SGCC Research Brief
From Movers and Shakers
to Status Quo - What’s the
Deal?March, 25 2015
SGCC Research Brief
Speakers
Jack Lloyd, Research Coordinator at
SGCC
Gomathi Sadhasivan, Senior
Consultant at DNV GL
Michael McMahan, Vice President of
Advanced Metering Infrastructure
(AMI) Implementation at ComEd
SGCC Research Brief
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SGCC Research Brief
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SGCC Research Brief
Agenda
1. SGCC Research
• How/why this research
• Segmentation 101
2. SGCC Consumer Pulse
• Research findings
• Segment profiles
3. Commonwealth Edison
• Consumer Outreach
• Market Studies & Customer Feedback
4. Q&A
SGCC Research Brief
Speaker #1
Name Background
Gomathi Sadhasivan Senior Consultant, Sustainable Energy Use, DNV GL
• Research Committee Chair, SGCC
• Formerly Assistant Director, Decision Sciences at Opinion Research Corporation
• M.B.A. in Sustainable Management, Presidio Graduate School
• M.S. in Mathematics, Michigan Technological University
• M.Sc. In Statistics, University of Mumbai
SGCC Research Brief
SGCC Research
Recent Research Products from SGCC
SGCC Research Brief
Consumer Pulse Wave 5
Study Details• Research conducted in 2014/2015
• National Survey, n=1004
• Topics explored include:
o General Smart Grid and Meter Awareness
o Satisfaction with Utility
o Interest in Home Energy Management
o Perceptions of electric utility on various dimensions
o Perceptions of utility performance on key benefits
o Channels used to engage with the utility
o Choice of providers and propensity to switch
o Interest in Smart Energy Offers (SEOs) – Time Varying Rate Plans
o Interest and adoption of technologies
SGCC Research Brief
Segmentation
Background• Segmentation is a practical approach that falls between the “market is a
monolith” and “customerization” extremes
• a priori versus post hoc
• Segmentation Basis – attitudes, values, behaviors, motivations, lifestyles,
technology adoption etc.
• Broad/high level pattern recognition
• Segmentation “refreshed” in 2014/2015
• Five consumer segments that exhibit distinctive patterns of awareness,
favorability, expectations and preferences relating to Smart Grid and Smart
Grid-enabled programs and technologies
SGCC Research Brief
Scoring your market
Solutions from SGCC• The updated SGCC Consumer Segmentation has great potential to guide the
design and marketing of Smart Grid programs and services for consumers.
• Segmentation framework is ready to be adopted at low cost by any SGCC
member organization
o Embed 10 questions in your research, classify customers into these 5
segments with 77% accuracy
o Append commercially available third party data (10-12 variables),
classify customers into these 5 segments with 55% accuracy
SGCC Research Brief
Consumer Pulse Market
Segmentation (2015)
SGCC Research Brief
Speaker #2
Name Background
Jack Lloyd Research Coordinator at SGCC
• Formerly Senior VP, Energy Division at Market Strategies International
• Research Director at Opinion Research Corporation
• Market Research Manager at Southern California Edison
• MBA from Yale University, Yale School of Management
SGCC Research Brief
Consumer Pulse Market
Segmentation (2015)
SGCC Research Brief
Green Champions – 30%
Characteristics and Opportunities
• Strong interest in new utility services and smart energy programs
• Early technology adopters and the most environmentally-conscious consumers
• Satisfaction with utility is only average, and they may not consider their utility the best provider of innovative products and services to meet their needs
• Youngest segment, with half under the age of 35, they are the second highest income group
• Attractive prospects for smart energy technology and programs• Innovative utility offerings can appeal to this group and improve satisfaction over
time
SGCC Research Brief
Savings Seekers – 20%
Characteristics and Opportunities
• Looking for information and programs that can help them save money by using less energy
• Lowest income; highest percentage of low-income households
• Many younger than 35; few older than 65• Utility satisfaction is low• Awareness and favorability toward Smart
Grid and Smart Meters are low• They do see the benefits of the Smart Grid
as important
• New pricing programs can help reduce their bills • Will also appreciate such programs as energy audits and energy assistance
SGCC Research Brief
Status Quo – 18%
Characteristics and Opportunities
• Consumers in this segment have the lowest interest in smart energy programs
• Do not attach high importance to Smart Grid benefits, or smart technology programs and services
• Status Quo consumers are relatively older • Low energy consumption and high
satisfaction with their utility• Comfort and ease are more important to
this segment than conservation
• Difficult segment to engage • Offerings should emphasize ease of use and minimize disruption of long-term
habits
SGCC Research Brief
Technology Cautious – 17%
Characteristics and Opportunities
• Similar to Status Quo demographically• More knowledgeable about Smart Grid
programs• Do not attach high importance to Smart Grid
benefits, or smart technology programs and services
• Claim knowledge of how to save energy and indicate concern about the environment, but are more focused on comfort and ease of use
• Challenging segment -- emphasize ease of use and minimize the need for lifestyle changes
• Consistent messaging emphasizing comfort and convenience may make inroads over time and, as this is the second-lowest income segment, some will be motivated by savings
SGCC Research Brief
Movers and Shakers – 15%
Characteristics and Opportunities
• The most affluent segment• Larger homes and the highest average
electric bills• Smart Grid awareness and favorability are
high, but utility satisfaction is low• Segment includes early technology
adopters and has high interest in new energy technologies
• So far, only moderate interest in smart energy programs and new utility services
• Offerings that use technology to minimize effort, avoid inconvenience, and maximize comfort will make inroads
• Increased engagement may also lead to improvements in overall satisfaction
SGCC Research Brief
Embracing the Benefits
Total Importance
Important,but at no
additional cost
Important,willing to pay more, but unable at this time
Important,and will pay more now
RELIABILITY A smart grid senses problems and reroutes power automatically. This prevents some outages and reduces the length of those that do occur.
