Roy Morgan Research
September 09, 2019

Simply Energy keeps Lumo Energy at bay in the race for gas provider customer satisfaction

Topic: Customer Satisfaction, Press Release
Finding No: 8124
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Simply Energy has secured the Roy Morgan Gas Provider of the Month Award for July 2019 with a customer satisfaction rating of 72.4%. Simply Energy has now won back-to-back awards, taking its monthly win tally to three for 2019.

Simply Energy’s customer satisfaction rating of 72.4% was followed by Lumo Energy (71.6%), Kleenheat Gas (70%), Elgas (66.9%) and Alinta Energy (66.7%). 

These are the latest findings from the Roy Morgan Single Source survey derived from in-depth face-to-face interviews with 1,000 Australians each week and over 50,000 each year.

Both Simply Energy and Lumo Energy recorded the largest increases in customer satisfaction ratings compared with a year ago. Simply Energy has increased from 61.6% in July 2018, to 72.4% (+10.8%) as of July 2019. Lumo Energy has also climbed impressively by 15.6% points over the same period.

Lumo Energy leads the monthly award tally for 2019 with four wins. However, thanks to its latest win, Simply Energy sits close behind with three. It appears likely that one of these two providers will win the Roy Morgan Gas Provider of the Year award for 2019.

The Roy Morgan Customer Satisfaction Awards highlight the winners but this is only the tip of the iceberg. Roy Morgan tracks customer satisfaction, engagement, loyalty, advocacy and NPS across a wide range of industries and brands. This data can be analysed by month for your brand and importantly your competitive set.

Leading Gas Provider Customer Satisfaction Ratings for July 2019

Source: Roy Morgan Single Source Australia, Aug. 2017 – July 2018, n = 5,007; Aug. 2018 – July 2019, n= 9,453. Base: Australians aged 14+ who are connected to gas.

What do we know about Simply Energy and Lumo Energy customers?

Although Lumo Energy customers have a slightly higher average income ($54,970) than Simply Energy customers ($49,690) both sets of customers are most likely to come from the same Roy Morgan Value Segment which is Traditional Family Life, which is a segment representing the core of 'middle Australia', with values centred around significant events in peoples’ personal and family lives. They are motivated by security, reliability and providing better opportunities for their family.’ 

Simply Energy customers like to take care of their cars and are positive about the economy

Simply Energy customers are more likely than the average Australian to agree that ‘Health food isn’t necessary if you eat properly’ and ‘favour natural medicines and health products’ as well as ‘choosing a car mainly on its looks’ and that ‘you can tell a type of person by the type of car they drive’.

In addition far more Simply Energy customers than the average Australian agree that ‘TV advertising gives them something to talk about’, and they are far more likely to ‘always read the business section of the newspaper’ and agree that ‘The Australian economy appears to be improving’ compared to the average Australian.

When it comes to leisure and entertainment our Simply Energy customer is far more likely to work in the garden or on their car than the average Australian, and far more likely to enjoy spending time at the local casino or racetrack. As well as enjoying time at the race track the AFL is easily the most popular sport for Simply Energy customers ahead of the Olympic Games and Cricket.

Lumo Energy customers are health conscious and keen on improving their home

The quintessential Lumo Energy customer is clearly health conscious and far more likely than the average Australian to agree that ‘they’re concerned about their cholesterol level’, ‘always think of the number of calories in the food they’re eating’ and is ‘eating less red meat these days’.

They’re also far more likely than the average Australian to ‘record TV programs they can’t watch’ agree that ‘magazines are a good way to relax & unwind’ and agree that ‘I always keep up-to-date with new ideas to improve my home’ however also more likely to be ‘worried about interest rates at the moment’.

Lumo Energy customers enjoy a night out and are more than twice as likely as the average Australian to go to jazz, classical or blues performances, and far more likely than other Australians to see live theatre and rock or pop music concerts and almost 50% more likely to be a heavy cinema goer than others.

Michele Levine, CEO of Roy Morgan, says:

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“The energy industry remains under high scrutiny as successive governments grapple with energy policy, climate change and an increasingly vocal electorate concerned with rising prices.

“Similar to the customer satisfaction ratings of electricity providers, gas providers are recording lower ratings when compared to many other industries. As shown in the latest satisfaction data, the leading providers are only achieving satisfaction ratings of just over 70%.

“What is positive for the industry is the rise in ratings when compared to a year ago. Simply Energy, Lumo Energy and Alinta Energy have all recorded significant increases to their satisfaction ratings and now all rank amongst the top five gas providers for customer satisfaction.

“In particular Simply Energy and Lumo Energy have been neck-and-neck in satisfaction ratings for most of 2019. Lumo Energy has claimed four monthly awards, however July’s award takes Simply Energy to three, and if trends continue, expect that tally to rise.”

“Contact Roy Morgan to learn more about what sets Australia’s gas providers apart from their competitors and what it takes to build a loyal customer base. Roy Morgan’s extensive data covering utilities including gas providers is derived from interviews with over 50,000 Australians per year through in-depth personal interviews conducted in their homes.”

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Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size Percentage Estimate
40% – 60% 25% or 75% 10% or 90% 5% or 95%
1,000 ±3.0 ±2.7 ±1.9 ±1.3
5,000 ±1.4 ±1.2 ±0.8 ±0.6
7,500 ±1.1 ±1.0 ±0.7 ±0.5
10,000 ±1.0 ±0.9 ±0.6 ±0.4
20,000 ±0.7 ±0.6 ±0.4 ±0.3
50,000 ±0.4 ±0.4 ±0.3 ±0.2

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