Wednesday, 18 December 2013

Audience


Social pressure

Here another example how companies are using peer pressure to drive customers in

Trend of shopping 2013

To analysed my market I look what people is buying for christmas, gadgets are starting to increase.





Ted Talk


"Social pressure is powerful stuff"
Experiment
"Your neighbour are doing better"

OPower People review

http://opower.com/customers/real_people

5 universal truth abut energy consumers

http://www.opower.com/fivetruths/

"Opower sponsored a global research study to understand what’s on the mind of the utility customers, and to assess how customer needs and wants vary from one region to the next."



http://blog.opower.com/2013/10/its-not-all-about-the-money-new-research-finds-the-cost-of-energy-isnt-the-only-thing-utility-customers-care-about/

While customers may not be satisfied with their utilities, they look to them—as opposed to government entities and third parties—for advice on how to manage their energy use. 



Truth 4: Customers value personalised energy insights 

"CUSTOMERS WANT 
  • Progress updates on how much energy they saved compared to the last billing period 
  • Explanation of how their energy use compares to that of utility customers 
  • Advice on how to save energy as the weater changes 
  • Personalised recommendations from the utility on how to reduce home energy use "


NOTE: While all customers want options, the actual channels preferred vary substantially by country. 






Truth 5: Everyone wants to know how they measure up 
"we’ve found that people around the world have strong and consistent reactions to learning how their energy use compares to that of others. "

"A landmark behavioural science experiment conducted by Professor Robert Cialdini in 2003 found that the most effective technique for getting people to save energy is telling them how they compare to others. "

"Opower has confirmed the power of normative comparisons in shaping consumer behaviour. When we omit neighbour comparisons from our communications, energy savings fall considerably. "





I found myself that people would be willing to take energy tips, when others did it.  People manifested that they don't believed, they think there is a catch, but if a friend or the can see real life cases where people are getting results, they will be willing to change.

"As utilities seek to build more valuable customer relationships, they will benefit from understanding these gaps and narrowing them—through delivering a higher level of customer service and deploying innovative programmes to help customers manage their bills. Leading utilities around the world are partnering with Opower to deploy comprehensive customer engagement solutions and have been making huge strides. "

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Using social norms to cut energy



"So if high prices don’t prompt us to act, what will? Social scientists believe they know."

http://www.networkrevolution.co.uk/default.aspx Engineers and social scientists are working to find out how customers can reduce energy costs and carbon emissions in the years to come.

"Immediately a neighbour who also has teenage children emailed back, wanting to know how I got our bills so much lower than hers. Others replied with tales of how they were changing supplier or replacing their boilers."

http://www.eonenergy.com/for-your-home/saving-energy?se999 "On 1 October Eon launched a new facility on their website allowing customers to check out the energy bills of similar properties nearby, and 360,000 customers have already logged on to use it."
"As well as graphicising monthly energy use compared to similar homes in their area, Eon’s Saving Energy Toolkit also gives a "what uses most" chart showing how energy is currently being used in a customer's home, and tailored tips on how to reduce energy use."


On the following videos Eon suggested two major comparisons: Fridge and TV







http://nstore.accenture.com/acn_com/PDF/Accenture-Balancing-Strategic-Operational-Imperatives.pdf Prepare a report on engaging customers on energy. Some of the findings:


"Professor Harriet Bulkeley, is leading the CLNR social science research team at Durham University. Giving evidence to the House of Commons Energy and Climate Change Commmittee, she said her preliminary findings were that a sizeable minority of people liked "gaming" a smart meter – trying to beat it and beat themselves. 

In such trials, higher savings were typically found in homes with higher incomes and higher education levels, said psychologist Dr Gary Raw. But this new technology revolution is not just for affluent tech-savvy households. 

For low-income households, energy use is absolutely paramout as it is one of the major expenditures. 

Professor Bulkeley found that people had really appreciated being able to manage their household budgets with the help of smart meters, regardless of whether they had reduced their bills or not. The challenge, she told the committee, was to harness the energy knowledge that people do have – where to stand their clothes airer when the sun is shining – to information that can help them control their bills."


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Giving evidence to the House of Commons Energy and Climate Change Commmittee


 http://www.publications.parliament.uk/pa/cm201314/cmselect/cmenergy/uc161-i/uc16101.htm
"The key word that came out of the EDRP pre-trials is "engagement", and continuous reinforcement of that engagement is absolutely crucial."

"With electricity you are switching things on and off all the time. You can look at the display and you can see the numbers go up and down. For example, you can see immediately what the impact is of switching on your kettle."



Q8 Sir Robert Smith: Is there a breakdown of the type of consumers that respond most successfully to
trials and others who perhaps find it quite a challenge to actually get any benefit?

