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5.12.2005 Helsinki Energy the best company in customer satisfaction in FinlandHuge differences in customer service among companiesVattenfall scored better in Sweden than in FinlandUnexpected electricity cuts experienced by 42 % of Finnish customers.Electricity companies get poor scores for their information during the cuts
In the study, such factors as company images, customer expectations, product and service quality, value for money, and customer satisfaction and loyalty were measured both from household and corporate customers. They evaluated the electricity company where they buy the electricity. Helsinki Energy was the first in customer satisfaction in FinlandResults concerning private customers' satisfaction with their electricity companies are below.
Helsinki Energy has the most satisfied private customers with an index of 71,0. Next, comes the group other companies, who may be nation widely small, but in their own regions significant. The group receives an index of 70,8. E.ON receives an index of 61,7. At the bottom of the table for customer satisfaction, are Vattenfall (59,6) and Fortum (58,7). Their indexes are so near to each other that the difference between them is not statistically significant. The error margin in this study is about +- 2 index points. Huge differences in customer serviceWhen the reasons for the differences in customer satisfaction between companies are examined, it can be seen that Helsinki Energy is good in every domain: product quality, service quality and price-performance ratio. Also the group other companies do well in each aspect. Vattenfall, instead, receives rather low scores, especially in customer service and guidance. In customers' complaint handling, vast differences among electricity companiesTotally, 13 percent of the private customers of the electricity companies said they have had a reason to complain to their electricity company. However, one third of them did not complain to their company. Those customers who complained gave a rather low score 6,1 for the electricity companies for their complaint handling. The scores varied a lot among of the companies. Here, we have to note that the amount of the respondents is not very big, but the differences are still statistically significant.
Helsinki Energy receives nearly an excellent score for its complaint handling from its customers. Vattenfall receives a really low score 4,9 from its customers. On the other hand, Vattenfall also has the greatest variation in its scores. It seems that some customers receive good treatment and some customers not so good. Bad complaint handling may have a great influence on customers' willingness to switch to another electricity company. With poor complaint handling, a company will probably lose customers to other companies. However, with good handling of complaints, the customers may stay very loyal, even more so than before. Vattenfall does better in SwedenThe same study was also done in Sweden. Vattenfall managed in Sweden better than in Finland. Among the Swedish electricity companies, Vattenfall was the best among big companies in customer satisfaction. Fortum was the last in Sweden in private customer satisfaction. The customer satisfaction indexes in Sweden are below.
The differences among companies are larger in customer loyalty than in customer satisfactionConcerning customer loyalty and commitment, it seems that the differences among companies are larger in customer loyalty than in customer satisfaction. The group other companies and Helsinki Energy are far above other companies in their customers' loyalty and commitment. The customer loyalty indexes for different companies are presented below.
Also from the figure below it can be seen how the differences among electricity companies are larger in customers' loyalty and commitment (Loyal) than in other aspects, such as, product quality (ProdQ), service quality (ServQ), value for money (Value), and customer satisfaction (EPSI). Unexpected cuts in electricity supply experiences by 42 % of households.Totally 42 % of the household respondents in Finland remember that they have had unexpected electricity cuts during the last 12 months. Helsinki Energy's network region seems to be an exception. There, the respective percentage was only 16 %. In the other companies' network regions, the percentages were following: The other companies group 44 %, Fortum and E.ON 45 % and Vattenfall 56 %. The respondents gave a very poor average score for the electricity companies for their information during the unexpected electricity cuts. The average score for all companies was 5,9. Helsinki Energy has also the most satisfied corporate customersResults concerning corporate customers' satisfaction with the electricity company (where they buy the electricity to their company) are below.
Helsinki Energy has also the most satisfied corporate customers with an index of 73,0. Next is the group other companies who receive an index of 72,1. E.ON has an index of 70,8. It is much higher than it was in the private customer side, where it was only 61,7. Fortum's index on the corporate customer side is 64,5 and Vattenfall's 62,1, both of them higher than the indexes they received from their private customers. See below. In customer service and guidance, Vattenfall receives the lowest scores also from corporate customersWhen the reasons for the differences in corporate customers' satisfaction are inspected, it can be seen that Helsinki Energy is no. 1. in every domain: in product quality, service quality and in price-performance ratio. Vattenfall is given lower scores for its service quality and customer guidance than other companies are. However also among its corporate customers, the variation in the scores for service quality is higher than in other companies. Vast differences among electricity companies also in corporate customers' complaint handling18 percent of the corporate customers said they have had some reasons to complain to the company where they buy their electricity. On the corporate customer side, customers usually also complain, if they have a reason. The customers who complained gave a rather poor score 6,3 for the electricity companies for their complaint handling. Only the group other companies receives a satisfactory average score over 7. Telge Energi first of the big companies in SwedenThe same study was also done in Sweden among corporate customers. Telge Energi had the highest index among the big companies. Fortum's and Vattenfall's indexes were rather low among corporate customers in Sweden. See the table below.
Unexpected cuts in electricity supply experiences by over 40 % of corporate customers
The EPSI Rating studyThe data for the research was gathered by telephone interviews. The respondents were selected by randomization procedures to participate in the study. In this study for each company, 100 - 250 of their customers were interviewed. Both private customers and corporate customers of the companies were studied. The respondents were asked to evaluate the electricity company where they buy their electricity they consume. This research is part of European Customer Satisfaction Research, EPSI Rating. It is coordinated by the Institutet för Kvalitetsutveckling and the Stockholm School of Economics. European quality organizations: the European Foundation for Quality Management and the European Organisation for Quality are backing the research, along with the International Foundation for Customer Focus. The research is coordinated in Finland by Dr. Juhani Kuokkanen. In Sweden, the same methodology has been in use since the year 1989, and there the study already covers a major portion of the national economy. In Finland as well, it is the intention to gradually expand the research to cover the Finnish economy. Earlier this year, results from banking, telecom, insurance, supermarkets, and do-it-yourself (hardware) outlets have been released. For more information, and press material also in Finnish, see the EPSI Finland web-site: www.epsi-finland.org. For additional information, please contact: Dr. Juhani Kuokkanen phone: +358-(0)40-509 3401, e-mail: juhani.kuokkanen@globalresearch.fi Professor Jan Eklöf phone: +46 70 696 4185, e-mail:
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