Electric and Gas Utilities with Strongest Brands Face Less Resistance to Rate Increases, Greater Customer Adoption of Enhanced Programs and Higher Customer Satisfaction Rankings

Amid widespread disruption affecting all aspects of the utility marketplace—from rising system costs to environmental and energy efficiency goals to referendums on natural gas—the nation’s electric and gas utilities are quickly recognizing that branding is a critical component of successful customer-facing strategies. According to the inaugural J.D. Power Utility Brand Appeal Index (BAI) Study,^SM released today, utilities with the most favorable brand perceptions among customers enjoy significantly higher levels of overall customer satisfaction. Strong brands also help smooth the path to rate case acceptance and improved customer support for important initiatives and special offerings and programs.

“Brand appeal is the ability to engage customers to use and promote a utility company, its service quality, initiatives and offerings,” said Chris Oberle, managing director of utilities intelligence at J.D. Power. “For utilities, that’s much more than just reliable gas or electric delivery—it’s the whole experience from service interactions to engagement with the community and enhanced programs. When utilities get their brand formulas right, everything else falls into place. They face less resistance to rate increases; customers are more aware and willing to participate in special programs; and their community initiatives are infused with a sense of goodwill and trust.”

Following are some of the key findings of the 2023 study:

• Brand appeal associated with significant gains in customer satisfaction: Utilities with the highest brand appeal scores have average overall satisfaction scores that are more than 300 points (on a 1,000-point scale) higher than those with weak brand appeal scores. The utilities with the strongest scores rank in the top quartile in customer satisfaction and enjoy greater loyalty and advocacy. These brands also outperform on customer trust, marketing execution and company reputation metrics.

• Gas utilities have stronger brands than electric utilities: On average, gas utilities have an overall brand appeal score of 712, which is 15 points higher than for electric utilities (697). More than half (51%) of gas utility customers have a fuel preference for natural gas in their homes, with 78% relying on natural gas for heat and 58% using it to cook.

• Outreach and communications more effective with higher brand appeal: Among electric and gas utilities with strong brand appeal scores, community outreach and communications programs are more effective, and customers are more likely to adopt their products, options and services.

The Utility Brand Appeal Index (BAI) Study analyzes how well U.S. utilities relate to their customers, evaluating the specific actions that influence overall brand experience, including scores for company reputation, marketing execution and customer trust among 149 electric utilities and 85 gas utilities. The index applies to all U.S. electric and natural gas utilities profiled in the J.D. Power Electric Utility Residential Customer Satisfaction Study^SM and the Gas Utility Residential Customer Satisfaction Study.^SM This year’s Utility Brand Appeal Index (BAI) Study captured the responses of nearly 80,000 utility customers and was fielded from September 2022 through May 2023.

For more information about the Utility Brand Appeal Index (BAI) Study, visit https://www.jdpower.com/business/utility-brand-appeal-index.

See the online press release at http://www.jdpower.com/pr-id/2023110.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

View source version on businesswire.com: https://www.businesswire.com/news/home/20230830224975/en/