86% 48% 20% 18%
ECONOMIC Smart grid help consumers save money by providing near real time energy usage information and the ability to manage electricity use.
86% 49% 22% 15%
ENVIRONMENTAL Smart grid reduces greenhouse gas emissions by making it easier to connect renewable energy sources to the electricity grid.
89% 47% 22% 20%
SGCC Research Brief
Likely to Participate
Program Likelihood
Critical Peak Rebates 60%
Time of Use Rate 44%
Demand Response Pricing
39%
Critical Peak Pricing 24%
Strong savings expectation needed to motivate participation: 28%
average among those who probably/definitely would participate.
SGCC Research Brief
Interested in Programs
Already Participating
Total Would Participate
Definitely Would
Probably Would
Might or Might Not
Would Not
0%
43%
17%
26%
31%
26%
Base: Total ConsumersA,B,C,D,E indicate significant differences between segments indicate a significant increase or decrease between current and previous wavesAP2. If you were offered this program, how likely would you be to participate?
Total Status Quo (A)Technology Cautious (B) Savings Seekers (C)
Movers and Shakers (D)
Green Champions (E)
n=1,004/1,234 220 206 201 168 209
1%
60%
24%
36%
19%
20%
1%
62%
23%
39%
21%
16%
0%
44%
14%
30%
27%
29%
1%
83%
32%
51%
11%
5%
1%
81%
36%
45%
8%
10%
0%
29%
9%
20%
29%
42%
A
ABDA
ABD
CE
CEBCDE
CECE
ABD
ABD
ABD
ABD
CE
W5|W1
Likelihood to Participate: Critical Peak Rebates
SGCC Research Brief
Knowledge Level Static
indicate a significant increase or decrease between current and previous wavesA1. Which of the following statements comes closest to describing your current level of knowledge about smart grid?
A2. Which of the following statements comes closest to describing your current level of knowledge about smart meter?
I have a fairly complete understanding of what it is, how it would work, and how it would affect
homes and businesses
I have a basic understanding of what it is and how it would work
I’ve heard the term, but don’t know much about what it means
I have not heard that term
7%
18%
22%
51%
7%
16%
24%
51%
10%
20%
22%
46%
9%
18%
23%
48%
Current Level of Knowledge of…
Smart Grid Smart Metern=
Wave 5 1,004
Wave 1 1,234
SGCC Research Brief
Higher Unfavorability
indicate a significant increase or decrease between current and previous wavesA4. Considering what you know about the smart grid, would you describe your general feelings about the smart grid as favorable or unfavorable?Base: Among those who have heard of smart gridA5. Considering what you know about smart meters, would you describe your general feelings about smart meters as favorable or unfavorable?Base: Among those who have heard of smart meter/smart grid
49%
17%
32%
25%
18%
52%
20%
32%
25%
11%
50%
16%
34%
21%
24%
54%
17%
37%
23%
15%
Overall Favorability
Smart Grid Smart Meter
Total Favorability (%6–10)
Very Favorable (%9–10)
Somewhat Favorable (%6–8)
Neutral(%5)
Unfavorable(%0–4)
n=
Wave 5 472
Wave 1 584
n=
Wave 5 519
Wave 1 628
SGCC Research Brief
Segments Differ Sharply
Base: Among those who have heard of smart meter, *view with caution, small base sizeA,B,C,D,E indicate significant differences between segmentsA5. Considering what you know about the smart meter, would you describe your general feelings about the smart grid as favorable or unfavorable?
Total Status Quo (A)Technology Cautious (B)
Savings Seekers (C)
Movers and Shakers (D)
Green Champions (E)
n=519 16* 176 60 131 136
50%
16%
34%
21%
24%
Total Favorability (%6–10)
Very Favorable (%9–10)
Somewhat Favorable (%6–8)
Neutral(%5)
Unfavorable(%0–4)
31%
8%
23%
29%
20%
42%
13%
29%
29%
24%
56%
18%
38%
15%
23%
Overall Favorability
Smart Meter
45%
14%
31%
21%
28%
51%
18%
33%
26%
21%
SGCC Research Brief
Are Things Improving?
