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