Customer switching behaviours & intentions in the Australian electricity market Report

http://www.chinaccm.com 2006-8-10 16:40

Title: Customer switching behaviours & intentions in the Australian electricity market
Publication Date: Feb. 2006
Format: PDF
Price: Original: US$2795  Current: US$2236

Overview

Introduction

This brief examines residential consumers' attitudes, behaviours and likely actions regarding switching power supplier for the coming 12-36 months, based upon a survey of households in selected States. In doing so it illustrates relative price sensitivity, openness regarding retailer approaches and general opportunities for customer acquisition in each of three key competitive States.

Scope

Based on a survey of over 1,500 residential customers in NSW, Victoria and South Australia.
The survey investigate switching drivers and barriers, price savings required to switch and intentions for considering switching in the future.
Analysis of the customer acquisition potential across the three States analysed and according to size of electricity bill.

Report Highlights

Door-to-door was, as to be expected, the most effective in winning new customers. Telemarketing, however, was only marginally more effect at encouraging switching than direct mail, and also managed to turn 18% of the sample off the idea of switching after the approach.
South Australians were keenest to switch in the future - 23% saying they would consider switching in the next 6 months, with the higher the bill being paid, the higher the likelihood of a customer to consider switching.
Almost half of the sample would switch for a 10% saving, but 35% felt it would take a discount of 20% or more to entice them to move provider.

Reasons to Purchase

Assess switching potential across State and by annual electricity spend.
Understand the relative magnitudes of the key barriers and drivers for switching, and the savings necessary to prompt consumers to switch.
Pinpoint the customer segments with the key switching potential

CHAPTER 1 EXECUTIVE SUMMARY 3

Introduction 3
Switching trends in the Australian electricity market 3
Customer attitudes and switching behaviour 4

CHAPTER 2 INTRODUCTION 12

What is this report about? 12

CHAPTER 3 SWITCHING TRENDS IN THE AUSTRALIAN ELECTRICITY MARKET 13

Introduction 13
Key findings 13
Customer switching to date in Australia's power market 14

CHAPTER 4 CUSTOMER ATTITUDES AND SWITCHING BEHAVIOURS 17

Introduction 17
Key findings 17
Type of approach and customer reaction 19

Switching drivers 24
Reasons for not switching 26

Switching intentions 30
Attitudes to price 32

CHAPTER 5 CONCLUSIONS 36

Introduction 36
Key findings 36

CHAPTER 6 APPENDIX 38

Research methodology 38

Secondary research 38
Primary research - Household survey 38

Sources and relevant links 39

Government and Regulatory bodies 39
National Energy Market bodies 39
Australian Retailers 39

Further readings 40
Report writing team 40
How to contact experts in your industry 40

List of Tables

Table 1:   Have you been approached regarding switching supplier? By State 19
Table 2:   Have you been approached regarding switching supplier? By spend 20
Table 3:   If approached, how did this take place? By State 20
Table 4:   If approached, how did this take place? By spend 21
Table 5:   What was the outcome of the most recent approach? By State 21
Table 6:   What was the outcome from the most recent approach? By spend 22
Table 7:   Switching outcomes by approach 23
Table 8:   If you have switched your electricity supplier, what was the main reason for switching? 24
Table 9:   If you have switched your electricity supplier, what was the main reason for switching? By spend 25
Table 10: If you have not switched, what was the main reason why not? By State 27
Table 11: If you have not switched, what was the main reason why not? By spend 27
Table 12: Switching electricity / gas supplier is more trouble than it is worth - By State 28
Table 13: Switching electricity / gas supplier is more trouble than it is worth - By spend 28
Table 14: Switching electricity / gas supplier is more trouble than it is worth - By switching history 29
Table 15: I am confused by the different offers available from suppliers - By State 30
Table 16: I am confused by the different offers available from suppliers - By spend 30
Table 17: When will you next consider switching supplier? By State 31
Table 18: When will you next consider switching supplier? By spend 32
Table 19: What is the likelihood that you would switch for a 10% saving - By State 32
Table 20: What is the likelihood that you would switch for a 10% saving - By spend 33
Table 21: What is the lowest price saving you would require to switch supplier? By State 35
Table 22: What is the lowest price saving you would require to switch supplier? By spend 35
Table 23: Distribution of respondents by State and Territory 38

List of Figures

Figure 1: Switching rates in the Victorian, NSW and South Australian power markets - small consumers 4
Figure 2: Switching outcomes by approach 5
Figure 3: What is the lowest price saving you would require to switch supplier? By State 6
Figure 4: Switching rates in the Victorian, NSW and South Australian power markets - small consumers 16
Figure 5: Switching outcomes by approach 23
Figure 6: If you have not switched, what was the main reason why not? 26
Figure 7: When will you next consider switching supplier? By State 31
Figure 8: What is the lowest price saving you would require to switch supplier? By State 34
Figure 9: Comparison of States according to potential for future customer switching 37