Consumer Pulse: Focus on Seniors

Transcription

1 SGCC Research Brief Consumer Pulse: Focus on Seniors February,

2 Speakers Patty Durand, Executive Director of the Smart Grid Consumer Collaborative Lisa Magnuson, Vice President of Global Marketing at Silver Spring Networks Bill Malcolm, Senior Legislative Representative - State Advocacy and Strategy Integration at AARP SGCC Research Brief

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 SGCC Research Brief

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. SGCC Research Brief

5 Agenda 1. SGCC Study Research Rationale Key Findings 2. Silver Spring Networks Proactive Education 3. AARP Smart Meters and Consumers 4. Q&A SGCC Research Brief

6 SGCC Research Brief Seniors look very much like other consumers

7 What is the current level of awareness? 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% 8% Age: n= % 12% 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 15% 17% 22% 21% 20% 22% 17% 19% I have not heard that term 55% 51% 44% 51% SGCC Research Brief

8 What is the level of favorability? Overall Favorability Smart Grid Smart Meter Total Favorability (%6 10) 46% 59% 48% 57% Very Favorable (%9 10) 14% 24% 24% 19% Somewhat Favorable (%6 8) 34% 33% 32% 29% Neutral (%5) 22% 25% 20% 24% Unfavorable (%0 4) 10% 20% Age: n= % 21% Age: n= SGCC Research Brief

9 Opportunity to engage and educate Reason for Smart Meter 6 10 Favorability Rating: Top Mentions Satisfied/ happy with smart meter (unspecified) Don`t know enough about it/ too new Saves money/lower cost Remote readings/ convenient readings Can monitor usage/can control energy usage Helps conserve energy Smart meters could be a positive change 19% 13% 7% 7% 7% 12% 3% 18% 16% 14% 11% 9% 8% 8% Useful/smart technology Accurate results 3% 2% Age: n= % 4% Efficient/fast 3% 3% SGCC Research Brief

10 Opportunity to engage and educate seniors Don`t know enough about it/too new Company can monitor/control energy usage Reason for Smart Meter 0 4 Favorability Rating: Top Mentions 7% 25% 24% 20% Dislike smart meters/don`t need a new meter 14% 16% Bill has gone up as a result/don't think they are accurate 28% 13% Health-related concerns/safety issues 12% 10% Privacy concerns/intrusive Bad reviews 4% 4% 10% 8% Customers can monitor/control energy usage 5% 2% Too expensive/expensive to maintain Remote readings 6% 11% Age: n= % 0% SGCC Research Brief

11 Implementation of Smart Grid Smart Grid Quick Implementation Support Total Support 59% 76% Definitely would support 34% 28% Probably would support 31% 42% Neither support nor oppose 11% 13% Oppose Don t Know/ Refused 11% 2% 5% 23% Age: n= SGCC Research Brief

12 Implementation of Smart Grid Most Convincing Reason to Implement To help consumers save money To help improve energy efficiency To reduce outages To help the environment To increase reliability Remotely read/no meter readers Accurate readings/bills To help reduce greenhouse gas emissions 25% 26% 20% 14% 12% 9% 10% 7% 3% 6% 4% 5% 7% 4% 13% 3% Age: n= SGCC Research Brief

13 Implementation of Smart Grid Most Important Reason Not to Begin Implementing Bill has gone up as a result Company con monitor/control energy useage 7% 11% 20% 26% Age: n= Dislike smart meters 9% 10% Health-related concerns 4% 4% Remote readings 2% 4% Don't know enough about it 3% 4% Too expensive 5% 3% SGCC Research Brief

14 Seniors indicate less likelihood to participate in Smart-Grid enabled programs Likelihood to Participate Participate Now Would Participate Would NOT Participate n= Asked in Wave 4 Critical Peak Rebate 1% 2% 59% 49% 18% 25% TOU Pricing 1% 2% 45% 39% 27% 32% Asked in Wave 3 Energy Monitoring 52% 37% 26% 41% Real Time Pricing 34% 29% 37% 48% SGCC Research Brief

