Customer Experience Digital

Utilities Struggle to Find Right Digital Self-Service Formula

Feb. 28, 2020
Utility mobile apps show promise as a digital self-service solution but a majority of utilities still do not offer a dedicated app, finds study.

According to the J.D. Power 2020 Utility Digital Experience Study, utility mobile apps show promise as a digital self-service solution, but a majority of utilities still do not offer a dedicated app.

Now in its third year, the study assesses how customers interact with their utility website and mobile app as well as with the online social, email, chat, and text functions offered by the 38 largest electric, natural gas, and water utilities in the United States.

Utility websites significantly underperform those of other service industries such as insurance, banking, and credit cards, when it comes to overall website satisfaction. Following are some of the key findings of the 2020 study:

  • Utilities among lowest-performing industries in website satisfaction: When benchmarked against other industries' self-service websites, utilities provide a significantly less satisfying experience. The average customer satisfaction score for utility websites is 839 (on a 1000-point scale). That compares with 847 for insurance industry websites, 853 for banking industry websites, and 863 for credit card websites.
  • Mobile apps show promise but utilities are slow to adopt: Utility mobile apps outperform their website counterparts in overall satisfaction by a margin of 38 points (877 versus 839), but fewer than half of utilities currently offer them. 
  • App users skew younger: Gen Y customers are the largest single cohort of utility mobile app users (46%), followed by those in Gen Z (38%) and Gen X (34%).

"Customer expectations for a seamless self-service web experience have grown rapidly, driven by digital leaders in the credit card, banking, and insurance industries, but utilities have not kept pace," said Jon Sundberg, senior digital manager at J.D. Power. "The one digital self-service channel showing some promise in the utility sector — the mobile app — is performing significantly better, but many utilities have not yet created such an app."

The 2020 Utility Digital Experience Study is based on evaluations from 9467 customers of the 38 largest electric, natural gas, and water utilities in the United States. To be included in the study, utilities must serve 1,250,000 or more customers. The study was fielded in November-December 2019.

For more information about the J.D. Power Utility Digital Experience Study, visit here.

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