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.

• 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.


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