Customer Service Insights
INSIGHTS
Transforming customer service in Energy & Utilities
Customer service in the energy and utilities sector is under increasing pressure, with rising expectations, regulatory demands, and the need for greater operational efficiency. As suppliers strive to deliver better service while managing costs and compliance, they must also adapt to evolving customer needs, embrace digital transformation, and stay ahead of regulatory changes.
At BFY, our team brings extensive experience in customer service transformation, having worked with leading suppliers to enhance customer engagement, boost satisfaction, and drive lasting operational improvements. Our insights offer practical guidance on key questions, including:
- What are the most pressing customer service challenges in the sector, and how can they be addressed?
- How can suppliers foster a customer-centric culture through effective leadership and empowered teams?
- How will evolving regulatory standards impact customer service strategies in energy and utilities?
Insights
Customer Service
Assessing leadership capability to drive excellence in customer operations
Energy and Utilities is undergoing significant change. With system migrations, large-scale restructures, and rapid growth, suppliers face a complex landscape that requires strong leadership to navigate – but how do you measure this strength?
Building a customer-centric leadership culture to transform service
The Energy and Utilities sector is evolving significantly - many are delivering system migrations, large scale restructures, and experiencing rapid growth. Universal in the success of navigating this, is the ability for operational leaders to translate these strategic changes, and land them successfully with those people closest to the customer.
Realising Ofgem's vision for a leading customer-centric Energy sector
Ofgem's customer service ambition makes it clear that today's service standards aren't deemed acceptable, with rising bills and record debt levels only amplifying these calls for change. It represents a new opportunity for suppliers to build a leading culture for customer-centricity, as we show here.
Closing the gap between complaint volumes and service ratings to save £m’s
There's generally little correlation between customer service ratings and complaint volumes for energy suppliers. A good Trustpilot score doesn't typically mean less complaints, but as we show here, suppliers can save £m's by closing this gap.
Differentiating the customer journey in energy’s era of ‘similar servicing’
Market share gain and great customer service are becoming increasingly linked in Energy. But as suppliers invest in new operating systems, with many opting for the same or similar providers, how will suppliers differentiate their servicing offering to create a competitive advantage?
Complaints are an increasing burden for non-domestic suppliers
Energy suppliers will need to offer enhanced complaints services to more than 200,000 small businesses under new Ofgem rules, BFY estimates. The Complaints Handling Standards (CHS) are expanding from December 2024 to cover both micro and small businesses, and as volume increases, some will need to adapt more than others, to build the required maturity for higher demand.
Energy suppliers face a third party complaints problem
Energy complaints increased in the latest data, and although volume is normalising at pre-pandemic levels, there’s a concerning trend emerging with third party involvement.
How big is Energy's third party complaints problem?
Our latest blog highlighted the third party complaints problem faced by energy suppliers - but just how much of a problem is it?
Avoiding customer service ‘black holes’ when embedding AI
Nearly all of our regular clients have told us they’re aiming to use more AI-driven solutions in 2024. Every single transformation plan or roadmap we’ve reviewed this year includes it to some degree. But which use case is most likely to deliver efficiencies and cost-savings, without unnecessary disruption – or even the unintentional creation of a customer service ‘black hole?’
Satisfying customers during large-scale change
Customers want a hassle-free service in Energy and Utilities, meeting their needs rapidly with as few interactions as possible. Suppliers delivering this will generally see their cost to serve fall, and reputation rise – so why does it feel like customers and companies are at odds with each other?
An update on Energy Complaints Performance
Complaints challenges are set to continue in Q1. It’s a trend we’ve seen in recent years, that customers are more likely to complain during a period of high usage. However, based on current market conditions, this year’s uplift could be more significant than usual.
Consumer Standards – How can suppliers rebuild trust?
Following the publication of Ofgem's Consumer Standards decision, we look at the practical steps for implementation, focussing specifically on rebuilding trust with the customer, through the development of specific advisor skills, and tailored customer treatments.
White Paper
Getting ahead of the competition in a complex Utilities sector
Ofgem’s Consumer Confidence programme has made it clear that today’s service standard aren’t acceptable. Achieving the uplift required can’t happen overnight, and the suppliers who act fastest can lead the way for the sector, while making significant cost savings and efficiencies.
Our white paper shows how this can be achieved, looking at:
- Optimising processes and communication channels, through a better understanding of customer needs and internal performance
- Leveraging technology and AI to simplify customer communication, while easing workflow and capacity
- Empowering teams to achieve leadership excellence and establish a winning servicing culture, that gets ahead of the competition
Read it in full here.
Customer Service
Meet the Team
Kevin Scott
Director
Kevin leads client engagements with a laser focus on empowering clients to navigate large-scale events and market challenges.
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Jonathan Paton
Senior Manager
Jon specialises in Customer Operations leadership, customer contact, and operational service delivery transformation/improvement.
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Kev Brown
Senior Manager
Kev leads continuous improvement and lean transformation projects with our clients, supporting customer operations to deliver our Leadership and People Excellence programme.
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Jon Vincent
Senior Manager
Jon helps clients resolve problems with billing, settlements, and customer service.
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Lauren McCullough
Senior Manager
Lauren leads our clients through Operational Excellence, Lean Transformations and Continuous Improvement activity.
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Amber Morton
Manager
Amber partners with our clients to deliver transformation and performance improvement in collections and recoveries, service delivery and customer experience.
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Our Impact
Large energy supplier avoids ~£7.5m in complaints costs
We supported a large energy supplier with a transformation programme, looking at how they can manage their complaints inflow and address the growing backlog. The programme transformed their complaints capability and resulted in ~£7.5m in cost avoidance.
Large B2B supplier increases efficiency with operational excellence
We supported a large B2B energy supplier with operational improvements in its Pricing team, aiming to increase efficiency and reduce the time taken to produce prices for new and existing customers.
BFY helps medium sized supplier reduce complaints by 33%
Our client was recording a high number of complaints and wanted support in identifying where and how to make rapid improvements. A new complaint recognition process was formed and rolled out across the business, leading to a 33% reduction in complaint volumes for the following quarter.
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