copyright 2011 geltz communications, inc. supercharge customer recruitment for your ee/dr/smart...

Copyright 2011 Geltz Communications, Inc.

Supercharge Customer Recruitment

for Your EE/DR/Smart Meter Programs

Christine Geltz, M.A., PresidentGeltz Communications, Inc.

Hassle-Free Energy Efficiency Help for Small Business

Presentation for Clean Energy Ambassadors Webinar

March 15, 2011


Who We Are

Founded in 1990 Based in Pasadena, California Full-service marketing communications agency Specialize in energy and water efficiency and sustainability Expert in helping utilities and technology companies meet their

customer recruitment goals Adept at mobilizing teams of internal and external stakeholders for

program momentum Win awards for our client programs’ innovativeness and success


Sampler of Program Clients and Partners


Leap Tall Goals in a Single Program:

Best Approach


Combine These Best Approaches

Traditional Neo-Econometric – asks what are the barriers to adoption, how do we overcome with logic and incentives to persuade individual

Diffusion of Innovations – asks what are all the persuasive influences within the potential adopter’s social system

Social Marketing – asks how we can win hearts and minds for long-lasting behavior change through social incentives


How to Develop a Marketing Plan

1. Identify and profile target audiences2. Developing creative & message platform3. Identify & engage key communications pipelines4. Outline overarching strategies5. Identify tactics to support strategies6. Establish reasonable budget7. Implement ongoing evaluation plan

(Unfortunately, this is where utility many program marketers start)

How to REALLY Develop a Marketing Plan

1. Conduct situation analysis2. Set goals and objectives3. Establish metrics to measure progress4. Conduct consumer and market research5. Build a marketing team6. Identify and profile target audiences7. Developing creative & message platform8. Identify & engage key communications pipelines9. Outline overarching strategies10. Identify tactics to support strategies11. Establish reasonable budget12. Implement ongoing evaluation plan


(Unfortunately, this is where utility many program marketers start)

Small Business Owners: Up Close and Personal

Hybrid between residential and regular commercial Too many/small to give them account representatives

BUT hard to recruit via mass media/direct mail Short on capital – can’t purchase and wait for rebate Short on time to study usage & options Short on energy expertise In a tenant/landlord relationship English is sometimes second language

How can you reach & recruit them for EE?



How Do We Talk to Small Business Customers?

Traditional EE programs: We often treat small business owenrs like they Operate as individuals in a vacuum React to logical arguments with logical decisions [Describes only small % of population, reflects the innovators]


How Do We Talk To Small Business Customers?

Diffusion-oriented programs: We treat small business owners as if they Operate as part of a social system and talk with each other Depend on near-peers for subjective evaluation of EE/DR/Smart

Meter technologies or behaviors


How Do We Talk To Small Business Customers?

Diffusion-oriented programs: We treat small business owners as if they Operate as part of a social system and talk with each other Depend on near-peers for subjective evaluation of EE/DR/Smart

Meter technologies or behaviors

Late-breaking bulletin:

With social media, we can participate in these

conversations!


How Do EE Innovations Spread in Communities?

The innovation and its perceived attributes Communication channels Time and the steps in the decision-making process Social system and innovativeness

Diffusion of Innovations:

The process in which an innovation is communicated over time among the members of a social system


Program Attributes that Affect Recruitment Rate

Relative advantage: Better than the idea it supersedes? (Incentives increase advantage in customer’s mind)

Compatibility: Consistent with values, experiences, needs?

Complexity: Easy to understand and use? Trialability: Okay to experiment on a limited basis? Observability: Can customer see before singing up?

Bottom line: Messaging should reduce the customer’s uncertainty about the innovation.


Prior Conditions Matter, Too

Previous EE practices Felt needs/problems with energy Innovativeness Norms of the social system*

*Utilities are using peer pressure as a powerful motivator – email me for details


Communication Channels in Action During the Decision-Making Process

Paid advertising and direct mail most effective here for awareness & knowledge

Adapted from Rogers (2003)

AWESOME!


Communication Channels in Action During the Decision-Making Process

Paid advertising and direct mail most effective here for awareness & knowledge

Adapted from Rogers (2003)

Social media offers highly targeted audiences for utilities to mobilize through interactive communication

AWESOME!


Innovation and Where to Find Influencers

Adapted from Rogers (2003, p. 281)


Innovation and Where to Find Influencers

Innovators respond best to mass media and logical messaging.

Adapted from Rogers (2003, p. 281)

Most people rely on objective and subjective messaging through interpersonal communication channels for persuasion.


Example: Utility DR Thermostat Program

(Before social media) Small commercial two-way load control thermostats Free thermostat and end-of-season incentive Offered service territory-wide Low response to direct mail Targeted six towns in key rural desert area Expedited time frame (two weeks) specified by program

manager Mid-summer!!


Marketing Strategy

Organized an internal (SCE cross-departmental)/external promotion team on which everyone benefited – No silos!

