Report: Five Texas REPs Post Net Promoter Scores Of At Least Twice The Market Average; Average Drops
"Despite a two-point drop in the average net promoter score (NPS) of Texas retail electric providers (REP), five REP standouts post NPS of at least twice the market average," a Cogent Reports survey said
"A Cogent Reports survey of Texas customers shows the annual market NPS lowered from 19.6 in 2017 to 17.6 in 2018. As NPS is based upon customer likelihood to recommend a company to others, many believe high NPS is an indication of high customer satisfaction among competitive retailers. American Light & Power, NEC Retail, Constellation, TriEagle Energy and Bounce Energy achieve NPS ranging from 36.3 to 60.0," the survey said
The results are from the 2018 Texas REP Trusted Brand report, a Cogent Reports study by Market Strategies International-Morpace.
The study interviews customers quarterly and collects over 5,500 Texas electricity consumer responses annually to measure REP performance across a number of customer engagement metrics that impact customer acquisition and retention. Metrics measured include billing and service quality, community support, environmental dedication, competitive rates, product value, net promoter scores, customer effort, loyalty and brand trust.
"Texas REP Trusted Brand measures a wide range of net promoter scoring among Texas retail electric providers. American Light & Power scores at the top with 61.0, while the lowest REP scores -6.8. In a mature market like Texas with stiff competition for customers, this difference means there will be market winners and losers among REPs," Market Strategies International-Morpace.
The study also shows that one in three Texans has only been with his or her REP for fewer than two years, which indicates an active shopping market that presents both an opportunity and a threat for REP players based upon their brand trust levels with customers, Market Strategies International-Morpace said
"These net promoter scores indicate there is a real difference in customer satisfaction among Texas REPs," said Chris Oberle, senior vice president at Market Strategies International-Morpace. "Some REPs are better at meaningfully positioning their brands and serving customers than others and they are the ones best positioned to grow their customer bases. Our study provides real data into what customers are looking for and what REPs can do to optimize their customer attraction and loyalty."
Overall, customers are more likely to recommend small and medium-sized REPs than large ones. The highest-scoring large provider on NPS is Constellation, Market Strategies International-Morpace said
NPS from 2018 Texas REP Trusted Brand report:
Texas Retail Electric Providers
2018 Net Promoter Scores
American Light & Power
Green Mountain Energy
Champion Energy Services
First Choice Power
TEXAS MARKET AVERAGE
CPL Retail Energy
Boldface REPs post scores of at least twice the market average.
Texas retail electric providers with 30 or more customer responses are shown.
Cogent Reports measures Customer Engagement and Brand Trust among Texas retail electric provider customers by surveying 5,570 customers across 43 providers based upon data-driven models. The study measures key performance indicators (KPIs) to provide management perspectives on how to improve REP brand positioning, sales and promotion, customer trust, effective messaging, product sales, customer experiences, service quality, customer acquisition and loyalty. The Brand Trust model comprises nine factors: community support, customer focus, communications effectiveness, environmental dedication, local reputation, reliable quality, competitive rates, enhanced offerings, and billing and customer service. The study collects a demographically representative sample across all Texas service territories open for retail electric competition. Market Strategies-Morpace will supply the exact wording of any survey question upon request.