Paperless Churn Study

Transcription

1 Paperless Churn Study June 2012 Research and Analytics Services Edward van Dam Manager (74536)

2 Methodology Data was collected using BC Hydro s online residential research panel, Your Power Poll. The survey was available from June 5-12, A total of 218 surveys was completed, yielding a response rate of 55%. As this is an online study, according to the Marketing Research Intelligence Association (MRIA) of Canada, a margin of error statistic cannot be computed. 2

3 Survey Objectives The objectives of this Paperless Churn study were as follows: 1. To gauge residential customer awareness of paperless billing. 2. To determine why customers may not be interested in switching to paperless billing. 3. For those who have switched back to paper billing after previously choosing paperless, determine the reasons why they have done so. 4. To identify incentives that will motivate customers to make a permanent switch to paperless billing. It should be noted that, given the online nature of the panel, survey respondents may have a predisposition to using online services more than a typical or average residential BC Hydro customer. 3

4 Key Highlights At 91%, the majority of respondents have opted to receive all or some of their household bills in an electronic format. Renters are more likely to indicate having all of their bills sent to them electronically, versus those who own their own home. By region, those from Vancouver Island are also more apt to be receiving all of their bills online compared with respondents from the Lower Mainland. It is most common that respondents will have heard about BC Hydro s paperless billing service through bchydro.com (42%) or the Connected e-newsletter (25%). Not surprisingly, Team Power Smart members are more likely than non-members to have become aware of paperless billing through the BC Hydro website. Interestingly, customers between years of age are more likely to have heard about paperless billing through the Connected e-newsletter compared with their younger counterparts - in particular, those who are years old. 4

5 Key Highlights Most of the customers who answered the survey (68%) currently receive their BC Hydro bill through the paperless billing service. This is followed by 18% who are getting hard copies in the mail, 8% who are on both paper and online billing and 5% who are receiving the bill via epost. Those who have completed a university-level undergraduate degree, those who reside on Vancouver Island and members of Team Power Smart are all customers who are more likely to be on paperless billing. Those who are most likely to have opted for receiving paper bills in the mail include customers between years old, and non-team Power Smart members. Of those who receive a paper bill, 22% indicate that they were previously subscribed to online billing, with another 12% who do not recall being on the paperless service. The top reasons for reverting back to a paper bill are experiencing problems with the BC Hydro website and having unreliable internet access (each cited at 27%). 5

6 Key Highlights When asked about what might motivate them to sign up for or return to online billing, customers were split on which contest prizes they would prefer. The top two prizes chosen were a gift card to a retail store or a discount off the BC Hydro bill (each cited by 22%). However, 31% indicate that the prize simply doesn t matter; they are just not interested to sign up for paperless billing. Open-ended comments provided for this question reflect the same sentiment. Customers who are receiving their BC Hydro bill online have most commonly been subscribed to paperless billing for two or more years (44%). This is followed by those who have been signed up for one year to less than two years (32%). The majority are subscribed because they feel they are helping the environment by not receiving a hard copy of the bill (51%). Other popular reasons cited include convenience (48%) and no need for the hard copy (41%). Less than two-in-ten respondents indicate choosing to go paperless because they wanted to be entered in a BC Hydro contest or take part in a BC Hydro promotion. 6

7 Key Highlights Those on paperless billing would prefer a format where they receive an with a link to log into their account (41%). Another 34% would like to see their BC Hydro bill as a PDF attachment in an and 20% would like to receive an with the amount of the bill and a due date reminder. Those who would prefer the and due date reminder include customers between years of age (versus those 55-64) and those who rent (versus homeowners). Conclusions Most of the customers who answered this survey are happy to be receiving many of their household bills online - including their bill from BC Hydro. However, there is a specific segment of the population who simply prefers getting the hard copy. This is evidenced by those who indicate that they are just not interested in the service and/or cannot be persuaded by use of a contest or promotion. Working to increase the awareness of paperless billing amongst non-paperless customers, as a single tactic itself, may not necessarily drive these people online. There is a specific group of these customers who will never opt for paperless billing because of challenges they ve previously experienced online, either with (continued on next slide) 7

8 Key Highlights (continued from previous) BC Hydro or their internet access in general, or simply because of their preferences in seeing or using the hard copy of the bill. That being said, for those customers who are open to the idea or can be encouraged to make the switch, providing gift cards as an incentive or a discount/rebate off their electricity bill may motivate them to give BC Hydro s paperless billing service a try. 8

9 9 How many of your household bills do you receive in an electronic format?

10 Where did you hear about BC Hydro s paperless billing service? Other responses include with the bill insert, word of mouth and through a BC Hydro customer service representative or telephone agent. 10

11 11 How do you currently receive your BC Hydro bill?

12 Customers who receive a paper bill Were you ever subscribed to BC Hydro's online billing service? Why did you change back to a paper bill? Those who were previously subscribed to online billing Problems with BC Hydro website Unreliable internet access 27% 27% Website is confusing and/or difficult to navigate Cumbersome login process Worried about online security 9% 9% 9% Need the visual reminder to pay the bill 9% n=51 Need hard copy for records 0% problems/late paying 0% n=11 12

13 Which contest prizes might motivate you to sign up for and/or return to online billing? Other responses include a wide spectrum of answers, from those who would want a discount to those who are opposed and not interested to sign up for the service. n=51 13

14 Customers on paperless billing How long have you been subscribed to BC Hydro's paperless billing service? Why did you choose to go paperless? n=167 n=167 14

15 In what format would you like to see your paperless bill? n=167 15

16 Advantages of Paperless Billing Respondents were asked to comment on what they feel is the main advantage of BC Hydro s online/paperless billing service. The most common answers relate to convenience, helping the environment and not having to deal with the hard copy. Convenience and environmentally friendly! I'd like to save some trees. There is less clutter for having a paper bill. Convenient, quick, and easy. Gives reminders. I deal with it instantly when I see it in my inbox... otherwise I seem to simply stack paper. Easy to read. Does not get lost in a paper shuffle! Saving paper. All I need is the amount and a reminder which BC Hydro provides me through paperless billing. 16

17 Disadvantages of Paperless Billing Customers were also asked to comment on what they feel is the main disadvantage of BC Hydro s online/paperless billing service. The responses received reference difficulties with accessing the info online, the risk of missing the s from BC Hydro and a need for the hard copy of the bill. Having to log in for the details. Unreliable delivery. Easy to overlook an . No bill to refer to if I have computer/technology issues. I still print the bill as I like to have the paper copy. I find it frustrating when I have to remember my password to get in to see the details of my bill. 17

18 DEMOGRAPHICS

19 19 Gender

20 20 Age

21 21 Region

22 22 Level of Education

23 23 Own or Rent

24 24 Are you a member of Team Power Smart?