How can utilities/electricity providers differentiate electricity management programs? How much value do consumers place on smart home technologies, mobile applications and nontraditional channels? And are consumers interested in the delivery of energy management programs through third parties?
The utilities industry is currently faced with a broad range of perspectives on what utilities/electricity providers should focus on beyond the meter. Accenture’s experience working around the world with utilities/electricity providers and our ongoing global end-consumer research program has shown that no one approach fits for all providers, but certain market trends are emerging. To help utilities/electricity providers meet the challenges and opportunities presented by the evolving energy marketplace, Accenture launched a multi-year global research program aimed at gaining a deeper understanding of consumers’ attitudes, opinions and preferences toward energy management programs.
Multiyear global research
To further our understanding of the new energy consumer landscape, we have completed the second installment in our multiyear research program titled: Revealing the Values of the New Energy Consumer. The survey probed consumer attitudes toward electricity management programs and the beyond-the-meter market by researching questions including: “What are the energy consumer’s traditional and nontraditional values surrounding in-home technologies, electricity management programs, and related products and services?”
The second installment of the research provided us with four key findings:
- While consumers regard their utilities as the primary provider for energy-related products and services, dynamic business models are emerging.
73 percent of consumers would consider at least one provider other than their utility for these products and services. - Price is the pivotal factor in the acceptance of electricity management programs, but price alone will not drive adoption.
The opportunity to reduce the electricity bill remains the most important fact that would encourage consumers to adopt an electricity management program. Loyalty rewards represent the most important nonprice consideration, while usage adjustment is the least important. - A wide array of consumer preferences is driving the need for differentiated propositions and experiences.
For example: Service-centrics are more likely than the average consumer to be dissatisfied by a program with poor customer support and poor product installation, and have the highest preference for dealing with their utilities/electricity providers. - Consumers will respond to programs that consider their full spectrum of values and preferences.
60 percent of all consumers are interested in technology that can completely automate the management of the electricity they use.
Consumers (still) prefer traditional utilities/electricity providers, but new beyond-the-meter products and services offer new opportunities for alternative providers. According to the published report, more than 60 percent of consumers are above average interested in energy management programs, exhibit the willingness to pay more for easy to use programs and comfort. Although the price is most considerable for most consumers, as more consumers gain access to smart in-home technologies, the offered service by providers is becoming increasingly important.
The findings of this report highlight four critical implications for utilities/electricity providers as they seek to address the evolving energy marketplace:
- Make information the new currency: focus on analytics to gain a deeper understanding of consumers. So providers will need the ability to understand their customers, develop tailored products and services and bundle these with value propositions that will resonate with their target consumer segments.
- Embed innovation into customer operations: use an analytics-driven understanding of consumer segments to develop tailored products and services.
The traditional commodity service may no longer be at the heart of utilities’/electricity providers’ offering set, but just one component of a whole range of services making up the entire product offer. - Redefine the meaning of “consumer”: address the service and channel requirements of all consumer segments.
While consumers have traditionally been defined as a “bill payer attached to a fixed premise” consuming energy, tomorrow’s providers must think of them as much more than just the bill payer. - Rethink traditional business models to maximize value: navigate the evolving energy marketplace.
As providers around the world respond to the challenges and opportunities of industry convergence, they will also need to transform their operating models to be more consumer-focused, agile and flexible enough to meet the changing consumer needs.
For more insights and information about the New Energy Consumer, please take a look at our published report ‘Revealing the Values of the New Energy Consumer’. For information about the first installment of the research, please visit ‘Understanding Consumer Preferences in Energy Efficiency’.
Loading ...
