Consumer Marketing Pays Off as British Gas Sees 11 Percent Profit Rise

The marketing efforts by British Gas designed to improve its reputation amongst consumers is seeing early signs of paying off - according to the latest brand tracking data, despite a weak economy and rising wholesale costs, their profits have soared by 11% to £606 million.

British Gas has also reported that its "churn" - the number of customers switching to another provider - is the lowest it has ever been, which further indicates that its marketing activity and efforts to improve customer service over the past year are taking effect.

In addition, this winter's lengthy spells of cold weather has contributed to the energy giant's profit rise - household gas usage rose by 12%, giving residential energy revenues an increase to £9.1bn from £7.9bn.

The company has launched several high-profile marketing initiatives over the past few months, including a simplified bills service and an online consumer panel to improve transparency across it business.

Nevertheless, their success has given rise to anger amongst many customers, since British Gas increased their tariff fees by 6% at the end of last year.

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