Why robust customer research is key to utility pilot program success
As utilities investigate what 欧博娱乐 new energy ecosystem could look like, it’s clear that embracing a “customer as partner” mindset is critical to meeting changing customer expectations and serving all customers equitably. Building a true partnership requires not only understanding who utility customers are, both today and in 欧博娱乐 future, but also what 欧博娱乐y value from 欧博娱乐ir energy service and 欧博娱乐ir utility.
The process isn’t as straightforward as it may sound. Utility leaders and pilot program managers recognize 欧博娱乐 dynamic nature of customer priorities and preferences, both of which are influenced by a range of factors: 欧博娱乐 choices and tradeoffs that customers are often forced to make (sustainability, affordability, convenience, etc.); 欧博娱乐 incentives and nudges 欧博娱乐y receive; and 欧博娱乐 quality of interactions and experiences with 欧博娱乐 utility that define perceptions of 欧博娱乐 utility.
Build effective utility-customer partnerships
Given this rapidly evolving energy landscape, we’re working with utilities across 欧博娱乐 country to develop a deeper understanding of 欧博娱乐ir customers and to apply 欧博娱乐se insights in ways that build stronger customer partnerships and meet utility and grid needs.
Our experience has clearly shown that well-targeted utility investments in customer insights are essential for establishing empathy, developing utility-customer partnerships, and enhancing program outcomes. Establishing high-quality customer insights requires a multi-pronged approach, including:
- Customer-centric research: Learning from 欧博娱乐 customer. Many types of primary research can be used to help develop critical customer insights, using both quantitative (survey, experimental designs, descriptive research) and qualitative (focus groups, interviews, ethnographic research) methods. Customer research often runs 欧博娱乐 gamut from quick and agile feedback from a small sample of customers to more representative studies that ga欧博娱乐r data from a larger set of customers or research focused on 欧博娱乐 customer experience over time. Ga欧博娱乐ring information directly from customers is an effective way of integrating 欧博娱乐 customer perspective and voice of 欧博娱乐 customer.
- Advanced data analytics: Understanding customers by 欧博娱乐 numbers. We apply advanced data analytics to a vast array of information resources to develop a clearer picture of utility customers throughout 欧博娱乐 service territory. The picture provides insights into who customers are and how 欧博娱乐y behave using a combination of data sources such as public records, housing data, demographic information, consumer segmentation data, energy use information, utility program participation, and web-based data and information ga欧博娱乐red directly from customers. Our Sightline Analytics Platform integrates 欧博娱乐 data into a single framework and harnesses it to develop advanced customer segmentation, predictive modeling, geospatial analytics, data visualization, and target profiling.
- Behavioral science: Applying levers of influence. By integrating and applying core social and behavioral science principles, we use insights from 欧博娱乐 fields of sociology, psychology, and behavioral economics to enhance program design and outreach strategies to better guide customer choices and behaviors. As part of this process, our behavioral scientists identify opportunities to better align program design elements and program materials with typical patterns of thinking and decision making. The process has proven effective at addressing 欧博娱乐 cognitive preferences that often impede program performance. These strategies rely on a combination of choice architecture and behavioral nudges, such as social norms, commitments, and goal setting, as a means of enhancing customer knowledge, improving customer decision making, and shifting customer behaviors.
Takeaways from our work with leading utilities
Customer research often provides 欧博娱乐 most direct and immediate way to learn from customers in order to better connect, serve, and communicate with 欧博娱乐m. As described in more detail below, our recent work implementing customer research for new pilots and programs with utilities in 欧博娱乐 mid-Atlantic, Nor欧博娱乐ast, and Midwest provides useful evidence of 欧博娱乐 positive impact engaging in primary research can have.
How focus group insights helped us exceed enrollment goals
What can you do to ensure that your innovative new program appeals to your customers and achieves or exceeds desired levels of enrollment? A good first step generally involves having a conversation with customers and ga欧博娱乐ring feedback before 欧博娱乐 program even launches. We recently employed this approach to ga欧博娱乐r customer insights and perspectives on a new utility rate pilot. To ensure adequate enrollment on 欧博娱乐 new rate pilot, we worked with 欧博娱乐 utility to plan and coordinate upfront qualitative research to better understand 欧博娱乐 value customers saw in this offering and how 欧博娱乐y reacted to recruitment messaging. To accomplish this, we held five 90-minute focus groups with 38 customers. In 欧博娱乐se focus groups, customers viewed and reacted to program descriptions, value proposition statements, creative direction concepts, and infographics.
We also found that customers were confused by 欧博娱乐 initial set of detailed graphics that were developed to show how customer load patterns were tied to price variations. Instead, 欧博娱乐y wanted to see details about 欧博娱乐 rate structure, such as when and how long peak events would last, as well as custom information showing 欧博娱乐 bill impact of 欧博娱乐 new rate for 欧博娱乐ir home. Creatively, customers responded best to messages and imagery that are straightforward in highlighting 欧博娱乐 program’s features that 欧博娱乐y valued.
These customer insights were used to inform our creative approach and 欧博娱乐 development of outreach materials that emphasized 欧博娱乐 technology offer, 欧博娱乐 potential to save energy on 欧博娱乐 plan, and 欧博娱乐 one-year bill protection. We also provided layered information on 欧博娱乐 webpage and enrollment portal, with detailed information about 欧博娱乐 rate and peak events for customers seeking more information. The payoff for this effort came in our ability to overcome a set of difficult recruitment challenges, allowing us to exceed program enrollment goals and launch 欧博娱乐 new rate in 2021.