15 SGCC Research Brief Adoption of Smart Grid-enabled products and services

16 Programmable thermostats Seniors are more likely to have programmable thermostats in their homes than younger consumers. SGCC Research Brief

17 SGCC Research Brief Age drives interest in Smart Grid-enabled Products and Services

18 Communications, Contact, and Customer Engagement Best Source of Energy Saving Advice and Products A home improvement store, such as Lowes or Home Depot 39% 33% An energy utility A telephone or cable provider, such as Comcast or Verizon 6% 7% 29% 32% Age: n= An online retailer, such as Amazon A consumer technology store, such as Best Buy 8% 4% 8% 4% Other 1% 2% Don't Know/Refused 9% 18% SGCC Research Brief

19 SGCC Research Brief Media Channels

20 SGCC Research Brief Seniors and their access to the Internet

21 Seniors and Social Media Seniors are less than half as likely to have social media accounts (63% of younger consumers, but only 28% of seniors), though if they have accounts, the usage is similar to that of younger users. SGCC Research Brief

22 SGCC Research Brief Seniors are less likely to communicate electronically with their utility

23 Conclusion From our research, we see the following takeaways for Smart Grid stakeholders: 1. Awareness and favorability of Smart Grid among seniors can be influenced through education. 2. Seniors respond to information on cost savings and reliability. 3. Seniors program and technology interests are driven by cost savings. 4. Utilities can play a significant role in engaging seniors but they need to be cognizant of channel preferences. SGCC Research Brief

24 Speaker #1 Name Background Lisa Magnuson Vice President of Global Marketing - Silver Spring Networks Over 20 years of technology marketing experience Responsible for Silver Spring's corporate marketing and communications and consumer education programs Served on the organizing committee of GridWeek and Smart Energy International, co-chair of SGCC s marketing and PR committee and currently on SGCC s Board Prior to SSN, worked with some of the top brands in the industry, helping to build innovative marketing communication platforms for such companies as Apple, NeXT, Ascend and Cisco SGCC Research Brief

25 Focus on Seniors Lisa Magnuson February 11, 2015

26 Proactive Customer Education is Imperative for Successful Deployment 26

27 Proactive Customer Engagement is critical for successful smart grid deployment Mitigates potential consumer opposition Addresses potential concerns prior to deployment (health, security, privacy) The more consumers know, the more receptive they are to smart grid Engages customers. Involved customers = happy customers* Creates opportunities to underscore utility position as trusted advisor ** Consumer understanding and favorability increases after education*** *JD Powers Consumer Engagement Study, July 2013 **Accenture New Energy Consumer Research, June 2013 *** Smart Grid Consumer Collaborative Research Study, January

28 28 Customer Education Best Practices

29 Silver Spring Customer Engagement Frameworks Create a stakeholder plan Articulate & deliver customer benefits Use customercentric messaging Educate advocates and stakeholders Utilize multiple communication channels Proactively address customer concerns Messenger is as important as the message 1:1 conversations extremely effective* * Yale University Study, 2013 Showcase customer successes 29

30 Implications of Seniors Wish We wish someone would tells us how Smart Grid can help us save money and help the environment. Clear definition of value to seniors Use their channels: traditional communication vehicles such as print, radio and TV. Employ 3 rd party advocates and ambassadors 30

31 Examples of Successful Senior Engagement San Diego Gas & Electric: In-field teams and strong 3 rd party community outreach program Florida Power & Light: Partnership with Miami Dade College to offer Energy Savings Essentials 31

32 POE Consumer Sentiment Report January 2015

33 What we set out to do in February 2013 The Challenge: Research shows the average consumer knows very little about how electricity is generated, distributed and consumed, the impact of using it, or how to maximize efficiency. Our Hypothesis: The more consumers know, the more they will care and will take action to make smarter energy decisions and support grid modernization. Strategy: Create a social media campaign that educates and motivates consumers to join the conversation and to make changes in their energy usage habits. Objectives Create awareness about the energy challenges we face Educate consumers about electricity, energy efficiency & smart grid Engage consumers in the energy conversation 33

