The Value of Stakeholder Engagement Prior to Program Launch; The PowerCentsDC Pilot

By Karen Schultz, Sr. Marketing and Community Outreach Manager

PowerCentsDC ran a Smart Meter pilot. That’s not too unusual in itself. However, what was unique about the initiative were two strategic steps taken that turned out to be key to the successful outcomes of the pilot:

1. Collaboration – PowerCents DC is actually made up of multiple organizations - the utility, PepCo, plus stakeholders, with potentially competing interests,  that were identified and requested to “have a seat at the table”.
2. Consumer Feedback – Resources were invested to get consumer insights about dynamic pricing (i.e.; the value of texts, phone calls and emails during peak and non-peak pricing) and other facets of the program that would entail consumer engagement with the meters once deployed. The feedback began with in-person meetings – yes, face to face gatherings with consumers!

Both tactics reveal environmental awareness of the sensitive political-economic environment of the geography, here D.C. and an intentional strategy to have buy-in for the eventual program to launch well. By involving an array of stakeholders there was also an opportunity to glean critical market information that would eliminate barriers to success.

Additionally, the tactics employed indicate that PowerCentsDC had an understanding of the initiative’s particular issues, such as consumer concerns about privacy, energy pricing and the complicated nature of trying to understand and manage energy use … and how that may, or may not as they found out, vary along income levels.

The results:

1. Cost and Execution - PepCo leaders believe the overall cost and execution time for Smart Meter deployment in their larger service area will go down.
2. Engagement (aka “buy-in”) - The consumers, low-income and otherwise, in the pilot program want the program to continue.

Putting energy (excuse the pun) and resources into technological initiatives on the front end and involving key stakeholders can not only build buy-in for programs, but help to run them more efficiently and cost-effectively. The PowerCentsDC pilot program is a good example for this. For more information and some great videos about the PowerCentsDC pilot, go to: http://www.powercentsdc.org/.

Revealing the Values of the New Energy Consumer

Revealing the Values of the New Energy Consumer
by Kelly Frankenfeld, President of Energy Resources

A recent Accenture report, Revealing the Values of the New Energy Consumer, explored five key findings regarding end-consumer values towards utilities, programs, and preferences.   Two of the five key findings were most striking for our work with consumers.

Key Finding:  Expense reduction is a pivotal factor in the acceptance of electricity management programs, but that alone will not drive adoption.

As indicated in the Accenture report, a reduction in electric bills is a top factor when consumers consider electricity management programs with 91% of consumers placing it in their top three factors.   This is followed by two other factors - consumer’s consideration for environmental impact and improved ability to control heating and cooling (69% and 68% respectively).

As consumers grow in environmental consciousness and seek solutions that reduce their environmental impact, utilities are encouraged to develop more renewable energy programs that consumers can easily utilize. The complexity and cost of installing renewable energy sources often deter consumers.  For consumers living in urban areas or multi-family homes, renewable energy solutions is not typically a viable option.   Meeting these unmet needs may be an opportunity for utilities.

The least of the motivating factor - with 16% of respondents placing it in the top three factors – is using peer pressure. Communicating consumer usage in comparison to neighbors has become a trend in the utility industry for encouraging consumers to consciously think about their energy usage and consider making lifestyle changes to reduce energy consumption.

Additionally consumers were asked about incentives to adopt electricity programs. A loyalty rewards incentive received the greatest level of importance.  More specifically, 91% of the consumers who indicated loyalty rewards were important also indicated that a rebate on their electric bill was the optimal reward. The research completed by Accenture indicates that there is an opportunity for utilities to motivate customers through rewards programs to encourage the adoption of new programs, while generating a sense of loyalty.

Key Finding: Consumers will respond to programs that consider their full spectrum of values and preferences.

The research conducted indicated a majority of consumers feel it is very important that energy management programs are customized to personal needs and usage, simplify the lives of consumers, and are easy for the whole family to use. Additionally, consumers indicated it is somewhat important that electricity management programs are fun to use and include the latest technologies.

Breaking down the results demographically, more women than men sought electricity management programs that simplify their lives. On the other hand, more men than women expressed interest in electricity programs that included the latest technologies.  Lower-income respondents indicated a greater interest in electricity management programs that allow them to connect with a community to share experiences and tips. 

