A Shift in Perspective: From Measures to Customers
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1 A Shift in Perspective: From Measures to Customers Moderator: Allen Lee, Cadmus Speakers: Greg Ward, Consumers Power RoseMary Romano, AnotherOption Baltimore, Maryland March 31, 2014
2 Energy Efficiency Evolution Technical Potential Economic Potential Market Potential 2
3 Why Focus on the Customer? Technology is not enough They take action Helps build relationships 3
4 Today s presentations Consumers Energy A Shift in Perspective: From Measures to Customers Another Option: Behavior Change from Outside the Utility Industry 4
5 Questions 1. How can utilities and program implementers strengthen residential customer relationships? 2. What lessons from other industries can we apply effectively? 3. How will applying these tools change existing relationships with manufacturers, contractors, and distributors? 4. How can stronger customer relationships improve both program design and results? 5
6 Questions? Allen Lee or Carol Mulholland, Principal (Allen) (Carol) 6
7 Consumers Energy A Shift in Perspective: From Measures to Customers Greg Ward, Consumers Energy ACEEE Panel March 2014 Co-Authors: Laura Orfanedes, Cadmus Lauren Todaro, Cadmus
8 Consumers Energy: Pure Michigan for 127 years 8 Serving nearly 6.8 million of Michigan s 10 million residents in all 68 Lower Peninsula counties Electric sales: 35.3 billion kwh Gas sales: 350+ billion cubic feet 15 gas storage fields with 143 bcf working gas 66,000 miles of electric distribution lines 26,800 miles of gas distribution main 7,400 full-time equivalent employees Helping Michigan save energy. That s our Promise.
9 Residential Energy Efficiency Programs 9 ENERGY STAR Lighting ENERGY STAR Appliances HVAC and Water Heating Income Qualified Energy Assistance Appliance Recycling Home Energy Analysis Home Performance with ENERGY STAR Windows & Insulation Multifamily New Home ENERGY STAR Construction Think! Energy Elementary Education Home Energy Reports Energy Advisor Pilot Smart Thermostats
10 Evaluation is an Important Strategic Tool 10 As the programs mature, evaluation needs change Focus more on strategic direction for the future New measures New programs Continued engagement with customers How can energy efficiency programs support stronger consumer outreach and build relationships with customers?
11 Building a Better Customer Experience 11 Understand customers through segmentation analysis Align cross-cutting evaluation with segmentation research to better understand the energy efficiency customer by demographic and psychographic factors Design programs and offerings to meet customers expressed wants and needs Employ targeted marketing and communications to better reach and engage segments
12 Cross-Cutting Marketing Evaluation Explore customer engagement stages How does customer move along path from awareness to participation? 2. Assess customer awareness, satisfaction, attitudes and values along journey 3. Understand customer motivators and barriers 4. Analyze customer preferences based on customer segments Conduct program-level assessments to identify opportunities
13 Customer Engagement Stages 13 Example: 2012 Marketing Effectiveness Study
14 Path to Energy Efficiency 14 Example: 2012 Marketing Effectiveness Study
15 Gauge Customer Awareness 15 Example: 2012 Marketing Effectiveness Study
16 Understanding Barriers and Motivations 16 Example: 2012 Marketing Effectiveness Study
17 Analysis of Customer Segments 17 Example: 2012 Marketing Effectiveness Study
18 Customer Preferences by Cluster - Example 18 Example: 2012 Marketing Effectiveness Study Digital Dwellers
19 Participation Analysis by Cluster - Example 19 Example: 2012 Marketing Effectiveness Study Digital Dwellers
20 Program Level Assessment 20 Evaluate program accomplishments and achievements Measure customer satisfaction with program elements Leverage findings to understand customer preferences Identify future opportunities to engage customers, drive participation and increase satisfaction
21 Evaluate Program Level Achievements 21 Example: Appliance Recycling Program 2012 Study
22 Ongoing Customer Satisfaction Research 22 Example: Appliance Recycling Program 2012 Study
23 Understand Preferences and ID Opportunities 23 Example: Appliance Recycling Program 2012 Study
24 Consumers Energy Present and Future 24 Use evaluation findings to better target customers by segment and/or cluster Tailor marketing, messaging, channel and media strategies based on customer preferences, attitudes and values Engage customers in energy efficiency journey Use future evaluation to better understand the key points in the customer journey through energy efficiency
25 Thank You! 25 Greg Ward Consumers Energy Phone: (517) Laura Orfanedes Cadmus Phone: (617)
26 A Shift in Perspective: From Measures to Customers Rose Mary Romano Managing Partner March 31, 2014
27 Behaviors in my World You are 50, time for your 1 st colonoscopy! From now on you need to use a condom when you have sex, even with your wife/husband! Once you start treatment, you need to take 6 pills every day for 6 months. You don t want any more children but your mother-in-law wants you to have a son.
28 We re not so rationale. We don t pay attention. We are ruled by habits. We follow our friends. Emotions
29 We prefer instant rewards!
30 52.4% of US smokers tried to quit in KNOWLEDGE Knowledge and motivation are often not Only 6.2% succeeded. enough.
31
32 What do consumers want? How are consumers different? What are others offering? What are competing behaviors?
33
34
35
36 Educate mothers on risks to child. Provide Skill training. Distribute car seats at low price.
37 My child is always safest in my arms. God decides when to take my baby.
38 What can we do to help people? Beliefs are messed up. She doesn t understand science. She won t listen.
39 Have a priest bless the car seats. It is what she perceives as important that matters. a service to match her beliefs.
40 Listen Problem Solution Audience Offer
41 But, what do we listen for?
42 Listen For:
43 Exchange We have to give people something if we want something from them.
44 Segmentation People do not want the same things we have to find out how they are different.
45 Behavior Change: Degree Of Difficulty Low Hanging Fruit Resistors
46 Social and Behavior Change Framework
47 Behaviors
48 The Environment Can Support or Oppose the Behavior Family Religion Social norms Peers Services and facilities Policies Politicians
49 Example: Seat Belt Campaign Federal law mandated seat belts be included in all cars sold in the US in Average seat belt use 31% State seat belt use laws went into effect from Immediate result after law 48% - Rose to an average of 69% in 1998
50 First Seat Belt Campaign : Vince and Larry The Crash Dummies
51 Click it or Ticket Enforcement and Campaign Started in 1993 in North Carolina Now national campaign for NHTSC Seat belt use rose from 69% in 1998 to 88% in 2013
52
53 Resistors Seat belt laws exist in 49 states for adults and 50 states for car seats. There are still groups less likely to wear seat belts: teens commercial drivers males in rural areas pick-up truck drivers people driving at night people who have been drinking.
54 ature=player_embedded&v=2jfut IYHMvY
55 In Summary.. Listen to consumers Determine the barriers and benefits to adopting a behavior from their perspective Look to environmental factors that can promote change Offer a compelling exchange that speaks to their needs, desires and ambitions
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