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5.2a ERMUSR 06-04-2024Elk River Municipal Utilities Customer Satisfaction Survey Spring - 2024 Prepared for: Spring 2024 May 2024 Prepared by: Q MARKET RESEARCH www.gmarketresearch.com Eik River Municipal Utiftties Customer S06.5faction Survey ............. Quarter,3, 2023 Isam- 30rimilra 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. ERMU's efforts to be environmentally friendly 6. ERMU's efficiency rebate programs 7. ERMU's ability to handle customer requests 8. ERMU's efforts 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 Methodok-Ty The survey was sent to a total of 2,258 ERMU customers. Of them, 1,250 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 ,0-knk-�LnI -i �11-moUnkaje-Lbo WtItLik-09,111 kiiii " 11 J141I III IIII ii J11'' III An email invite was also sent to 1,008 ERMU customers to complete the same survey from their computer or mobile device. HOWTVITTATWO1111111Y.T.—=0 im 2 Data CoUUerfi0l"I ERMU customers. Both mail and email surveys were sent on April 9, 2024, and data collection was closed on May 10, 2024. 101 mail responses were received, and 155 email responses were received. In total, 256 responses were received (mail and email), at an overall 11.3% response rate (and are statistically valid at a 95% confidence level to within +/- 5.7%). This is considered an above average response rate for this type of survey. Data collection is summarized below: Medium Sant Returned Response rate Email 1008 lSS 153Y6 Mail 1258 101 8.1% Total 2358 256 11.3% 3 Executive Summary Key Finding 1: Overall satisfaction with ERMU is generally high. ERMU gets a 6.2 for overall satisfaction out of 7 by customers, largely based on high scores for reliability and ease of doing business. The lowest score among the satisfaction ratings is 5.2 for the efficiency rebate programs. Scores have remained largely consistent over three years. It's worth noting that a significant number of residents (nearly 30) made comments about rates and fees being expensive. Specific issues are detailed. Key Finding 2: The Net Promoter Score in Spring 2024 for ERMU is 39.6, which is in the high "good" range, but down from Q3 2023. ERMU's Spring 2024 NIPS dropped to 39.6 from 44.2 in Q3 2023. It is solidly in the "good" range (which is a score of 0-50). NIPS is a broadly recognized measure of overall customer satisfaction. Based on customer comments in this report (see p. 9), the Spring 2024 score was strong because customers appreciate ERMU's reliability and good customer service, and customers have a general sense that rates are fair (though some see rates as expensive). Many customers (28) noted that ERMU was the only choice, partly as a matter of fact, but some said that competition would bring down rates. Details in the report. Key Finding 3: ERMU gets medium -strong grades for involvement in the community, but the score is trending slightly downward. Respondents rated ERMU 7.5 in Spring 2024 for efforts to be involved in the community, out of a 1-10 rating choice. The rating was 7.3 in Q3 2023, so the measure is up slightly. Key Finding 4: The communications experience with ERMU is highly positive and has been consistent overtime. Overall, customers rated communications with ERMU through customer service staff at 8.3 out of 10, which is high, and very consistent over the past 2+ years. While customer service staff are characterized as prompt and helpful by 59 written comments, 11 respondents mentioned that some staff were not friendly (see details). In another overall measure of all staff (not just customer service staff), respondents rated their satisfaction as 8.3, similar to how they rated customer service staff. The customer newsletter, followed by the ERMU website, is highly relied on by customers for information about ERMU. There was a moderate interest in adding a text chat. Key Finding 5: Value for the money was lower than other scores, and has been dropping slightly over time Overall, customers rated ERMU's value for the money at 6.9 in Spring 2024. This is lower than other value ratings and represents a steady drop in the value rating from 7.7 in Q1 2022. Inflation may be a factor. The Value rating is 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. rd 'r Detailed Findings Satisfaction Indicators consistent and high "Reliability of ERMU's Service" (6.6), "The ease of doing business with ERMU" (6.3), and "ERMU as my utility provider overall" (6.2) were the highest scoring satisfaction measures, out of a possible 1 to 7 score, where 7 is completely satisfied. The lowest satisfaction measure was "ERMU's efficiency rebate programs" at 5.2. 