Most Desired Improvements

Who consults with the

“Very much satisfied”?

Who consults with the

“Somewhat Satisfied”?

None of the above

Faster heating or cooling

Better humidity control

Reduced noise level

Improved air flow

Better temperature control

Better air purification

More even temperature in each room

Greater energy efficiency

4%

48%

34%

33%

52%

59%

41%

66%

77%

2%

26%

23%

27%

32%

34%

32%

54%

68%

20%

10%

15%

17%

13%

12%

22%

30%

41% Very Much Satisfied

Somewhat Satisfied

Not At All Satisfied

2010 Home Comfort System Satisfaction

50%

43%

7%

Prepared For:

Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 2

More and more homeowners are turning to the Internet

The Internet now replaces other input.

It is important for energy consultants to know what is being said on the Internet, to know how to best serve Internet using clients.

Homeowners And The Internet

Sources Used to Gather Information About Purchase

Key Sources of Information

Contractor

65%

63%

66%

62%

55%

Internet

28%

32%

24%

21%

21%

Friends, neighbors, co-workers

25%

28%

29%

35%

46%

Yellow Pages advertising

5%

4%

3%

7%

24%

2008

2010

2006

2004

2002WOW!

201310%35%43%43%

Prepared For:

Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 5

Communication is key when a new central system or part of a new system is added to the home.

Unfortunately, communication between the homeowner and the “experts” remains horribly limited.

The next series of slides illustrate the need for more training on the part of contractors and homeowners.

Communication

What Contractors See As The Reasons Is Very Different

18%

33%

49%

System Upgrade Buyers

Planned Purchasers

Breakdown Buyers

Reason For Purchase

Contractors see that eight in ten replacements are because of breakage that is too costly to repair.

Many contractors feed that replacement scenario by often believing they are helping the homeowner by repairing an old system until it cannot be affordably repaired anymore. The homeowner complies and waits to buy what they want once the system can’t be affordable fixed.

Only one in ten homeowners told the contractor they bought the new equipment to achieve better energy usage.

This Is What Homeowners Tell Their Friends

What Caused Your Central HVAC Purchase?

10%

23%

45%

Total ReasonsTo Replace An Old Air Conditioner With A New One

Wanted to improve air quality

Wanted to improve comfort

Wanted more efficient productto reduce utility bills

Prepared For:

Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 9

Many contractor consultants conduct themselves in a way that the homeowner can feel good about.

Too many technicians, however, are not trained properly or do not conduct themselves in a manner conducive to being a strong consultant.

Who Are These HVAC Consultants

Many install technicians lose the customer’s service future work

Contractor/Installer Profile

Courteous & Professional

Correct Truck Signage

Calmed My Fears Letting A Stranger In My House

Had right uniform signs

Had A Business Card

Stood Back From Door Until I Felt Comfortable

50%

50%

60%

60%

70%

30%

Homeowner Assessment Of TheirContractor

The economy has been brutal-with recent signs of limited recovery

Communications problems

Few consultative technicians

Products did not fix the problem

We need to find ways to better train and influence these potential and important in-the-home energy-use consultants.

0%

10%

20%

30%

40%

50%

60%

70%

2013

2010

2008

2006

2013 57% 46% 42% 49% 58% 56%

2010 47% 48% 48% 52% 59% 62%

2008 50% 49% 51% 56% 61% 62%

2006 52% 54% 62% 64%

4 5 6 5 4 4

Bad And Getting Worse

• Installation and Purchase Experience (Replacement Buyers)

At least half of all homeowners are doing something – much of it uninformed

Millions know they need improved energy in their home

Homeowners are older, with more income, and more desire to upgrade their home

In-home contractors (specifically CONSULTATIVE ones) are positioned well

Communications between many energy utilities and contractors and the homeowner decision makers need work

While there are exceptional HVAC contractors, there are also many who’s business models do not improve home comfort, or energy usage

For the established Consultive contractor, the best way to find and keep (Home Performance Consumers) is to build relationships

Lack of TRUST is essentially the most critical issue that keeps the homeowner from making the right moves

Uninformed homeowners are hard to reach. Reaching them before they have a need is difficult

Is it easier to begin building TRUST based on a $250 sale annually (Svc agreements), or a $4,500 replacement sale once every seven to 17 years?

• Reflections - Relationships

The Internet is a way to better inform. Energy Utilities have a relationship and Smart Meters that can better

inform New energy audit companies have a platform to better inform Consultive contractors have the ability to build relationships that can

better inform Federal agencies have great information, but are not often accessed How do all of us work to better build the message and the change?

• Reflections - Relationships

Proprietary Internet Panel SummaryACOP.COM

American Consumer Opinion® 8+ million consumers worldwide

Executive Advisory Board® C-level executives, directors and managers worldwide

Technology Advisory Board® IT professionals, scientists, technologists in major industrial countries

Contractor Advisory Board® All segments of building and construction industry

Imaginators™ Exceptionally creative consumers used to generate new product ideas

Garry Upton – gupton@decisionanalyst.com (817) 640-6167

Questions? - Contact

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