Valuing Non-Energy Benefits: Selling Home Performance with ENERGY STAR. Karen Villeneuve Program Manager Residential Marketing NYSERDA

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1 Valuing Non-Energy Benefits: Selling Home Performance with ENERGY STAR Karen Villeneuve Program Manager Residential Marketing NYSERDA

2 Overview Non-energy benefits (NEBs) of the Home Performance with ENERGY STAR Program Value to customers Impact on program evaluation Using NEBs in marketing

3 How do We Identify and Measure NEBs? Unsolicited Comments Testimonials, complaints, anecdotal information from contractors Hard Data Water savings, carbon monoxide measurements, health data, etc Seek Opinions Surveys, Direct Query method, Conjoint Analysis (experiment)

4 Why the Homeowner Invests Comfort Health and safety Resale value Ability to stay in home Aesthetics Environmental benefits Save energy and money

5 Results of Opinion Research Home Performance with ENERGY STAR 2003 Survey More than 50% of homeowners said NEBs were very valuable Value of NEBs was equal to value of energy benefits 31% of contractors always inform customers of NEBs

6 Results of Opinion Research (con t) New York ENERGY STAR Labeled Homes 2003 Survey Results similar to Home Performance survey 2005 Direct Query & Conjoint Analysis Results vary between the two techniques, but still show value of NEBs to be at least 50% of that of the energy benefits

7 Value of Attributes in Relation to Energy Savings - Participants 120.0% 100.0% Value of Attribute (% of Energy Savings) 80.0% 60.0% 40.0% 20.0% 0.0% Ease of Selling Indoor Air Quality Thermal Comfort Noise Levels Safety Maintenance Durability Overall Impacts

8 Respondents perception of whether anticipated NEBs influenced their decision to buy a more energy efficient home Non-Participants Participants All Respondents 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % reporting Did not Slightly Moderately Significantly

9 Potential Impact on Benefit/Cost Tests Whole house approach, including work resulting in NEBs, sells the job Homeowner invests in NEBs Total homeowner investment is added to the cost in the equation Program administrator is penalized for driving consumer investment

10 Where does that leave us? We know homeowners value NEBs Some NEBs are more important to homeowners than others We can design marketing and messages that address the NEBs to help sell a comprehensive work scope We still need to find a way to value NEBs in program evaluation

11 Marketing Homeowners and landlords driving customers to the program Contractors encouraging them to become participating, BPI-accredited

12 How we Deliver Marketing Messages Real people in TV and print ads Case studies in print and on web site Brochures and other program material Press releases, articles, events Guidelines for partner co-op In all cases, NEBs are part of the message

13 Testimonials

14 Television ads

15 Fliers for events

16 Articles with NEBs in headlines

17 Press releases featuring problems that our program can resolve

18 Sell the contractors on the program by showing them the program addresses what is important to their customers

19 Tell the contractors how to differentiate themselves from the competition by learning how to address their customers problems

20 Co-op incentives for partner ads featuring NEBs, as described in our co-op requirements document Copy requirement: one of the following written taglines must be included in the advertisement and tagline text must be of equal size to that used in the body copy of the ad: BPI Accredited Home Performance contractors use diagnostic testing to make your home healthier, safer and more energy efficient. Home Performance with ENERGY STAR can help you lower your energy bills and make your home safer and more comfortable. Home Performance with ENERGY STAR making homes more comfortable, safe and energy efficient in New York

21 NEBs Sell Comprehensive work scopes offering maximum energy benefits Happy customers enjoying the NEBs Happy partners seeing success in the program

Chris Carrick CNY Energy $mart Communities Coordinator New York State Energy Research Development Authority (NYSERDA)

New York Energy $mart mart SM Programs SUNY-ESF: SURE 2009 November 5, 2009 Chris Carrick CNY Energy $mart Communities Coordinator New York State Energy Research Development Authority (NYSERDA) Who is