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5.4 ERMUSR 05-10-2022UTILITIES COMMISSION MEETING TO:FROM: ERMU Commission Tony Mauren – Executive Administrative Manager MEETING DATE: AGENDA ITEM NUMBER: May 10,2022 5.4 SUBJECT: Customer Satisfaction Survey ACTION REQUESTED: Receive the Customer Satisfaction SurveyReport –Q1 – 2022 BACKGROUND: In December of 2019 the Commission voted to replace the customer satisfaction survey component of the Utilities Performance Metric and Incentive Compensation (UPMIC) scorecard due to low response rates. As ERMU places a high valueon customer feedback, staff researched and pursued alternative approaches to track satisfaction with consideration for returning this metric to the UPMIC scorecard. In December of 2021, ERMU entered a contract with Q Market Research to survey ERMU’s residential customers, seeking to measure overall satisfaction with services and programs. The survey also focused on several key areas including reliability, value, ease of doing business, quality, customer concerns, and communications. Q Market Research was contracted to distribute two rounds of 1,000 surveys in 2022, each consisting of 500 emails and 500 letters. DISCUSSION: On March 4,the survey was sent to 1000 customers, and a total of 87 responses were received. For comparison, ERMU received 136 responses from all customers in 2019. Key findings in this round were that satisfactionis generally high andthat ERMU gets a “Good” scorein the net promoter category, which shows how likely a customer istorecommend our services. There were also high marks forcommunity involvement, communication experiences, and value. Q Market Research will be distributing the second round of surveysto 1,000 different customersin September 2022. It will be a multiyear project to reach all residential customers. FINANCIAL IMPACT: $3,000 for each distribution and analysis of surveys, a budgeted item. ATTACHMENTS: Customer Satisfaction SurveyReport – Q1 – 2022 ______________________________________________________________________________ Page 1 of 1 93 Elk River Municipal Utilities Customer Satisfaction Survey Quarter 1 - 2022 tƩĻƦğƩĻķ ŅƚƩʹ Quarter 1, 2022 tƩĻƦğƩĻķ ĬǤʹ www.qmarketresearch.com 1 94 9ƌƉ wźǝĻƩ aǒƓźĭźƦğƌ ƷźƌźƷźĻƭ /ǒƭƷƚƒĻƩ {ğƷźƭŅğĭƷźƚƓ {ǒƩǝĻǤ vǒğƩƷĻƩ ЊͲ ЋЉЋЋ Background Elk River Municipal Utilities (ERMU) is seeking to obtain feedback from their residential customers to measure overall levels of satisfaction with services and programs provided, as well as capture needs and perceptions regarding communication satisfaction and community involvement. As part of this study, Elk River Municipal Utilities will focus on these key areas: 1.Net Promoter Score (likely to recommend) 2.ERMU as a utility provider overall 3.Reliability of the utility services received from ERMU 4.Ease of doing business with ERMU 5. 6.ERMUefficiency rebate programs 7.ERMU 8.ERMU to be involved in the community 9.Overall satisfaction with ERMU staff 10.Overall value for the money with ERMU 11.Preferred contact methods with ERMU 12.Customer demographics Survey Methodology The survey was sent to a total of 1,000 ERMU customers. Of them, 500 ERMU customers received a mail survey. This list of randomly selected customers was provided by ERMU. The mailed survey provided a postage-paid, return envelope addressed to Q Market Research. The survey also contained a web link and QR code to allow the respondent to complete the survey on a computer or mobile device. An email invite was also sent to 500 ERMU customers to complete the same survey from their computer or mobile device. No incentives were offered for participation. 2 95 Data Collection The Q1 2022 survey included 500 mailed surveys to ERMU customers and 500 emailed surveys to ERMU customers. Both mail and email surveys were sent on March 4, 2022, and data collection was closed on March 31, 2022. 29 mail responses were received, and 58 email responses were received. In total, 87 responses were received (mail and email), at an overall 8.7% response rate (and are statistically valid at a 95% confidence level to within +/- 10.8%). This is considered a somewhat low response rate for this type of survey. Data collection is summarized below: Medium Sent Returned Response rate Email 500 58 11.6% Mail 500 29 5.8% Total 1000 87 8.7% 3 96 Executive Summary Key Finding 1: Overall satisfaction with ERMU is generally high. ERMU gets a 6 out of 7 by customers for reliability and ease of doing business, both high scores. The rating is 5.9 out of 7 (similarly high). The lowest score among the satisfaction ratings is 5.4 for the efficiency rebate programs. Key Finding 2: The Net Promoter Score in Q1 2022 for ERMU is 42.5, which is in the good. ERMUQ1 2022 NPS score was 42.5good (which is a score of 0-50). Based on customer comments in this report, the Q1 2022 score was strong