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5.09 ERMUSR 11-14-2023��i Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tony Mauren — Governance & Communications Manager MEETING DATE: AGENDA ITEM NUMBER: November 14, 2023 5.09 SUBJECT: Customer Satisfaction Survey ACTION REQUESTED: Receive the Customer Satisfaction Survey Report — Q3 — 2023 BACKGROUND: Q Market Research was initially contracted to distribute two rounds of 1,000 customer satisfaction surveys in 2022, each consisting of 500 emails and 500 letters. With a goal of reaching as many residential customers as possible prior to the implementation of Advanced Metering Infrastructure, distribution was expanded to two rounds of 2,500 surveys in 2023, again evenly divided between emails and letters, and two more rounds in 2024. This is the last report of the year with Q1 having been presented in May. DISCUSSION: Surveys were sent on September 15 to residential customers east of Highway 169 and north of Main Street, north of Highway 10 on the west side of Elk River, and in Big Lake Township. A total of 296 responses were received for a response rate of 12.2%. The representative for Q Market Research shared some additional notes on the results: • 296 responses is phenomenal and shows a committed customer base. • It was nice to see a little jump in the Net Promoter Score (NPS). Most other utilities in Minnesota are seeing drops due to rate increases and inflation. • It seems like the biggest issue that can be addressed is your rebate program. Most utility customers at other utilities like their rebate programs, but yours find the ERMU rebates difficult to access, persnickety, and not necessarily covering enough or the right things. • ERMU's visibility in the community is in SLOW decline. Staff has already begun multiple initiatives to increase customer awareness of rebates. A Conservation Improvement Program communications campaign has been running throughout the year, a residential rebates slider was added to our website homepage which gets around 3,000 views a month, we will be placing a standing reminder about rebates on our quarterly newsletter (as the survey shows it's a preferred method of communication), and we will be creating a simplified flyer that lists all available rebates. Staff has received feedback from Page 1 of 2 104 Frontier Energy, an energy services consultant, that ERMU's rebate offerings are comparable to other utilities. The decline in visibility in the community is an interesting result. In the last two years ERMU has participated in two Downtown Halloween Trick or Treat events, two Night to Unite events, two Day of the Dozer events, two Sherburne County Fair Parades, three EV events, and hosted an open house. We have also participated in local school events such as job shadow days, career exploration activities, and mock interviews as part of our ongoing outreach efforts. There are potential sampling reasons for this result, but we will continue to prioritize being in front of the community. A common response to question number 2, "How likely is it that you would recommend ERMU as an electric and water utility provider?" raises the point that residents did not select ERMU for services, it is the only provider available. The representative from Q Market Research Provided the following comments to this, "We've tried it in many different variations, and we still get people making the comment. We've even said, "We know you don't have a choice of utility providers. Even so, how likely is it that you would recommend ...... and we still get people focusing on the fact that they don't have a choice. The utilities we survey still want to have some version of the NPS question because it is such an established, widely used and reliable benchmark. It is used nationally. In fact, the national average NPS for public utilities is 8 (ERMU is at 44.2). It's still the best relative indicator of customer loyalty around." FINANCIAL IMPACT: $4,625 for this distribution and analysis of surveys, a budgeted item. ATTACHMENTS: • Customer Satisfaction Survey Report — Q3 — 2023 Page 2 of 2 105