Customers' trust levels with their local utilities directly impact the extent to which customers want regulator intervention, according to a new study released by Market Strategies International. Specifically, customers in states where utilities receive relatively low trust ratings are significantly more likely to say they want greater regulator intervention, than are customers in states where brand trust is high. This finding is based on research conducted for the Cogent™ Energy Reports Utility Trusted Brand & Engagement™: Residential study by Market Strategies International.
Only 12 states in the contiguous US score in the top quartile for Brand Trust. Meanwhile, 11 states receive scores from their utility customers that place them in the bottom quartile for Brand Trust. The remaining states¨Ca majority¨Creceive lukewarm ratings from their utility customers, putting those states in the 2nd and 3rd quartiles. (See attached Brand Trust heat map by state).
This information highlights the importance of regulator activities on behalf of consumers and measures whether those activities are directing utilities down the right path. Regulators and public utility commissions that want utilities to further their mandates for the public good need to provide utilities with the resources and management latitude to build and measure trusted advisor positions with their customers. This is particularly true in states with utilities that have low levels of trust.
Cogent Energy Reports also finds that Brand Trust is essential to building consumer demand for utility offerings outside of standard service, basic rates and paper bills. More importantly, customers who trust their utilities are more likely to adopt alternative rates, environmental standards, consumption management, distributed generation, smart technology and other enhanced service programs.
¡°Consumers with high levels of Brand Trust with their utility are twice as likely to use the utility's consumption management and enhanced services support offerings,¡± says Chris Oberle, senior vice president of the energy division at Market Strategies International. ¡°The financial and social impacts of actively managing trust are apparent. States that recognize this will ultimately be more successful in addressing the market needs of this dynamic and evolving industry.¡±
