Case Studies...

PowerGen

PowerGen (now Eon) - Customer retention in a newly open energy market

PowerGen had a long, long track record of supplying electricity and when new entrants came into the market, they wanted to understand how to retain customers. The new entrants were trying to compete on price and so PowerGen joined in that game believing that their customers valued price above all else.

We discovered...

That price was third on their customers' priority list. What the customers valued most was reliability of supply and service. The new entrants into the electricity supply market did not have a track record for comparison.

PowerGen learned that what seemed to be a given for them - reliability of supply - was not a given for their customers and it was the biggest lever they could pull to keep customers loyal and to attract new ones. What greater leverage is there than your decades of reliable supply versus new entrants with no track record at all? When you have that, why compete on price?