Water companies face mounting pressure to improve customer engagement, increase digital adoption and accelerate smart meter rollouts. However, a persistent failure to connect effectively with customers has led to slow progress, distrust and missed opportunities. Without a shift in communication strategy, water providers risk repeating the mistakes made in the energy sector, where smart meters have struggled to gain widespread acceptance.
According to The Institute of Customer Service, utilities ranked lowest in customer satisfaction in January 2024, with water companies seeing a significant decline. Ofwat’s 2022-23 report further highlighted a drop in customer satisfaction across most providers. Smart meter rollouts exemplify this challenge. Despite their benefits for conservation, billing accuracy, and leakage detection, public perception remains mixed due to poor communication and misconceptions.
The communication challenge
A key issue is the generic, one-size-fits-all messaging that fails to resonate with diverse customer motivations. The Water Industry Journal emphasises the need for tailored engagement: younger generations may respond to environmental incentives, while others might prioritise cost savings. This kind of effective communication requires customer segmentation, allowing providers to craft messages that align with individual motivations and preferred communication channels.
Behavioural science plays a crucial role in driving adoption. By leveraging customer data, water companies can track responses, refine messaging and personalise engagement. Meter data itself offers further opportunities, enabling providers to offer insights on water usage habits and efficiency improvements.
Public attitudes and barriers to adoption
Waterwise’s report on public attitudes toward smart water meters highlights a generally positive reception – once customers understand the benefits. The research found that when made aware of smart meter capabilities, customers recognised advantages such as lower bills, accurate usage tracking and better control over consumption. However, several barriers persist:
- Cost concerns – The belief that smart meters will increase bills discourages uptake. Yet, 80% of unmetered customers said they would consider a smart meter if it were free to install and promised savings.
- Misinformation – Misconceptions about installation costs, disruption, energy consumption, and data security create unnecessary resistance.
- Low awareness – Many customers simply don’t think about their water supply and are unlikely to seek out smart meter information proactively.
Addressing barriers through effective communication
Waterwise recommends proactive engagement strategies to counteract these barriers. They suggest the focus should be on:
- Highlighting cost savings – Personalised estimates showing potential household savings increase motivation.
- Providing case studies – Real-life examples of similar households benefiting from smart meters add credibility.
- Emphasising control – Customers on unmetered billing often feel powerless over their costs. Smart meters can be positioned as tools for greater financial control.
- Reassuring on installation & convenience – Clear messaging about free, hassle-free installation and remote readings alleviates concerns.
- Offering trial periods – A risk-free trial can be a powerful persuasion tool.
- Framing environmental impact as a secondary benefit – While not a primary motivator, eco-conscious messaging reinforces a positive narrative.
How Advizzo can drive smart meter adoption
We are helping water companies bridge the gap between smart meter technology and customer engagement by leveraging data, behavioural science and personalised communication. Our approach integrates multiple strategies to maximise adoption and long-term engagement. These include:
Data-driven customer understanding
We process meter, customer and open-source data to generate insights that motivate smart meter uptake. Our analytics tools measure and verify consumption reduction over time, providing tangible proof of benefits.
Personalised engagement
We use bespoke surveys and widgets to understand each customer’s context- household size, engagement level, property characteristics, and tailor messaging accordingly. Our behavioural scientists design customer journeys that align with individual motivations and preferred communication channels, ensuring relevance and impact.
Behavioural science in action
Our strategies are grounded in empirical research and proven frameworks. We employ:
- Nudging techniques – Using defaults, ease-of-use enhancements, and salience to drive action.
- Social norms and incentives – Highlighting how similar households have benefited to encourage adoption.
- Transparent data sharing – Building trust by empowering customers with insights into their water usage.
Detecting issues and enhancing customer experience
Our Event Detection engine identifies leaks and unusual consumption patterns through meter data. Customers receive timely alerts and guidance on how to address these issues, reinforcing the value of smart meters.
Multi-channel integration
Advizzo ensures seamless integration into water companies’ existing communication channels – whether digital (web, apps, email), traditional (paper, call centres), or interactive voice. This flexibility enhances accessibility and adoption rates.
Proven success in smart meter rollouts
We have already partnered with leading UK water suppliers, including Anglian Water, Southern Water, Severn Trent, South East Water, Yorkshire Water, and Northumbrian Water. Our collaborative projects have helped drive smart meter adoption, improve customer engagement, and reduce water consumption through personalised insights. Read our case studies.
Partnering with Lowri Beck
Our parent company, Calisen, specialises in smart meter installation and meter reading services across gas, electricity, and water markets. Water companies can benefit from a combined approach – using Calisen for installation and Advizzo for customer engagement and data-driven behavioural insights.
The Path Forward
Water companies have a unique opportunity to transform their smart meter rollout strategies by adopting a data-driven, customer-centric approach. By addressing common misconceptions, personalising engagement and leveraging behavioural science, providers can unlock the full potential of smart metering – benefitting both customers and the environment.
At Advizzo, we’re ready to help you achieve this. Let’s talk about how we can work together to drive smart meter adoption and create a more sustainable future for water management. Get in touch today!
Suggested further reading:
Blog – How a nudge can help your customers save energy and water