“A human touch will always be needed”, said one customer support agent working for a major energy retailer, when asked how they see their job changing in the future. This view is backed by recent research from McKinsey indicating a strong preference for real-person support among consumers across all age groups. At the same time, commercial expectations are becoming tougher, business models are changing and AI is creating efficiency opportunities that are redefining many aspects of the customer experience.
Energy retailers, in particular, are feeling the impact of these converging trends as they undergo wholescale digital transformation and reinvent the customer experience to drive decarbonisation across millions of households.
Contact centres have become an increasingly important touchpoint for improving customer loyalty and providing services around low-carbon energy products and services – enabling retailers to evolve from essential service providers to trusted energy advisors. In order to build trust and loyalty within their customer base, energy retailers must ensure that customers can get the support they need quickly and follow through on customer commitments and compliance requirements.
The energy transition is creating many complex challenges, not least for customer agents on the frontline. We interviewed a number of UK-based agents about the changes they’re experiencing across a range of areas, including switching to new agent tooling, adapting to different operating models and dealing with the aftermath of the energy crisis and the consequent increases in debt. In this article, we aim to shed light on agents’ firsthand experience of three key breakthrough trends in energy retail.
1. The digitally-empowered energy customer
With higher-than-ever levels of digital engagement, there is unanimous agreement that today’s customers are better able to serve their own needs, often using mobile apps, online forums or video tutorials to self-manage and therefore making fewer calls to contact centres with basic requests.
One of the interviewed agents said that “customers having access to and transparency over their information [is resulting in them being] more hands on”. The energy crisis is likely a significant contributing factor to this trend with many customers becoming more alert and inquisitive about their energy costs and usage. Research from Salesforce shows they also have higher expectations for personalised insights from their providers across different services and industries as technology continues to evolve.
The use of digital channels instead of calls to get customer support is increasing, too, as backed up by internal Kaluza research. While calls continue to be an important way for customers to make contact, this analysis shows a 9% increase in webchat support use between September 2023 and August 2024, corresponding to the same percentual decrease in phone calls. Email use remains relatively unchanged and continues to be the preferred contact method for close to two thirds of customers.
Overall, digital channels have consolidated their position as the preferred contact methods, with 85% of customer support requests now being made digitally.
The growing digitisation of customer service means that support agents can focus on more complex issues that require human intervention. Self-service and automation tools can then handle simpler support requests, putting digital transformation at the service of operational efficiency.
2. The revolutionary role of AI automation
Customer support agents are excited about artificial intelligence (AI) being incorporated into their roles for a number of reasons. Notably, they see the benefit of AI being able to identify and fix errors in accounts before customers become aware of them, reducing the number of basic issues customers call about.
The role that AI can play in call summarisation and live transcripts is also seen as a game changer. By using summarisation tools, agents can focus more on their conversation with the customer, rather than manual note taking. One of the interviewed agents, who has recently experienced a new summarisation and live transcript AI tool, said “I don’t need to ask a customer to repeat themselves, meaning the customer experience is much better”.
All the interviewed agents see the changes that AI will bring as enhancing their roles and efficiency. However, one agent shared their concerns about the quality of existing system data and the limits it would create within an AI model, saying “AI can only react to the information it’s got”. This is a concern echoed across the board as increasingly large volumes of data are being collected to build AI models, which in turn will be used to drive decision making.
Data quality is an important consideration in this area, since generative AI is only as powerful as the data used to feed it. Businesses and organisations that want to take full advantage of its capabilities to improve customer service need to ensure the data they’re using to feed their AI platforms is high-quality, accurate and well organised, as well as compliant with relevant security and data privacy standards.
As expected, agents voiced nervousness around the potential for AI to displace their jobs but most held the steadfast belief that human intervention would always be required in customer service, particularly with the need to guide customers through the complexities of the energy transition. This belief is backed by new research, with 71% of consumers surveyed by PWC wanting to speak to a human.
3. The increasing complexity of customer contact
The growing adoption of distributed energy resources (DERs) and advanced tariff structures is reshaping customer interactions in energy retail. By 2030, DERs such as electric vehicles (EVs), solar panels, heat pumps, and batteries are expected to become common in households as energy retailers expand into bundling these propositions for customers.
These changes introduce new components to customers’ energy bills such as EV and solar credits, subscription costs for heat pumps, and time-of-use pricing, adding complexity to the simpler and more traditional gas and electricity charges.
To support customers through this complexity, energy retailers must adopt technologies that enable simplified billing and customer experiences as well as training their agents to become highly skilled energy advisors. Upskilling customer support teams ensures they can guide customers through the intricacies of DERs and advanced energy solutions, fostering trust and enhancing customer satisfaction. Companies like UK energy retailer, OVO, are leading the way by training agents to navigate the challenges of the energy transition, including helping customers understand and manage bundled energy solutions that incorporate DERs.
Energy retailers that embrace this new landscape and seek the strategic opportunities it brings will be well-positioned to not only navigate but lead the energy transition, while building stronger customer relationships, and capitalising on new business opportunities.
Key takeaways: What energy retailers should consider to build the contact centres of the future
1. Digitally-empowered customers create opportunities: Today’s customers expect seamless, self-service experiences, with 70% seeking digital options to solve their issues. By leveraging digital solutions, businesses can free up agents to focus on resolving more complex problems, turning them into expert problem solvers. Prioritising customer experience (CX) is key—84% of consumers now value their experience as much as the products they buy. Investing in digital-first tools is not only a strategic move but also a cost-effective one, cutting customer service expenses by 25-35% while boosting loyalty and satisfaction.
2. AI boosts agent efficiency but relies on high-quality data: AI is reshaping customer-facing roles by enhancing efficiency and productivity. With 54% of executives already seeing its impact, AI streamlines workflows, enabling faster and smarter service. This technological leap frees up agents to tackle high-value, complex interactions, with 61% of organisations focusing on upskilling their teams. By adopting AI tools, businesses can equip their workforce for the future while delivering exceptional customer experiences.
3. DERs will introduce new revenue streams: As the energy landscape evolves, preparing agents for the challenges of the energy transition is crucial. Distributed energy resources (DERs) are expected to make up 50% of new capacity by 2030, requiring teams to be trained on new processes and technologies. With DER capacity projected to quadruple by 2030, ensuring smooth installations will be vital for customer satisfaction and unlocking opportunities for upselling. With 73% of customers willing to pay more for providers who deliver proactive guidance, by helping consumers manage energy better, businesses can position themselves as trusted advisors, carving new paths for customer loyalty and revenue.
