Price transparency now a driving factor in the sales decision-making process

DNV, the independent energy expert and assurance provider, recently released its 2022 DNV Energy Blueprint: Sales Strategies report, which details survey results about key players in the US competitive energy sector, including energy suppliers, aggregators/brokers/consultants, and end use customers.

The survey queries energy brokers on their views about suppliers throughout the sales process and ranks them based several factors, including the ability to meet contract terms, speed of sales, pricing, and customer support.  

The survey found that recent energy market volatility has ignited customer interest in the details of the energy buying process, which was of less concern during the previous period of low and stable pricing. 2022 results indicate that, especially for larger firms, meeting ESG goals still influences energy purchasing decisions and there is a willingness to pay a “green premium” for renewable energy products.

This confirms a 2021 trend, as DNV’s survey from last year revealed an accelerating interest in access to renewable energy products, eclipsing other factors in the energy buying process.  

With the end of the long-standing low-price environment, customers are now examining their exposure to price volatility, especially in response to events such as the 2021 winter storm in Texas.

In these market conditions, suppliers have an opportunity to differentiate themselves and offer more value to their customers by helping customers prepare for uncertainty and responding quickly when disruptive events occur, which are likely to become more common as a result of climate change.

“The relationship between customer and energy supplier is necessarily more intense in the retail energy sector, and it often serves as a bellwether for energy customers overall,” said Richard S. Barnes, DNV region president for Energy Systems North America.

“The focus on transparent pricing, communication, reliability, and a pathway to meet ESG goals reflects the broader goals of energy consumers as they navigate this new, uncertain energy price landscape.” 

When ranking energy suppliers, Constellation led the market in all phases of the commodity sales cycle, which includes pre-sale support, pricing and contracting, and after sale service.

In the pre-sale phase, brokers primarily value the speed and accuracy of communications, as well as a supplier’s knowledge of the market. During the contracting phase, price transparency was the primary concern, with lowest price coming in a close second.

Finally, and most crucial for customer retention, a timely response to customer service requests was considered the most important factor, replacing accurate billing, which had been the most important in 2021.  

“This recognition as a top supplier demonstrates Constellation’s commitment to providing customers a pathway to achieve aggressive goals in carbon reduction, clean energy procurement, and sustainability,” said Dan Verbanac, Senior Vice President of Retail for Constellation.

“DNV continues to be a champion for best practices across our industry and this honor demonstrates our commitment to serving our customers at the highest level while making a positive difference in the fight against climate change.”