SGCC Research Brief. From Movers and Shakers to Status Quo - What s the Deal? March,

Transcription

1 From Movers and Shakers to Status Quo - What s the Deal? March,

2 Speakers Gomathi Sadhasivan, Senior Consultant at DNV GL Jack Lloyd, Research Coordinator at SGCC Michael McMahan, Vice President of Advanced Metering Infrastructure (AMI) Implementation at ComEd

3 Housekeeping You will receive a copy of the slides & a link to the research To the you used to register You can ask questions as we go along Simply type into the question box, as we will explain or raise questions during the Q&A We will answer all the questions submitted If we are unable to get to all the questions, they will be answered individually after the presentation

4 Questions & Audio If this is what you see Click on the orange arrow to expand your dashboard. In order to ask questions over the phone, please log in with your Audio Pin Click on the + sign to open up the questions box. Use the Questions box at any time to type questions. You can ask questions as we go along. Yes, you will receive the slides & link to the research after the webinar.

5 Agenda 1. SGCC Research How/why this research Segmentation SGCC Consumer Pulse Research findings Segment profiles 3. Commonwealth Edison Consumer Outreach Market Studies & Customer Feedback 4. Q&A

6 Speaker #1 Name Background Gomathi Sadhasivan Senior Consultant, Sustainable Energy Use, DNV GL Research Committee Chair, SGCC Formerly Assistant Director, Decision Sciences at Opinion Research Corporation M.B.A. in Sustainable Management, Presidio Graduate School M.S. in Mathematics, Michigan Technological University M.Sc. In Statistics, University of Mumbai

7 SGCC Research Recent Research Products from SGCC

8 Consumer Pulse Wave 5 Study Details Research conducted in 2014/2015 National Survey, n=1004 Topics explored include: o o o o o o o o o General Smart Grid and Meter Awareness Satisfaction with Utility Interest in Home Energy Management Perceptions of electric utility on various dimensions Perceptions of utility performance on key benefits Channels used to engage with the utility Choice of providers and propensity to switch Interest in Smart Energy Offers (SEOs) Time Varying Rate Plans Interest and adoption of technologies

9 Segmentation Background Segmentation is a practical approach that falls between the market is a monolith and customerization extremes a priori versus post hoc Segmentation Basis attitudes, values, behaviors, motivations, lifestyles, technology adoption etc. Broad/high level pattern recognition Segmentation refreshed in 2014/2015 Five consumer segments that exhibit distinctive patterns of awareness, favorability, expectations and preferences relating to Smart Grid and Smart Grid-enabled programs and technologies

10 Scoring your market Solutions from SGCC The updated SGCC Consumer Segmentation has great potential to guide the design and marketing of Smart Grid programs and services for consumers. Segmentation framework is ready to be adopted at low cost by any SGCC member organization o Embed 10 questions in your research, classify customers into these 5 segments with 77% accuracy o Append commercially available third party data (10-12 variables), classify customers into these 5 segments with 55% accuracy

11 Consumer Pulse Market Segmentation (2015)

12 Speaker #2 Name Background Jack Lloyd Research Coordinator at SGCC Formerly Senior VP, Energy Division at Market Strategies International Research Director at Opinion Research Corporation Market Research Manager at Southern California Edison MBA from Yale University, Yale School of Management

13 Consumer Pulse Market Segmentation (2015)

14 Green Champions 30% Characteristics and Opportunities Strong interest in new utility services and smart energy programs Early technology adopters and the most environmentally-conscious consumers Satisfaction with utility is only average, and they may not consider their utility the best provider of innovative products and services to meet their needs Youngest segment, with half under the age of 35, they are the second highest income group Attractive prospects for smart energy technology and programs Innovative utility offerings can appeal to this group and improve satisfaction over time

15 Savings Seekers 20% Characteristics and Opportunities Looking for information and programs that can help them save money by using less energy Lowest income; highest percentage of lowincome households Many younger than 35; few older than 65 Utility satisfaction is low Awareness and favorability toward Smart Grid and Smart Meters are low They do see the benefits of the Smart Grid as important New pricing programs can help reduce their bills Will also appreciate such programs as energy audits and energy assistance

16 Status Quo 18% Characteristics and Opportunities Consumers in this segment have the lowest interest in smart energy programs Do not attach high importance to Smart Grid benefits, or smart technology programs and services Status Quo consumers are relatively older Low energy consumption and high satisfaction with their utility Comfort and ease are more important to this segment than conservation Difficult segment to engage Offerings should emphasize ease of use and minimize disruption of long-term habits

