Transcript How Do We Talk To Small Business Customers?

Supercharge Customer Recruitment
for Your EE/DR/Smart Meter Programs
Copyright 2011 Geltz Communications, Inc.
Hassle-Free Energy Efficiency Help for Small Business
Presentation for
Clean Energy Ambassadors Webinar
March 15, 2011
Christine Geltz, M.A., President
Geltz Communications, Inc.
Who We Are
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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
Copyright 2011 Geltz Communications, Inc.
Sampler of Program Clients and Partners
Copyright 2011 Geltz Communications, Inc.
Leap Tall Goals in a Single Program:
Best Approach
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Combine These Best Approaches
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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
Copyright 2011 Geltz Communications, Inc.
How to Develop a Marketing Plan
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(Unfortunately, this is
where utility many
program marketers start)
Identify and profile target audiences
Developing creative & message platform
Identify & engage key communications pipelines
Outline overarching strategies
Identify tactics to support strategies
Establish reasonable budget
Implement ongoing evaluation plan
Copyright 2011 Geltz Communications, Inc.
How to REALLY Develop a Marketing Plan
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Conduct situation analysis
Set goals and objectives
Establish metrics to measure progress
Conduct consumer and market research
Build a marketing team
Identify and profile target audiences
Developing creative & message platform
Identify & engage key communications pipelines
Outline overarching strategies
Identify tactics to support strategies
Establish reasonable budget
Implement ongoing evaluation plan
Copyright 2011 Geltz Communications, Inc.
(Unfortunately, this is
where utility many
program marketers start)
Small Business Owners: Up Close and Personal
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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?
Copyright 2011 Geltz Communications, Inc.
Copyright 2011 Geltz Communications, Inc.
Copyright 2011 Geltz Communications, Inc.
How Do We Talk to Small Business Customers?
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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]
Copyright 2011 Geltz Communications, Inc.
How Do We Talk To Small Business Customers?
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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
Copyright 2011 Geltz Communications, Inc.
How Do We Talk To Small Business Customers?
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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!
Copyright 2011 Geltz Communications, Inc.
How Do EE Innovations Spread in Communities?
Diffusion of Innovations:
The process in which an innovation is communicated
over time among the members of a social system
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The innovation and its perceived attributes
Communication channels
Time and the steps in the decision-making process
Social system and innovativeness
Copyright 2011 Geltz Communications, Inc.
Program Attributes that Affect Recruitment Rate
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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.
Copyright 2011 Geltz Communications, Inc.
Prior Conditions Matter, Too
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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
Copyright 2011 Geltz Communications, Inc.
Communication Channels in Action
During the Decision-Making Process
AWESOME!
Paid advertising and
direct mail most effective
here for awareness &
knowledge
Adapted from Rogers (2003)
Copyright 2011 Geltz Communications, Inc.
Communication Channels in Action
During the Decision-Making Process
AWESOME!
Paid advertising and
direct mail most effective
here for awareness &
knowledge
Social media offers highly targeted audiences for
utilities to mobilize through interactive communication
Adapted from Rogers (2003)
Copyright 2011 Geltz Communications, Inc.
Innovation and Where to Find Influencers
Adapted from Rogers (2003, p. 281)
Copyright 2011 Geltz Communications, Inc.
Innovation and Where to Find Influencers
Innovators respond
best to mass media
and logical messaging.
Most people rely on objective and subjective messaging
through interpersonal communication channels for persuasion.
Adapted from Rogers (2003, p. 281)
Copyright 2011 Geltz Communications, Inc.
Example: Utility DR Thermostat Program
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(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!!
Copyright 2011 Geltz Communications, Inc.
Marketing Strategy
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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
Copyright 2011 Geltz Communications, Inc.
Customer
Evangelist
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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 Spanishspeaking television about
program
Wanted to host energy
reception for other
business owners and
Hispanic C of C members
Copyright 2011 Geltz Communications, Inc.
Emergence of Adoption Clusters
Copyright 2011 Geltz Communications, Inc.
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)
# of Thermostat
Applications Rec’d
# of Thermostats
Requested in Applications
Direct Mail
Alone
In Person: Cold
Calling
In Person:
Utilityprovided,
qualified list
In Person:
Chamber of
Commerce
List
1%
18%
30%
82%
1.5%
27%
47%
150%*
*Yield rate is greater than 100% because many requested multiple thermostats.
Copyright 2011 Geltz Communications, Inc.
Key Concepts – It’s Simple!
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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
Copyright 2011 Geltz Communications, Inc.
[Much] Faster Than a Speeding Bullet:
Social Media
Copyright 2011 Geltz Communications, Inc.
Traditional Communications
Source: Paul Gillin
Copyright 2011 Geltz Communications, Inc.
The New Reality
Source: Paul Gillin
Copyright 2011 Geltz Communications, Inc.
Copyright 2011 Geltz Communications, Inc.
Utilities and Social Media
“We’re not changing what we’re saying—just where we say it.”
Dan Kolbet, Avista Utilities
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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
Copyright 2011 Geltz Communications, Inc.
Craft a Sound Social Media Strategy
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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
Copyright 2011 Geltz Communications, Inc.
The Right Tool for the Job – Program Marketing
Business Goal
Appropriate Social Media Tools
Strategy drives the tools—not the
other way around…
Blog
Market research/focus group
testing
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Media relations
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Generate new product ideas
Product promotion
Product support/customer
service
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Product/service feedback
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Recruit brand advocates
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Event promotion
Copyright 2011 Geltz Communications, Inc.
Podcast
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Video
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Social
Network:
Facebook
Private
Community
Cust.
Review
Engine
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Twitter
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More Powerful Than a Bullet Train:
What Works
Copyright 2011 Geltz Communications, Inc.
Information isn’t enough:
Programs must sell what business owners want
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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
Copyright 2011 Geltz Communications, Inc.
Conclusion: Marketing & Outreach Lessons
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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
Copyright 2011 Geltz Communications, Inc.
Your Secret Energy Source:
The Single Most Powerful Key to Program Success
Copyright 2011 Geltz Communications, Inc.
Forge Internal/External Stakeholder Team Where:
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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)
Copyright 2011 Geltz Communications, Inc.
Got Questions?
Copyright 2011 Geltz Communications, Inc.
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
Copyright 2011 Geltz Communications, Inc.
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-marketingto-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.
Copyright 2011 Geltz Communications, Inc.
Christine Geltz
President
Geltz Communications, Inc.
[email protected]
www.geltzcomm.com
Tel: 626-568-8412
Cell: 626-483-0560
[email protected]
Copyright 2011 Geltz Communications, Inc.