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5.10a EMRUSR 11-12-2024Elk River Municipal Utilities Customer Satisfaction Survey Fall - 2024 Prepared for: Fall 2024 October 2024 Prepared by: Q MARKETS RESEARCH www.gmarketresearch.com 127 Elk River Municipal Utilities Customer Satisfaction Survey — Fall 2024 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. 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 Methodology The survey was sent to a total of 1,514 ERMU customers. Of them, 816 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 698 ERMU customers to complete the same survey from their computer or mobile device. No incentives were offered for participation. Pi 128 Data Collection The Fall 2024 survey included 816 mailed surveys to ERMU customers and 698 emailed surveys to ERMU customers. Both mail and email surveys were sent on Sept. 1, 2024, and data collection was closed on October 1, 2024. 91 mail responses were received, and 35 email responses were received. In total, 126 responses were received (mail and email), at an overall 8.3% response rate (and are statistically valid at a 95% confidence level to within +/- 9%). This is considered an average response rate for this type of survey. Data collection is summarized below: Medium Sent Returned Response rate Email 698 35 5.0% Mail 816 91 11.2% Total 1514 126 8.3% 3 129 Executive Summary: Fall 2024 Key Finding 1: Overall satisfaction with ERMU is generally high. ERMU gets a 6.3 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 5.8 for the efficiency rebate programs. Scores have remained largely consistent over three years. It's worth noting that a significant number of residents (nearly 60) made positive comments about customer service and overall satisfaction. Key Finding 2: The Net Promoter Score in Q3 2024 has jumped back into the "excellent" range. ERMU's Q3 2024 NIPS increased to 54.7 (scores above 50 are in the "excellent" range). This is up from 39.6 (scores 0-49.9 are in the "good" range) in Q1 2024. NIPS is a broadly recognized measure of overall customer satisfaction. Based on customer comments in this report (see p. 8), most residents report "zero issues," and like what they call friendly and dependable service. A small number were concerned about rates and prices. Some customers (10) 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, and the score is trending upward. Respondents rated ERMU 7.8 out of 10 for efforts to be involved in the community in Q3 2024, compared with 7.5 in Q1 2024, 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 8.4 out of 10, which is high, and very consistent over the past 2+ years (range is 8.2- 8.5). Customer service staff are characterized as knowledgeable and helpful by 22 written comments, with only 3 respondents registering complaints. The customer newsletter, followed by the ERMU website and local newspaper, are highly relied on by customers for information about ERMU. There was a moderate interest in adding a text chat. Key Finding 5: Satisfaction with ERMU staff remains consistently high. Over the past 6 surveys (over 3 years), satisfaction with staff remains high, with Q3 2024 registering 8.6 out of 10, consistent with past trends. 21 residents lauded their experience with staff in open-ended comments. Key Finding 6: Value for the money has improved significantly since Q1 2024 Overall, customers rated ERMU's value for the money at 7.6 in Q3 2024, compared to 6.9 in Q1 2024. Not only did residents rate value higher, but in comments half talked about rates as fair, reasonable and competitive. This is a change from past surveys, which were critical of fees, except for Q1, 2022. 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 130 Detailed Findings Satisfaction Indicators consistent and high "Reliability of ERMU's Service" (6.5), "The ease of doing business with ERMU" (6.3), and "ERMU as my utility provider overall" (6.3) 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 5.8. 