Prepaid Energy: Marketing to the Millennial Consumer

Joint effort between DEFG LLC and the New York University Gallatin School

Spring-Summer 2013

Challenge Statement

DEFG, a management consulting firm specializing in energy, joined forces with students of the New York University (NYU) Gallatin School to develop innovative and targeted prepaid energy marketing approaches focused on millennial consumers.

The students were presented a challenge – to craft a marketing approach based on research provided by DEFG and additional insights gleaned from other industries and peer interviews, and then develop and present a campaign focused on engagement with and enrollment of millennials (18 – 30 yr. olds) in a prepaid energy offering.

• The campaign needed to promote the benefits of a prepaid energy option (e.g. convenience, flexibility) in a manner relevant to millennials

• Ancillary benefits (e.g., reductions in energy consumption leading to lower bills, and positive impacts on the environment and climate) also had to be considered

• A premium was placed on overall creativity

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Structure & Deliverables • Students were organized into teams. Each team was responsible for producing deliverables.

• DEFG provided relevant survey results and research reports, and was available to interact with the teams in order to answer questions or review materials.

• The teams individually presented market and primary research findings and initial analysis to DEFG via webcast. DEFG provided input and guidance.

• The teams then crafted marketing approaches and campaign pitches that were presented via webcast to the member companies and public stakeholders of DEFG’s Prepay Energy Working Group.

• The presentation decks included:

Overarching marketing concept

Messaging

Communication strategy

Metrics / Projections regarding success

Marketing collateral, such as Ad/poster, social media outreach, short video, other.

• The Prepay Energy Working Group members selected the winning campaign presentation.

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Highlights from the Students’ Campaigns

The

Diane Kang

Sabrina Mercado

Marissa Neiwirth

Team 1

We are a MOVEMENT

The

• Create a MOVEMENT that doesn’t just target millennial

consumers, it personifies them

• Be original, authentic, and compelling

• Be REAL – with our target market and in our messaging

• Drive SENTIMENT and AWARENESS around Prepaid Energy

• Create a BRAND with social appeal to drive conversion to

prepaid energy plan and market favorability – Become a

MARKET LEADER

We are a MOVEMENT

This movement starts with the product: PREPAID ENERGY

Prepaid energy fits with the Millennial consumer. The DEFG 2012 national survey revealed a significant number of Americans were interested in prepaid electricity (38%) Interest was highest among men (40% v. 36% women), younger adults (44% for 18-54 yrs v. 23% for 55+) and renters (45% v. 33% home owners) The consulting firm Aite reports that 45% of all Americans who have opted out of traditional banking relationships are Millennials. Think Finance reports that among those Millennials it surveyed last year, 51% had used prepaid cards in the previous 12 months; this was the case both at the highest and the lowest income levels.

The

We are a MOVEMENT

The

Light the Night is a movement created for

Millennials. The movement is a way to deeply

engage with Millennials and gain a respected

reputation for prepaid energy. By being a part of the

movement, Millennials are supporting a new way of

doing things and changing the way we look at

energy consumption.

We propose partnering with local businesses to

host a night out to raise energy awareness and

promote the option of pre-paid energy. Consumers

will join the movement and turn off their lights for a

night, and celebrate the occasion with special

events hosted at local businesses.

Various mediums highly utilized by Millennials will

be used to drive awareness of the event, including

various digital platforms integrated with real-world

events.

The

We are a MOVEMENT

The

ENERGY

AHEAD

CONVENIENT. SIMPLE.

EFFECTIVE.

Daniel Fein Corey Cano

Alena M. Field

Kelsi Dulin

Team 2

Current Problems in the Energy Market:

Post-consumption bill paying

Ambiguous usage to payment

relationship

Regional monopolies

Manual meter reading

Left in the dark regarding cost

Overconsumption and bad energy

habits

No option for customer choice

Dependency on manual, inefficient

labor

MILLENNIALS LIKE PROGRESSIVE, CREATIVE, ORIGINAL,

ENGAGING, SHARE-WORTHY PRODUCTS!

Integration

with online platforms & apps

Instant

access & gratification

Input

on how the product could improve

Influence

over the product itself

Involvement

with the future of the product

Interactivity

with the product

The 6 i's millennials look for in products:

CONVENIENCE Top up anytime, anywhere. From your mobile device,

online, or select commercial locations.

ACCURACY No surprise bill every month, consume only what

you spend.

CONTROL By paying only what you decide, YOU are in control of

your spending and consumption.

PROACTIVITY Access to your energy info in REAL TIME!

PROGRESSIVE Consciousness towards consumption breeds

responsible habits

SAVINGS!!!! Individual in-home meters provide constant updates

regarding usage, transforming energy into a finite

commodity with monetary value

Energy Market Solution: Prepaid

JOLT

Millennials into adopting prepaid energy.

How we plan to...

Team 3

Team 4

Interest in prepaid energy (%)

Source: DEFG LLC National Survey (2012)

Millennials don’t want

to deal with:

> bad design

It is not only ugly. It can also be:

> Indicative of a bad underlying product

> Confusing and time-consuming

FAMILIARITY

INTEREST

ADOPTION

Contact Information

DEFG is a management consulting firm specializing in energy.

Since 2003, DEFG has partnered with energy utilities to create value in a commodity marketplace. Customers provide unique resources, reduce risks and increase revenue potential. We help our clients better engage with residential and commercial customers.

To learn more about DEFG, visit our website: http://defgllc.com/

For more information regarding the marketing challenge, contact:

Jamie Wimberly, CEO

jwimberly@defgllc.com

202.483.4443

Cindy O’Dwyer, VP

codwyer@defgllc.com

201.850.1255

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