Energy sector improving on empathy metrics but more work to be done, says KPMG

Withstanding unprecedented levels of job losses and closures, the energy sector has responded to demands for empathy and customer experience.

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According to KPMG research, the sector has demonstrated steadily increasing performance on empathy metrics since 2018, but there is more to be done to meet customer expectations.

“While differentiation through personalisation remains important to a strong customer experience, empathy is becoming more closely linked to personalisation and, therefore, more important to customer experience over time,” the report says.

In order to deliver a consistent customer experience as well as meaningful engagement, an integrated approach to ensuring customer expectations are met is necessary, according to the report.

“The 2021 results show that customer experience efforts are recognised by Australian consumers. However, the energy sector has more work to do to meet ever-evolving customer needs, with a continued focus on empathy, integrity and ongoing investment in personalisation,” the authors say.

The impact of the COVID-19 pandemic was not only felt internally by energy businesses, but customer's increased appetite for energy, due to the combination of work from home arrangements and the natural increases during the winter months added to the challenges facing the sector.  

Continued affordability issues for customers, an intensifying competitive landscape, tighter regulations, and a growing cost base means that many energy retailers are seeing their bottom line threatened.

Additionally, compared to other sectors examined in KPMG's research, brand loyalty for energy is in the bottom 25 per cent of loyalty scores recorded. This trend is associated with the price and ease with which customers are able to switch providers, with many comparison tools readily available.

According to Jo Egan, general manager, product and portfolio at AGL Energy, who is quoted in the report, “Our positive customer advocacy and strength in customer experience comes from a continued focus on customer engagement — underpinned by innovation, simplification and digitisation.” 

“We believe investments in customer technology, processes and communication are key to uplifting capability in delivering an engaging and seamless omni-channel experience for our customers.”