Texas Retail Electric Providers See Significant Decline in NPS

January 23, 2020

In the highly competitive Texas electric market, customers are now less likely to recommend their retail electric provider (REP). The Texas REP average net promoter score (NPS) is down to 15, a significant decline from 18 in 2018. This drop in NPS is troubling for REPs as the metric is used by management teams to determine both brand strength and growth potential. This finding is from the Cogent Syndicated Texas REP Trusted Brand study from Escalent, a top human behavior and analytics firm.

NPS is derived from subtracting the percentage of customers who are brand “detractors” from those who are “promoters.” The more positive the outcome, the more likely it is that customers will promote their REP to others and advocate for the brand. The study, which surveys over 5,300 residential customers annually, finds that the decline in NPS is due to a higher number of brand “detractors” than in 2018. A 104-point gap between the highest- and lowest-scoring REPs indicates that some retail brands are failing to create strong and lasting connections with their customers. However, the staggering gap also indicates that the 10 top-scoring REPs are very well positioned to grow their customer bases thanks to strong brand preference.

“Customers are recommending a few elite Texas REP brands based upon their NPS. That advocacy can translate to better franchise values and increased market share,” said Chris Oberle, senior vice president at Escalent. “The large NPS performance gap indicates the market is ripe for a shakeout, where the top 10 brands have an opportunity to grab the lion’s share of customers.”

The top 10 Texas REPs that customers recommend others should use are:

Top Scoring on Net Promoter Score

4Change Energy Champion Energy Services
Acacia Energy Just Energy
Alliance Power NEC Retail
American Light & Power WTU Retail
Beyond Power Xoom Energy

 

The following is a ranking of Texas retail electric providers on year-end 2019 net promoter scores.

Texas Retail Electric Provider Net Promoter Score
NEC Retail 65
Beyond Power 46
Alliance Power 42
American Light & Power 40
Xoom Energy 39
Acacia Energy 34
4Change Energy 34
Champion Energy Services 31
Just Energy 30
WTU Retail 30
Cirro Energy 27
Stream Energy 25
Green Mountain Energy 25
Discount Power 23
Ameripower 22
TriEagle Energy 21
Direct Energy 20
Amigo Energy 19
Infinite Energy 17
CPL Retail Energy 14
Ambit Energy 14
Bounce Energy 13
TXU Energy 12
First Choice Power 11
Spark Energy 11
Reliant Energy 7
Frontier 3
Pennywise 0
Payless Power -2
Constellation -5
Gexa Energy -6
Accent Energy -13
Entrust Energy -16
Brilliant Energy -39

Source: Escalent. Cogent Syndicated. Texas REP Trusted Brand.

About Texas REP Trusted Brand™

Cogent Syndicated measures customer engagement and brand trust among customers of Texas retail electric providers by surveying 5,361 customers across providers based upon data-driven models. The study measures key performance indicators (KPIs) to provide management perspectives on how to improve REP brand positioning, sales and promotion, customer trust, effective messaging, product sales, customer experiences, service quality, customer acquisition and loyalty. Escalent’s Brand Trust model comprises nine factors: community support, customer focus, communications effectiveness, environmental dedication, local reputation, reliable quality, competitive rates, enhanced offerings, and billing and customer service. 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.

 

For more on the report, click below.

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