Residential Customer Engagement

Transcription

1 Residential Customer Engagement What does it mean to engage? Merriam-Webster says

2 SGCC's Consumer Pulse and Market Segmentation Wave 5 Study Patty Durand, Executive Director Smart Grid Consumer Collaborative

3 How does one target and engage various consumer segments to participate in energy efficiency and demand response programs? Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

4 The U.S. Population by Segment Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

5 Why does segmentation matter and what is a segmentation framework? Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

6 Key Demographics Youngest, and higher than average income, despite youth More likely than most to live in an apartment, but their bill is still relatively high College educated, working, and living in suburban areas Green Champions Smart energy technologies fit our environmentally aware, high-tech lifestyles. Distinctive Attitudes and Behaviors Early adopters of technology Average level of utility satisfaction, and want a choice of providers Attach high importance to Smart Grid benefits, especially greenhouse gas reduction Highest interest in pricing options Highest Interest in new utility services Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

7 Key Demographics Many younger than 35; few older than 65 Lowest income; highest percentage of low-income households (43%) Three quarters live in single family homes Average electric bill Saving Seekers How can smart energy programs help us save money? Distinctive Attitudes and Behaviors Low satisfaction with current provider, and want a choice Low awareness of, and favorability toward, Smart Grid/Meters High interest in pricing options Average level of interest in new utility services Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

8 Key Demographics Relatively older age, many retirees Smaller households Middle income Lower than average electric bill Status Quo We re okay; you can leave us alone. Distinctive Attitudes and Behaviors Low Smart Grid/Meter awareness and favorability Know little about energy efficiency, and don t think it s important Very satisfied with and favorable toward current provider Don t feel they need a choice of providers and, if forced to choose, would prefer to purchase from current provider Do not attach high importance to Smart Grid benefits, or smart technology programs and services Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

9 Key Demographics Relatively older age, retired, few people in household Second lowest segment in average income Lower than average electric bill Technology Cautious We want to use energy wisely, but we don t see how technologies can help. Distinctive Attitudes and Behaviors Relatively high Smart Grid/Meter awareness and favorability Knowledgeable about energy efficiency Very satisfied with and favorable toward current utility and more likely to agree their electric utility has improved versus five years ago If forced to choose, would prefer to purchase from current provider Do not attach high importance to Smart Grid benefits, or smart technology programs and services Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

10 Key Characteristics Working, college educated Highest average bill Highest income Higher concentration on Pacific Coast, more likely suburban than most Distinctive Attitudes and Behaviors Attach above average importance to home energy efficiency High level of energy efficiency knowledge Low satisfaction and want a choice of providers Least likely to believe their utility does what they say or works in the best interest of the consumer Prefer comfort, time, and ease over savings Average level of interest in pricing options High interest in new energy technologies Movers and Shakers Impress us with smart energy technology and maybe we will start to like the utility more. Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

11 What other programs and benefits of a smart grid are consumers interested in? Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

12 Likelihood to Participate: TOU Pricing Time-Of-Use Pricing Total Status Quo (A) Technology Cautious (B) Savings Seekers (C) Movers and Shakers (D) Green Champions (E) n=1,004/1, W5 W1 Already Participating 2% 1% 2% 2% 1% 3% 1% Total Would Participate 44% 49% 32% 34% 53% AB 44% 53% AB Definitely Would 15% 16% 7% 10% 19% A 15% A 21% AB Probably Would 29% 33% 25% 24% 34% 29% 32% Might or Might Not 28% 27% 28% 27% 23% 30% 30% Would Not 26% 22% 38% CDE 37% CDE 23% 23% 16% Base: Total Consumers A,B,C,D,E indicate significant differences between segments indicate a significant increase or decrease between current and previous waves AP1. If you were offered this program, how likely would you be to participate? Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

