Abstract
Overview
Introduction
As markets liberalise most switching will initially occur purely on the basis
of price differential as the incumbent margin is whittled away. While price
will continue to dominate decisions, a narrowing of margins and the
significant cost of switching will make customer satisfaction a key
performance issue.
Scope
- Understanding of the relationship between market liberalisation and
customer service expectation.
- Frameworks within which to analyse the performance of different companies
in the service area
- Competency groupings used by Datamonitor within the UK market in its
established satisfaction rankings
- Insight into the relationship between utility M&A and customer service
issues
Highlights
Within immature markets, switching is largely on the basis of price as buyers
exercise their new-found freedom to choose supplier. Buyers have few service
expectations as they have only experience with their incumbent supplier.
As markets continue to mature and a majority of buyers have switched at least
once, service and product offerings become much more important. This
importance is enhanced as the variation in margin reduces and new entrant
prices are not as different from those of the incumbent.
To accurately measure customer service levels and ensure that company
resources are adequately targeted internally, the development of metrics that
capture both the expectations and experiences of buyers within a wide range of
competency groupings must be collected.
Reasons to Purchase
- Develop targeted customer service practices within your utility business
- Understand what buyers are likely to expect of utilities at different
stages of market opening
- Build metrics for assessing the expectations and experiences of buyers
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