17 Technology Cautious 17% Characteristics and Opportunities Similar to Status Quo demographically More knowledgeable about Smart Grid programs Do not attach high importance to Smart Grid benefits, or smart technology programs and services Claim knowledge of how to save energy and indicate concern about the environment, but are more focused on comfort and ease of use Challenging segment -- emphasize ease of use and minimize the need for lifestyle changes Consistent messaging emphasizing comfort and convenience may make inroads over time and, as this is the second-lowest income segment, some will be motivated by savings

18 Movers and Shakers 15% Characteristics and Opportunities The most affluent segment Larger homes and the highest average electric bills Smart Grid awareness and favorability are high, but utility satisfaction is low Segment includes early technology adopters and has high interest in new energy technologies So far, only moderate interest in smart energy programs and new utility services Offerings that use technology to minimize effort, avoid inconvenience, and maximize comfort will make inroads Increased engagement may also lead to improvements in overall satisfaction

19 Embracing the Benefits RELIABILITY A smart grid senses problems and reroutes power automatically. This prevents some outages and reduces the length of those that do occur. Total Importance Important, but at no additional cost Important, willing to pay more, but unable at this time Important, and will pay more now 86% 48% 20% 18% ECONOMIC Smart grid help consumers save money by providing near real time energy usage information and the ability to manage electricity use. ENVIRONMENTAL Smart grid reduces greenhouse gas emissions by making it easier to connect renewable energy sources to the electricity grid. 86% 49% 22% 15% 89% 47% 22% 20%

20 Likely to Participate Program Likelihood Critical Peak Rebates 60% Time of Use Rate 44% Demand Response Pricing 39% Critical Peak Pricing 24% Strong savings expectation needed to motivate participation: 28% average among those who probably/definitely would participate.

21 Interested in Programs Likelihood to Participate: Critical Peak Rebates Total Status Quo (A) Technology Cautious (B) Savings Seekers (C) Movers and Shakers (D) Green Champions (E) n=1,004/1, W5 W1 Already Participating 1% 1% 0% 0% 1% 0% 1% Total Would Participate 60% 62% 29% 44% A 83% ABD 43% A 81% ABD Definitely Would 24% 23% 9% 14% 32% ABD 17% 36% ABD Probably Would 36% 39% 20% 30% 51% ABD 26% 45% ABD Might or Might Not 19% 21% 29% CE 27% CE 11% 31% CE 8% Would Not 20% 16% 42% BCDE 29% CE 5% 26% CE 10% Base: Total Consumers A,B,C,D,E indicate significant differences between segments indicate a significant increase or decrease between current and previous waves AP2. If you were offered this program, how likely would you be to participate?

22 Knowledge Level Static I have a fairly complete understanding of what it is, how it would work, and how it would affect homes and businesses Current Level of Knowledge of Smart Grid Smart Meter 7% 7% n= Wave 5 1,004 Wave 1 1,234 10% 9% I have a basic understanding of what it is and how it would work I ve heard the term, but don t know much about what it means 18% 16% 22% 24% 20% 18% 22% 23% I have not heard that term 51% 51% 46% 48% indicate a significant increase or decrease between current and previous waves A1. Which of the following statements comes closest to describing your current level of knowledge about smart grid? A2. Which of the following statements comes closest to describing your current level of knowledge about smart meter?

23 Higher Unfavorability Overall Favorability Smart Grid Smart Meter Total Favorability (%6 10) 49% 52% 50% 54% Very Favorable (%9 10) 17% 20% 16% 17% Somewhat Favorable (%6 8) 32% 32% 34% 37% Neutral (%5) 25% 25% 21% 23% Unfavorable (%0 4) 18% 11% n= Wave Wave % 15% n= Wave Wave indicate a significant increase or decrease between current and previous waves A4. Considering what you know about the smart grid, would you describe your general feelings about the smart grid as favorable or unfavorable? Base: Among those who have heard of smart grid A5. Considering what you know about smart meters, would you describe your general feelings about smart meters as favorable or unfavorable? Base: Among those who have heard of smart meter/smart grid

24 Segments Differ Sharply Overall Favorability Smart Meter Total Status Quo (A) Technology Cautious (B) Savings Seekers (C) Movers and Shakers (D) Green Champions (E) n=519 16* Total Favorability (%6 10) 50% 31% 45% 42% 51% 56% Very Favorable (%9 10) 16% 8% 14% 13% 18% 18% Somewhat Favorable (%6 8) 34% 23% 31% 29% 33% 38% Neutral (%5) 21% 29% 21% 29% 26% 15% Unfavorable (%0 4) 24% 20% 28% 24% 21% 23% Base: Among those who have heard of smart meter, *view with caution, small base size A,B,C,D,E indicate significant differences between segments A5. Considering what you know about the smart meter, would you describe your general feelings about the smart grid as favorable or unfavorable?