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. ERMU's efforts to be environmentally friendly 4. ERMU's efficiency rebate programs 5. ERMU as my utility provider overall The graph below compares the values for Q1 2022, Q3 2022, Q1 2023, Q3 2023 and Spring 2024. Scores over time are generally consistent. Satisfaction with ERMU (1 is completely dissatisfied; 7 is completely satisfied) Q1, 2022 vs. Q3, 2022 vs. Q1 2023 vs. Q3 2023 vs. Spring 2024 The ease of doing business with ERMU The reliability of the power, water and other services ERMU's efforts to be environmentally friendly ERMU's efficiency rebate programs ERMU as my utility provider overall 5.2 ■ Spring, 2024 Q3, 2023 ■ Q1, 2023 ■ Q3, 2022 ■ Q1, 2022 6.3 5.9 6.2 6.6 93 Verbatims on Overall Satisfaction/Dissatisfaction Respondents were then asked, "Why did you give us these satisfaction ratings." Respondents answered with both positive and negative comments. The majority of responses (87) were positive! High costs are of concern. Some Spring 2024 common responses include: NumberPositive or TypicalResponse Negative Responsesof 87 Satisfied with Positive --Everything works customer service, --Consistent utility services --No problems --No complaints --Dependable --Responsive --Great job installing solar panels 29 Expensive, fees too Negative --Expensive high --Fees seem unfair, esp. for service I don't use --Want more flexible payment options --Water costs too much --Don't like the security deposit; why isn't it refunded after a few months? 8 Environmental Negative --Want to hear more about what you do for the programs not environment promoted --Talk about off-peak usage, geothermal, nuclear --Why not promote organic recycling? --I want to learn more about the smart meter --No incentive for geothermal heat pump u Not aware of rebate Negative --What efficiency rebate program? programs --Better communicate about rebate programs --Difficult to access --Ran out of funds --Want more rebates S Trash service Negative --Service stinks --Garbage trucks leave trash all over the street --Container is broken but they don't replace --Sometimes they don't show Other: --Occasional loss of water pressure (3) -- Website could be more user friendly; hard to change my email; pay portal is clunky (3) --You're a monopoly (2) --Terrible customer service; staff is rude (2) --I don't support going green (1) --The new meter system will spy on us (1) --I've been promised an underground power line since 2018 (1) --Your new facility is overkill (1) --The snowplow tore up my yard (1) 95 Net Promoter Score: "High Good Range" Respondents were asked: 'How likely is it that you would recommend ERMU as a utility provider, even though we are the only local electric and water utility?' Using 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. In Q1, 2024, the NPS for ERMU was 39.6, down slightly from Q3 2023 and continuing in the high "good" range. The NPS for ERMU for five quarters is shown in the table below. ERMU NPS SCORES Q1 2022, Q3 2022, Q1 2023, Q3 2023. Q1 2024 60.0 52.0 50.0 42.5 44.2 39.0 39.6 40.0 30.0 20.0 10.0 0.0 = Q1, 2022 Q3, 2022 Q1, 2023 Q3, 2023 Spring, 2024 Net Promoter Score U. The Net Promoter Score (NPS) is calculated by taking the percentage of those who respond that are the most satisfied (rated a 9 or 10, or promoters) and subtracting the percent of those who are the least satisfied (rated a 0 to 6, or detractors). Those scoring a 7 or 8 are considered "neutral." The NPS is a widely used benchmark. Verbatims on Why NPS Score is Given Respondents were asked why they gave ERMU a particular NPS score (promoter or detractor). A significant 57 respondents wrote positive comments. Their full responses for Spring, 2024 are at the end of the report, but common responses were: NumberPositive I"= or Typical Response Negative Responsesof 58 No problems, Positive --Like service satisfied --Rates are fair --Zero issues --Friendly --Dependable 28 Only choice Neutral or --Competition would bring down rates negative --It's just a fact which makes this question irrelevant --Monopoly 15 Expensive Negative --High cost of rates, fees --Rates have been increasing Other comment: --I want to know more about ERMU's efforts to be environmentally friendly and rebate programs (1) All verbatims for this question are at the end of the report. 