Utilities Struggle to Build Consumer Trust and Brands Amid Rising Rates

Utility customers are concerned about affordability as rates continue to rise. Electric and gas utilities struggle to build their reputations and brands, with perceptions of affordability, energy-innovation leadership, and community stewardship lacking. Brand appeal is critical for influencing customer behaviors, and utilities need to establish core value propositions to create a stronger brand impression. Customer communication efforts are failing to connect with customers, and overall brand appeal scores decline in both electric and gas utility studies.

Utility companies face significant challenges in building their reputations and brands, particularly as affordability concerns escalate and energy rates continue to rise. According to recent studies, perceptions of affordability, energy-innovation leadership, and community stewardship are lacking, leading to declining brand appeal scores for both electric and gas utilities. To address these issues, utilities must focus on establishing core value propositions and enhancing customer communication efforts.

Affordability Concerns and Rising Rates

The primary concern for utility customers is affordability. As energy rates increase, the financial burden on households and businesses grows, making affordability a critical issue. Utility companies need to address these concerns proactively to maintain customer trust and satisfaction. Effective communication strategies can help utilities convey their efforts to manage costs and promote affordability.

Lack of Brand Appeal

Brand appeal is crucial for influencing customer behaviors and perceptions. However, studies indicate that utility companies are struggling to create a strong brand impression. Factors such as affordability, energy-innovation leadership, and community stewardship play a significant role in shaping brand appeal. Utilities must develop core value propositions that resonate with customers and differentiate their offerings in the competitive market.

Improving Customer Communication

Customer communication efforts have been failing to connect with customers effectively. Traditional communication methods, such as SMS, often fall short in engaging customers and conveying the utility's value propositions. Innovative approaches, such as Rich Communication Services (RCS) messaging, can transform standard notifications into trusted, branded conversations [2]. By adopting such technologies, utilities can enhance customer engagement and build stronger relationships.

Case Study: Fresha and RCS Messaging

Fresha, a leading booking platform for the beauty and wellness industry, adopted RCS messaging to improve customer engagement and drive business growth. By upgrading from traditional SMS to RCS, Fresha experienced a 41.3% increase in read rates on appointment messages and a 7.1% increase in customer reviews [2]. This success highlights the potential of RCS messaging in enhancing customer communication and building brand trust.

Conclusion

Utility companies must prioritize addressing affordability concerns and enhancing brand appeal to build stronger relationships with customers. By adopting innovative communication strategies, such as RCS messaging, and developing core value propositions, utilities can improve customer engagement and perception. As the energy market continues to evolve, utilities that focus on these areas will be better positioned to navigate the challenges and maintain their competitiveness.

References

[1] https://90seconds.com/blog/11-inspiring-earth-day-content-ideas-for-your-brand-in-2025/
[2] https://www.marketscreener.com/news/fresha-enhances-customer-engagement-with-rcs-for-business-powered-by-twilio-and-google-ce7c5cdcde8bf42d