When people think about top-tier customer experiences, utility companies probably aren’t the first that come to mind. But maybe they should be. After all, they’re the most essential. Unfortunately, customer satisfaction in the utility industry has been on the decline for years.
According to J.D. Power, overall customer satisfaction has declined for the fourth year in a row, with the biggest dips in billing and payment and customer care. For service providers, this means that engagement strategies need to improve — fast.
Mark Spalinger, director of utility intelligence at J.D. Power, emphasizes the importance of proactive communication and showing “customers that their money goes beyond paying for only usage…these communication topics tend to generate increased customer satisfaction.”
The challenge? Every company wants to engage with its customers and traditional communication methods aren’t cutting it anymore. In a world where everyone is competing for attention, how do you get people to actually listen?
Marketer Seth Godin once said that to make an impact on consumer behavior, you have to be “remarkable.” While it sounds like a lofty goal, all it really means is to be “worth making a remark about.”
And that’s the key to real engagement. If you want customers to pay attention, stay loyal and even spread the word about your brand, you have to be remarkable. That means thinking outside the box as you fulfill customer needs.
So what do customers really want? And why is engagement more critical than ever? Let’s take a closer look at the current landscape and what it takes to truly connect with today’s utility customers.
The Digital Shift: Meeting Customers Where They Are
Customer expectations are evolving, and the utility industry is no exception. Your customers don’t just want reliable service — they’re looking for seamless, digital-first experiences. From billing to outage updates, they expect companies to use communication channels that fit their lifestyles, whether that’s email, text messaging or social media.
Mobile apps, in particular, are rising in use. A 2023 report found that more than half (56%) of utility customers use their provider’s app, up from 38% in 2022. And yet, the number of large utilities offering consumer mobile apps went down, from 73% to 70%. This trend signals an opportunity for innovative companies to step up their game and satisfy customer demands.
Embracing digital engagement means leveraging an omnichannel approach that uses every available touchpoint to build trust. Whether it’s sending out proactive outage alerts or sharing engaging videos that explain energy-saving tips, each interaction is a chance to transform routine communications into remarkable experiences.
Not sure where to start? Let’s take a look at a few actionable tactics that can improve customer engagement and help your brand stand out.
1. Help Them Save With Personalized Energy Insights
One of the most powerful ways to engage your customers is by showing you care about them — and their wallets. A great example of this is National Grid’s Personalized Video campaign sent in the winter.
The videos acknowledged the rise in heating costs during the cold season and provided specific data: the number of therms the customer used for heating last year compared to their neighbors. More importantly, though, National Grid shared actionable tips on how to optimize energy usage, save money and even introduced its energy efficiency program.
What stood out about this was that it wasn’t a generic message — it was personalized, showing that the company really pays attention to each customer’s specific situation. Plus, by highlighting ways to improve energy efficiency, the company showed that it genuinely cared about reducing customers’ costs rather than simply increasing revenue.
The takeaway? Taking a proactive approach to educating customers about energy resources and providing personalized, actionable insights can build trust and customer loyalty, turning passive clients into engaged energy customers.
2. Build Trust With Bill Explainers
No one likes bill shock. It’s one of the fastest ways to lose trust, trigger confusion and drive customers away. That’s why proactive communication is essential, especially when it comes to complex charges or changes.
Take SDG&E’s approach. They sent tailored bill explainers to their customers, breaking down their electricity bills with clear explanations of time-of-use pricing and charges. Easy-to-read charts made the information digestible while personalized numbers made the message relevant for that particular viewer.
This approach not only promotes customer understanding but also shows that SDG&E values transparency. Customers want to know exactly what they’re being charged for and why. By taking the time to explain the pricing structure upfront, energy providers can reduce frustration and build trust.
In a similar vein, you could also develop explainer videos as a self-service resource. Customers can revisit the content whenever they have simple questions, freeing up your team to handle more complex issues. You could even make them interactive, with branching, chapter markers and more, so that viewers can quickly jump to the content they’re most interested in.
Here’s an example of what that might look like. This video was created to address mortgage mortgage forbearance concerns, but you can easily adapt the same structure to answer frequently asked utility questions.
Ultimately, by actively addressing concerns and offering easy-to-understand resources, you can increase customer retention and loyalty while also minimizing churn.
3. Reinforce Your Value With a Year in Review
For better or for worse, utilities is an industry where customers only really think of you when paying their bill or when something goes wrong. That means utility companies have to work harder to remind customers of their value. A year in review can help.
National Grid, for instance, crafted a campaign that presented a big-picture look at the customer’s journey with the brand while also reminding them of the larger role that the company plays in the community.
In this report, customers got a breakdown of their energy usage compared to the previous year, as well as an invitation to take a survey for even more personalized tips to improve their energy scorecard.
National Grid then zoomed out, highlighting how the company made a difference on a bigger scale by installing 714 new EV charging stations, adding 1.7 gigawatts of residential solar power, improving its storm response and even using satellite technology to prevent potential outages.
By sharing achievements, the energy industry can turn a routine review into an opportunity to strengthen customer relationships. It’s a powerful way to show that customer payments are going to more than just usage — that it’s fueling innovation, sustainability and reliability.
AI-Powered Video: Streamlining Production
Personalized Interactive Video has proven to be a game-changer for utilities. We’ve seen utility companies use video to achieve results like 3x engagement, 47% conversions and a boost of 30 NPS points. When video goes beyond its traditional boundaries, when it’s personalized and interactive, it delivers a memorable digital CX that leads to real results.
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Creating these videos at scale used to be a huge undertaking, requiring significant time and resources. But today, artificial intelligence and automation have leveled the playing field. It’s now easier and faster than ever to create dynamic, data-driven videos.
Take our own Lucas AI Video Creator as an example. Designed for enterprises, he streamlines the entire process, handling everything from scriptwriting to voiceovers to interactive CTAs. The best part? You can train him on your content, ensuring your videos are always on-brand and accurate.
Amp Up Your Engagement
Meaningful, standout customer interactions are more crucial than ever, and video has proven to be a powerful tool to achieve them. With Idomoo, your company can create millions of Personalized Videos in real time and build stronger relationships with your customers.
Ready to see the difference our Next Generation Video Platform can make? Get started with a free demo and explore how we can transform your customer engagement strategy.
