Using customer insights to drive loyalty, efficiency, and growth in Utilities

In a sector facing regulatory shifts and rising customer expectations, utility providers are under increasing pressure to evolve. Yet, this environment also presents a unique opportunity - the chance to stand out through customer experience (CX).

Many utility companies operate on similar platforms and systems, creating a uniform service landscape. As operational capabilities become less of a differentiator, customer experience (CX) has emerged as a battleground for competitive advantage.

While most organisations are already investing heavily in customer listening efforts, the leaders are those who are transforming feedback into strategic action. They’re building services that not only satisfy customers but also drive loyalty, reduce cost-to-serve, and sharpen competitive advantage.

Even the most customer focused companies can unlock greater value by looking at feedback in a more structured, action-oriented way.

Latest UKCSI shows customer experience is a differentiator 

Customer expectations are shifting rapidly. Today’s customers want digital convenience whilst still retaining the ability to speak to someone when needed. Transparent billing is also a growing priority, especially in light of Ofgem’s proposals to shorten back-billing timeframes, which put billing accuracy and clarity under new pressure. As highlighted in our recent article, getting this right is now both a regulatory and reputational imperative. 

Against this backdrop, CX has become a critical lever for growth. Recent research, including findings from the latest UK Customer Satisfaction Index (UKCSI), shows that utilities continue to lag behind other sectors in CX performance, highlighting a clear opportunity for providers who get it right. Public platforms like Trustpilot are also becoming increasingly influential, offering real-time visibility into customer sentiment and shaping brand perception in a highly competitive market.

Customer feedback holds the key to:

• Accelerating customer-aligned service innovation
• Enhancing retention in a market where churn is rising
• Driving operational efficiencies by resolving common pain points
• Building brand trust and resilience in a competitive environment

The challenge is no longer gathering feedback - it’s harnessing it in a way that drives meaningful outcomes.

Three Principles for Turning Feedback into Strategic Advantage

1) Go Beyond Scores to Surface Meaningful Insights

While metrics like NPS and CSAT offer useful benchmarks, they only tell part of the story. Leading providers are now pairing quantitative data with qualitative insights, from call centre transcripts to social media sentiment analysis; to create a richer, more actionable view of customer needs.

Reflection:

• Are you simply tracking satisfaction scores, or truly understanding the underlying stories shaping customer relationships?

For example, AI-driven analysis tools can highlight recurring friction points in billing or digital onboarding journeys, and critical opportunities for improvement that may be invisible in top-line scores alone. You can read more about the role of upstream AI and customer experience transformation in our recent article here.

2) Build a Dynamic Feedback Loop, Not a Static Survey Programme

Closing the loop with customers isn’t solely about sending a thank-you email or making ad-hoc improvements. True impact comes when feedback drives continuous operational, product, and communication strategy evolution.

Reflection:

• How systematically are you embedding customer feedback into your ongoing service design and operational decision-making?
• Are there formal governance structures and meetings that harness customer feedback insight as inputs, enabling fundamental business action off the back of it?
• Who is responsible for creating and sharing this insight, and have you got the right skillset to generate it?

3) Actively Communicate Progress and Build Customer Trust

Customers want to know their voices are heard and more importantly, that their input leads to real change. Proactive communication strategies that showcase how feedback has shaped new services can be powerful loyalty drivers.

Some of the highest-performing providers in the latest UKCSI rankings actively communicate “You Said, We Did” initiatives, turning customer feedback into brand storytelling and differentiating themselves in a crowded market.

The Payoff: Embedding Insight for Long-Term Success

Organisations that consistently translate customer insights into action unlock a range of strategic benefits:

• Higher customer satisfaction and loyalty, reducing churn
• Lower cost-to-serve through proactive resolution of common issues
• Stronger brand differentiation in an increasingly commoditised marketplace
• Faster innovation cycles driven by direct customer input

At BFY Group, we help energy suppliers build these capabilities, combining operational expertise, advanced analytics, and CX strategy to turn customer feedback into a true engine for growth.

For a more detailed insight into improving CX as a true differentiator, read our full white paper here. We share practical approaches to help you better understand customer demand, optimise customer journeys, and make the most of AI and automation – leading to multi-million-pound savings for our clients.

To discuss opportunities for leveraging customer insight in your organisation, and how this can help you differentiate from competitors, contact Jonathan Paton.