Texas Retail Electric Providers See Significant Decline in NPS

CAMBRIDGE, Mass.--()--In the highly competitive Texas electric market, customers are now less likely to recommend their retail electric provider (REP). The Texas REP average net promoter score (NPS) is down to 15, a significant decline from 18 in 2018. This drop in NPS is troubling for REPs as the metric is used by management teams to determine both brand strength and growth potential. This finding is from the Cogent Syndicated Texas REP Trusted Brand study from Escalent, a top human behavior and analytics firm.

NPS is derived from subtracting the percentage of customers who are brand “detractors” from those who are “promoters.” The more positive the outcome, the more likely it is that customers will promote their REP to others and advocate for the brand. The study, which surveys over 5,300 residential customers annually, finds that the decline in NPS is due to a higher number of brand “detractors” than in 2018. A 104-point gap between the highest- and lowest-scoring REPs indicates that some retail brands are failing to create strong and lasting connections with their customers. However, the staggering gap also indicates that the 10 top-scoring REPs are very well positioned to grow their customer bases thanks to strong brand preference.

“Customers are recommending a few elite Texas REP brands based upon their NPS. That advocacy can translate to better franchise values and increased market share,” said Chris Oberle, senior vice president at Escalent. “The large NPS performance gap indicates the market is ripe for a shakeout, where the top 10 brands have an opportunity to grab the lion’s share of customers.”

The top 10 Texas REPs that customers recommend others should use are:

Top Scoring on Net Promoter Score

4Change Energy

Champion Energy Services

Acacia Energy

Just Energy

Alliance Power

NEC Retail

American Light & Power

WTU Retail

Beyond Power

Xoom Energy

The following is a ranking of Texas retail electric providers on year-end 2019 net promoter scores.

Texas Retail Electric Provider

   

Net Promoter Score

NEC Retail

   

65

Beyond Power

   

46

Alliance Power

   

42

American Light & Power

   

40

Xoom Energy

   

39

Acacia Energy

   

34

4Change Energy

   

34

Champion Energy Services

   

31

Just Energy

   

30

WTU Retail

   

30

Cirro Energy

   

27

Stream Energy

   

25

Green Mountain Energy

   

25

Discount Power

   

23

Ameripower

   

22

TriEagle Energy

   

21

Direct Energy

   

20

Amigo Energy

   

19

Infinite Energy

   

17

CPL Retail Energy

   

14

Ambit Energy

   

14

Bounce Energy

   

13

TXU Energy

   

12

First Choice Power

   

11

Spark Energy

   

11

Reliant Energy

   

7

Frontier

   

3

Pennywise

   

0

Payless Power

   

-2

Constellation

   

-5

Gexa Energy

   

-6

Accent Energy

   

-13

Entrust Energy

   

-16

Brilliant Energy

   

-39

Source: Escalent. Cogent Syndicated. Texas REP Trusted Brand.

About Texas REP Trusted Brand™

Cogent Syndicated measures customer engagement and brand trust among customers of Texas retail electric providers by surveying 5,361 customers across providers based upon data-driven models. The study measures key performance indicators (KPIs) to provide management perspectives on how to improve REP brand positioning, sales and promotion, customer trust, effective messaging, product sales, customer experiences, service quality, customer acquisition and loyalty. Escalent’s Brand Trust model comprises nine factors: community support, customer focus, communications effectiveness, environmental dedication, local reputation, reliable quality, competitive rates, enhanced offerings, and billing and customer service. The study collects a demographically representative sample across all Texas service territories open for retail electric competition. Escalent will supply the exact wording of any survey question upon request.

About Escalent

Escalent is a top human behavior and analytics firm specializing in industries facing disruption and business transformation. As catalysts of progress for more than 40 years, we tell stories that transform data and insight into a profound understanding of what drives human beings. And we help businesses turn those drivers into actions that build brands, enhance customer experiences and inspire product innovation. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.

Contacts

Sarah Keller
734.779.6847
sarah.keller@escalent.co

Release Summary

In the highly competitive Texas electric market, customers are now less likely to recommend their retail electric provider.

Contacts

Sarah Keller
734.779.6847
sarah.keller@escalent.co