Turning on utility customer loyalty
Jochem Moerkerken, Kim Petrick, Andreas Dullweber and Barney Hamilton
Bain & Company
Customer loyalty has never been more important for utilities, since liberalization in European markets makes it easy for consumers to switch providers. Bain’s study on customer loyalty reveals the most common reasons for staying or leaving.
Only a few years ago, utilities didn’t worry much about customer loyalty because their customers had little or no choice in their power supplier. Liberalization has changed all that. Now that consumers can switch from one utility company to another in many European countries, executives in the industry pay more attention to customer loyalty.