Base: Among those with the same electric provider for the past five yearsA7.-A10.
Reliability of Electric Service
Accuracy of Restoration Times
Helping to Manage Energy Use
Using Technology to Conserve
the Environment
Better
Same
Worse
31%
30%
21%
18%
56%
58%
71%
72%
10%
6%
8%
8%
SGCC Research Brief
Key Research Implications
Specific programs and benefits are what appeal to consumers, much more than the technologies behind them
The benefits of Smart Grid have broad consumer appeal and should be leveraged to build trust.
Interest in innovative pricing programs is quite high, although it varies depending on program design and consumer segment.
The updated SGCC Consumer Segmentation has great potential to guide the design and marketing of Smart Grid programs and services for consumers.
SGCC Research Brief
Speaker #3
Name Background
Michael McMahan Vice President of Advanced Metering Infrastructure (AMI) Implementation at ComEd
• Oversees ComEd’s AMI Deployment plan and operations throughout the northern Illinois region, including AMI Business Transformation, Customer Strategy, AMI Field Operations, and AMI Operations
• Previously served as vice president of Smart Grid and Technology
• Before joining Exelon, McMahan held a series of positions with increasing responsibility in General Electric’s Nuclear Division, including manager of Outage & Inspection Services, Business Planning and Development and Mechanical Services
• Bachelor’s degree in nuclear engineering from the University of Florida and a MBA from Emory University
Smart Grid Consumer Collaborative
Webinar
Mike McMahan
VP Smart Meter Implementation
29Pre- and Post-Deployment Communications
A staged messaging strategy is utilized to build awareness as well as inform and educate customers
Customers receive communications prior to, during and after meters are installed
Timing Method Message/Benefits Collateral
90 DAYS BEFORE DEPLOYMENT
Informational insert received in customer bill
• Create awareness about smart meters and their benefits
60 DAYS BEFORE DEPLOYMENT
6x9 mailed informative piece
• Create awareness that meters will soon be installed in customer’s neighborhood• Provide more information about meters and benefits
30Pre- and Post-Deployment Communications
Timing Method Message/Benefits Collateral
30 DAYS BEFORE DEPLOYMENT
Operational Lettersent in envelope andincludes FAQs
• Inform that a meter will be installed at customer’s home in next 30 days• Sets customer expectation onwhat happens day of install
7 DAYS BEFOREDEPLOYMENT
Recorded messagedelivered via phone
• Reminder that meter install will be occurring within the week
Timing Method Message/Benefits Collateral
DEPLOYMENT “Meter Installed”doorhanger
• Inform that meter has been installed; educate about energy management tools
DEPLOYMENT “Sorry we missed you”doorhanger left if unableto install meter
• ID reason install did not occur; provide avenue to reschedule
30 DAYSAFTERDEPLOYMENT
6 x 9 mailed welcomepiece9 x 6 mailed welcomepiece
• Encourage participation in energy management tools
• Reminder to participate in energy management tools
31Pre- and Post-Deployment Communications
32Municipal Outreach
2014• Municipal Outreach events - 130• Cable Interviews - 2
• Community Events - 146• Street Team Events - 212• Cookie Truck (Smart Meets Sweet Truck) Events - 164
YTD 2015• Municipal Outreach events - 203• Cable Interviews – 2
• Community Events - 13• Street Team Events - 17• Cookie Truck (Smart Meets Sweet Truck) Events - 13
Gross vs. Net Refusals Through March 14, 2015 33
Refusal Reason Cost Health Multiple No Reason Other Overheating Privacy Security Total
Gross 19 644 187 585 206 27 168 21 1857
Net 9 486 130 332 124 19 105 12 1217
Conversion % 53% 25% 30% 43% 40% 30% 38% 43% 34%
19
644
187
585
206
27
168
21
1857
9
486
130
332
12419
10512
1217
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Cost Health Multiple No Reason Other Overheating Privacy Security Total
Refusal Types
Gross
Net
34Peak Time Savings
• Through March 18, 2014 Approximately 680K customer have been solicited for PTS• Promotions yield about a 5% response rate, vs anticipated 2%• As of March 18, 2015 – 41,317 customers have enrolled
Peak Time Savings
35Customer Satisfaction
• 92% of respondents were satisfied with the smart meter installation process
• Customers stated they were satisfied due to:• Installation being smooth, easy and trouble-free• Good customer service• Received clear, informative communication• Respect shown by technicians
A indicate significant differences.
• To measure and track the efficacy of our customer touch points, communications and interactions with our field personnel. ur customer
Takeaways & Questions
Top Related