Optimizing Utility Company Customer Satisfaction Using Key Driver Analysis

Client Overview

A large utility provider supplying electricity, gas, and water to residential and commercial customers faced a decline in customer satisfaction. Complaints included:

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Frequent  billing errors.
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Slow customer service response times.
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Perceived unfair rate hikes.
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Service disruptions without adequate notifications.
The utility provider needed a data-driven strategy to analyze customer satisfaction, uncover key drivers, and enhance service quality.

Phase 1: Data Science Approach to Analyzing Key Drivers

Data Collection & Integration

We aggregated:

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Customer feedback surveys (NPS, CSAT, and open-ended responses).
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Customer support logs (billing complaints, service issues).
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Usage data & service reliability metrics (power outages, water supply interruptions).

Machine Learning Key Driver Analysis

Using Gradient Boosting Models (XGBoost) and Logistic Regression, we identified:

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Billing accuracy was the biggest predictor of dissatisfaction.
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Call center wait times correlated with lower NPS scores.
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Frequent, unexplained rate changes frustrated customers.

Phase 2: Implementing AI-Driven Solutions

Automated Billing Error Detection

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AI models identified anomalies in customer bills before they were issued.
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Estimated billing discrepancies dropped by 32%.

AI-Powered Customer Support Automation

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Chatbots & AI call routing reduced wait times by 60%.
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Customer service reps focused on complex cases instead of routine inquiries.

Transparent Rate Change Communication

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Predictive analytics & customer segmentation improved outreach strategies.
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Personalized rate explanations were sent before price adjustments.

Results & Impact

NPS increased from -5 to +20 within 9 months.

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Billing complaint resolution time improved by 50%.
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Customer service wait times reduced from 10 minutes to 2 minutes.
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The utility company successfully leveraged data science to enhance transparency, optimize billing, and improve customer satisfaction.