Energy retail and customer experience

Place the customer at the heart of the transition to net zero.

What’s going on

Energy providers face significant investments to upgrade aging infrastructure and reduce carbon emissions. While over 80% of consumers believe the energy transition to net zero is important, less than half are willing to bear the costs. To bridge this gap and ensure the transition is affordable and equitable, energy providers must reinvent their business-as-usual.

3 ways the energy retail and customer experience is changing

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Consumers are facing an energy affordability crisis

Energy bills have surged globally due to the post-pandemic economic rebound, the Russia-Ukraine war, supply chain disruptions and inflation. Despite stabilizing in 2023 and 2024, prices remain at record-high levels, causing significant financial strain for consumers.

Energy providers must balance achieving net zero with affordability

The transition to net zero requires massive investments, more than doubling electricity costs as a percentage of household income. Neither energy providers nor consumers can afford these costs alone. Keeping the transition affordable would delay achieving net zero by 35 years Providers must navigate this challenge to ensure a timely and affordable transition.

Customer expectations require transformation

Aging grid assets require upgrades to enhance reliability and efficiency. Utilities are focusing on non-wire alternatives, renewable integration and capital projects to adapt to growing energy demands and ensure long-term sustainability.

Invest in a robust digital core and AI to create detailed consumer profiles. This allows energy providers to understand individual needs, values and worldviews, enabling them to tailor their offerings and messaging more effectively.

Align sustainability messaging with core human values like connection and care. Move beyond generic "green" terms to create personalized, compelling messages. Using generative AI and digital tools, energy providers can craft tailored communications that drive consumer action and support the transition to a net-zero future.

81%

of consumers say they are interested in the energy transition, but only 46% say they are willing to pay more to support clean energy initiative

Energy providers must shift from siloed operations to consumer-focused models, delivering seamless, end-to-end experiences. By understanding diverse needs, they can scale clean energy programs, phase out ineffective ones and remove adoption barriers like up-front costs.

73%

of consumers have adopted at least one clean energy program

Energy providers should partner with startups, tech firms and academia to scale clean energy tech like hydrogen, carbon capture and storage. Innovating home energy solutions and revenue-sharing models can offset net-zero costs while building trust with consumers and regulators.

What trending in Energy retail and customer experience

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