2013 highly commended: British Gas, Long Term Marketing Excellence - case study

2013 highly commended: Long Term Marketing Excellence

In 1986, following privatisation, British Gas was pronounced Britain’s most popular brand. Twenty years later it was just another energy company, losing 40,000 accounts every month.

In 2008 the new Managing Director, Phil Bentley, took urgent action to turn the business round. He outlined a two-year vision to ‘Get back to great’ and put the business back into growth in two years. The way to achieve this was to reduce the churn to a more sustainable level. The focus needed to be on the customer.

CHI, British Gas’ communications agency, had a vital role to play. Their response was to find an idea big enough to be the catalyst for ‘great’.

Looking after your world

The idea was ‘Looking after your world’ and its impact was profound: £82.7m profit from £45.5m investment, giving a profit ROMI of £1.82 for every marketing £ invested.
Churn fell from a frightening 2.6m customer accounts per year, down to a much more sustainable 1.7m. British Gas was now acquiring new customer accounts faster than it was losing them.

More than this, it galvanised necessary organisational change – leaving the business ready to face the future with confidence.

Phil Bentley’s challenge had been met. But since then the campaign has faced an even greater test: staying great. Staying great in an increasingly hostile environment. Staying great in an industry beset by regulators and media bemoaning fat cats and the utility cartel. Staying great in the face of increasing wholesale prices. With a price disadvantage versus competitors to boot.

Against all odds, marketing has held up the brand, still leading in consideration and campaign recognition. Most miraculously even creating 61% short term ROMI through communications designed solely to mitigate price rises.

So far, so great.


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