Elevating Digital Engagement: Key Lessons From JD Power's Utility Study

The recent release of the J.D. Power U.S. Utility Digital Experience Study^SM revealed disappointing findings for utilities. The main takeaway? Utilities aren’t exactly knocking it out of the park when it comes to engaging with their customers in digital channels. The study looks at customers’ perceptions of their utility’s digital presence, specifically websites and mobile apps, and how these impact the overall customer experience. It’s a valuable gauge for utilities trying to boost their digital game. By pinpointing strengths and weaknesses, the study offers actionable recommendations to improve customer interaction through various digital channels like chat, email, text messaging, and social media. 

This year, the study found that 32% of customers feel that utility websites and apps don’t meet basic navigation and design standards and a surprising 28% of utilities do not even have a mobile app. This digital shortfall contributes to lower customer satisfaction. In this blog, we will share our top three lessons from the study, emphasizing where utilities are missing the mark. The goal is to help utilities identify focus areas to align with the expectations of today’s digitally savvy customers.

Lesson 1: Customers Need More From Utility Websites

When utilities don't communicate well with customers online, they risk leaving them unhappy or uninformed—or both! Critical information such as outage alerts, emergency preparedness tips, and service maintenance updates must be delivered quickly and effectively to ensure customer satisfaction and safety. Without these digital connections, utilities risk leaving their customers in the dark in sometimes dangerous circumstances.

The study highlights that utilities are failing to provide a seamless user experience. According to utility customers, only 68% of U.S. utility websites and mobile applications fulfill basic functional requirements, such as simple logins and modern design. A minority, 33% of customers, felt their utility’s digital channels delivered a straightforward experience, such as easy-to-use, highly navigable information. Most concerning is that only 16% of customers felt their utility delivered a valuable user experience that includes proactive guidance, personalized consumption data, and bill-reduction strategies. 

Bearing all of this in mind, KUBRA’s latest Utility Consumer Billing and Payment Report found that a significant number of utility customers prefer to make bill payments using digital channels. Specifically, 53% prefer to make bill payments on mobile apps and 46% prefer to make them on the biller website. This shows just how important it is for utilities to step up and enhance their digital infrastructure, aligning with modern customer preferences for a better overall experience.

Lesson 2: Mobile-First Strategy Is No Longer Optional

The popularity of mobile apps is undoubtedly connected to our society’s reliance on smartphones. We have gotten used to doing so many things with our phones that it’s almost surprising when it’s not an option. This is why the revelation that 28% of utilities still don’t offer a mobile app stands out so much. According to the study, mobile apps result in high satisfaction scores. Among the digital channels evaluated, utility mobile apps consistently result in the highest level of customer satisfaction, 57 points higher than for mobile websites and 41 points higher than for websites accessed via desktop. 

Why have utilities been slow to adopt mobile apps? As a heavily regulated industry, utilities often delay adopting new technology. Another major challenge is the high cost of mobile development. And, some utilities don’t even know where to begin, so they don’t. To better understand what utility customers want from a mobile app, KUBRA asked them what features they preferred. Customers want everything from viewing and paying bills to having access to payment history, receiving bill alerts and reminders, updates on service interruptions, and setting up auto payments. Understanding these preferences allows utilities to prioritize these essential features, bridging the gap between customer expectations and their current digital offerings. Understanding these preferences helps utilities focus on key features, aligning their digital services more closely with what customers actually want and expect.

Lesson 3: Digital Innovation Creates Competitive Advantage

Compared to other industries, customer satisfaction rates in the utility sector are lagging behind in digital experiences. On a 1,000-point scale, the utility digital experience scores 611, while wealth management apps and websites score 738, the property and casualty insurance industry scores 698, and retirement plans score 703. This disparity presents a huge opportunity for utilities to bring their digital experiences in line with other industries and customer expectations. They achieve this by modernizing their digital platforms, enhancing the user experience, and implementing customer-centric features 

Bridging the Digital Gap

As the digital world keeps changing, utilities are at a crucial point where they need to adapt to meet what customers want today. Learning from the J.D. Power study and seeing the importance of digital channels, utilities can boost customer happiness and gain a competitive advantage. Making websites easy to use, focusing on mobile devices first, and pushing digital innovation aren’t just improvements—they’re necessary for better customer relationships and success in the digital age.