Dr Darby: Some customers do need more support than others in interpreting the new information they are
given, certainly. There was a study done by NEA for DECC last year, which brings this out quite clearly,
where they interviewed and did group discussions with people who for some reason are disadvantagedthey
are on low incomes, they are vulnerable, they perhaps have mental health difficulties-and that
certainly brought it out that, particularly for them, you would want some extra support explaining how to
use their display and what a smart meter can do for them. When that was forthcoming they found people
were very positive about it.

Q9 Sir Robert Smith: Did you have a comment?

Professor Bulkeley: Yes, three points that I would like to make in response to the discussion that is taking
place at the moment. The first is that, in terms of our evidence, we find the idea of a smart grid trial has
provoked within people a sense of a civic relationship with the grid. They treat it not so much as a matter
of a consumer relationship, but they are quite interested in their own role in keeping the lights on, in
securing energy futures, and in the decarbonisation and climate change agenda. That may speak for why
the introduction of a smart meter in the gas network had an effect, because it changes people’s relationship
to their energy system. I think that is quite an interesting emerging finding from our work.

The second issue is in terms of looking at how or why people respond to in-home displays. Particularly
households, because our work on SMEs-which I can talk about later, if you are interested-is less
developed than our household work. We find three different things that are going on in people’s
households. One is about budgeting. It is not so much about price reduction, but it is about managing a
household budget over a week or over a month. People really enjoy being able to do that, that is
vulnerable customers as well as non-vulnerable customers but the budgeting issue is very important. I
think we need to separate that from a sense of reducing overall price. However, they are related, people
like to be in control of their finances as much as they like them to go down.

We see a second reason is around family management and oversight. I don’t have teenage children but, for
families who do, apparently smart meters are a very useful way of knowing what is happening in the
family and managing some family tensions and dynamics. It is quite interesting. Then, for a sizeable
minority, we also find the idea of gaming a smart meter quite an interesting motivator. People like to try to
beat it and beat themselves at things, and that relates to a whole set of smart data that people use now. We
have particularly looked at the equivalent in running, where people record their runs and try to beat their
next time and so on, and we can see similar aspects happening with the smart in-home display.

That comes on to the idea about which customers respond most to these issues of in-home displays. One
of the things that we would strongly recommend the panel to think about is that this appears not to be
about customers and their attributes as such, as much as it is about different kinds of things that people do,
which are more or less flexible and amenable to intervention. Perhaps unsurprisingly, we find that nobody
really minds putting off their chores, or changing when they do chores, but things like cooking and family
meal times are less moveable feasts. So, rather than looking at customer attributes, we are interested in the
composition of what is going on in a household and how that relates to the in-home display. That might be
more important for us to understand, in terms of where customer benefit can be felt for what kind of
households.

Dr Raw: I agree with that. It is very easy to look at the observable characteristics: the income, the
education level, the number of people in the household. You can find effects of those. You tend to find
higher savings in-homes with higher incomes, with higher education levels. However, I think that
obscures what is really important, which is the kind of needs that people are fulfilling in using energy, and
those are complex, the flexibilities they have, the non-negotiable uses that they have, the particular ways
in which they personally do it. Do they dry clothes over a radiator, in which case it is not just about
heating? All these varying needs and behaviours need to be understood. Not that you necessarily
understand every individual household, but you look at typical patterns and make sure that the
interventions that accompany smart meter roll-out are suitable for that range of patterns of needs and
behaviours. That is part of what I am working on at the moment. It won’t be fully worked out for another
year or so, but I think it is important to be thinking along those lines, beyond the simple characterisation
and into the household dynamics.

One example of that that we did find in EDRP was, when it comes to the effect of time-of-use tariffs in
shifting consumption from peak period to other times of day, households of one or two people seemed
more able to do that. You can easily hypothesise why that would be. It is simply easier for them to manage
their time. There are only one or two of them. They can make choices together. If there is only one
shower, they can both use it off-peak. There isn’t a queue of people and some of them having to use it onpeak.
It is those details that are going to be important in understanding how to get the most benefit from
the smart meter roll-out.

Dave Openshaw: Certainly it is interesting to see the early observations from our trial. We have probably
not yet fully explored just how flexible people can be if they have the right incentives, and the incentives
are in the form of a price. Our tariff is a critical peak price tariff, so the peak price is very, very much
higher than the normal or the low price. However, what we have seen is quite significant. Although it is

early days, we have seen up to a 20% reduction in peak demand. You asked the question about energy
reinforcement. These consumers get a daily message and they get a monthly report showing how much
electricity they have used at the different price periods. Compared with the control group, you can see
there is a very, very distinct difference in behaviour, which I think is very interesting.




