First Utility picks VCCP for £5m repositioning brief
First Utility has appointed VCCP to handle its creative account, replacing Upstart, following a review earlier this year.
The Drum understands the creative account is worth in excess of £5m and will see VCCP deliver a campaign to help the independent – and seventh largest – energy supplier position itself as on the customers’ side.
The brief is reflective of a troubled energy sector. First Utility revealed plans to spend £20m to improving its customer service in 2014 as a report by MoneySavingExpert found that complaints had more than doubled over three months year-on-year. Despite the study, First Utility's number of complaints per 100,000 customer ratio is one of the lowest in the industry, it caimed.
Shortly after the research launched the energy provider released a brand awareness drive though it was not in response to the findings. The campaign was part of wider efforts to promote its tarrifs.
However, these efforts to attract new customers came amid a year-long review by The Competition and Markets Authority, which found that millions of people have been "paying too much for their energy bills" and the lack of transparency in the market is "hampering trust". As such the body called for a complete reform of the energy market.
With the hire of VCCP, First Utility will now be looking to drive home the message that it’s a credible alternative to the big six and that it cares about its customers.
The switch in creative agency also comes as the First Utility plots a potential IPO, having reportedly met with bankers in July to steer a £500m stock market listing. It has also reportedly entertained the idea of a £500 million takeover bid from private-equity company CVC Capital Partners.
Paul Cable, head of marketing at First Utility said: "We're at an exciting stage of our journey with strong growth and big ambitions to shake up the energy market and deliver lower energy bills for millions of customers. We need an agency roster that can support those ambitions."