34 34 Backed by a diverse coalition

35 What we ve accomplished in two years 1. Generated awareness about our energy challenges - Reached over 83.2 million consumers worldwide Organic reach 21 million, Paid advertising 62.2 million 2. Educated consumers about energy efficiency and benefits of renewables and the smart grid - Over 300,000 Facebook likes - Over 294,000 YouTube Channel views 3. Engaged consumers in the conversation - Engagement Rate: 5.2% (Average: 0.5% -0.99%) 35

36 Consumer Sentiment Objectives Gain a deeper understanding of the Power Over Energy Facebook community Learn about consumer sentiment re energy/conservation - Assess the level of understanding and concern about our energy challenges and opportunities - Find out what types of actions consumers are taking to conserve energy Learn how to improve the program - Understand what POE content and messages resonate - Learn best practices for fielding a FB online survey - Get ideas for how to improve the program

37 Audience Demographics: Age 82% of respondents over age 35

38 Audience Age Compared to Facebook Fans Survey respondents much older than average POE Facebook fan Age Survey Participants Facebook Fans %

39 5. What one thing motivates you most to change your behavior to conserve electricity? 66% say concern about the environment is the one thing that motivates them to conserve electricity. 25% said All of the above

40 5. What one thing motivates you most to change your behavior to conserve electricity? Something else: Concern for future generations Our responsibility to those who come after us. Concerned about the legacy we will leave behind to our children and their future children. Grandchildren and I do believe that global warming is happening. Saving this planet for human beings to live on, for generations, not just ours.

41 Consumer Sentiment Snapshot The survey participants, primarily older Americans over 35, are very concerned about the impact of electricity usage on our environment. They are optimistic about the potential of renewable energy and like hearing about technology advancements. The majority believe that modernizing the electricity grid is vital to help conserve energy, which may be related to their enthusiasm about renewable energy sources.

42 The Take-Away Utilities have an opportunity to position themselves as a trusted advisor Very clearly message the control over energy use and environmental impact of the smart grid Use traditional communication vehicles such as print, TV and radio Employ 3 rd parties to educate this audience

43 Thank you!

44 Speaker #2 Name Background Bill Malcolm Senior Legislative Representative - State Advocacy and Strategy Integration - AARP Worked with state energy officials in the Midwest for over 20 years Has held positions as an energy reporter, in state regulatory affairs for both MISO and ANR Pipeline, and in government relations and rates at PG&E He holds a MA in economics from the University of Washington and a BA in economics at UC-Santa Cruz Resides in Indianapolis SGCC Research Brief

45 By Bill Malcolm February 11, 2015 SMART METERS

46 About AARP AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment security and retirement planning. We advocate for consumers in the marketplace by selecting products and services of high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range of products, travel, and services.

47 Initiatives Work and save (retirement security) Livable communities Financial security (protecting Social Security and Medicare) Long-term care, caregiver support Tax assistance Driver safety

48 Utility positions Affordability, reliability Oppose trackers that bypass normal regulatory review No prudency pre-approval Protection of vulnerable customers All grid users should pay their fair share Oppose mandatory TOU

49 Smart Meter Issues Demonstration of benefits and how those benefits are returned to customers Oppose single issue riders Cost recovery through base rates Regular rate case review Are estimated savings and benefits real? (Proof from actual, verified, relevant data before cost recovery)

50 Other Consumer Protection No remote disconnection without attempt to personally contact the customer (especially vulnerable customers such as with medical equipment or susceptible to extreme weather) Concerns Privacy concerns Use of data and security of customer personal information associated with detailed usage and appliance data

51 Recent activities Oklahoma $3.11/ month/customer surcharge $120 million cost Benefits demonstration Budget issues Illinois Formula rate extension legislation to add two more years to recover smart meter costs bypassing traditional regulator review (oppose)

52 For more information: Visit our website: aarp.org Contact the author: 2/10/

53 Takeaways & Questions