Utilities Investing More in Communication Continue to See Elevated Brand Trust

LIVONIA, Mich., July 13, 2023 (GLOBE NEWSWIRE) -- Utilities that have maintained or increased what they spent on communication throughout the pandemic and ongoing economic difficulties are seeing higher levels of Brand Trust, according to a new Cogent Syndicated report from Escalent. For the second consecutive year, the utility industry Brand Trust Index is down significantly, declining 11 points to 687 on a scale from 0 to 1,000. However, Brand Trust among utilities that have continued to highlight savings opportunities, environmental programs, and community support efforts across a variety of channels is 5% higher than the industry average. Today, we name these 42 top utilities as the 2023 Most Trusted Brands.

Those are some of the latest findings of the 2023 Utility Trusted Brand & Customer Engagement™: Residential study, which tracks the performance of 141 gas, electric and combination utilities to identify brand and customer experience opportunities and trends in the industry. The report is published semiannually by Escalent, a top human behavior and analytics advisory firm with extensive energy, utility and brand experience.

As inflation and higher utility bills set in throughout 2022, many customers who found their economic situation worsening were unable to identify utility programs or services to help manage their energy use. Declining value and monthly bill manageability perceptions continue to outpace bill increases, indicating that general economic anxiety and pressures may continue to color residential Brand Trust as customers look to blunt the effects of inflation. The leading decline in Brand Trust is in the perception that utilities offer reasonable rates for the service provided, Cogent’s proxy for value. That attribute score has declined by 4% since mid-2022.

Customers enrolled in energy-management programs give their utility an 11% higher Brand Trust score. By developing and promoting a portfolio of products and services focused on energy management and savings—and successfully driving customers to those programs—utilities can serve as helpful consultative partners rather than simple service providers. This transformed relationship can help increase scores across indices and may help preclude dramatic Brand Trust declines during periods of rate instability.

While the Trusted Brands are not immune to the scoring declines that began in the first quarter of 2021, their declines have been less substantial. Their overall Brand Trust score is higher than it was pre-COVID-19, while the industry average has dropped below those levels. Additionally, the Brand Trust gap continues to widen, with Trusted Brands scoring 32 points higher than the industry average.

Trusted Brands are also delivering easy-to-understand bills and helpful on-bill communication: Trusted Brand bill understandability scores are 4% higher than the industry average, as are customer perceptions that the bill provides information on ways to lower consumption.

“Even though inflation and 2022’s substantial rate hikes have slowed, customers are still dealing with higher prices for everyday goods and services, and they’re turning to their bills and other utility communication for help in managing their energy spending,” said Suzanne Haggerty, director of syndicated research with the Energy team at Escalent. “While utilities have increased their communication spend after decreasing it in 2022, Trusted Brands are still reaching out to customers more frequently and across more channels.”

Escalent is pleased to name these 42 utilities as our 2023 Most Trusted Brands.

* Utilities named as Most Trusted Brands were selected based on having Brand Trust Index scores in the top decile of the industry, the top score within their respective benchmark segment, or a Brand Trust Index score within 20 points of the top benchmark segment score and above the industry average.

The following tables reflect regional peer benchmark Brand Trust scores among the 141 utilities surveyed. These scores reflect the amount of trust customers have with their respective utility.

About Utility Trusted Brand & Customer Engagement™: Residential

Escalent conducted surveys among 72,581 residential electric, natural gas and combination utility customers of the 141 largest US utility companies (based on residential customer counts). The sample design uses a combination of quotas and weighting based on US census data to ensure a demographically balanced sample of each evaluated utility’s customers based on age, gender, income, race and ethnicity. Utilities within the same region and of the same type (e.g., electric-only providers) are given equal weight to balance the influence of each utility’s customers on survey results. The Brand Trust Index score is a composite based upon consumer ratings across six factors. Escalent will supply the exact wording of any survey question upon request.

For more information on the full report, click here.

About Escalent

Escalent is an award-winning data analytics and advisory firm that helps clients understand human and market behaviors to navigate disruption and business transformation. As catalysts of progress for more than 40 years, our strategies guide the world’s leading brands. We accelerate growth by creating a seamless flow between primary, secondary, syndicated, and internal business data, providing consulting and advisory services from insights through implementation. Based on a profound understanding of what drives human beings and markets, we identify actions that build brands, enhance customer experiences, inspire product innovation and boost business productivity. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.