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, Q1 2024 and Q3 2024. Scores over time are generally consistent. Satisfaction with ERMU (1 is completely dissatisfied; 7 is completely satisfied) Q1, 2022, Q3, 2022, Q1 2023, Q3 2023, Q1 2024, Q3 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 5.8 ■ Q3, 2024 ■ Q1, 2024 Q3, 2023 ■ Q1, 2023 ■ Q3, 2022 ■ Q1, 2022 5 6.3 6.5 6.2 6.3 131 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 (59) were positive! High costs are of concern to small segment. Some Q3 2024 common responses include: Number Issue Positive or TypicalResponse Negative Responsesof 59 Satisfied with Positive --Everything works customer service, --Great garbage pickup utility services --Solar panel installation great --Great customer service --Great crew work --Completely satisfied 3 Expensive, fees too Negative --Expensive high --Appalled at increased costs --Customer charge is a joke 3 Service not good Negative --Asked for two recycling bins, not fulfilled --Emphasis on rebates and environment is overkill --No follow up on dead tree removal --Rebate didn't apply --Don't like power outages Other: --Be greener Representative Quotes: "Have had good, consistent service. Billing app is wonderful, easy to use and provides great info, e.g. comparable usages year to year. Rebates are not as applicable to most people, but glad to have them. I have never been able to get a rebate, bad timing I guess." "Tree trimmed over power line promptly at Power restored promptly after a storm at at another residence I own." "We have always had excellent customer service each time we have ever called. All the staff is so friendly... like talking to a friend." All responses recorded at the end of the report. C.1 132 Net Promoter Score: "Excellent 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 Q3, 2024, the NPS for ERMU was 54.7, up from Q1 2024 of 39.6 and recovering back into the "excellent" range, similar to Q3 2022. The NPS for ERMU for six consecutive quarters is shown in the table below. ERMU NPS SCORES Q1 2022, Q3 2022, Q1 2023, Q3 2023, Q1 2024, Q3 2024 60.0 52.0 54.7 50.0 42.5 44.2 39.0 39.6 40.0 30.0 20.0 10.0 0.0 Q1, 2022 Q3, 2022 ca1, 202 3 Q3, 2023 Q1, 2024 Q3, 2024 Net Promoter Score Good Excellent 0-49 50-100 ERMU 54.7 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. 7 133 Verbatims on Why NIPS Score is Given Respondents were asked why they gave ERMU a particular NIPS score (promoter or detractor). A significant 36 respondents wrote positive comments. Their full responses for Q3 2024 are at the end of the report, but common responses were: NumberPositive or •Response of Negative Responses 36 No problems, Positive --Like service satisfied --Rates are fair --Zero issues --Friendly --Dependable --Power outages are taken care of 10 Only choice Neutral or --It's just a fact negative 5 Expensive Negative --High cost of rates, fees --Rates have been increasing Other comments: --I didn't want a smart meter, and I think the decision was forced. --Rebates never seem to apply. --Poor communication with customer service. All verbatims for this question are at the end of the report. 134 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 7.8 in Q3 2024, up slightly from 7.5 in Q1 2024. The trend has been to recover somewhat upward, but steady, after a high measurement in Q1, 2022. 9 8.5 8.5 ERMU's Efforts to Be Involved in Community Q1 2022, Q3 2022, Q1 2023, Q3 2023, Q1 2024, Q3 2024 1 is low involvement and 10 is high involvement (Average score) 8 7.8 7.6 7.5 7.5 7.5 7.3 7 6.5 Q1, 2022 Q3, 2022 Q1, 2023 Q3, 2023 Q1, 2024 Q3, 2024 9 135 Communication Experience with ERMU Past 12 Months The communications experience is rated very high and remains consistent 54.6% of respondents had not communicated with ERMU in Q3 2024 and 45.4% 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 Q3 2024, the average interaction score was 8.4 out of 10, up slightly from the Q1 2024 rating of 8.3. 