Customer Switching Behaviours & Intentions in the Australian Electricity Market

Publication Date	February 2006
Publisher	Datamonitor
Product Type	Report
Pages	40
ISBN Number	not applicable
Product Code	DAT00485

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Summary

Introduction

This brief examines residential consumers' attitudes, behaviours and likely actions regarding switching power supplier for the coming 12-36 months, based upon a survey of households in selected States. In doing so it illustrates relative price sensitivity, openness regarding retailer approaches and general opportunities for customer acquisition in each of three key competitive States.

Scope

Based on a survey of over 1,500 residential customers in NSW, Victoria and South Australia.
The survey investigate switching drivers and barriers, price savings required to switch and intentions for considering switching in the future.
Analysis of the customer acquisition potential across the three States analysed and according to size of electricity bill.

Highlights

Door-to-door was, as to be expected, the most effective in winning new customers. Telemarketing, however, was only marginally more effect at encouraging switching than direct mail, and also managed to turn 18% of the sample off the idea of switching after the approach.

South Australians were keenest to switch in the future 23% saying they would consider switching in the next 6 months, with the higher the bill being paid, the higher the likelihood of a customer to consider switching.

Almost half of the sample would switch for a 10% saving, but 35% felt it would take a discount of 20% or more to entice them to move provider.

Reasons to Purchase

Assess switching potential across State and by annual electricity spend.
Understand the relative magnitudes of the key barriers and drivers for switching, and the savings necessary to prompt consumers to switch.
Pinpoint the customer segments with the key switching potential

Content

Chapter 1 Executive Summary
- Introduction
- Switching trends in the Australian electricity market
- Customer attitudes and switching behaviour
Chapter 2 Introduction
- What is this report about?
Chapter 3 Switching Trends In The Australian Electricity Market
- Introduction
- Key findings
- Customer switching to date in Australia's power market
Chapter 4 Customer Attitudes And Switching Behaviours
- Introduction
- Key findings
- Type of approach and customer reaction
- Switching drivers
- Reasons for not switching
- Switching intentions
- Attitudes to price
Chapter 5 Conclusions
- Introduction
- Key findings
Chapter 6 Appendix
- Research methodology
- Sources and relevant links
- Government and Regulatory bodies
- National Energy Market bodies
- Australian Retailers
- Further readings
- Report writing team
- How to contact experts in your industry
List Of Tables
- Table 1: Have you been approached regarding switching supplier? By State
- Table 2: Have you been approached regarding switching supplier? By spend
- Table 3: If approached, how did this take place? By State
- Table 4: If approached, how did this take place? By spend
- Table 5: What was the outcome of the most recent approach? By State
- Table 6: What was the outcome from the most recent approach? By spend
- Table 7: Switching outcomes by approach
- Table 8: If you have switched your electricity supplier, what was the main reason for switching?
- Table 9: If you have switched your electricity supplier, what was the main reason for switching? By spend
- Table 10: If you have not switched, what was the main reason why not? By State
- Table 11: If you have not switched, what was the main reason why not? By spend
- Table 12: Switching electricity / gas supplier is more trouble than it is worth - By State
- Table 13: Switching electricity / gas supplier is more trouble than it is worth - By spend
- Table 14: Switching electricity / gas supplier is more trouble than it is worth - By switching history
- Table 15: I am confused by the different offers available from suppliers - By State
- Table 16: I am confused by the different offers available from suppliers - By spend
- Table 17: When will you next consider switching supplier? By State
- Table 18: When will you next consider switching supplier? By spend
- Table 19: What is the likelihood that you would switch for a 10% saving - By State
- Table 20: What is the likelihood that you would switch for a 10% saving - By spend
- Table 21: What is the lowest price saving you would require to switch supplier? By State
- Table 22: What is the lowest price saving you would require to switch supplier? By spend
- Table 23: Distribution of respondents by State and Territory
List Of Figures
- Figure 1: Switching rates in the Victorian, NSW and South Australian power markets - small consumers
- Figure 2: Switching outcomes by approach
- Figure 3: What is the lowest price saving you would require to switch supplier? By State
- Figure 4: Switching rates in the Victorian, NSW and South Australian power markets - small consumers
- Figure 5: Switching outcomes by approach
- Figure 6: If you have not switched, what was the main reason why not?
- Figure 7: When will you next consider switching supplier? By State
- Figure 8: What is the lowest price saving you would require to switch supplier? By State
- Figure 9: Comparison of States according to potential for future customer switching