97 Efforts to be involved in the community has a stable rating Respondents to the survey were asked: "Please rate ERMU's efforts to be involved in the community" where 1 is low involvement and 10 is high involvement. The average scores are shown in the chart below. The average score for this measure was 7.5 in Spring 2024, up slightly from 7.3 in Q3 2023. The trend has been somewhat downward, but steady, since measurement began in Q1, 2022. 9 8.5 8.5 ERMU's Efforts to Be Involved in Community Q1 2022, Q3 2022, Q1 2023, Q3 2023, Spring 2024 1 is low involvement and 10 is high involvement (Average score) 8 7.6 7.5 7.5 7.5 7.3 7 6.5 Q1, 2022 Q3, 2022 Q1, 2023 Q3, 2023 Spring, 2024 10 M Communication Experience with ERMU Past 12 Months The communications experience is rated very high and remains consistent 62.2%of respondents had not communicated with ERMU in the Spring of 2024 and 37.8% had communicated. 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. In Spring 2024, the average interaction score was 8.3 out of 10, down slightly from the Q3 2023 rating of 8.4. Rating of Satisfaction with ERMU Communications 1 = Dissatisfied and 10 = Satisfied Average Score 8.55 8.5 8.5 8.45 8.4 8.4 8.35 8.3 8.3 8.3 8.25 8.2 8.2 8.15 8.1 8.05 Q1, 2022 Q3, 2022 Q1, 2023 Q3, 2023 Spring, 2024 Verbatims on Interaction with ERMU Respondents were asked to describe their interaction with ERMU. About 88% of verbatim comments were positive. These verbatim responses combine responses to questions 4 and 6 on the survey, both of which ask about ERMU staff experiences. 59 Staff were helpful and I Positive positive 11 --Helpful --Kind --Reasonable --Went out of the way to find additional rebate --Wonderful --Quick service --Professional and available --Resolved issue Other comments: --Didn't like the required deposit (1) --Not friendly or caring (1) --Didn't like the extra charge (1) --Didn't solve my problem (2) --Garbage man is on a power trip (1) --Solar panel info not good (1) --Changing my credit card was difficult (1) --When job was done, neighbors got cement and I got asphalt (1) --Budget plan confused me (1) --Didn't understand why I didn't qualify for the pool heater rebate (1) 12 100 ERMU customer newsletter is the most preferred method of communication Respondents were asked: "How would you like ERMU to communicate with you? Check your top I" Shown in the chart below, the customer newsletter is the most preferred way (with 61.7% of respondents selecting this option), and the ERMU website comes in second (37.8%). "Text" and "local newspaper" are tied for the third preferred way (23.5%). These preferences are mostly consistent across five surveys. Preferred Method of Communication from ERMU Q1, 2022, Q3, 2022, Q1 2023, Q3 2023, Spring 2024 % of total response Customer newsletter ERMU website 37.8% Text (not currently available) 23.5% Local newspaper 23.5% 7.8% Social media 6.5% Live chat (not currently available) O ■ Spring, 2024 Q3, 2023 ■ Q1, 2023 ■ Q3, 2022 ■ Q1, 2022 Social media mentions Spring, 2024 Facebook, 12 mentions Instagram, 3 mentions Gmail, 2 mentions X, 1 mention Other mentions Spring, 2024 Email, 22 mentions Phone call if needed, 5 mentions Mail, 5 mentions Staff at office, 2 mentions 13 61.7% 101 -evel of Satisfaction with ERMU Staff slightly down, but stable overall Customers were asked to rate their level of satisfaction with ERMU's staff, on a scale of 1 to 10, where 10 is high satisfaction and 1 is low satisfaction. Their responses are shown in the chart below. The average staff satisfaction score in Spring 204 was 8.3, down slightly from 8.7 in Q3 2023. Rating of Satisfaction with ERMU's Staff 1 = low satisfaction and 10 = high satisfaction Q1 2022, Q3 2022, Q1 2023, Q3 2023, Spring 2024 9 8.9 8.9 8.8 8.8 8.7 8.6 8.5 8.4 8.3 8.2 8.1 8 Q1, 2022 Q3, 2022 8.7 M Q1, 2023 Q2, 2023 Average score 8.3 Spring, 2024 Verbatims on "Satisfaction with ERMU Staff" Respondents were asked why they gave this staff satisfaction rating in Spring, 2024. The vast majority of comments about staff were positive! NumberPositive or Typical Response Responsesof IMMIF Negative 27 Staff helpful Positive --Kind --Non-judgmental --Responsive --Professional --Nice --Sincere --Friendly --Helpful --Competent 14 102 3 Dissatisfied with interaction Negative --I see field workers sitting idly --The app billed me twice and the office staff couldn't do anything about it 15 103 Rating of ERMU's Value for the Money has been dropping over time Customers were asked to rate ERMU's value for the money on a scale of 1 to 10, where 10 is high value and 1 is low value. Their responses are shown in the chart below. The average score for Spring 2024 was 6.9, down slightly from 7.2 in Q1 2023. The satisfaction trend for value is steadily decreasing over time. 7.8 7.7 7.6 7.4 7.2 7 6.8 6.6 6.4 Q1, 2022 Rating of ERMU's Value for the Money 1 = low value and 10 = high value Average score 7°4..., 7.4 ■ '■. 