Lessons from the Real World Webinar Series
SECRETS OF CUSTOMER ADOPTION
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Thank you for joining us
Jesse Berst
Host & Moderator
SmartGridNews.com
Greg Guthridge
Managing Partner –Accenture Retail and Business Services for Utilities
Bart Schoonbaert
Manager –Global Research Lead
Accenture
Jim Nelson
Senior Marketing Manager, Power Smart
BC Hydro
Agenda:
1. What the research reveals
2. Best practices and
lessons learned
3. BC Hydro case example
4. (Smart Grid Consumer Collaborative)
We will post links to the slides and the replay on
SmartGridNews.com and in our email newsletter
The consumer challengeThe consumer challengeThe consumer challengeThe consumer challenge
We don’t like:
- changing behavior
- cramping our style
- losing control
We don’t understand:
- smart grid
- dynamic pricing
- demand response
We want:
- control & choice
- “cruise control”
- low cost
We distrust:
- smart meters
- utility motives
- “Big Brother”
Press is reinforcing fears
Welcoming the panel
Jim Nelson Senior Marketing Manager – Power Smart
6
Greg Guthridge leads Accenture’s global utilities customer care practice. Over the past 20 years, he has led and managed customer service-related transformation programs, outsourced business operations, and strategic vision projects for clients in North America, South America, the United Kingdom, Europe, and Asia. With experience in customer transformation, demand-side management, and retail competition, Mr. Guthridge has developed solutions that drive consequent impacts on costs, customer satisfaction, revenue assurance, customer energy demand, and workforce optimization.
Jim is a Senior Marketing Manager of Power Smart at BC Hydro. He is responsible for conservation and energy efficiency efforts and marketing a variety of programs and public engagement initiatives for residential and commercial customers helping them to reduce energy consumption and to be more energy efficient. His team also works behind the scenes to build the required infrastructure to allow these customers to improve their efficiency including partnerships ranging from retail stores and manufacturers to electrical contractors, architects, and engineering firms. Jim’s key goal over the next several years is to implement a number of targeted initiatives to develop a world-leading conservation culture in BC.
Bart Schoonbaert is the research lead for Accenture’s global utilities customer care practice, and development lead for Accenture’s High Performance Utility Model for Customer Operations. He works closely with Accenture’s global engagement teams supporting clients with the implementation of smart metering, demand response and energy efficiency & conservation initiatives. In his role, Bart is responsible for researching strategic, operational and process best practices for utilities transitioning from traditional to smart-enabled operations, with a particular focus on optimal customer engagement and customer experience practices.
Greg Guthridge Managing Partner – Accenture Retail and Business Services for Utilities
Bart Schoonbaert Manager – Global Research Lead
ObjectivesObjectivesObjectivesObjectivesObjectivesObjectivesObjectivesObjectives
Panel Objectives:
• Discuss the results of Accenture’s end consumer study which is focused on mass market residential electricity energy efficiency and conservation programs (with and without smart metering capabilities)
• Discuss best practices and lessons learned when implementing energy efficiency and conservation
• Highlight case examples from BC Hydro’s Power Smart Program
Copyright © 2010 Accenture. All Rights Reserved.
As energy efficiency and conservation go mainstream, utilities and energy providers must adapt to new consumer preferences and behaviors when offering mass-market energy management products and pricing programs.
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OverviewOverviewOverviewOverviewOverviewOverviewOverviewOverview
Copyright © 2010 Accenture. All Rights Reserved.
As energy efficiency and conservation go mainstream, energy providers must
adapt to new consumer preferences and behaviors when offering programs to the
mass-market. Accenture’s latest research challenges many traditional
assumptions about the drivers of – and barriers to – energy efficiency in the
residential market. Energy providers must understand and effectively balance
these drivers and barriers as they design products, services, campaigns and
consumer interaction strategies.
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Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences in Energy Efficiencyin Energy Efficiencyin Energy Efficiencyin Energy Efficiencyin Energy Efficiencyin Energy Efficiencyin Energy Efficiencyin Energy Efficiency
Accenture endAccenture endAccenture endAccenture endAccenture endAccenture endAccenture endAccenture end--------consumer observatory on electricity consumer observatory on electricity consumer observatory on electricity consumer observatory on electricity consumer observatory on electricity consumer observatory on electricity consumer observatory on electricity consumer observatory on electricity management 2010management 2010management 2010management 2010management 2010management 2010management 2010management 2010
Accenture recently completed a survey to understand consumer preferences, behaviors, and attitudes
towards electricity management programs. In January 2010, we surveyed 9,108 individuals in 17
countries.
