Why people switch utilities provider – researching what motivates customers to switch their utility provider
Unveiling the nation's savings inertia - a deep dive into why people switch utilities provider
In a comprehensive state-of-the-nation report, the Utility Warehouse (UW) have researched the intricacies of why people opt to switch utilities and what hinders them from maximizing savings on their utility bills by switching household services.
UW’s latest research on utility switching behaviour reveals a startling reality—that 29 million Britons, constituting 60% of the population, miss out on hundreds of pounds in potential annual savings due to their switching inertia.
Many find themselves tied to providers that fail to meet their needs, often because there is a common perception that the switching process is difficult, time-consuming, and stressful, with negligible benefits between the different utility suppliers.
When is comes to switching utility providers, people trust personal recommendations
Amidst this generalised reluctance to switch utility providers, the UW report identifies the value of UW Partners in helping customers to stop wasting time and money. The findings of this report indicate that UW Partners are uniquely positioned to assist their customers to switch to a more efficient and cost-effective service provider because people have:
- Need of utility providers that do things differently (such as UW).
- Preference for real person-to-person interaction.
- Trust in personal recommendations.
UW Partners are very well positioned to help home owners to switch their utility provider
The UW state of the nation’s utility provider switching report reveals some stark statistics:
- A staggering 60% have refrained from changing energy, broadband, mobile, or insurance providers since the energy crisis two years ago, accounting for 29 million households.
- A quarter of the UK, equivalent to 12.7 million households, has remained loyal to their current utility providers for over three years.
- Fourteen percent, or 7 million households, have not switched any of their utility services in over five years.
- An additional 4%—2 million households—have never switched any of their home utility services.
The perceived difficult task of transitioning between multiple utility providers is often a significant deterrent:
- One-fifth of households perceive all providers as identical.
- One in six individuals deems switching as too intricate.
- Fifteen percent express frustration with the time-consuming nature of switching to a new provider.
- Fifteen percent finds the entire process too stressful.
- Around a third of people dedicate over 24 hours to researching providers before initiating a switch.
Amidst this switching inertia, individuals are missing out on potential savings:
- Seventy-three percent express concern about impending bill increases over the next 12 months.
- Over 20% are utilizing their savings to meet their current bills.
- Nearly one-third are contemplating budget cuts during the festive season to manage their financial commitments.
This UW clearly demonstrates how UW Partners can help:
- A consolidated bill for all home services translates into reduced overheads, better customer service, plus time and cost savings.
- Long-term value is assured, with no mid-contract price hikes.
- UW has already saved consumers over £38 million in the current year alone.
UW Partners are ideally positioned to help:
- Over half of households place trust in personal recommendations, surpassing confidence in TV consumer champions (31%) and financial advisors (31%).
- Thirty percent prefer direct communication when it comes to savings on utilities.
- Fourteen percent want capped in-contract exit fees – a hindrance that UW addresses by eliminating such fees and providing £400 to facilitate the switching process.
- UW success is clear, with 84% of individuals expressing satisfaction after making the switch.
Empowering the nation to embrace savings on their utility bills:
UW Partners are perfectly positioned to encourage their customers to take proactive steps toward saving money by switching household services. They do this through a simple process that eliminates the complexity and frustrations that are too often associated with switching providers. As such, UW Partners can prevent home owners from wasting valuable time in search of utility deals, and can do so in just 30 minutes.
Read full report: State of the nation switching report.