13 Likelihood to Participate: Critical Peak Rebates Critical Peak Rebates Total Status Quo (A) Technology Cautious (B) Savings Seekers (C) Movers and Shakers (D) Green Champions (E) n=1,004/1, W5 W1 Already Participating 1% 1% 0% 0% 1% 0% 1% Total Would Participate 60% 62% 29% 44% A 83% ABD 43% A 81% ABD Definitely Would 24% 23% 9% 14% 32% ABD 17% 36% ABD Probably Would 36% 39% 20% 30% 51% ABD 26% 45% ABD Might or Might Not 19% 21% 29% CE 27% CE 11% 31% CE 8% Would Not 20% 16% 42% BCDE 29% CE 5% 26% CE 10% Base: Total Consumers A,B,C,D,E indicate significant differences between segments indicate a significant increase or decrease between current and previous waves AP2. If you were offered this program, how likely would you be to participate? Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

14 Likelihood to Participate: Critical Peak Pricing Critical Peak Pricing Technology Movers and Green Champions Total Status Quo (A) Cautious (B) Savings Seekers (C) Shakers (D) (E) n= Already Participating 1% 0% 0% 0% 1% 1% Total Would Participate 24% 20% 19% 34% ABD 19% 26% Definitely Would 6% 3% 6% 5% 6% 7% Probably Would 18% 17% 13% 29% ABDE 13% 18% Might or Might Not 23% 22% 26% 18% 22% 23% Would Not 52% 57% C 54% 45% 57% 50% Base: Total Consumers A,B,C,D,E indicate significant differences between segments indicate a significant increase or decrease between current and previous waves AP2A. If you were offered this program, how likely would you be to participate? Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

15 Likelihood to Participate: Demand Response Pricing Demand Response Pricing Technology Movers and Green Champions Total Status Quo (A) Cautious (B) Savings Seekers (C) Shakers (D) (E) n= Already Participating 2% 1% 1% 4% E 1% 0% Total Would Participate 39% 21% 26% 47% ABD 29% 57% ABD Definitely Would 10% 4% 7% 11% A 9% 16% AB Probably Would 29% 17% 19% 36% ABD 20% 41% ABD Might or Might Not 22% 25% 28% CE 16% 24% 18% Would Not 38% 53% CE 44% CE 32% 46% CE 25% Base: Total Consumers A,B,C,D,E indicate significant differences between segments indicate a significant increase or decrease between current and previous waves AP2B. If you were offered this program, how likely would you be to participate? Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

16 Consumers agree that the benefits of smart grid technology are of high importance Most consumers rated preventing and reducing the length of outages (86%), ability to connect to renewable energy sources (89%), and near real-time energy information (86%) as being important benefits of smart grid. Source: SGCC's Consumer Pulse and Market Segmentation Wave 5 Study

17 SGCC s Research Path Environmental Economic Reliability Reduction in Greenhouse Gas Emissions enabled by smart grid Customer savings from peak time rebate and other dynamic/time variant prices Outage avoidance Smart Grid enables scale up of renewables & customers can access distributed generation Enabling choice/empowerment/per sonal management with prices Ability for consumers to access to distributed generation Quick recovery restoration or self-healing benefits Peak load reductions enabled by demand response programs Improvement in line loss reductions enabled by smart grid technology Customer service improvements to customer during outage or unusual circumstances

18 Smart Grid Consumer Collaborative Consumer Engagement for the Smart Grid PATTY DURAND, Executive

19 DR Trends in a Rapidly- Changing Landscape K.C. Boyce Director of Custom Research, Chartwell April 29, 2015

20 Savings Impact Consumers Experience Which of the following impacts your customer experience with your utility the most? Billing Customer Service Outages 25% 29% 28% Opportunities to save energy 12% Proactive communications 4% Marketing - outreach events, sponsorship, corporate citizenship 2% Source: Chartwell 2014 Consumer Survey

21 Consumer Product Interest Top 2 Box "Self-Regulating" Equipment 70% Programmable Communicating Thermostat 69% In-Home Display 68% Home Energy Management System 54% Mobile App to Control Usage 48% Electric Vehicle/Plug-In Hybrid 32% Source: Chartwell 2014 Consumer Survey

