A significant transformation is taking place in the UK energy market. Today, customers are more aware, empowered, and digitally connected. The service prices now don’t hold the power to keep the customers loyal. As per ElectraLink’s report Switching rises 38% in 2024 approximately 3.21 million UK households switched providers in 2024. This switching is a clear message that what providers are delivering is not enough. If your CX game is not on point, then sooner or later, customers will leave.
The question here is how, in a volatile business setup, energy providers can retain their customer base, which they have earned over time through hard work?
In all this discussion we cannot ignore the data that- Focusing on retaining existing customers is more beneficial as companies that prioritize customer retention over acquisition are 60% more profitable.
Plot Spoiler- It not always the reduced services’ price. It’s about delivering CX that is bespoke, graceful and reliable.
1. Proactive Communication wins over Reactive Apologies
Why it matters:
Every so often, customers remain unaware of the utility services’ developments and requirements until something unusual happens. Increased bill amounts, rises in tariffs, or delayed/missed payments are a few of the issues that push a customer toward the competitors. The question here is that in a volatile business setup, how can energy providers retain their customer base whom they have earned over time with hard work?
According to the Ofgem Energy Consumer Satisfaction Survey 62% of UK utility customers are dissatisfied with their existing service levels.
Strategy in action:
There’s a need to move away from the obsolete approach of “wait-until-they-complain”. Innovative energy providers are adopting hands-on communication through SMS, emails, mobile apps, and chatbots.
Visualize receiving:
- A reminder regarding high energy usage during a particular week
- Notification to deposit meter reading before billing
- Recommendation for a discounted plan based on consumption
These small bundles of notifications can develop immense trust- When customers feel valued, they will stay even in case of a price rise.
💬 “We noticed your usage surges during evening hours. Here are a few tips to save energy during peak hours”.
This is proactive CX
2. Personalisation Isn’t Just for Netflix
Age of expectation inflation- Yes! That can be the name of the period we are living in. Customers today expect that the brand identifies them, comprehends them, and anticipates their requirements.
In the utility sector, personalization should extend beyond just names in the email list. It should include:
- Tailored energy-saving recommendations were created on the basis of usage and family size.
- Personalized billing rotations or payment plans
- Suggestions for climate-friendly updates like solar or thermostats.
A detachment exists between utility companies and their customers, with 70% of utility companies considering they are customer-centric, while only 7% of customers agree.
Smart meters + AI = Formidable alliance. Deploying AI companies can deliver tailored suggestions that can make the customer feel special and acknowledged.
📈 “This week, you saved 25% more energy than your neighbours—great job!”
3. Self-Service That Actually Serves
72% would like to have better self-service and seamless access to consumption details, and 60% prefer to resolve concerns without calling customer support.
Strategy in action:
Nowadays, people don’t want to discuss their problems on the phone. A few clicks or taps are preferred over long conversations. However, a lot of time, self-service systems are not competent enough with confusing interfaces and slow response times. This delay frustrates the customers.
experiences can make the customers stay. So, whether you are a new or established company, you need to focus on the services and how you make your customers feel. Here’s how to deliver great self service
- A mobile app with features to display real-time usage.
- Facility to modify payment details, check bills, and file complaints within 60 seconds
- Chatbots for frequently asked questions and basic inquiries
The goal? Empower customers to solve problems before they escalate. More satisfaction and lesser frustration = lower churn.
4. Human Support When It Counts
Why it matters:
We cannot ignore the fact that technology has made life easy and it’s great. However, we can’t negate that still today. There’s no substitute for real human empathy.
A detachment exists between utility companies and their customers, with 70% of utility companies considering they are customer-centric, while only 7% of customers agree.
Strategy in action:
In situations of billing errors, unscheduled disconnections, or payment hitches, human assistance becomes vital and a differentiator.
In best companies:
- Agents are trained to handle customers with empathy
- Agents are empowered with data to give expedient and precise solutions.
- Recommendations are made for flexible payment solutions for economically struggling customers, like instalments and holiday plans.
🔊” Hello Sarah, I see we have an instalment plan for you. Let’s discuss this right now and help you with the bill.”
5. Bonus Strategy: Don’t Just Serve Customers-Educate Them
Why it matters:
Rather than anger and frustration, it’s the confusion that often drives your customers away: complex bills, unclear tariff terms, and incomprehensible usage data.
- Offer educational content via blog posts, in-app tips, or quick explainer videos.
- Break down bills with plain language and visual charts.
- Host webinars or live Q&As to explain energy markets.
According to Harvard Business Review, 50% of customers had a bad experience changing a utility provider a year later, compared with 78% of those who had a good one and stayed loyal.
6. Go Green, Gain Loyalty
The young customer base is attracted by companies offering climate-friendly options like green tariffs and renewable energy sources.
UK became the first major economy to set a legally pressing target to achieve net zero greenhouse gas emissions by 2050.
The key isn’t just offering green options-Transparency matters:
- Transparent about the source of energy
- Usage’s impact
- Assisting in reducing carbon footprint via informative videos and stories.
Final Thoughts: From Commodity to Connection
In a sector where kilowatts and cubic meters are the same in every company, what can make you stand out is exceptional CX. You can attract customers by lowering your prices; however, they will stay only when they feel valued and understood.
Tricks can’t make you retain customers; meaningful, consistent, and personal interactions can.
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Ofgem Energy Consumer Satisfaction Survey
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