From price competition to customer loyalty: A new approach for energy retail

In a market where switching is easy and price competition remains intense, energy retailers need stronger ways to build customer loyalty.

For companies looking to reduce churn, and create more long-term value, that means thinking beyond the core energy offering and focusing more on the services and experiences that give customers a reason to stay.

Research from McKinsey has pointed to the commercial impact of stronger customer experience in energy retail, showing how improvement in customer journeys and service delivery can reduce dissatisfaction and support better business outcomes.

When the underlying energy offer is difficult to differentiate, loyalty must come from somewhere else.

For energy retailers, that often means creating value through better customer experiences, more relevant services, and clearer visibility into consumption. The goal is not just to improve engagement in the moment, but to build a relationship that feels useful enough to keep.

‍

Creating value beyond the core energy offering

Wattn reflects that shift clearly. Faced with high churn in a price-driven market, the company focused on creating added value through smart energy services rather than relying on price alone.

The case highlights personalized insights branded digital applications, and home energy management capabilities as ways to make the customer relationships more useful and more relevant beyond the core energy offering.

In that sense, the strategy is not only about improving engagement in the short term, but about building a stronger basis for retention over time.

‍

Building loyalty for the future

That matters for more than retention alone. In the Wattn case, the longer-term ambition is not only to strengthen customer loyalty but also to establish a stronger position in a changing energy market.

Onics frames access to distributed energy resources and home energy management capabilities as part of what can prepare Watnn for future flexibility opportunities.

That makes the case relevant beyond churn alone. It shows how value-added services can support both stronger customer relationships today and broader service deployment over time.

In that context, the Wattn case is part of a broader shift in energy retail.

Retailers that create more value around the customer relationship are likely to be better placed not only to reduce churn, but also to build stronger foundations for future services.

For energy retailers, the challenge is no longer just staying competitive on price.

It is how to create a customer relationship that feels valuable enough to keep. As the market continues to evolve, that combination of loyalty, relevance, and long-term readiness is likely to become a more important source of differentiation.

‍

Are you ready to rethink loyalty in energy retail? Get in touch with Niels Ernst: ner@onics.com

‍