Elevating the Customer Experience: A Key Strategy for Utilities Facing Rate Increases

Utility rates are rising and all signs suggest regular rate increases are the new norm. Aging infrastructure and growing demand from electrification and data centers are driving costs up and customers are feeling the impact on their monthly bills.

But utility customers do not see rising rates through the lens of infrastructure upgrades or wholesale market pricing. Instead, they experience it as a direct hit on household budgets, especially during times of economic uncertainty. That’s where customer experience (CX) management can become a key strategy for utilities.

Delivering Stability in an Unstable Landscape

Utilities cannot guarantee rate stability but they can help ensure consistency, clarity and care in how customers are served. In an era where frustration with service providers is easy to come by, being the utility that consistently “gets it right” can drive more positive perceptions of the utility, even as rates go up. Investing in CX isn’t just a feel-good gesture; it’s a strategic safeguard against customer dissatisfaction, public backlash and regulatory pushback.

Consider the case of an electric utility that partnered with us to delve into the residential customer journey, identifying pain points and barriers to satisfaction. Through comprehensive research and targeted recommendations, the utility implemented alternative bill management tools and streamlined processes, leading to an impressive annual savings of $12 million in customer service and arrears costs. This example underscores how strategic CX improvements can deliver seamless interactions and improve customer experiences while also yielding substantial financial benefits for the utility.

Every interaction is an opportunity to show customers they’re more than just an account number. When utilities make experiences simple and respectful of customers’ time, it sends a powerful message: We value you. From easy-to-understand billing and timely outage updates to proactive communication and intuitive self-service tools, each touchpoint builds trust and reinforces the relationship.

Customer Experience Is Not a Goal—It’s a Value

CX isn’t just a job function for customer service representatives; it’s a mindset that needs to permeate across the entire organization. Everyone, from line workers to engineers to regulatory teams, should approach their work through the lens of the customer. This kind of shift in perspective is increasingly important as utility customers and their expectations continue evolving.

Building this kind of culture doesn’t happen by accident. It takes strong leadership and ongoing reinforcement but even small shifts in perspective can spark meaningful change.

How Can Your Utility Encourage a Customer-First Mindset?

• Instill CX as a core value to your organization, not simply an operational goal. CX management needs to become ingrained in employees’ everyday thinking. Foster a culture that encourages employees to step up and share ideas around how the customer experience can be improved.
• Take an iterative approach—break down CX challenges into manageable parts, empower employees to provide input and reimagine processes, and work to continually improve.
• Foster cross-functional collaboration to build empathy and understanding of each team’s role in the customer journey. Designate internal “customer champions” with the responsibility of encouraging employees in all roles to come forward with ideas of how to improve the customer experience.
• Standardize processes to deliver a consistent and seamless customer experience across all channels, whether it be the website, the interactive voice response system, or the monthly bill. All channels need to work together to make customer interactions simple and intuitive.

Unlocking Customer Experience Strategies

With decades of experience in customer experience strategy work, Escalent partners with organizations to drive meaningful change across various industries, including the energy sector. We have an in-house network of specialty teams whose industry expertise and customer-centric disciplines guide organizations on their journey to put the customer first. From user experience (UX) research and customer journey mapping to qualitative research deep-dives and onsite workshops, we offer the tools and expertise to help your organization take CX to the next level.

To learn how our energy industry experts can enhance and support your customer experience management strategy, fill out the form below.

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