With increasing competition for customer attention, service providers are under mounting pressure to improve
their offerings.Customers not only have increasing expectations, they are also more aware of the choice
they have, and are both capable and intent on using this to their advantage.
But what, if anything, can businesses do to entice and retain customers in the face of such pressures and
what are the key considerations for a customer when it comes to deciding to take their business elsewhere.
Through consumer research, we set out to answer these questions. Having examined the behaviours,
attitudes and experiences of 1,000 UK households, we will look into:
Consumer attitudes towards switching accounts;
In which sectors supplier switching is most prevalent;
What prompts consumers to make the switch;
The experiences consumers face during the switching process;
Consumer frustrations when it comes to switching and their suggested improvements;
What happens post-switch and consumer feelings around the benefits of making a switch.
The report also considers the possible deregulation of the English water market, whether consumers have an
appetite for choice, and what factors would be important to them in choosing a water retailer.
Finally, this research will examine a new multi-utility era, and whether consumers would welcome
consolidation of their supplier base, and for what reasons.
Monica Mackintosh - Customer Services Director
Research by Echo Managed Services. Summer 2017
Retaining customers in a world of choice
Key Findings
Research by Echo Managed Services. Summer 2017
A third of consumers (33%) would switch as a protest
against poor service.
Nearly one in 10 consumers describe their switching
experience as difficult.
40% of consumers say their previous supplier made no
effort to retain their custom.
38% of consumers will instantly review their water
supplier if and when the market opens.
48% would consider a single supplier for gas, electric
and water if it reduced their overall bill costs.
34% of consumers aim to regularly switch their main
utility accounts.
11% of consumers have never switched their utility
accounts.
14% of consumers are sceptical as to whether
switching makes a significant difference to bills or
service.
The energy sector experiences most switching; one
in 4 consumers have switched/reviewed their account
in the last 12 months. Credit card switching was the
least common, with one in 7 switching/reviewing.
A price increase is the one factor most likely to make
a customer switch supplier.
A nation of switchers
Switching or reviewing their service providers
is a regular occurrence for a third of
consumers (33%) in the UK, demonstrating
the challenge suppliers face when it comes to
customer retention.
And, for half of customers, it is seen as an
important task in the general management of
household costs as homeowners look to
constantly find the best deals.
Even for those who dont consider it a priority,
17% would review or switch their
accounts if they had a pressing need – this
could be anything from financial requirement,
dissatisfaction with customer service or a loss
of trust in a supplier.
Loyalty and apathy
Although in recent times It has become more
challenging for businesses to achieve
tangible loyalty and advocacy, 11% of
consumers said they have never switched
their accounts in the past.
Both brand loyalty and customer apathy to
switching are likely to play a role here.
However, businesses must be cautious not to
take this segment ofconsumers for granted
as there is no guarantee that their switching
behaviourwill not change in the future either
as a reaction to, for example, poor service or
a sudden price increase, or more proactively
to manage household costs.
Attitudes towards switching
Its an important
task in managing
household costs
Its something that
I aim to do
regularly
Its something I do
if I have time or a
pressing reason
Its not a priority
for me
Thinking of the accounts you hold with utility providers, which of the following
best describes your attitude towards reviewing or switching these accounts
34% 17% 14%
50% 2% 11%
I started the
switching process,
but never saw it
through
0%
10%
20%
30%
40%
50%
60%
I have never
switched
accounts
Research by Echo Managed Services. Summer 2017
Customer profiling and segmentation are essential for businesses when it comes to
understanding customer switching attitudes and behaviours, as this will help them to engage
customers at the right time and with the right message to increase retention rates.
However, a future challenge in identifying and profiling customers could come from the
introduction of GDPR, which places new rules on how customer information is handled.。