Energy suppliers and customer loyalty: Mission impossible?
The days when consumers were loyal to their energy supplier for life are long gone. The liberalised energy market has made this possible: electricity and gas customers now often switch suppliers in order to benefit from lower prices and better conditions. What’s more, online comparison sites make it easy to switch. With just a few clicks, you can compare rates and find the best deals.
The switching rate shows that many electricity and gas customers are taking advantage of this opportunity. According to the Federal Network Agency, it reached a new high in 2024. A total of 7.1 million household customers changed their electricity supplier last year. That’s around 14 percent of consumers. By comparison, the rate in 2022 was still eight percent. The willingness to switch also increased in the gas market. 2.3 million household customers (17 percent) were looking for a new gas supplier in 2024.
And even energy suppliers that have been able to build up a loyal customer base to date should not rest on their laurels. “If you haven’t already done so, we recommend checking your electricity or gas contract for potential savings. Due to lower prices for new customers, switching suppliers is currently the easiest way to save money,” the Federal Network Agency recently advised. Consumers are happy, but the energy suppliers are in dire straits. This is because their scope for reducing prices is limited: Levies, taxes and grid fees make up the lion’s share of the electricity price. In order to attract new customers in spite of this, many providers offer high bonuses. Although these attract new customers, they often turn the first year of the contract into a loss-making business. It will be difficult for energy suppliers to cover their costs without long-term customer relationships.
More power in customer service thanks to omnichannel and AI
In the competition for customers’ favour, however, energy suppliers have to offer more than just low prices. Contract terms, sustainability and customer service are also relevant decision criteria for consumers when choosing a provider. This makes it all the more important that energy suppliers not only offer attractive products, but also provide a first-class customer experience.
But this is precisely where the challenge lies: the energy suppliers’ service centers are inundated with enquiries. Consumers have many questions about new technologies, complex subsidy options and confusing tariffs. They expect quick answers, expert advice and customised solutions – across all channels. As a result, energy suppliers should get their customer services up to speed as quickly as possible.
This means that agents must be able to retrieve the information they need in real time and handle open cases across all channels. Omnichannel contact center software provides the basis for this. For example, novomind iAGENT provides everything that energy supply companies need for successful omnichannel communication: different communication channels as well as the required data and information. Whether e-mail, live chat/chatbot, social media, contact form, letter/fax, messaging or telephone – novomind iAGENT offers the right feature for every channel. And all this on a centralised platform with an intuitive interface. What’s more, artificial intelligence (AI) is an integral part of the novomind AI Platform and supports all customer interactions – from the automated processing and categorisation of emails to intelligent chat, email and voice bots that solve customer queries almost as well as their human colleagues.
How energy suppliers specifically benefit from novomind iAGENT
Whitepaper "On the same wavelength: How energy suppliers are stepping up their game in customer service with AI automation"
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