25 Are Things Improving? 31% Accuracy of Restoration Times 56% 10% Using Technology to Conserve the Environment 6% 30% 58% Reliability of Electric Service 21% 71% 8% Helping to Manage Energy Use 18% 72% 8% Base: Among those with the same electric provider for the past five years A7.-A10. Better Same Worse

26 Key Research Implications Specific programs and benefits are what appeal to consumers, much more than the technologies behind them The benefits of Smart Grid have broad consumer appeal and should be leveraged to build trust. Interest in innovative pricing programs is quite high, although it varies depending on program design and consumer segment. The updated SGCC Consumer Segmentation has great potential to guide the design and marketing of Smart Grid programs and services for consumers.

27 Speaker #3 Name Background Michael McMahan Vice President of Advanced Metering Infrastructure (AMI) Implementation at ComEd Oversees ComEd s AMI Deployment plan and operations throughout the northern Illinois region, including AMI Business Transformation, Customer Strategy, AMI Field Operations, and AMI Operations Previously served as vice president of Smart Grid and Technology Before joining Exelon, McMahan held a series of positions with increasing responsibility in General Electric s Nuclear Division, including manager of Outage & Inspection Services, Business Planning and Development and Mechanical Services Bachelor s degree in nuclear engineering from the University of Florida and a MBA from Emory University

28 Smart Grid Consumer Collaborative Webinar Mike McMahan VP Smart Meter Implementation

29 Pre- and Post-Deployment Communications 29 A staged messaging strategy is utilized to build awareness as well as inform and educate customers Customers receive communications prior to, during and after meters are installed Timing Method Message/Benefits Collateral 90 DAYS BEFORE DEPLOYMENT Informational insert received in customer bill Create awareness about smart meters and their benefits 60 DAYS BEFORE DEPLOYMENT 6x9 mailed informative piece Create awareness that meters will soon be installed in customer s neighborhood Provide more information about meters and benefits

30 Pre- and Post-Deployment Communications 30 Timing Method Message/Benefits Collateral 30 DAYS BEFORE DEPLOYMENT Operational Letter sent in envelope and includes FAQs Inform that a meter will be installed at customer s home in next 30 days Sets customer expectation on what happens day of install 7 DAYS BEFORE DEPLOYMENT Recorded message delivered via phone Reminder that meter install will be occurring within the week

31 Pre- and Post-Deployment Communications 31 Timing Method Message/Benefits Collateral DEPLOYMENT Meter Installed doorhanger Inform that meter has been installed; educate about energy management tools DEPLOYMENT Sorry we missed you doorhanger left if unable to install meter ID reason install did not occur; provide avenue to reschedule 30 DAYS AFTER DEPLOYMENT 6 x 9 mailed welcome piece 9 x 6 mailed welcome piece Encourage participation in energy management tools Reminder to participate in energy management tools

32 Municipal Outreach Municipal Outreach events Cable Interviews - 2 Community Events Street Team Events Cookie Truck (Smart Meets Sweet Truck) Events YTD 2015 Municipal Outreach events Cable Interviews 2 Community Events - 13 Street Team Events - 17 Cookie Truck (Smart Meets Sweet Truck) Events - 13

33 Gross vs. Net Refusals Through March 14, Cost Health Multiple No Reason Other Overheating Privacy Security Total Refusal Types Gross Net Refusal Reason Cost Health Multiple No Reason Other Overheating Privacy Security Total Gross Net Conversion % 53% 25% 30% 43% 40% 30% 38% 43% 34%

34 Peak Time Savings Peak Time Savings 34 Through March 18, 2014 Approximately 680K customer have been solicited for PTS Promotions yield about a 5% response rate, vs anticipated 2% As of March 18, ,317 customers have enrolled

35 Customer Satisfaction 35 To measure and track the efficacy of our customer touch points, communications and interactions with our field personnel. ur customer A indicate significant differences. 92% of respondents were satisfied with the smart meter installation process Customers stated they were satisfied due to: Installation being smooth, easy and trouble-free Good customer service Received clear, informative communication Respect shown by technicians

36 Takeaways & Questions