The utilities sector has been dealt a stark wake-up call with the release of the ‘Customer Service Report’ by Esendex, which places the industry in seventh out of 15 sectors analysed. With a score of 82.7 out of 100, the sector’s performance indicates a pressing need for improvement in customer service, a critical area that directly impacts customer loyalty and long-term success.
The report, which analysed Trustpilot review data, reveals that while utilities offer the highest number of communication channels, this abundance does not translate into better customer satisfaction. This discrepancy suggests that the sector’s focus should shift from mere accessibility to the quality of service and issue resolution. Customers are waiting an average of 3 minutes and 4 seconds to speak to a human representative, slightly better than the overall average, but this is not enough to compensate for the average performance in both the index score and customer standards.
The urgency for improvement is underscored by the fact that utility services are essential for customers’ health and financial wellbeing. Reliable and responsive support is not just a competitive advantage but a necessity for maintaining trust and enhancing the customer experience. A recent survey found that two in five customers struggled to reach support teams or have issues resolved, highlighting a significant gap in service quality.
Despite these challenges, the utilities sector scored higher than the overall average across all industries, which saw an average Trustpilot score of 4.1 and an index score of 76.8. This relative standing is a double-edged sword; while it indicates room for improvement, it also provides a benchmark for progress. The sector must leverage this position to drive meaningful change, especially as customer satisfaction in the UK hit its lowest rating in nine years by July 2024. Poor customer service is estimated to be costing UK businesses over £87.6 billion per year, a staggering figure that underscores the economic imperative for improvement.
Richard Hanscott, CEO of Esendex, emphasised the need for fast, flexible, and multi-channel communication solutions. “The findings from our ‘Customer Service Report’ highlight how industries such as utilities are falling behind the expected standard for customer service, and need to prioritise efficiency, clear communication and building positive customer relationships,” he said. Hanscott’s call to action is clear: the utilities sector must invest in the right customer service solutions, including WhatsApp for Business, AI, and chatbots, to streamline communication, reduce response times, and ensure support is available when and where customers need it.
The report also sheds light on the broader landscape, with construction and manufacturing leading the rankings and retail, housing associations, and banking and money sectors lagging behind. This context is crucial for the utilities sector, as it provides both inspiration and caution. The sector must learn from the leaders and avoid the pitfalls of the laggards, particularly as customer expectations continue to evolve.
The implications for the utilities sector are profound. The need for investment in customer service is not just about improving scores; it’s about building trust, enhancing brand reputation, and driving long-term business success. The sector must prioritise efficiency, clear communication, and positive customer relationships. This is not a one-time fix but an ongoing commitment to excellence. As Hanscott aptly put it, “Customer service is a critical part of business operations and reputation management, which is why it should never be relegated to the bottom of the priority list.” The utilities sector must heed this advice and take bold steps towards a customer-centric future.
