How can we keep pushing for innovation in energy, mitigating the growing complexity it creates for customers?

With the rise of renewable energies, new regulations, and digital advancements, the energy sector is bursting with new opportunities – but it's also facing new challenges that rise from the added complexity created as companies explore and find new business challenges in them. Let's map some of the complex sources that are affecting our customers and then propose a design-inspired framework to approach them.

The increasing role of renewable energies in wholesale markets is great for our planet. However, this evolution has an impact on users, too: the growing relevance of dynamic prices and many different user profiles lead to a vast variety of complex tariffs, making it easy for customers to get confused or frustrated, especially if they think energy companies aren’t putting their interests first. A study by ABC News Australia found that hundreds of thousands of Australian households are being billed based on their highest usage point throughout the month, fuelling claims that energy companies are using deceptive tactics to take advantage of consumers.

When it comes to communications, energy companies tend to use technical language that is hard to follow, and this includes, of course, electricity bills. Just consider that EDF Energy published a 12-page long guide to understand them alone. This can make it tricky for customers to make decisions about rates, efficiency programs or energy savings, leading to indifference and skepticism. Plus, in the rush to stand out as a brand and create new revenue sources, many have included ‘value-added services’ aimed at differentiating the company from competitors. Nevertheless, this can overwhelm customers and increase the perception of high prices if not communicated clearly.

And finally, digitalisation is on the rise but not under control as cost efficiency is being prioritised over customer experience, removing humans from direct interaction with the customer to be substituted by chatbots, or making users deal with multiple apps to interact with their energy providers, which can lead to feelings of exclusion and stress. In fact, a report by Bain & Co found that utility companies have a lower average Net Promoter Score (NPS) than many other sectors.

By understanding these complexities and their impact, we can work together to improve the quality of all kinds of interactions with users, making their experience simpler and more enjoyable.

How design can make energy propositions and experiences simpler

This complexity in the energy sector could benefit from using more user-centred approaches. Instead of just focusing on the services when designing interactions, let’s shift our attention to the users to strengthen this relationship. A fantastic example of this is how we have built neo-banks with ambitious clients globally, applying service and interaction design, and reimagining the relationship models of traditional banking. 

Here’s a simple framework to help reduce this complexity built from the insights we’ve gathered working in the energy industry:

• Let’s filter: How about we help people by removing things that might be confusing or uninteresting to them? This means trimming down extra information, eliminating confusing details that don’t really help users, and shining a light on what truly matters. Let’s swap technical jargon for simpler language. It’s not about talking down to anyone; it’s all about making things easier for our customers.

• Let’s break it down: Once we’ve figured out what’s important, we can simplify things by using glossaries or clear explanations of key terms. Plus, providing short and easy-to-understand details about things like bills can really help reduce uncertainty.

• Let’s make it easier: After filtering and breaking down the tricky ideas, we can enhance the user experience with visual tools that present information clearly. This includes engaging resources like dashboards, graphics, easy-to-understand comparisons, or a clear and appealing design. We can also take a page from how neo-banks have designed their key interactions, like onboarding, with simplicity in mind.

• Let’s empathise: We want every customer to feel valued by creating experiences that truly match their needs and preferences. This could lead to different pricing and billing options for various types of customers, as well as personalised ways of sharing information based on how well each person understands it.

• Let’s motivate: We can break free from the cycle of commoditisation by focusing on emotions. By providing engaging interactions, like gamification, personal attention, or helpful on-demand services, we can connect with people better. If we change how people view electric companies and their interest in them, we can encourage them to get more involved in important topics like saving energy or choosing tariffs. More knowledge will make everything seem less complicated.

Moving forward

The transformation of the energy sector brings both exciting opportunities and challenges. By tackling complexity through interaction design, energy companies can empower customers to make informed decisions, manage their energy use, and contribute to a sustainable future. Interaction design is essential for enhancing customer satisfaction and loyalty.