In an Expert Focus article for Waterbriefing, Monica Mackintosh, managing director of Echo Managed Services looks at the current status of customer satisfaction in the UK water sector and how they can improve on their performance.

Monica Mackintosh:  What can water companies take from the latest UK Customer Service Index? Unfortunately, it’s not a hugely positive picture.

A decline in overall customer satisfaction is clearly apparent, with the water sector recording a drop of 1.7 points year-on-year. Only the energy sector saw a bigger dip, at 3 points overall.

There were however some positive findings. Four water companies increased their overall scores, and three outperformed the all-sector average. Welsh Water, Northumbrian Water and Scottish Water in particular should be commended. Satisfaction with complaints handling in the water industry has continued to improve and outperform the UK all-sector average scores across four measures in the index.

However, water has still recorded a drop across most experience measures, including right first time, and the percentage of customers actually experiencing a problem. Meanwhile eight water companies experienced a customer satisfaction rating drop of 2 points or more.

So, what can the latest findings tell us about customers and areas for improvement?

Engaging younger customers

One interesting factor to emerge from the report is that in water – as in all sectors – overall satisfaction is lowest amongst customers in the 18-24 age band. Forward-thinking and strategic companies, then, should be thinking about how to future-proof their customer service for the next generation. How are younger people’s expectations of customer service different to those of earlier generations? How can water companies better engage and satisfy these younger customers?

Plenty of research has explored the behaviours and expectations of the tech-savvy post- millennial cohort. However, there tends to be a focus on mobility and convenience, and on transparency, honesty and a sense of responsibility from even the largest organisations.

Water companies should think carefully about how to bring convenience and openness to their customer service strategies.

The app-ortunity

One route to greater engagement might be to innovate further with digital channel such as mobile apps. Mobile technology is an everyday part of today’s connected consumer life, and so apps can offer far greater convenience. The UKCSI figures show, for example, that 9.9% of all banking customer experiences were conducted via an app – the highest of any sector by some stretch – and where customers use an app to interact; this results in higher than average customer satisfaction.

Yet in the water sector, app usage languishes behind the all-sector average (3%) at 0.9%. This is a clear growth opportunity. Of course, purpose and design are crucial to ensure a meaningful and effortless experience for customers but, done well, apps can both build brand recognition and improve customer engagement. A key challenge will be around keeping customers, many of whom do not have the need to interact regularly with their water company, engaged in an app that must be personally relevant and useful.

Helping those most in need

The UKCSI also highlights some interesting findings around customer satisfaction for customers who deal with an organisation at a difficult personal time. For example, highly satisfied customers who are going through difficulties tend to express stronger levels of trust than equally satisfied customers who are not. Overall, the indications are that positive and negative experiences are both amplified when an individual is going through difficult circumstances, and that customers going through a range of difficulties are likely to respond particularly negatively to poor customer service.

As such, reassurance and empathy are key. In a world where interactions are becoming more digital, soft skills and emotional intelligence training for customer-facing teams must remain a priority to ensure service is both supportive and inclusive for all.

Keeping promises

Reliability and transparency are vital qualities for any water company to convey – and this means keeping promises. The UKCSI found that problems associated with organisations not keeping their promises rose from 5.3% to a hefty 17.3% year-on-year, across all sectors. For the water sector, only five out of the 16 water companies included in the index achieved a score at or above the UK all-sector average for keeping their promises to customers.

Examining the gap between promise and delivery should be an ongoing focus area for water companies, given the link to trust. More proactive and transparent communication can help to manage customer expectations and build trust when things don’t go to plan.

Change is possible

The fantastic performance of some water companies tells us that it isn’t an inevitability for the water sector to remain at the bottom of the UKCSI rankings. Change is absolutely possible and a consistent, quality experience tailored to customers’ needs can and does drive improvement. Jo Causon, CEO of the ICS, perhaps puts it best when she says that ‘customer service excellence is the tangible expression of an organisation’s culture’.

It’s never been more important as a sector for us to continue to drive change in our culture to realise the results we are all looking for.