• Minimum of 500 respondents
per country
• Focus on urban populations in
developing economies including
Brazil, China, and South Africa
• Survey administered over the
Internet
Global Scope
9
Australia
Brazil
Canada
China
Denmark
France
Germany
Italy
Japan
Netherlands
Singapore
South Africa
South Korea
Spain
Sweden
United Kingdom
United States
Countries Surveyed
Copyright © 2010 Accenture. All Rights Reserved.
1. Consumer Paradox - There is a significant contradiction between consumer perceptions and their actual knowledge of energy efficiency.
2. Trusted Advisor - Consumers' first instinct is to contact utility/electricity providers for energy-efficiency activities, however, providers still need to build trust and credibility.
3. Emerging Barriers - While price remains a key factor to adoption, the extent of the utility/electricity providers’ control over energy use has emerged as a potential barrier.
4. Channel Diversification - Channels and contact points for utility/electricity providers to communicate with consumers are diverse.
5. Complexity of Consumer Preferences - Adoption of electricity management programs is influenced by fragmented and nontraditional consumer preferences.
Top 5 Key findings
Copyright © 2010 Accenture. All Rights Reserved. 10
11
Key finding Key finding Key finding Key finding Key finding Key finding Key finding Key finding 1: Consumer Paradox 1: Consumer Paradox 1: Consumer Paradox 1: Consumer Paradox 1: Consumer Paradox 1: Consumer Paradox 1: Consumer Paradox 1: Consumer Paradox
There is a significant contradiction between consumer perceptions and their actual knowledge of energy efficiency
While 75% of survey participants indicated that they know how to optimize their electricity consumption, only 28% know of programs that enable them to do so.
Base: All respondents
“Do you think you understand enough about the actions you can take to optimize your electricity consumption?”
Source: Understanding Consumer Preferences for Energy Efficiency, 2010
“Have you heard of programs that help you to optimize your electricity consumption (i.e., electricity management programs)?”
38%
I have heard about them and know what they are
34%
I have heard about them but do not know what they are
I have never heard about them
28%
Base: All respondents
75%
“Yes”
25%
“No”
But...
Copyright © 2010 Accenture. All Rights Reserved.
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Key finding Key finding Key finding Key finding Key finding Key finding Key finding Key finding 2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor
Utilities/electricity providers are the preferred source for electricity management programs.
“Who would be your first choice to deal with/be in contact with regarding each of the following situations?”
Consumers' first instinct is to contact utility/electricity providers for energy-efficiency activities; however…
Home service providers
4%
Consumer associations
10%
Environmental associations 9%
15%
Government/governmental organizations
5%
Retailers/equipment manufacturers
Utilities/electricity providers 53%
4%
Academics/schools/scientific associations
45%
8%
5%
8%
8%
8%
19%
10%
0%
13%
0%
0%
0%
77%
10%
0%
12%
0%
0%
0%
77%
Get general information on electricity management programs
Get customized advice on the best electricity management programs for your situation
Purchase or sign-up for an electricity management program
Contact for support regarding issues you may have with an electricity management program you have enrolled in
Base: All respondents
Source: Understanding Consumer Preferences for Energy Efficiency, 2010Copyright © 2010 Accenture. All Rights Reserved.
13
Key finding Key finding Key finding Key finding Key finding Key finding Key finding Key finding 2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor2: Trusted Advisor
Consumers do not necessarily view utilities/energy providers as trusted advisors for electricity conservation.
“What organizations do you trust to inform you about actions you can take to optimize your electricity consumption?”
… utilities/electricity providers still need to build trust and credibility.
Neither trust nor distrust
36%
42%
43%
46%
46%
66%
60%
59%Home service providers
28% 13%
Retailers/equipment manufacturers 27% 13%
Online service providers 14% 20%
Government/governmental organizations 26% 28%
Utilities/electricity providers 25% 29%
Consumer associations 8% 49%
Academics/schools/scientific associations 7% 51%
Environmental associations 11% 53%
(e.g., Google, Microsoft)
(e.g., cable television provider, telecommunications provider, home security company, etc.)
Do not trust TrustBase: All respondents
Source: Understanding Consumer Preferences for Energy Efficiency, 2010Copyright © 2010 Accenture. All Rights Reserved.
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Key finding Key finding Key finding Key finding Key finding Key finding Key finding Key finding 3: Emerging Behaviors3: Emerging Behaviors3: Emerging Behaviors3: Emerging Behaviors3: Emerging Behaviors3: Emerging Behaviors3: Emerging Behaviors3: Emerging Behaviors
While price remains a key factor to adoption, the extent of the utility/electricity providers’ control over energy use has emerged as a potential barrier.
Consumers are placing emerging emphasis on control factors which are influenced by: personal home control, data privacy, security, lifestyle, and ‘big brother’.