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http://www.cbsm.com/cases/using+social+norms+to+reduce+household+energy+consumption_170

"The report received by each household displayed bar graphs that compared the household’s monthly and annual electricity usage to the average usage of:
•    100 nearby homes of similar size that used the same heating fuel; and•    20 comparable, highly efficient homes nearby."

 http://www.britishgas.co.uk/smarter-living/control-energy/keeping-up-with-the-neighbours.html British Gas initiative: British Gas online customers can now see if they are using more or less energy than their neighbours or someone living in a similar household, thanks to our new energy comparison service.  If a customer’s consumption is higher than average, the service suggests appropriate ways to reduce their energy use – and, therefore, their bills! This function is the first of its kind in the industry.

 "At a time when energy companies are in the spotlight, and there's a lack of trust, smart metering is a great antidote to that,as it gives customers control."

Collective switching

http://www.channel4.com/news/energy-bills-collective-switching-e-on-fuel-poverty

 "Estimates suggest that 70 per cent of those who take part in collective switching will save money. But because there is no obligation, those who sign-up can make a decision on whether to switch or not based on their individual position once an offer has been made by an energy company. "Collective switching" offers an incredibly easy and flexible way to switch energy supplier."

What people said about have the control of energy

http://www.britishgas.co.uk/smarter-living/control-energy/what-are-the-benefits-of-energysmart.html

Low Income Energy Outreach


Opower's behavioral approach helps utilities share energy efficiency resources more equitably by reaching their entire customer base—including hard-to-reach low-income and low-technology segments—and helping drive energy and financial savings among those who need them most.


Review from Users

http://www.theguardian.com/money/blog/2013/aug/24/double-glazing-is-it-worth-it in this article in the comment section I can see how the recommend do your own search and find local installers for double glazing windows.

https://www.ofgem.gov.uk/publications-and-updates/more-money-your-pocket in this video it can be seen that people use own results to attract others to consume products

https://www.ofgem.gov.uk/ofgem-publications/38138/energybestdealbookleteng2012.pdf people believe that is a catch when companies offer free installations









The New Energy Consumer
Balancing Strategic and Operational Imperatives
Reference guide 2.0

 http://nstore.accenture.com/acn_com/PDF/Accenture-Balancing-Strategic-Operational-Imperatives.pdf

" Energy consumers are changing their expectations, technological advances are creating exponential step-change, and regulatory and market forces will test every utility’s ability to innovate."

 " Consumers are evolving as well, becoming more mobile, more social and increasingly connected."

 " Innovative utilities and vendors are increasingly engaging consumers through social media and building a next generation of applications that offers a social and entertaining energy experience."

 " Technology, in large part, is the primary driver for increasing consumer expectations, as it has unleashed exponential change in functionality and information available for the energy industry."

 " Intertwined with smart metering, “Big Data” has also emerged as a disruptive force requiring utilities to develop innovative new approaches to analytics and data architecture, while also creating opportunities to monetize information."

 " Across markets, new entrants such as consumer products and telecommunications companies are making bold moves into the home, offering energy audits and advice, integrated home monitoring solutions, and home energy generation packages."

 It's interesting how other companies want to get into your home
 "these organizations have the capabilities and experience to attract and retain consumers and potentially shift consumer behavior when it comes to energy."


" 73 percent of respondents indicated they would consider purchasing electricity or energy-efficient products from at least one provider other than their utility"



" Smart appliances and smart meters are giving consumers unprecedented control over how they consume electricity."

 " Consumers are increasingly motivated by more than monetary value."

 " Sixty-nine percent selected “decreasing my personal environmental impact” and sixty-eight percent selected “having better control of heating and cooling in my home.”"

 "Home improvement retailers such as Lowe’s and Home Depot are also exploring energy opportunities in the home. Both companies have introduced home energy centers in some stores featuring energy efficient and home automation products, and have begun to offer wind and solar generation products and installation services."

 "However, as services collide and the race into the home heats up, energy providers will need to quickly decide what role they want to play and develop internal capabilities or strategic partnerships to compete in the increasingly crowded space."

 Accenture propose a shift on the energy marketing strategies



 " Accenture’s Actionable Insights for the New Energy Consumer survey  shows that more than half of consumers globally are interested in receiving additional energy and non energy related services such as home repair or telecommunications from their energy provider (see Figure 3)."





"The service combines ADT’s traditional service offering of security monitoring with home energy management services such as home lighting and thermostat control and home automation."

 "How an energy provider creates, manages and analyzes data— about its operations and its consumers— will be the difference between leading the pack or falling behind."

