How Customer Satisfaction Drives Return On Equity (ROE) for Regulated Utilities
J.D. Power’s Utilities & Infrastructure industry research has identified quantifiable links between customer satisfaction and key financial metrics, such as profitability and credit ratings. Moreover, a highly satisfied customer base can be a leading indicator of return on equity for utilities. This finding suggests that investing in customer satisfaction can yield rewards as significant as those when investing in tangible assets, such as power plants, transmission lines, and distribution infrastructure.
J.D. Power’s How Customer Satisfaction Drives Return On Equity for Regulated Electric Utilities white paper provides an in-depth, analysis of this relationship and details the benefits of implementing performance improvement initiatives that increase overall customer satisfaction.