Customer Switching in Australian Electricity


December 17, 2008
27 Pages - SKU: DFMN2069269
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Table of Contents Search inside this report Related Reports
DATAMONITOR VIEW
CATALYST
SUMMARY
METHODOLOGY
CUSTOMER SWITCHING IN RESIDENTIAL ELECTRICITY
Australia's customer switching rate continues grow
Despite high switching rates in Victoria and South Australia, less than half of Australians in competitive states have switched supplier
One-third of switchers will consider switching again in the next 12 months
Emergence of new entrants is providing customers with more choice
Driving the switching decision
Switching supplier remains a key method of reducing energy costs, behind energy efficiency
Door-to-door salespeople still have the greatest impact in driving the switching decision
Consumers are more reactive than proactive, with consumers rarely approaching more than two potential suppliers
Price comparison websites are becoming a much more useful source of information to switchers
Impact of inertia and customer satisfaction on switching
Non-switchers remain with their current supplier as generally happy and yet to look into switching
Switchers' expectations are also being met by their new suppliers
Summary
APPENDIX
Definitions
Sources
Further reading
Ask the analyst
List of Tables
Table 1: How many times have you switched supplier?
Table 2: Nearly two-thirds of customers in South Australia have switched and over 50% in Victoria
Table 3: Customers are more willing to reconsider switching within a shorter time span
Table 4: Market share by type of supplier in Australian competitive electricity markets
Table 5: Australians are highly likely to consider offers from new entrants
Table 6: New entrants are making headway into the market through competitive offers and getting to customers first
Table 7: Some 16% of respondents had switched supplier in last 12 months as a means of reducing energy costs
Table 8: What triggered your most recent decision to switch your electricity supplier?
Table 9: Twice as many customers have been approached by suppliers than have themselves proactively approached a supplier
Table 10: Switchers have clearly been both better targeted and more active in seeking a new supplier
Table 11: Price comparison websites were useful to 21% of switchers
Table 12: Happiness with current supplier and lack of proactivity declining as reasons for not switching
Table 13: Less than half of Australians would be moderately or very likely to switch for a 10% saving
Table 14: Comparing reasons for not switching with likelihood of switching for a 10% saving
Table 15: Customers expectations are being met or exceeded by their new suppliers
Table 16: Lower prices and loyalty bonuses are the most attractive propositions to retain customers
List of Figures
Figure 1: Customer switching by state, January 2003 - October 2008
Figure 2: Over half of Australians in competitive states have not switched supplier
Figure 3: Nearly two-thirds of customers in South Australia have switched and over 50% in Victoria
Figure 4: More customers are expecting to consider switching again within a year
Figure 5: Market share by type of supplier in Australian competitive electricity markets
Figure 6: Australians are highly likely to consider offers from new entrants
Figure 7: New entrants are making headway into the market through competitive offers and getting to customers first
Figure 8: Some 16% of respondents had switched supplier in last 12 months as a means of reducing energy costs
Figure 9: Door to door sales continues to be the most successful tool in attracting switchers
Figure 10: Twice as many customers have been approached by suppliers than have themselves proactively approached a supplier
Figure 11: Price comparison websites were useful to 21% of switchers
Figure 12: Moneysupermarket's price comparison site for the UK illustrates the potential for price comparison and switching sites
Figure 13: Happiness with current supplier and lack of proactivity declining as reasons for not switching
Figure 14: Less than half of Australians would be moderately or very likely to switch for a 10% saving
Figure 15: Customers expectations are being met or exceeded by their new suppliers
Figure 16: Lower prices and loyalty bonuses are the most attractive propositions to retain customers
 
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