Positioned field rep as small business consultant (cross market other utility offerings for small business)

Used EE program CFL as foot in door Recruited and installed opinion leaders first for the program

and worked through them Softened market with media releases Fanned out in person with pre-qualified list Met and debriefed each day – shared opportunities, tweaked

program


Customer Evangelist

Geltz Energy Team Member Michele Zack (left) and Marianna Carbajal

Owns Easy Travel & Services in Cathedral City

English is second language

Interviewed on local English- and Spanish-speaking television about program

Wanted to host energy reception for other business owners and Hispanic C of C members


Emergence of Adoption Clusters


Results – in TWO WEEKS

Comparison of Yield Rates:

Direct Mail Vs. Full Diffusion Outreach (Backed Up by Local Mass Media, Utility Public Affairs and Corporate Communications)

Direct Mail Alone

In Person: Cold Calling

In Person: Utility-

provided, qualified list

In Person: Chamber of Commerce

List

# of Thermostat Applications Rec’d

1% 18% 30% 82%

# of Thermostats Requested in Applications

1.5% 27% 47% 150%*

*Yield rate is greater than 100% because many requested multiple thermostats.


Key Concepts – It’s Simple!

Organize an internal/external promotion team on which everyone wins – No silos!!

Combine diffusion-based marketing with traditional approach Re-direct a portion of paid advertising and direct mail dollars

into messaging/channels that create more impact for culture change Cross-market and leverage available offerings for the target market

segment Sign up local opinion leaders first for the program, get them

installed, and leverage their endorsement Discover channels and success stories throughout campaign Use community “all in this together” mindset Encourage customers to become program advocates


[Much] Faster Than a Speeding Bullet:

Social Media


Traditional Communications

Source: Paul Gillin


The New Reality

Source: Paul Gillin


Utilities and Social Media

“We’re not changing what we’re saying—just where we say it.” Dan Kolbet, Avista Utilities

Five primary social media channels utilities are using: Twitter, Facebook, YouTube, Flickr, LinkedIn

Utilities are increasing channel integration. Ex: Pepco has fully integrated presence (look/feel and content distribution) across Twitter, Facebook, YouTube and their blog

Social media is a natural progression for brand, message consistency, overall communication efficiencies, program marketing and recruitment

EE program microsites and Twitter feeds are great tools to foster small business awareness and recruitment

Source: Matt Burks, ESource


Craft a Sound Social Media Strategy

Make the case to management Put your ear to the ground Set up the program platform Encourage employees as spokespeople Know the basics of good social media content Use words and images Let the strategy drive the choice of tool, not the other

way around


The Right Tool for the Job – Program Marketing

Business Goal Appropriate Social Media Tools

Strategy drives the tools—not the other way around…

Blog Podcast Video Social Network: Facebook

Private Community

Cust. Review Engine

Twitter

Market research/focus group testing • • • •Media relations • • • • •Generate new product ideas • • • •Product promotion • • • • • •Product support/customer service • • • •Product/service feedback • • •Recruit brand advocates • • • •Event promotion • • • • • •


More Powerful Than a Bullet Train:

What Works


Information isn’t enough: Programs must sell what business owners want

Saving on overhead costs long term Having enough energy to run the operation Being good corporate citizens Competition Customer comfort Peer pressure Community engagement The environment


Conclusion: Marketing & Outreach Lessons

Best ways to communicate are the most cost-effective Forge strong local partnerships Find out what small business owners care about Speak their language Let opinion leaders sell the program for you – powerful! Be trustworthy and responsive One touch is not enough – 3 times rule Make it SIMPLE Reduce uncertainty


Your Secret Energy Source:

The Single Most Powerful Key to Program Success


Forge Internal/External Stakeholder Team Where:

Everyone wins No one entity has to work inordinately hard Existing communication channels are leveraged for

greater (cheaper!) impact Program success = kWh, kW, and GHG reduction goals Program design gives momentum for other programs in

small business segment Program success improves public perception of the utility

and the external stakeholders (community groups, local governments, nonprofits, trade groups, business groups, contractors, vendors, media)


Got Questions?


References

Burks, Matthew. (2010) Social media—Where are we? AESP Strategies Newsletter. www.aesp.com

Feldman, Shel and Mast, Bruce. (2001) Know thy customers: The use and value of customer segmentation in marketing energy-efficient lighting; chapter in Energy Efficiency in Household Appliances and Lighting by Bertoldi, Paolo Bertoldi et al. New York: Springer-Verlag

Fuller, Merrian C. et al (2010) Driving demand for home energy improvements. Report No. LBML 3960E. Environmental Energy Technologies Division, Lawrence Berkeley National Laboratory.

Gillin, Paul. (2009) Secrets of social media marketing. Fresno, California: Quill Driver Books. www.SSMMBook.com www.gillin.com


References (contd.)

Hummer, Jane. (2010) Using social marketing to promote energy

efficiency and conservation. Environmental Leader Newsletter www.environmentalleader.com/2010/03/22/using-social-marketing-to-promote-energy-efficiency-and-conservation/

Knox, Kim. (2010) Social marketing for commercial customers. AESP Strategies Newsletter, July 2010 www.infoinc.com/AESP/0710.html

Rogers, Everett M. (2003) Diffusion of innovations (Fifth edition). New York: Free Press.


Christine GeltzPresident

Geltz Communications, [email protected]

www.geltzcomm.comTel: 626-568-8412Cell: 626-483-0560

[email protected]

copyright 2011 geltz communications, inc. supercharge customer recruitment for your ee/dr/smart...

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