Your action required
Your environmental impact
Utility control
Impact on your electricity bill
8%
38%
Your electricity provider
may alert you at various
times of the day of high
electricity-demand
situations and you may or
may not choose to take
actions that interrupt your
daily routine for up to one
minute each time.
You may agree to allow
your electricity provider
to remotely reduce and
limit the use of specific
appliances and devices
in your home at specific
times of the day.
Changing when and how
much electricity you use
may reduce your
environmental impact.
You may take personal
actions such as turning
off appliances and
equipment or allowing
your electricity provider to
remotely control
equipment to reduce your
electricity bill.
37%
Choice of electricity management program
Relative importance of
each component in
the decision to adopt
electricity management
programs
17%
Base: All respondents
Source: Understanding Consumer Preferences for Energy Efficiency, 2010Copyright © 2010 Accenture. All Rights Reserved.
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Key finding Key finding Key finding Key finding Key finding Key finding Key finding Key finding 4: Channel Diversification4: Channel Diversification4: Channel Diversification4: Channel Diversification4: Channel Diversification4: Channel Diversification4: Channel Diversification4: Channel Diversification
Customers’ preferred contact channel is highly dependent on the type of interaction.
Channels and contact points to communicate with consumers are diversifying.
46%Over the Internet (website)
15%In person at your home
10%Paper mail
In-store 6%
Over the telephone 6%
SMS-text message
8%
0%
Social media (i.e., web log, Twitter, Facebook 1%
In your workplace 2%
In-home energy display 2%
TV/radio spots, programs 4%
1%
2%
2%
3%
0%
9%
11%
10%
8%
22%
33%
0%
13%
10%
7%
7%
20%
37%
1%
1%
2%
2%
31%
0%
4%
1%
2%
0%
3%
0%
11%
37%
12%
Get general information on electricity management programs
Get customized advice on the best electricity management programs for your situation
Purchase or sign-up for an electricity management program
Contact for support regarding issues you may have with an electricity management program you have enrolled in
“What would be your first choice to do each of the following?”
Base: All respondents
Source: Understanding Consumer Preferences for Energy Efficiency, 2010Copyright © 2010 Accenture. All Rights Reserved.
Indifferents
Skepticals
Pragmatics
Cost conscious
Eco-rationals
Proactives
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Key finding Key finding Key finding Key finding Key finding Key finding Key finding Key finding 5: Complexity of Consumer 5: Complexity of Consumer 5: Complexity of Consumer 5: Complexity of Consumer 5: Complexity of Consumer 5: Complexity of Consumer 5: Complexity of Consumer 5: Complexity of Consumer PreferencesPreferencesPreferencesPreferencesPreferencesPreferencesPreferencesPreferences
Six consumer segments have been identified according to their preferences for the different components of electricity management programs.
Adoption of electricity management programs is influenced by fragmented and non-traditional consumer preferences.
Indifferents
Skepticals
Proactives
Eco-Rationals
• Highest willingness to take actions to reduce the use of major appliances in their home
• Lowest interest in the reduction of their impact on the environment
• Highest interest in the reduction of their impact on the environment
• Higher impact of social pressure to drive them to take action
• Lower acceptance of utility control
• Higher sensitivity to electricity bill saving
• Lowest acceptance of utility control
• Lowest trust toward utilities/electricity providers
• Lowest willingness to take actions to reduce the use of major appliances in their home
• Higher acceptance of utility control
Cost Conscious• Highest sensitivity to electricity
bill saving • Higher impact of social pressure
to drive them to take action
16%13%
21%
21%17%
12%
Pragmatics
Collaborating with communities to increase education
Utilities/electricity providers need to
actively promote education programs
to eliminate the contradiction between
consumer perceptions and their actual
knowledge of energy efficiency.
Becoming a trusted advisor
Consumers instinctively want to turn
to their utilities/electricity
provider for energy-efficiency
activities, but providers still need to
build trust and credibility.
Providing multi-channel capabilities
Utilities/electricity providers need to
offer consumers more ways to
interact for energy efficiency and conservation advice and service.
Creating a consumer-centric organization
Differentiating services and
capabilities to better meet a more
active consumer base and diverse consumer preferences.
Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences Understanding Consumer Preferences in Energy Efficiencyin Energy Efficiencyin Energy Efficiencyin Energy EfficiencyImplications for energy providers Implications for energy providers Implications for energy providers Implications for energy providers ----
SummarySummarySummarySummary
Copyright © 2010 Accenture. All Rights Reserved. 17
Questions for Greg and Bart?Questions for Greg and Bart?Questions for Greg and Bart?Questions for Greg and Bart?Questions for Greg and Bart?Questions for Greg and Bart?Questions for Greg and Bart?Questions for Greg and Bart?