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 8.4 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 Q1, 2024 Q3, 2024 Verbatims on Interaction with ERMU Respondents were asked to describe their interaction with ERMU. Responses were overwhelmingly positive. NumberPositive TypicalResponse of Responses 22 Staff were helpful Positive --Helpful and positive --Fast --Knowledgeable --Friendly --Good tree trimming --Fast outage response 3 Staff or payment Negative --I had to pay for the water valve issues ($350) --Grouchy customer service person --They didn't get back to me 10 136 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 V, Shown in the chart below, the customer newsletter is the most preferred way (with 63.6% of respondents selecting this option), and the ERMU website comes in second (27.3%). "Local Newspaper" and "Text" are nearly tied for the third preferred way. These preferences are mostly consistent across five surveys. Preferred Method of Communication from ERMU Q1, 2022, Q3, 2022, Q1 2023, Q3 2023, Q1, 2024, Q3 2024 % of total response 167%fi. % Customer newsletter &"8Y. ERMU website jjjjjj Local newspaper Text (not currently available) Live chat (not currently available) Social media Z3:5% 5% ■ Q3, 2024 ■ Q1, 2024 ■ Q3, 2023 ■ Q1, 2023 ■ Q3, 2022 ■ Q1, 2022 Social media mentions Q3, 2024 Facebook, 4 mentions Instagram, 1 mention Nextdoor, 1 mention Other mentions Q3, 2024 Email, 2 mentions Phone call if needed, 3 mentions Voicemail, 1 mention In Person, 1 mention Mail, 1 mention Radio, TV, 1 mention 11 137 Level of Satisfaction with ERMU Staff slightly up, 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 Q3 2024 is 8.6, up slightly compared to 8.3 in Q1 2024. Rating of Satisfaction with ERMU's Staff 1 = low satisfaction and 10 = high satisfaction Q1 2022, Q3 2022, Q1 2023, Q3 2023, Q1 2024, Q3 2024 9 8.9 8.9 8.8 8.8 8.7 8.7 8.6 8.6 8.6 8.5 8.4 8.3 8.3 8.2 8.1 8 Q1, 2022 Q3, 2022 Q1, 2023 Q2, 2023 Q1, 2024 Q3, 2024 ■ Average score Verbatims on "Satisfaction with ERMU Staff" Respondents were asked why they gave this staff satisfaction rating in Q3 2024. The vast majority of comments about staff were positive! 12 138 Rating of ERMU's Value for the Money improves to 2022 levels 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 Q3 2024 was 7.6, up significantly from Q1 2024. This is a significant turnaround, with many residents mentioning that the rates accurately reflect value. 7.7 7.2 Rating of ERMU's Value for the Money 1= low value and 10 = high value Average score 7.4 7.4 7.2 7 6.9 6.8 6.6 6.4 Q1, 2022 Q3, 2022 Q1, 2023 Q3, 2023 Q1, 2024 Q3, 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 similar number of respondents said they thought rates were reasonable and fair! 13 139 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 Q3, 2024. The high response rate of customers ages 50 and older is typical for utility respondents, with lower responses among younger customers. This Q3 2024 survey also had a high response rate in the ages 35-49 category. RESPONDENT'S AGES E R M U Q3 2024 18-34, 2.6% 2.070 50-64, 22.2% 14 140 ERMU Q3 2024 Actual Survey qq" We want to hear Elk Riverlr.-74�-� from you! _Municipal Utilities Al Elk Rrver Municipal Utilities (ERMU). a top priority lathe sa0afactlanof ourelecbk arM watertuatm�ers. You have bcxvi rarvdomLy sHectsd to give IeetlDack. Your response is Im,--t— Mips us provide .—ph-1 service arld vat -to you rw, ran oaa romprere mA swvaro dine! 6o ro hop://:,.ray:.mrarkev-*eaah./a3/ERnKJQ— w,rendu; QR reds rvtlh yoursmartphare: p, Please return this survey by Tuesday, 13ctober 4, in the postage paid envelope. a. First. please ,to your level of satkfaetlon wtlh ERMU In the foLlowing areas::11 Ina a oppopnme wx; CmY eaRAk npacy eakal� SayoAzO no oakAeo Rssst'M1e.1 fMsaf AeJ KOY 0.ssa�M1ee oagsaay �sahhW meease d doalg business wiln ERMU ❑ ❑ ❑ ❑ ❑ ❑ ❑ The kinbllily of the power. water, and in., sremces you rve hum ERMU ❑ ❑ ❑ ❑ ❑ ❑ ❑ tlatoon —hrohmenla0y, hlervRy Ntonen ❑ ❑ ❑ ❑ ❑ ❑ ❑ ERMUs etfciency rebate programs ❑ ❑ ❑ ❑ ❑ ❑ ❑ ERMU ass WRIY pmvkler overall ❑ ❑ ❑ ❑ ❑ ❑ ❑ Wny tlitl you give Und...N.? 1 Mom Ukely h d that you wouldl roc—ndi ERMU as An electric and orator WUty, pmvkle+'? Pleasedrele'.(notatall Bely) 0 1 2 3 4 5 6 7 8 9 10 (extremelylik*) Why ddyw,give (his',.1,M? Please see other side! END OF Q3 2024 REPORT 3. Please rate ERMU'aeflerta b lte invWved M the community: Pleasedreteanumber: QRw inwlvanatlj 1 2 3 4 5 6 7 8 9 10 (highhd.nienq 4Nsysymmmtunieatsdw8h ERMUIothepaslutt the? ❑Yw ❑No If Yes how saks(iedwae You wain IM kneracex? Pleasearcleanumber. 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