 respondents failed to uncheck the weekly newsletter box, suggesting that some at least overlooked this opt-out feature. 30

31 After entering consumption information, in a similar style to Moneysupermarket, respondents were presented with a table of results. Whilst comparable with the Moneysupermarket equivalent table, uswitch has some features which are more helpful to users, though these were overlooked by approximately half our uswitch respondents. Fig. 19: uswitch table of results The statement in the top right of the page seeks to reassure users that the uswitch site will offer the best prices available including those obtained directly from suppliers. However, most respondents focus was immediately drawn to the actual table of results and overlooked this statement. Information about users existing tariffs is clearly displayed on this page, affording a better visual comparison with the offers listed within the results. uswitch offers an online chat feature (though this was not used by any of our respondents during their internet session), and the facility to receive the results table via (again, not used by any of our respondents). Respondents opinions of the uswitch results table were comparable with Moneysupermarket. However, those respondents who clicked on the tariff name for further detail were presented with clearer pricing information. In the page image above we have highlighted the Sign Online Dual Fuel V16 tariff. This does not stand out particularly clearly as a clickable link, which contributes to the fact that only 6 out of 17 respondents followed these links through to a more detailed pricing screen. 31

32 Fig. 20: uswitch detailed supplier tariff (1) The information above is set out clearly, broken down into the relevant sections expected and wanted by our respondents. However, only 3 of the 6 respondents who visited this detailed page noticed the subtle link on the right hand side allowing them to compare the new tariff with their current suppliers. Those who did click on this link were presented with the following screen: Fig. 21: uswitch detailed supplier tariff (2) It would make better sense to present this view by default as it offers a genuine side by side comparison between potential new and existing tariffs, broken down by pence per kwh, discounts, and overall estimated annual costs. The respondents who made it through to this view found it highly beneficial, but because it is so buried, relatively few users get to see it. 32

33 Other comparison sites Moneysupermarket and uswitch accounted for two thirds of the comparison site visits by our respondents, and were consistently rated as being more useful than others by respondents who used more than one site. In this section we provide some examples of the issues and frustrations experienced by our respondents. Energyhelpline (4 visits) There were no specific issues here which were not also present on Moneysupermarket or uswitch. The information on the site was a little cramped and not quite so clearly presented, although there was less brand awareness about Energyhelpline amongst our respondents which was the most likely factor in the lower number of visits. Simplyswitch (4 visits) This site was comparable with Energyhelpline in both the entry data required and the style of presentation for the table of results. Similarly the lower brand awareness compared with Moneysupermarket and uswitch is likely to explain the lower number of site visits. Gocompare (2 visits) Only 2 respondents visited this site, and only one got beyond the homepage due to the fact that signposting to gas and electricity comparison is poor. Fig. 22: Go compare homepage The respondent who left at the homepage did not associate the term Utilities with gas and electricity. The link in the main body of the page which uses the term gas and electricity is in a very small font. Gocompare uses a comparison search engine provided by Theenergyshop.com. 33