A Vision. RESEARCH is critical to achieve this vision

Transcription

1 A Vision The VISION: Technology advancement related to energy use and demand will match or even eclipse the consumer electronics industry in innovation, time to market, and consumer acceptance RESEARCH is critical to achieve this vision The QUESTION posed: What are the 5 key studies that we d recommend doing that would most accelerate the adoption and implementation of Emerging Energy Technologies in California? 1

2 Wheel of Research Environmental Surveillance & Analysis Performance Monitoring & Evalua;on Problem / Opportunity Defini;on Tes;ng & Refining Alterna;ves Iden;fica;on & Assessment of Alterna;ves 2

3 Environmental Surveillance & Analysis Secondary data and indepth qualitative research represents a real opportunity to gain insights into the market early in the technology development process Can be useful to guide primary research as well as providing insights into primary research findings What are characteris+cs of our market? What major trends influence these characteris+cs? How are we doing compared to others? What technologies exist and how are they being used? 3

4 Environmental Surveillance & Analysis Published Data Need Approach Results A utility needed profiles of the major industries it serves. Industries profiled included: Government Food processing Food stores & warehouses Restaurants K-12 Education Higher Education Hotels Retail Research used published government data, industry association sources, news items and key interviews. Information was compiled about each industryʼs market, players, and energy consumption, as well as about energy efficiency technologies and strategies. How decisions are made is important, but not discussed in published sources. Limited interviews provided perspective on how purchasing and energy management decisions are made. Completed profiles gave the utility information about the industriesʼ markets, challenges, energy use, and progress in reducing energy use. How the utility can work with customers in each industry was described in the industry profiles. The profiles allowed the utility to design appropriate programs for its customers by industry and market to them more effectively. 4

5 Environmental Surveillance & Analysis Competitive Intelligence Need Approach Results The client provides energy efficiency programs to member utilities. One of these utilities was interested in launching a new program with its largest industrial customers. The client wanted to collect profile information about the set of customers in order to have an idea up front about how large and diverse the set was. Used published sources to gather basic data such as sector, NAICS code, ownership, locations, identity of executives, and number of employees. Mapped the locations of the customers within the state the utility serves. Estimated the energy usage of the customers in the target state. The estimates relied on government data of average energy use per employee by NAICS code. Findings identified what types of commercial and industrial customers the utility was interested in working with and how large the customers were. Client was able to assess whether it could offer off-theshelf programs or if it would have to develop a custom program. 5

6 Environmental Surveillance & Analysis Technology Assessment Need Approach Results A building products company had aligned itself with a supplier that had a energyharvesting switch for lighting control. The client was concerned that new wireless power transmission technology posed a competitive threat. Literature, patent and internet research to identify technical information on energy harvesting and wireless transmission. In-depth conversational interviews with leading experts to expand the secondary information to include the current state of the art. One of the wireless power transmission technologies only existed in a university research lab and was not close to commercialization. The three technologies of interest had distinctly different operating parameter ranges and were concluded to be more complimentary than competitive. 6

7 Problem / Opportunity Definition Market Segmentation Research Market segmentation forms the foundation of marketing strategy Good market segmentation research provides a company with clear direction on which group or groups represent the best target A profitable target is... Big enough to merit dispropor;onate acen;on (e.g., 10 to 30%) Bigger in poten+al profitability than size (e.g., 50 to 70%) Growing over ;me Different demographically and therefore can be differen;ally reached Dis+nctly different in its problems / wants / needs 7

8 Market Segmentation Example Six consumer segments were iden+fied according to consumer preferences for different components of electricity management programs* Indifferents 13% Proac;ves 16% Skep;cals 21% Eco Ra;onals 12% Pragma;cs 21% Cost Conscious 17% 8 * Accenture, Understanding Consumer Preferences in Energy Efficiency, 2010

9 Segment Characteristics* Adop;on ACributes Demographics Proac+ves (16%) Pragma+cs (21%) Cost Conscious (17%) Highest willingness to take ac;on to reduce the use of major appliances in their home Lowest interest in the reduc;on of their impact on the environment Higher preference for inperson contact at their home to get general informa;on about electricity management programs Higher propor;on use electricity to heat homes Lower acceptance of u;lity control Higher sensi;vity to electricity bill savings More ready to switch products and brands Less prompt in adop;ng new technologies More o[en men Highest sensi;vity to electricity bill savings Higher impact of social pressure to drive them to take ac;on Higher posi;ve percep ;on of people enrolled in an energy management program More likely to be discouraged from adop;ng programs if their bill more complicated or requires more ;me to manage their usage Higher level of trust toward u;li;es More o[en women 9 * Accenture, Understanding Consumer Preferences in Energy Efficiency, 2010

