Communicating to Influence Your Brand
Published: December 21, 2011
Florence Connally and Rachel Cooper
Reliability. Service. Community.
These are terms that utilities strive to have associated with their brand. These are also the highest-rated brand attributes out of nine characteristics scored by utility customers, according to the recent E Source Utility Brand Value Ratings. The lowest-rated brand attributes are effective communications, price/value ratio, and customer loyalty to the utility.
But why is brand so important to utility companies, many of which operate in a noncompetitive environment? Even without competition, a strong brand value can resonate with customers and influence shareholder value, customer satisfaction, and even costs of service. Given these high stakes, it’s not surprising that utilities with a strong brand tend to have an easier time introducing new programs and services, getting approval for upgrades such as smart meters, and siting new power plants.
Building a strong brand requires a communications strategy that reinforces the brand attributes that score highly and bolsters those that lag behind. In our study, we analyzed nine different attributes for brand strength and value. The nine brand attributes, listed from highest to lowest overall average rating, are:
-
Reliability
-
Customer service
-
Community involvement
-
Customer perception of utility image
-
Environmental friendliness
-
Program offerings
-
Communication effectiveness
-
Price-to-value ratio
-
Customer loyalty to utility
One area that shows a need for improvement is a utility’s ability to communicate effectively. Taking steps to improve how messages are communicated and received by customers can help increase brand value. For example, our findings show that customers aged 55 and older report significantly higher overall brand scores than customers younger than 34 years old. This finding could indicate that the communications channels currently used, such as mailed letters and bill inserts, might not be catching the attention of younger customers. Reaching out to customers through their preferred channels may lead to higher brand scores from the younger group.
Effective communications can also help make customers aware of how a utility excels on the other brand attributes. For example, the public may not be aware of the numerous ways a utility is involved in the community or the environmentally friendly initiatives that are in place if those efforts aren’t being actively promoted. As awareness grows, so can a utility’s brand value. Communications can also improve awareness of utility program offerings, which can lead to higher brand scores and increase program participation. Our findings also show that program participants report higher brand scores than non-participants.
Because brand value is affected by a combination of performance, communications, program offerings, and emotional connections, we suggest that utilities use a multidimensional approach to influence this complex, interrelated set of drivers. Communications is one piece of the puzzle that shouldn’t be overlooked when you’re considering ways to strengthen brand value.
For more information on the 2011 E Source Utility Brand Strength Survey and how communications can help strengthen your brand, please contact us. |
|
About the Authors
Florence Connally
ASSOCIATE RESEARCH DIRECTOR
Florence Connally investigates and reports on e-business, customer service, smart grid, and payment and billing topics. She has managed the research for the utility web site review benchmark studies and has researched topics in the areas of power quality, distribution company management, metering, and energy information services. Before joining E Source, Florence worked as a journalist in Beijing, China. She has a BA in East Asian studies from Bryn Mawr College.
Rachel Cooper
SENIOR RESEARCH ASSOCIATE
Rachel Cooper develops and implements market research studies, critically analyzes data, and interprets findings to help E Source members better understand and interact with their own customer base. She has conducted scores of resident and policy surveys for local governments across the U.S., managing all aspects of the projects, including instrument design, sampling plans, data collection, pre-testing and implementation, analysis, and reporting. Rachel has also conducted many omnibus resident surveys as well as sector-specific surveys on topics such as trash and recycling, natural resources and the environment, and public works services. She earned a BA in sociology from South Dakota State University and an MA in clinical sociology from the University of Northern Colorado.
|