because customers say service is reliable and employees are friendly and helpful. The score does not and above in part because some customers voiced dissatisfaction with rates and fees. Details in the report. Key Finding 3: ERMU gets strong grades for involvement in the community. Respondents rated ERMU 8.2 out of 10 for its efforts to be involved in the community. Key Finding 4: The communications experience with ERMU is highly positive. Overall, customers rated communications with ERMU through customer service staff at 8.2 out of 10, which is high. While customer service staff were characterized as prompt and helpful, several respondents mentioned that some staff were not friendly. Yet in another overall measure of all staff (not just customer service staff), respondents rated their satisfaction as 8.8, even higher than they rated customer service staff. The customer newsletter is highly relied on by customers for information about ERMU. Key Finding 5: Value for the money was lower than other scores, but still high on an absolute basis. While there were an equal number of comments about rates being reasonable vs. rates being too high, overall, s still high on a 1 to 10 rating scale in absolute terms. Demographics are included at the end of the report. All verbatims are included at the end of the report, organized by question. A list of customers who want to be contacted by ERMU is provided separately. 4 97 Detailed Findings Satisfaction Indicators Reliability of ERMUEase of doing business with ERMU satisfaction measures, at 6.0 out of a possible 1 to 7 score, where 7 is completely satisfied. A close second was satisfaction with ERMU overall, at 6.9. These are high scores. The lowest satisfaction The factors measured were: 1.Ease of doing business with ERMU 2.Reliability of the power, water and other services you receive from ERMU 3.efforts to be environmentally friendly 4. 5.ERMU as my utility provider overall The graph below shows the values for Q1 2022. Satisfaction with ERMU (1 is completely dissatisfied; 7 is completely satisfied) Q1, 2022 The ease of doing business with ERMU 6.0 The reliability of the power, water and other services 6.0 ERMU's efforts to be environmentally friendly 5.7 ERMU's efficiency rebate programs 5.4 ERMU as my utility provider overall 5.9 Q1, 2022 5 98 Verbatims on Overall Satisfaction/Dissatisfaction Respondents were then asked, ‘ŷǤ ķźķ Ǥƚǒ ŭźǝĻ ǒƭ ƷŷĻƭĻ ƭğƷźƭŅğĭƷźƚƓ ƩğƷźƓŭƭ Respondents answered with both positive and negative comments. Some Q1 2022 common responses include: Number Issue Positive or Typical Response of Negative Responses 32 No problems, issues Positive We've had no problems. Always get power on taken care of quickly, right away if there's an outage Communication is excellent service good Outages are quickly resolved, and info is clearly communicated to users. Haven't had any issues. The bill has lots of info and the newsletter is helpful. 14 Expensive, fees, Negative Have not been with company very long. One rebates should be major complaint I have it the extra fee they charge higher for people with lower credit score. Doesn't seem fair when the customer has no other alternatives for service providers. This forces customers to pay a ridiculous fee that they can't control. If I had a choice, I would have gone with someone else just on this fee. I have been with this utility company since I moved here some 40 years ago. I've always found them easy to work with. At this point in time my only complaint would be in the area solar energy and any real good discounts. I think this would definitely be the way to move in the future. I've been a customer for many years. Please keep the price as low as possible. You could start giving seniors a discount based on income. All responses are recorded at the end of the report. 6 99 Net Promoter Score Respondents were asked: IƚǞ ƌźƉĻƌǤ źƭ źƷ ƷŷğƷ Ǥƚǒ Ǟƚǒƌķ ƩĻĭƚƒƒĻƓķ 9wa ğƭ ğ ǒƷźƌźƷǤ ƦƩƚǝźķĻƩͲ ĻǝĻƓ Ʒŷƚǒŭŷ ǞĻ ğƩĻ ƷŷĻ ƚƓƌǤ ƌƚĭğƌ ĻƌĻĭƷƩźĭ ğƓķ ǞğƷĻƩ ǒƷźƌźƷǤͪUsing the results from the question,the Net Promoter Score was calculated. Scores can range from -100 to +100. A score of 0 to 49.9 is considered good and a score of 50 or above is considered excellent. The NPS for ERMUfor Quarter1, 2022 is 42.5, in the range. ERMU NPS SCORES Q1 2022 42.5 45 40 35 30 25 20 15 10 5 0 Q1, 2022 ERM U The Net Promoter Score (NPS) is calculated by taking the percent of those who respond that are the most satisfied (rated a 9 or 10, or promoters) and subtracting the percent of those whoare the least satisfied (rated a 0 to 6, or detractors). TThe NPS is a widely used benchmark. 