Cogent Reports: Five Texas Retail Electric Providers Post Net Promoter Scores of at Least Twice the Market Average
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb 18, 2019--Despite a two-point drop in the average net promoter score (NPS) of Texas retail electric providers (REP), five REP standouts post NPS of at least twice the market average. A Cogent Reports survey of Texas customers shows the annual market NPS lowered from 19.6 in 2017 to 17.6 in 2018. As NPS is based upon customer likelihood to recommend a company to others, many believe high NPS is an indication of high customer satisfaction among competitive retailers. American Light & Power, NEC Retail, Constellation, TriEagle Energy and Bounce Energy achieve NPS ranging from 36.3 to 60.0. These results are from the 2018 Texas REP Trusted Brand™ report, a Cogent Reports™ study by Market Strategies International-Morpace.
The study interviews customers quarterly and collects over 5,500 Texas electricity consumer responses annually to measure REP performance across a number of customer engagement metrics that impact customer acquisition and retention. Metrics measured include billing and service quality, community support, environmental dedication, competitive rates, product value, net promoter scores, customer effort, loyalty and brand trust.
Texas REP Trusted Brand measures a wide range of net promoter scoring among Texas retail electric providers. American Light & Power scores at the top with 61.0, while the lowest REP scores -6.8. In a mature market like Texas with stiff competition for customers, this difference means there will be market winners and losers among REPs.
The study also shows that one in three Texans has only been with his or her REP for fewer than two years, which indicates an active shopping market that presents both an opportunity and a threat for REP players based upon their brand trust levels with customers.
“These net promoter scores indicate there is a real difference in customer satisfaction among Texas REPs,” said Chris Oberle, senior vice president at Market Strategies International-Morpace. “Some REPs are better at meaningfully positioning their brands and serving customers than others and they are the ones best positioned to grow their customer bases. Our study provides real data into what customers are looking for and what REPs can do to optimize their customer attraction and loyalty.”
Overall, customers are more likely to recommend small and medium-sized REPs than large ones. The highest-scoring large provider on NPS is Constellation.
About Texas REP Trusted Brand™
Cogent Reports measures Customer Engagement and Brand Trust among Texas retail electric provider customers by surveying 5,570 customers across 43 providers based upon data-driven models. The study measures key performance indicators (KPIs) to provide management perspectives on how to improve REP brand positioning, sales and promotion, customer trust, effective messaging, product sales, customer experiences, service quality, customer acquisition and loyalty. The Brand Trust model comprises nine factors: community support, customer focus, communications effectiveness, environmental dedication, local reputation, reliable quality, competitive rates, enhanced offerings, and billing and customer service. The study collects a demographically representative sample across all Texas service territories open for retail electric competition. Market Strategies-Morpace will supply the exact wording of any survey question upon request.
About Market Strategies International-Morpace
Leading market research firms Market Strategies International and Morpace bring clients closer to their customers through exceptional insights, which includes deep expertise in financial services, specifically among wealth, banking, payments and insurance organizations. The firms specialize in brand, customer experience, product development and segmentation research, and are known for blending primary research with data from syndicated, benchmarking and self-funded studies to help clients succeed. The syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and monitor their brand within the competitive landscape. Market Strategies and Morpace have earned the trust of many of the world’s top brands across the automotive, consumer & retail, energy, financial services, health, technology and telecommunications industries. They are combining into one firm, as part of an acquisition of both firms by STG, and will be rebranded under a new name to be announced in 2019. With more than 450 research professionals, the collective firm is now the 15th largest market research firm in the US and top 25 globally.
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CONTACT: Sarah Keller, 734.779.6847
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS TEXAS
INDUSTRY KEYWORD: ENERGY UTILITIES PROFESSIONAL SERVICES CONSULTING COMMUNICATIONS MARKETING
SOURCE: Market Strategies International-Morpace
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PUB: 02/18/2019 09:00 AM/DISC: 02/18/2019 09:01 AM