10 Identification / Assessment of Alternatives Identify innovation strategies that minimize risk and maximize performance Dramatically increase the ROI of an innovation strategy What are opportuni+es / problems? What is the range of alterna+ve solu+ons? What opportuni+es exist for new products or services? Which opportuni+es should be pursued? Who well is a new technology (product or service) likely to perform? 10

11 Identifying What People Are Willing to Do An Example Reduce amount of waste you produce Clean / replace air filters as recommended Use warm or cold water when washing clothes Weatherize home using caulk or weatherstripping Car coolant is recovered and recycled 12.2% 11.9% 10.3% 10.0% 9.8% 8.9% 7.8% 4.9% 4.7% 4.6% 4.5% Select most energy efficient models 3.6% when replacing appliances 2.1% Walk, bike, carpool, or use mass transit 1.7% 1.5% Willingness to Do Become community ac;vist for energy 1.3% efficiency 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 11

12 Identifying What People Are Willing to Do An Example Reduce amount of waste you produce Clean / replace air filters as recommended Use warm or cold water when washing clothes Weatherize home using caulk or weatherstripping Car coolant is recovered and recycled Select most energy efficient models when replacing appliances Walk, bike, carpool, or use mass transit Easy / No Cost Hard / Some cost Become community ac;vist for energy efficiency 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 12

13 Testing / Refining Concepts Identify specific strategies that have the greatest potential for success and fit the needs of targeted customers Research and modeling aids in the development and launch of highly successful new products, services, and campaigns Which alterna+ve strategies, products, services should we introduce / invest in? What changes should be made to product / service configura+ons? What is the best marke+ng mix to employ? 13

14 Testing Alternative Concepts An Example U+lity Customers Ini+ally prefer Their level of preference is In the end, their preferred choice is Thereby projec+ng One Time Incen+ve Cool Customers 400 One +me Incen+ve (32%) Somewhat/Very Strong (40%) Not Strong (60%) One Time Incen+ve (26%) Monthly Plan (<1%) Neither/DK (5%) 26% Monthly Plan (37%) Somewhat/Very Strong (39%) Not Strong (61%) One Time Incen+ve (18%) Monthly Plan (16%) Neither/DK (4%) 18% One Time Incen+ve (6%) Neither Plan/DK (31%) Not Asked Monthly Plan (2%) 6% Neither/DK (23%) 50% 14

15 Testing Alternative Concepts An Example Amongst unaware Cool Customers as well as possibly interested Non-Cool Customers, the one-time incentive is selected by a ratio of nearly 2:1 over the monthly plan after all information has been presented. At the same time, this does not serve as a mandate in that a notable number still prefer neither option even at the end of the survey. Furthermore, the majority of disinterested Non- Cool Customers continue to prefer neither option. INCENTIVE THAT WOULD ENCOURAGE PARTICIPATION Total (n=300) Unaware Cool Customers (n=100) Interested Non Cool Customers (n=100) Disinterested Cool Customers (n=100) $4 per Summer month plan plus $1.00 per cycling event 20% 19% 28% 11% One ;me sign on incen;ve 40% 45% 45% 30% Neither op;on 35% 30% 22% 54% Don t know/refused 5% 6% 5% 5% 15

16 Performance Monitoring Provide one-time or ongoing feedback to drive future strategies Advance information on market direction key to understanding potential for new technologies / products / services Should the new program, strategy, product, policy, etc. be con+nued, discon+nued, revised, or expanded Did the new program, strategy, plan, policy, etc. achieve its objec+ves? If not, why not? What are the cumula+ve effects of the new program, strategy, plan, policy, etc.? 16

17 Performance Monitoring An Example of Effect of Advertising Before % Engaged 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% After % Engaged 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 17

18 Performance Monitoring Effect of Advertising Value of Adver;sing $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $ $5.92 $6.39 $6.85 Engaged in energy conserva;on Believe metering adds value Understand benefits of metering In this case, adver;sing that moves a prospect from Prefer Metering to Are aware of U;lity s Program is worth the difference between $10.38 and $8.33 (or $2.05) for each conversion $8.33 Prefer inhome metering $10.38 Aware of U;lity's meter $16.62 Intend to install U;lity's meter 18

19 Conclusions California s long-term energy efficiency strategic plan clearly acknowledges that... The development, enhancement, deployment, and operation of more and better energy efficiency related technology is fundamental to achieving California s energy efficiency vision and goals The time frame of California s goals demands a targeted focus on moving innovative technologies more quickly into the marketplace Since most demand-side technologies involve a human interface, increased knowledge of human attitudes and behavior is necessary Establishing a robust and vibrant evaluation and user feedback loop using a range of market research tools is crucial to advancing the deployment of these technologies to the general public 19