Most of us have experienced that free cup of coffee after we’ve had our card punched 10 times. Or the less frequent free flight. So, it might be small but there’s a reward for loyalty.
Is there a reward for being a loyal energy customer? Let’s see what AGL’s CEO says.
“Big Power neglects best customers, AGL boss says”*
“Big power companies have a dirty secret – they don’t look after their most loyal customers, AGL Energy chief executive Andy Vesey says.”
“We reward disloyalty because… I only talk to you about a good deal if you threaten to leave me, and if I want your business I have to steal you away from somebody else,” Mr Vesey told a Committee for Economic Development of Australia lunch.
“The bulk of my customers that are not disloyal never hear from me. In fact really don’t want to hear from me and are totally uninformed about what’s in their own best interests. That’s the recipe for digital disruption.”
While it may be commendable that the AGL boss understands the problem, nothing has changed and instead of rewarding loyalty, their strategy seems to revolve around locking customers in and extracting even more margin.
Are you a loyal energy customer or just one that hasn’t compared yet?
For most of us, an energy provider is just a necessary evil. We just have to stump up and pay for those essential services that we all need. And frankly, there’s no real difference. The electricity comes down the same wires, in exactly the same way. The same applies with gas. So, it’s not really loyalty. It’s just avoiding the hassle in comparing electricity and comparing gas.
The cost of loyalty
Did you know that the longer that you have been with your electricity or gas provider the more savings you should expect? The standard business model of energy providers is to lure you with a supposedly attractive offer then over time transition you progressively to their ‘default’ or highest priced plan that they have. Most energy providers change their prices twice a year, but many change their prices more often. On average, the currency of a switch may be 3 months before your price or competitor prices change. If you chose a really good plan in the first place, the currency of your plan may be longer, 6-12 months, but after a year most plans have become obsolete.
Surely if you get both electricity and gas from the same provider, it will be cheaper? Well, no, almost certainly not. It’s almost always cheaper not to be loyal. Loyalty? It’s costing you!
Is Energy Umpire the Digital Disrupter that AGL Fear?
Time will tell whether we can disrupt the energy providers like AGL, but that is certainly the plan. We aim to do that by providing a service that is totally focussed on you. We get you the best energy provider for your needs all of the time, without you lifting a finger!
Are you being exploited?
Even AGL admit that they exploit their most loyal customers. Is that you?
With our free plan, we prove your savings to you annually. You don’t pay a cent or have any obligation become a subscriber.
When you have good savings you can choose to become a subscriber, and
Let us compare electricity and gas for you and show you how much you can save. It’s free.
*Source: Australian Financial Review, August 23, 2016 AFR