7.2 Q3, 2022 Q1, 2023 Q3, 2023 � Average Score ......••• Linear (Average Score) 6.9 Spring, 2024 Verbatims on "Value for the Money" Respondents were asked why they gave this rating around value for the money. Responses were mixed. While many said rates were too high, a significant number of respondents said they thought rates were reasonable and fair! Others honestly didn't know how to evaluate the cost or how ERMU compared to neighboring utilities. Number° ositiveor Typical Respons of egative Responses 19 Rates too high Negative --Bill continues to skyrocket --Getting more expensive --Water and garbage costs high 11 Rates are reasonable Positive --Worth every penny --Reasonable --Fair --Average 7 Not sure how to assess Neutral --How do our rates compare to the value competition? 16 104 Other responses: --Need competition to drive down price (3) --Want more emphasis on saving energy (1) --Silly street light fee is lame (1) --Don't like spending money on this survey (1) 17 105 Demographics Age: High participation across age groups, with largest participation ages 65+ The chart below breaks down the percentages of respondents to the survey by age in Spring, 2024. The high response rate of customers ages 50 and older is typical for utility respondents, with lower responses among younger customers. This Spring survey also had a high response rate in the ages 35-49 category. 65+, 44.9 RESPONDENT'S AGES ERMU SPRING 2024 18-34, 4.3 18 -49, 20.1 30.8 106 ERMU Spring 2024 Actual Survey We want to hear R11-wiU.I... - from you! At Elk River-keipal Utilides (ERMU), a top pda,fty Is the satltactbn of our electic and water customers You have been randomly selected to give feedback. Your response is important and helps us provide exceptional service aM valueto ya,. You run also semi lcta thls survey online/ 6o to http://wrveys.gmarkettesearch.wm/s3/g12g2a ar smn thh qR code kdth year —roahone: ❑. Please return this survey by Friday, May so, in the postage paid envelope. a. I please rate your level of satisfaction with ERMU in the following areas: Icneck ma appropr®te loom ''', Canpldeh ' Mm.y 9amrMd smri ', 9astetlm'', .cored 9orrcMd ok.mr_d MI I Conowi, o..aored ;_ol..awred I The ease of dairg b..inaes ERMU ❑ _smr._d ❑ _;_o ❑ ❑ ❑ , ❑ Cl The eel ab litypfthepower, water. antl Omer services You ve from ', race ERMU ❑ ❑ ',, ❑ ❑ ❑ ❑ ❑ ERMU e0ons to be envxo—hilly fnandly __:- ❑ ❑ ❑ ❑ ❑ ❑ ❑ ERMU ff El El El ❑ ❑ ❑ ❑ PIN— _.- - ERMU as a utility powder overa0 ❑ ❑ ❑ ❑ ❑ ❑ ❑ ',, Why did you give these ratings? 2. How Likely is it that you would recommend ERMU as an electric and water utility provider? Please ande:(mt at all likely) 0 1 2 3 4 5 6 7 8 9 10 (exlmmelylikely) Whydldyou give this ratirg7 Please see other side! END OF Spring 2024 REPORT 19 3. Marie rate ERMU's efforts to be involved in the community'. Pleasearcleanumt— pownvohenEnO 1 2 3 4 5 6 7 8 9 10 Ih gh l-1,�Tent; 4. Have you communicated with ERMU in the pat. mordhs? ❑ Yes ❑ Ni, ❑yes. how tI are you with theinteraction? Please circle a number (hg*d'issatisfed) 1 2 3 4 5 6 7 8 9 10 (hghlysei,fied) Why did you give this rI 5. How would you like ERMU to communicate with you? (check top 3) ❑ ERMU website ❑ 5ocla1 media. (which do you ure?I ❑ Customer newsletter ❑ L—Lnewspaper ❑Text bwtcurrenftypvailablel ❑ ova chat enct cunendypvpilafNe) ❑ other'. 6. Please rat. your l.v.lof satisfaction with ERMU staff: Pleasecireleanu t— powsatisfacton) 1 2 3 4 5 6 7 8 9 10 (highsatisfechm) Why did you give this rating? 7. PL— rate ERMU's value for the money: PLeasecireleanumber. Qow bl) 1 2 3 4 5 6 7 8 9 10 (high value) Why did you gN. this rating? 8. Please tell u5 a little about yourself: Age: ❑ 18-34 ❑ 35-49 ❑ 5064 ❑ 65r 9. Would you like ERMU tocontact you regarding your comments in the survey? Y. ❑ 14o'. ❑ lye.. please provide your name. email arW Phone number: FM -. _-_--- teat Name None Add''. ......... 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