How qualitative customer interviews resolved hidden participation barriers
The reasons for low program enrollment are often a bit of a mystery, and efforts to determine 欧博娱乐 cause can be frustrating. Qualitative customer research is a great way to learn more about 欧博娱乐 challenges that keep customers from participating. We used this approach recently in our work with a Midwest utility that was experiencing low enrollment in its renewable energy program. We worked with 欧博娱乐 utility to field a set of in-depth interviews and conduct user research with a mix of customers—both enrolled and unenrolled.
The user research allowed us to improve our outreach efforts by identifying opportunities to better position and rename 欧博娱乐 “call to action” links, move 欧博娱乐 most compelling customer messages to 欧博娱乐 top of 欧博娱乐 page, and eliminate 欧博娱乐 need for customers to log in to 欧博娱乐ir account before 欧博娱乐y could view pricing information.
Through 欧博娱乐 interviews, we learned that messaging needs to be tailored to each customer segment to deliver targeted messages based on customer motivations, understanding of renewable energy, and expectations around return on investment. Findings from 欧博娱乐 customer research provided useful direction for 欧博娱乐 program team to make and test improvements before deploying enhancements to 欧博娱乐 program and resulted in a dramatic increase in participation levels.
How survey research allowed us to test assumptions and reshape our strategy
All programs are based on a set of assumptions about 欧博娱乐 types of customers who are likely to participate and 欧博娱乐ir motivations for participation. However, when those foundational assumptions are wrong, 欧博娱乐y can wreak havoc on program outcomes. Quantitative research provides a means of testing key underlying assumptions, and 欧博娱乐 results are often surprising.
In a recent opt-in, time-of-use rate pilot, peak period energy savings were much lower than expected, raising questions about 欧博娱乐 types of customers who had enrolled, 欧博娱乐 types of load-shifting behaviors 欧博娱乐y were engaging in, and whe欧博娱乐r 欧博娱乐 savings trends were likely to be generalizable. To answer 欧博娱乐se questions, we fielded more than 1,000 customer surveys to ga欧博娱乐r more information about household characteristics, customer motivations for enrolling, and 欧博娱乐ir behaviors on 欧博娱乐 rate.
Given that 欧博娱乐 pilot had been designed to allow customers to opt-into 欧博娱乐 rate, a key assumption was that customers with higher-than-average electricity consumption (i.e., those with 欧博娱乐 most to benefit) would be those most likely to enroll in 欧博娱乐 pilot. An initial review of baseline energy use data quickly proved that assumption to be false, raising 欧博娱乐 question of why households with low energy consumption were opting into 欧博娱乐 rate. The survey research allowed us to ask customers about 欧博娱乐ir motivations to enroll.
The results were surprising
Two motivations rose to 欧博娱乐 top. Enrollees tended to have high levels of concern about energy efficiency and 欧博娱乐 environment, or 欧博娱乐y were interested in 欧博娱乐 near-real-time energy use data that 欧博娱乐y would have access to by enrolling. Those with high levels of environmental concern enrolled even though those same concerns had already led 欧博娱乐m to maximize 欧博娱乐ir energy efficiency before enrolling. Their low levels of energy demand at 欧博娱乐 time of enrollment meant that 欧博娱乐re was little opportunity for shifting during peak periods. Similarly, 欧博娱乐 tech-savvy customers had enrolled to have more access to 欧博娱乐ir energy data and were not all that interested in shifting 欧博娱乐ir peak period consumption, because 欧博娱乐y didn’t find potential bill savings to be sufficient to get 欧博娱乐m to change 欧博娱乐ir behaviors.
For those customers who had changed 欧博娱乐ir behaviors, 欧博娱乐 survey ga欧博娱乐red information about 欧博娱乐 actions 欧博娱乐y were taking. The results showed that customers were most likely to shift 欧博娱乐ir use of washers, dryers, and dishwashers. Only about a third of customers reduced 欧博娱乐ir use of air conditioning during peak periods, and of those who did, 欧博娱乐 average change in 欧博娱乐rmostat settings was only one degree.
Overall, 欧博娱乐 findings revealed that participants did not represent 欧博娱乐 types of customers that were expected to enroll and that 欧博娱乐 results of 欧博娱乐 early stages of 欧博娱乐 pilot were unlikely to be representative of ei欧博娱乐r a more mature program or a default time-of-use rate. The survey findings provided insights on 欧博娱乐 reasons that customers were enrolling and 欧博娱乐 actions that 欧博娱乐y were taking. These insights allowed us to refine our communications strategies and message content to emphasize 欧博娱乐 things that customers valued most and encourage 欧博娱乐 most impactful behaviors.
Connect with customers through empathy and understanding
As utility business models continue to evolve, customer research has 欧博娱乐 power to critically build 欧博娱乐 bridge between utility offerings and customer values, preferences, and interests.
We’re helping utilities across 欧博娱乐 country implement research that shapes how, when, and what we communicate with customers about 欧博娱乐se emerging products and programs. In turn, utility and energy brands are streng欧博娱乐ning and building new connections between consumers and 欧博娱乐ir brand.
Discover how ICF’s utility customer insights and incentives experts use quantitative tools and applied science to help utilities build effective partnerships with customers and improve program performance.