Insights from 20 Years of DSM
1.8 million
households and
organizations served
5,700 employees
Since 1989
Previous 15 years
6,000 GWh
10 years to get
8,000 GWh
Social Marketing Acknowledgements
• Nothing here will Surprise you!
• 20 Years of Successful Power Smart Activities
• Evolution of the Utility Demand Side Management 5 As: Awareness, Availability, Accessibility, Affordability, Acceptance
• Best practices from other social change initiatives
• Social Marketing Experts: Doug Mackenzie-Mohr, Jay Kassier
• Insights and tools from IDEO
• Macolm Gladwell: “The Tipping Point”
• A.H. Maslow: : “A Theory of Human Motivation”
• “Made to Stick” and “Switch” Chip Heath & Dan Heath
• Marketing Leadership Council
• Various Social Marketing Articles & Blogs
1. Understand People not Customers
2. Make an Emotional Connection to generate Excitement and
Awareness
3. Develop Partnerships to improve Availability & Promotion
4. Address Affordability: End-user and/or Channel Incentives
5. Remove Acceptance Issues, including examining direct and indirect
Competitors and Your Own Process
6. Set Targets, construct a Plan
7. Utilize the Power of Norms to create Advocacy & Co-Creation
8. Gain a Commitment
9. Provide Feedback: peer Competition and Comparison motivates, remember to
Broadcast Wins
10. First Action then Habit Formation
The Social Marketing Construct
Passions
Networks
Life-stageGeography
Media channels
Attitudes
Values
Home
Influencers
Work
Play
Recreation
Travel
Commute
Memberships
Hobbies
Environmental Concerns
Financial realities
Electricity Use
Political Interests
Friends & Family
#1 People not “Customers”
“Miss it when it’s not there”
Passions
Networks
Life-stageGeography
Media channels
Attitudes
Values
Home
Influencers
Work
Play
Recreation
Travel
Commute
Memberships
Hobbies
Environmental Concerns
Financial realities
Electricity Use
Political Interests
Friends & Family
#1 People not “Customers”
#1 People not “Customers”- Tools
#1 People not “Customers”- Tools
Buying an Appliance
Think about who they talk to
What motivates them as an individualWhat do they care about
What steps do they take
Who do they trust
#1 People not “Customers”- Tools
#2 Create Excitement
& Understanding: Make an
Emotional Connection
Stickiness: Concepts from Made to StickStickiness: Concepts from Made to StickStickiness: Concepts from Made to StickStickiness: Concepts from Made to StickStickiness: Concepts from Made to StickStickiness: Concepts from Made to StickStickiness: Concepts from Made to StickStickiness: Concepts from Made to Stick
• Simple
• Unexpected
• Concrete
• Make an Emotional Connection
• Tell a good story
#3 Partnerships to improve
Availability &Awareness
Market Disrupters
vs.
Game Changers
#3 Partnerships
The Social Change ConstructThe Social Change Construct
The Power of NormsThe Power of Norms
• Peer Pressure: Friends, acquaintances, celebrities, leaders, and the “collective”
#7 The Power of Norms
“Elevator Prank Old Candid Camera”
#7 Power of Norms: Advocates can also provide#7 Power of Norms: Advocates can also provide#7 Power of Norms: Advocates can also provide#7 Power of Norms: Advocates can also provide
CoCoCoCo----CreationCreationCreationCreation
1. Understand People not Customers
2. Make an Emotional Connection to generate Excitement and
Awareness
3. Develop Partnerships to improve Availability & Promotion
4. Address Affordability: End-user and/or Channel Incentives
5. Remove Acceptance Issues, including examining direct and indirect
Competitors and Your Own Process
6. Set Targets, construct a Plan
7. Utilize the Power of Norms to create Advocacy & Co-Creation
8. Gain a Commitment
9. Provide Feedback: peer Competition and Comparison motivates, remember to
Broadcast Wins
10. First Action then Habit Formation
The Social Marketing Construct
Questions for Jim Nelson?Questions for Jim Nelson?Questions for Jim Nelson?Questions for Jim Nelson?Questions for Jim Nelson?Questions for Jim Nelson?Questions for Jim Nelson?Questions for Jim Nelson?
Joining forces for a solution:Joining forces for a solution:Joining forces for a solution:Joining forces for a solution:Joining forces for a solution:Joining forces for a solution:Joining forces for a solution:Joining forces for a solution:SmartGridCC.orgSmartGridCC.orgSmartGridCC.orgSmartGridCC.orgSmartGridCC.orgSmartGridCC.orgSmartGridCC.orgSmartGridCC.org
SECRETS OF CUSTOMER ADOPTION
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