Moving Forward

As utilities begin to address and implement smart grid technology, it is important that the messages of utilities are connected with consumer values and preferences. Additionally, utilities must provide and promote the right incentives to attract consumers to new electricity management programs. Tailoring promotional messages to the interests of varying demographic groups will be critical to the increased understanding and acceptance of smart grid technologies. Utilities must look beyond the consumption patterns of their customers and recognize the values and preferences at the core of consumer behavior. Identification of these values and preferences paired with program attributes will be critical to the successful adoption of new technologies. Moving forward utilities must develop new, more personal connections with consumers to build trust and encourage the adoption of new electricity management programs into consumers’ most personal space, their homes.

For more information about the research discussed read the Accenture report, Revealing the Values of the New Energy Consumer.

Visit the Energy Resources website to learn more about our work and team.

Innovation and Outreach

Innovation and Outreach
by Kelly Frankenfeld, President of Energy Resources

Recently Attended - ESource Utility Marketing Conference; Accelerating Innovation for Energy Efficiency

Marketing energy efficiency is challenging for utilities. 

Reaching customers with terrific solutions and messages with a compelling call to action is tough enough. Add to that mix a counter intuitive offering - meaning a utility asking their customers to use less of what they offer - and additional market and consumer barriers come into play. In that mix is also the proliferation of information and oft confused but eager consumers, evolving technologies and more academic, technical and political interests than in the past.

So we attend conferences like this one to:

·   Learn about initiatives and innovation in the consulting, academic, and peer utility communities.

·   Challenge ourselves to think differently.

·   Hear and discuss innovative marketing that will insure utilities are relevant in people's lives in the future - in what is offered and how customers are engaged.

This year’s ESource Utility Marketing Conference was encouraging if not necessarily insightful. There were terrific people who face similar challenges with great passion and commitment. Their messages highlighted the importance and value of innovation and measurable, consumer behavior change.   

A few of the points that were reinforced:

·   Be proactive with customers. Go to them. Outreach, education and online solutions will continue to be important as utilities empower customers. If utilities want to be trusted resources, they need to go to customers, be proactive and be a part of customers' communities -- online and at work, home, school, etc.

·   Continue and expand investments in social marketing - be more assertive in the marketplace.

·   Get attention, be startling, go viral. Make messages interesting and relevant.

·   Continue to learn more about psychology and change behavior. Impact and measure behavior change.

There are magic solutions or potions. To get beyond the “noise” and challenges, energy efficiency marketing is about understanding your customers and being willing to engage them where they are.

Education - The Key to Constituency Happiness

Education - The Key to Constituency Happiness
By Karen Schultz, Sr. Marketing and Community Outreach Manager 

Funding.  That was the word – and concern – which most of the commissioners at the Minnesota Environmental Initiative (MEI) policy forum mentioned late last week in their discussion about the priorities for Minnesota’s environment.

No surprise. In these economic times, decisions about the environment get tougher. For example, as Commissioner David Fredrikson, MN Department of Agriculture, pointed out, with limited financial resources we must make sure there exists a healthy environment and a healthy farm economy. That’s not as easy as it sounds.

Further, Commissioner Paul Aasen, MN Pollution Control Agency, talked about the inherent dichotomies of environmental management and policy and the need for balance: “…timely decisions and sufficient debate, jurisdiction and accountability/responsibility …” and on. 

For energy, the issue seemed to be how to finance clean energy. Add to it, said Deputy Commissioner Bill Grant, MN Department of Commerce, Office of Energy Security (OES), all of the other issues about energy - including those coming from Japan, Minnesotans wanting renewable energy but not wanting wind turbines in their back yards, and the like – and the balance gets more delicate.

All in all, the event was fascinating, but a bit unenthusiastic. Certainly optimism has not been the cornerstone of this economy and our collective challenges have gotten greater. However, solutions that secure a clean environment are worth seeking out, as there truly are opportunities in the midst of our challenges.

Solutions. There were two notable solutions mentioned at the event:

1. Deputy Commissioner Bill Grant – There will be an executive order for state buildings to reduce energy use by 20 percent.

2. Commissioner Tom Landwehr, MN Department of Natural Resources – There is a proposal to increase license fees (for the first time in 10 years) to continue environmental stewardship – especially the fight against invasive species.

Both initiatives harken to what we’ve heard from our fellow Minnesotans during discussions at community events and forums: keep the environment safe and clean for all citizens, be responsible with public money and be innovative.

Importantly, the two initiatives not only reflect the voice “of the people,” but also are balanced with fiscal responsibility. And, interestingly, they may even create jobs in the process.

Conservation is not as hard as some make it. Fee for play makes sense for land use and less is more when it comes to energy use.

The key is really education. When people understand change, it’s much easier to embrace – particularly when the end result reflects their core values.