 "The power of collaboration - Consumers are beginning to expect more from their utilities. Tailored energy products, personalized services, innovative loyalty programs, anytime anywhere interactions"
Data and Partnership

  they can go it alone, or they can leverage the strengths of third-party partners.

 " Energy providers are in the enviable position of having vast quantities of customer data that can be used to identify and evaluate potential innovations."

 " Accenture believes that the most effective way to change consumers’ behavior is to give them what they value."

 " Accenture believes utilities are well advised to look beyond price to other program elements that may provide value and drive adoption among consumers."

 " A majority want advice and recommendations about what they can do to further save energy, whether it is delivered through a device, website, application or a human being and they want to decide for themselves whether and how to take action."

 Decide for themselves => control

 " allowing your electricity provider to remotely control equipment to reduce your electricity bill."

 This quote is referring to the following graph, The possibility of energy companies to control appliances with a Smart Meter


" only 38 percent of the decision to enroll in an electricity management program is based upon impact on the electricity bill, while the remaining 62 percent is based upon other factors not related to monetary savings (see Figure 8 above). Such factors include how much control the energy provider has over the consumer’s home usage, how much impact the consumer has on the environment and how much personal action the consumer has to take"
" Essent, the largest energy provider in the Netherlands, offers a free e-thermostat to new consumers who choose a green electricity plan or a fixed-rate gas plan. The device connects to a user’s wireless network and allows control of heating and cooling from an attractive wall display or through a mobile application"

 "Revealing the Values demonstrates that offering loyalty rewards for enrolling in electricity management programs is an important element of the purchasing decision"








"In focus groups in the United Kingdom where there are a large number of energy packages available, consumers showed similar apathy toward purchasing decisions reporting that they feel overwhelmed with choices of complex and undifferentiated offerings"

Engaging the new energy consumer

" Energy providers must now consider five overlapping consumer types that require differing levels of sophistication to understand and engage:
• Bill payer—consumers who pay for energy usage.
• Premise occupant—energy-consuming occupants of a specific premise.
• Transportation—electric vehicles and other forms of nonfossil-fuel transportation that consume energy.
• Buyer/supplier—energy consumers who both purchase and supply energy.
• Roaming consumer—consumers with billed energy usage that roams within and outside of the energy provider’s service area."

" it is clear that electric vehicles represent one of the most promising opportunities for utilities to increase revenues and build enduring and engaging relationships with consumers."




In this graph people with lower income would turn off themselves, more high income would use gadgets, but overall there are more people willing to do it themselves, it might be because lack of trust??? 

Next generation of consumers



" There is clear evidence in the slowing usage of instant messaging and e-mail and the growth of online gaming, video gaming and social media."







" Enel, a large Italian energy company, has designed a series of mobile applications that provide information and engage consumers. The applications engage consumers through gaming mechanisms. One application related to wind power for example, asks users to blow into the microphone to see how much power would be generated."

"  Many consumers understand and are ready for the benefits that come from active energy management, and they see the potential of what Accenture calls “trivergence”—that is, the coordination of devices, data and controls.  In fact, in an Accenture survey of “tech-forward” consumers, Consumers Are Ready for the Networked World , 93 percent indicated that they can see trivergence creating more energy-efficient controls for lighting, heating and cooling, among other resources. About 80 percent can envision network connectivity for their cars, refrigerators, ovens, dishwashers and even small appliances, such as toasters and coffeemakers."

" For example, energy providers could offer consumers that value personal
convenience a home energy automation service based upon an in-home
smart thermostat, while offering “tech-forward” consumers an active
energy management program with remote home energy management
via a Web portal or smartphone."




"Terms like “KWh” or “PEF Value” mean little to consumers."

 "Giving consumers control of data analytics

 As consumers gain greater control and insight over their energy usage, data
visualization and analysis tools are becoming a critical part of solutions that seek to engage consumers around energy usage and management."

"these principles can help ensure that the focus is on delivering consumer value:
• Understand your consumers and support their goals. Consumers have
a variety of reasons for analysing their energy data. Understanding consumers’ goals will help to build tools that create value.
• Make it easy; make it cool. Consumers have grown accustomed to having data presented in intuitive and innovative forms. If an energy provider offers tools and visualizations that are difficult to use or feel like “throwbacks” from another era, consumers will be unimpressed.
• Get it right the first time. If consumers have a bad experience once, they will not return. Analytical tools made available for consumers need to work the first time. Data consistency can be a particular challenge; for example, usage data on an in-home display, Web portal and bill may not align. Inconsistencies and confusion will frustrate and drive away consumers.
• Make it actionable. Data is only as valuable as the actions it informs. Tools to analyze or visualize energy data must arm consumers with actionable insights they can use to accomplish their goals."

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