Subjects: Product/Service, Survey

Net Promoter Scores and Customer Loyalty Decline for Half of Texas Retail Electric Providers

Challenges in the Texas retail electricity market from storms, high bills and service issues are separating winning and losing retail electric provider brands according to customers. This year, there is a staggering 130-point gap in Net Promoter Scores (NPS) between the highest- and lowest-scoring Texas retail electric providers (REPs). Overall consumer perceptions of Texas REPs have significantly declined, with a market average NPS of 14.2 as of Q3, 2021, down from 15.8 for the same period last year. This information is from the 2021 Cogent Syndicated Texas REP Trusted Brand study by Escalent, a top human behavior and analytics advisory firm.

NPS is a calculation based upon how likely customers are to recommend their REP to others and is used as a measure of customer loyalty and advocacy. The study identifies that promoters, those most likely to recommend their REP, are driven by their REP's service quality, ease of doing business and customer-centricity. On the other hand, REP detractors, those least likely to recommend, place more importance on their REP's brand reputation and community outreach. Overall, one in four (26%) Texans is now a detractor when it comes to his or her REP. This indicates that most REPs have a lot of work to do in building meaningful brands that strike unique chords with the customers and local communities they serve. There is also a sizeable opportunity for strong brands to steal share from weaker REPs.

"The good news is NPS is just one KPI and it contradicts some of the other metrics our study collects to evaluate the effectiveness of REP management teams. For instance, reputation, customer trust, service satisfaction, rate plan approval and customer engagement are higher than last year," said Chris Oberle, senior vice president at Escalent. "This implies that REPs need to be proactive in attracting customers and not rely on current customers to promote their offerings. Also, merely publishing rates and waiting for customers to sign up will lead to failure, as customers seek out and stay with providers who proactively advocate their own values and love of community."

Following are Net Promoters Scores among selected Texas retail electric providers:

About Texas REP Trusted Brandtm

Cogent Syndicated measures Customer Engagement and Brand Trust among customers of Texas retail electric providers by surveying 4,492 customers across providers based upon data-driven models. The study measures key performance indicators (KPIs) to provide management perspectives on how to improve REP net promoter, brand positioning, market share, sales promotion, customer trust, communication, service quality, customer acquisition and loyalty. Net promoter scores are reported on a four-quarter trailing average basis to obtain an annual perspective. The study collects a demographically representative sample across all Texas service territories open for retail electric competition. Escalent will supply the exact wording of any survey question upon request.

About Escalent

Escalent is a top human behavior and analytics advisory firm specializing in industries facing disruption and business transformation. As catalysts of progress for more than 40 years, we tell stories that transform data and insight into a profound understanding of what drives human beings. And we help businesses turn those drivers into actions that build brands, enhance customer experiences and inspire product innovation. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.

News published on 26 october 2021 at 09:10 and distributed by: