Our Chief Executive, Peter Perry, reflects on our Customer Immersion Day
4 July 2022
Last week, our Board, members of our executive team, and some representatives from our Customer Challenge Group (CCG – our independent group that scrutinises the way we engage with customers) spent the day discussing some of these challenges we face with a group of our customers.
The customers spoke frankly, honestly and really helped share how our operations impact their lives and where they thought there was room for us to improve and what we should be prioritising.
Understanding what customers really want and prioritise is vitally important if we are to meet their expectations – but speaking to them directly is invaluable, because it is often the emotion of the personal circumstances and challenges that they face, that is often forgotten when we make business decisions.
I’m not sure who found the session more daunting – the customers or our senior team and Board. Meeting a bunch of “Managers and Directors” may not be what many consider to be “fun”, but meeting a group of customers you’ve not met before that have been encouraged to be frank and candid does raise the anxiety levels somewhat as you’re stepping into the unknown and could be challenged on anything. But such challenge is good, positive and should always be welcomed… even if it’s uncomfortable at the time.
The group of customers we met were very engaged and some very well considered and reasonable points were made. There were many points that really resonated with me, all of which reflect the complexities of some of the questions we’ll need to answer as we draft our next business plan for 2025-30.
Firstly, in terms of the core services we provide, customers told us that they expect a good service, but not one that is gold plated. They want us to deliver clean drinking water and dispose of it safely; that those who have repeat problems should have investment targeted to fix their problem (especially if homes are flooded with sewerage). But they do not want us to chase ever improving targets if the level of service is already high and the cost of doing it outweighs the benefit or detracts investment from other areas of our operation that need more focus.
Secondly, many topics polarise views – not in terms of debate or staunch opposition, but in terms of prioritisation. This small group of customers told us that their priorities were to receive a good service from us, to protect their homes, and then their wider community and environment (including rivers). But within the group a small number placed the environment at the top of their priority list.
Similarly, with customer bills, most customers were happy to see bills increase to invest in improvements to reduce the impact on the environment, and not to increase costs unnecessarily for future generations. However, a smaller group explained that their personal finances were already very tight – some had doubled the shifts they worked, started growing their own food, and visiting food banks. It was humbling to hear their stories. So whilst many would be willing to see their bills increase, for some it would be a step too far. The challenge for us is to find a way of supporting them as much as possible to keep their bills affordable with additional financial support.
Thirdly, the march of digitisation is not a positive development for all. Again, views were polarised, but customers don’t expect us to provide an “Amazon-like” service – they want us to keep up with utilities, but also maintain a human touch for those who want and need it. I’m certain that there are many lessons to be learned from smart metering in the energy sector, but you need to look at the impact from many different angles. For one customer, smart meters will give control and reassurance about energy usage, but for others who may have far more difficult financial circumstance, the very presence of a smart meter could be a constant anxiety-inducing reminder of their problems and is therefore hidden away – “I’d prefer not to see it” as one customer told us. For us, that could mean that introducing smart water meters will be of great interest and benefit to some customers, but for others, the support they need is not a digital box, but some guidance and help from a human being. We’ll need to find a way of supporting both and how to identify who needs what.
Finally, there was some really interesting discussion about where the role of the company and responsibility of the customer start and stop: how far should we go to fix customers’ problems when it’s on their property (e.g. lead pipe replacement) or their responsibility (e.g. in-property leakage)? Should we educate customers more to play their part rather than fixing the problem for them and using much needed investment that may have wider benefit elsewhere?
What was clear was that the customers felt that there was a greater role that they could play in helping achieve our common objectives – but that they need support and to be educated on what needs to be done. The challenge for us is to find a balance between working with customers to educate and change behaviours (which takes time) and delivering other interventions that have a higher level of certainty to meet the regulatory demands required of us. One thing is for certain, the challenges we face as a society and as a company over the coming years are significant – but by working together, talking and listening, we have a better chance of tackling them!