Community relations to reduce churn: King Country Energy

Client Challenge

In 2013 KCE began to see a marked shift in competitors entering its incumbent territory. The company needed to quickly establish a strategy (other than dropping prices) to keep customer churn i.e. those who switch away to another provider to 2.5% or less.  

HMC Solution

HMC recommended KCE develop a long-term community relations strategy as an alternative to dropping electricity prices. In the face of rising competition we partnered with KCE to focus on cementing its care and compassion for King Country communities.

Results

  • Customer churn in KCEs traditional King Country trading area has since levelled around 1.8% only, compared the industry‚Äôs 20 percent.
  • Since 2014, HMC has worked with KCE to develop and implement more than six successful new community relations initiatives:
    • Heartland Community Fund, a community grants programme
    • KCE Trees of Light, shining in three town for causes important to each community
    • Holler for a Hand, the provision of farm-help for farmers in the area
    • 12 Rays of Christmas, a holiday initiative to raise money for 12 local causes.
    • Something for Nothing campaign, providing free items and discounts for customers and benefits to local businesses
    •  Waikato Westpac Rescue Helicopter fundraisers, consisting of two successful quiz night and auction fundraisers in Otorohanga and Taumarunui (2015 and 2016 respectively). 
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