7 100 Verbatims on Why NPS Score is Given Respondents were asked why they gave ERMU a particular NPS score (promoter or detractor). A significant majority of the responses (21 of 30) were positive about staff and service. Their full responses for Q1 2022 are at the end of the report, but common responses were: Number Issue Positive or Typical Response of Negative Responses 21 No problems, Positive satisfied 5 Only choice, Negative or monopoly Neutral other 4 Expensive, could Negative treat customers cheaper power regardless of if it is "green" better power. Buy power from Coal fired power plants and keep our costs down. everything else costs enough. electricity shouldn't be so damn All verbatims for this question are at the end of the report. 8 101 Efforts to be involved in the community Respondents to the survey were asked: where 1 is low involvement and 10 is high involvement. The number of customers giving each score is shown in the chart, below. The average score for this measure is 8.1. Rating ERMU's Efforts to Be Involved in Community Q1, 2022 (1 is low involvement and 10 is high involvement) 28 13 12 66 2 1 00 12345678910 0 9 102 Communication Experience with ERMU Past 12 Months The communications experience is rated very high 36% of respondents (29) say they have communicated with ERMU in the past 12 months. If customers had interacted, they were asked to rate their satisfaction with the interaction on a scale of 1 to 10, where 10 is satisfied and 1 is dissatisfied. Their responses are shown in the chart below. The average interaction score in Q1 2022 was 8.2 Rating of Satisfaction with ERMU Interaction 1 = Dissatisfied and 10 = Satisfied Q1, 2022 20 15 15 10 53 2222 11 00 0 12345678910 Number Giving This Response Verbatims on Interaction with ERMU Respondents were asked to describe their interaction with ERMU. The written responses were evenly split between a positive and negative experience. Number Issue Positive or Typical Response of Negative Responses 7 Service is prompt and Positive helpful 6 Staff unfriendly, not Negative good information on power restoration When a power outage occurred, they weren't timetable very helpful and willing to share when they think power might be restored, very grumpy on the phone as well. 10 103 ERMU customer newsletter is the preferred method of communication How would you like ERMU to communicate with you? Check your top 3 From the chart below, the customer newsletter is the most preferred way, almost double any other choice. Other preferred ways are by the ERMU website, local newspaper and text (not currently available). Preferred Method of Communication from ERMU Q1, 2022 Customer newsletter 62% ERMU website 33% Local newspaper 25% Text (not currently available) 23% Social media 14% Live chat (not currently available) 11% Percent of Respondents Social media mentions: Facebook, 5 mentions Instagram, 1 mention Other mentions: Email, 9 mentions Mail, 2 mentions Bill message insert, 1 mention 11 104 Level of Satisfaction with ERMU Staff 10 is high satisfaction and 1 is low satisfaction. Their responses are shown in the chart below. The average staff satisfaction score in Q1 2022 was 8.8. Rating of Satisfaction with ERMU's Staff 1 = low satisfaction and 10 = high satisfaction Q1, 2022 45 40 40 35 30 25 20 15 11 7 10 5 3 5 111 00 0 12345678910 Number Giving This Response Satisfaction with ERMU Staff Respondents were asked why they gave this staff satisfaction rating. There were almost three times as many compliments as complaints. Number Issue Positive or Typical Response of Negative Responses 11 Staff were helpful and Positive positive That one-time lighting strike, the guys came out and actually attached my meter back to the house. Cause the siding guys didn't. Was great of them to do that 4 I did not have a good Negative experience with staff paid one bill twice. No response back the tree 12 105 where 10 is high value and 1 is low value. Their responses are shown in the chart below. The average value score in Q1 2022 was 7.7. Rating of ERMU's Value for the Money 1 = low value and 10 = high value Q1, 2022 23 25 20 15 15 12 9 10 5 4 3 5 2 00 0 12345678910 Number Giving This Response Respondents were asked why they gave this rating for value for the money. The written responses were evenly split between a positive and negative experience. Number Issue Positive or Typical Response of Negative Responses 8 Rates too high Negative No off-peak, rebate programs are a joke, power purchase contracts are a joke, keep the costs down instead of worrying about "green" 6 Rates are reasonable Positive Several respondents said they had no idea what the market rates is or how to compare rates. 13 106 Demographics Age: 8 in 10 respondents were over the age of 50 The chartbelow breaks downthepercentages of respondents to the surveyby agein Q12022. Thehigh response rate of customers over 50is typical for utility respondents, with lower responses among younger customers. RESPONDENT'S AGES ERMU Q1 2022 18-34, 4% 35-49, 17% 65+, 42% 50-64, 37% 14 107 ERMU Q1 2022 Actual Survey END OF Q1 2022 REPORT 108