12/2/2014. BC Hydro and Power Smart. Power Smart Residential Behavioural Program Aka Team Power Smart. BC Hydro s behavioural approach
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1 BC Hydro and Power Smart Power Smart Residential Behavioural Program Aka Team Power Smart Arien Korteland Crown Corporation Servicing ~1.7 million residential customers Near-monopoly (servicing ~95% of territory) Mainly hydro electricity (~95%) January 18, 2012 Power Smart is BC Hydro s conservation brand Successful portfolio of residential DSM programs, incl. Fridge Buy-Back, Lighting, Appliances, etc. (mostly product focused) 2 BC Hydro s behavioural approach Behavioural Program development Conservation Potential Review 2007: Identified opportunities for behavioural savings Residential: 25 behaviours in 8 categories Behavioural approach: Conservation rates (Residential Inclining Block) (introduced Oct. 2008) Smart Meters and In-Home Feedback (F13) Power Smart Residential Behavioural Program (launched Oct. 2008): Designed as a loyalty program Marketed under the Team Power Smart banner 3 Theory: Behaviour change Habit formation Social Marketing Best practices: From utility industry (California 20/20, small-scale short term pilots) Other programs (incl. Weight Watchers, AA, loyalty programs) Market test: Year-long market test with ~500 participants Segmentation: Geodemographic Psychographic Barriers research: Behaviours broken down into behavioural actions Barriers for each behaviour assessed 4 A few comments on barriers Barrier levels: Need for energy conservation (incl. consumer indifference) Fulfill need (take action, join program) Barriers to each specific behavioural action 5 6 1
2 Behavioural Program concept Barrier levels: Buying into need for energy conservation (incl. consumer indifference) Doing something about it (join program) Barriers to each specific behavioural action 7 8 Behavioural Program development Behavioural Program concept Basic understanding: Behaviour change is a long-term and ongoing process with various stages (Transtheoretical or Stages of Change model) Behaviour change evolves around learning new responses and thus adjust behaviour Key elements of learning process include: Instructions Feedback Motivation Repetition Relational (not transactional) Connect low involvement topic of energy conservation to the things that people care about Behavioural Program designed as a loyalty program; allows for: Long-term approach Permissive marketing opportunities Increasing participant engagement levels over time Make emotional connection between low involvement topic (energy conservation) to the things that people care about (storytelling, co-creation and other tools) Marketing mix based on Principle of exchange P for Price: What participants must give up or overcome the get the product s benefits (non-monetary costs and barriers) P for Product: Intangible product features (norm appeal, group appeal, hidden motives) Tangible product features (member perks) P for Place: online and offline (education, motivation, prompting, reminding, etc.) P for Promotion: multi-channel mass and direct (make use of co-creation) 9 10 Product Mix Tangible product features: Behavioural Program goes to market under the Team Power Smart banner Participants join online to become a member Member perks include: Access to online Members Tool Box Online tools, incl. consumption/tracking graphs, Compare Your Home, Analyze Your Home Special offers Members-only contests Invitations to member events Opportunity to participate in a 12-month reduction challenge and earn a $75 reward Regular communications by and mail, incl. monthly enewsletter, challenge updates and a member magazine
![2011 Tuned-Out & Carefree 7% [unclassified] Entrenched Libertarians 0% 1% Comfort Seekers/Wayward Warmers 11% Cost-Consciour (Humble) Practitioners 9% Devoted Conservationists 40% Transition between](/docs-images/76/73922342/images/3-2.jpg "categories: Hot lead > acquisition: ~60% Stumbling Proponents 14% Devoted Conservationists 59% Cost-Consciour (Humble) Practitioners 22% Stumbling Proponents 19% April 2008 November 2011 15 16")
3 Impact Evaluation F10: Concept review by independent 3 rd party (AED) Billing analysis/statistical analysis (double deflation) Participant/non-participant survey Impact Evaluation F11 + F12: Preparations have started Need to learn about persistency Monitoring KPI s: Participation Transition between categories Psychographic participant profiling Engagement Challenge performance Member satisfaction Energy savings Behavioural impact Participation: Psychographic breakdown: Apr [unclassified] 2% Tuned-Out & Carefree 2% Entrenched Libertarians 8% Comfort Seekers/Wayward Warmers 6% Nov Tuned-Out & Carefree 7% [unclassified] Entrenched Libertarians 0% 1% Comfort Seekers/Wayward Warmers 11% Cost-Consciour (Humble) Practitioners 9% Devoted Conservationists 40% Transition between categories: Hot lead > acquisition: ~60% Stumbling Proponents 14% Devoted Conservationists 59% Cost-Consciour (Humble) Practitioners 22% Stumbling Proponents 19% April 2008 November Engagement: Quantitative: use of Members Tool Box, redemption of special offers, participation in members-only contests, etc. Rating (of value proposition elements) Engagement: Qualitative: Affiliation, Enjoyment, Resonance
4 Challenge performance: Member satisfaction: Member satisfaction: Impact Evaluation: 5.15 GWh/yr in F10 19 Behavioural impact: Program participants consistently outperform non-participants on all behavioural dimensions measured 20 Social marketing tools Setting a target Prompting/ reminding Providing feedback Member magazines Co-creation (crowdsurfing) Gaining commitment Storytelling BEHAVIOUR CHANGE Engaging participants Meeting people where they are Providing value add Rewarding progress Utilizing the power of norms Addressing barriers Member event Member event How was your experience at the Team Power Smart Member s day at Science World? Very favourable 76.7% Favourable 23.3% How likely are you to encourage a friend or family member to Join Team Power Smart? Very likely 66.7% Somewhat likely 30.0% Not likely 1.7% Not at all likely 1.7% Please indicate the extent to which you agree or disagree with the following statement. I feel more valued as a member of Team Power Smart being invited to these exclusive events. Strongly agree 78.3% Somewhat agree 20.0% Neither agree nor disagree 1.7%
5 Annual members-only photo contest Sponsored by London Drugs Celebrity judging panel Top 10 in Royal BC Museum, on billboards, in newspaper ads Board game Recycling box sticker project Team Power Smart branded clothes pegs (active prompt and reminder) A few last comments Testimonial campaign Energy savings Still moderate, but cost-effective Expected to ramp up Flexible program design Coming: improved feedback through Smart Meters and In-Home Feedback Long-term program strategy Need to commit
6 Questions? Thank you! 6
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