22 Loss Aversion Drives Pricing Interest Interest in Pricing Programs (Top 2 Box) Critical Peak Rebate 74% "Leveled" or "budget" billing 60% Thermostat DR program Time-of-use Real-time pricing 40% 37% 44% Prepay 28% Source: Chartwell 2014 Consumer Survey

23 Expectation of Savings are Large Savings Needed to Pay Greater Attention to Usage $251-$300 30% Average Monthly Bill $201-$250 $151-$200 $101-$150 29% 33% 34% $50-$100 37% Source: Chartwell 2014 Consumer Survey

24 70% 69% 69% 68% 65% 73% 59% 57% 45% 29% 32% 12% Self-regulating equipment Programmable communicating thermostat In-home device Online energy audit In-home energy audit Purchasing an EV Consumer Interest - Top 2 Box Utilities Offering Related Program Sources: Chartwell 2014 Consumer Survey & Chartwell 2015 Energy Programs Web Survey

25 DR Program Prevalence 80% % of Top 50 Utilities Offering 36% 34% 14% 14% 14% 8% 6% 4% Source: Chartwell 2015 Energy Programs Web Survey

26 Top barriers to customer participation Customer awareness Lack of a compelling offering (e.g., marketing message that moves customers to action) Low return on investment Concern about utility control of comfort/convenience Source: Chartwell 2015 EE-DR Industry Survey

27 Utilities have a very different view of the value of DR & EE than our customers do Source: Duke Energy 27

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29 EE-DR Integration Other, 1 Separately, 4 Other, 2 Separately, 4 Jointly, 8 Jointly, 6 Are your utility's EE and DR programs managed Are your utility's EE and DR programs marketed to customers Source: Chartwell 2015 EE-DR Industry Survey

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32 Shall I Compare Thee On a Summer s Day? Recency Surveys: measuring how a residential air conditioner DR program affects customers

33 Short-term inconvenience for long-term benefits? The benefits of demand response are well known But customers pay an inconvenience cost May affect customer satisfaction May affect participation rates How do we measure this non-economic cost?

34 The Program Residential DR - five states - 250,000+ participants. Peak demand: summer weekdays with high temperature Switch devices cycle AC units on and off Expect 5 to 10 events per year

35 Customer engagement This study informs operational decisions: How does timing of events affect customers? How does weather interact with events? How do full shed events compare to normal cycling events? Is there snapback? Do events affect customer satisfaction?

36 The Survey: A Quasi-Experimental Design Survey within 48 hours of events Activities Comfort level Awareness that their devices have been activated Program and utility satisfaction EVENT SURVEYS Survey within 48 hours of hot days without events Equivalent survey questions Identical sample frame NON-EVENT SURVEYS

37 The Results Very few customers are aware that events occur. Aware of event in past 48 hours (2014): 10% Event 4% Non-Event There are no significant differences in behavior Thermostat adjustments Use of fans and window units No significant differences in satisfaction either.

38 Measuring participant comfort Ten-point (1-10) comfort ratings scales are used Compare ratings before and during event/non-event time periods EVENTS Rating before: 8.7 During time period: Activation time between 1-6pm Rating during: 8.2 NON- EVENTS Rating before: 8.6 During time period: 2:30-5pm (typical event time frame) Rating during: 8.5

39 The Results Customers are more likely to experience a comfort decline Participants reporting a decline in comfort (2014): 23% 9% Event Non-Event

40 Device activation affects comfort However the differences are usually marginal A majority surveyed after events do not report any decline in comfort. Among the minority with a decline, ratings fall from 8-9 to 6-7 Only 1% report comfort ratings below 5

41 Comfort decline and awareness What do they think caused their decline in comfort? Most mention: Rising outdoor temperatures Secondary mention: Rising humidity Only about 10% mention events.

42 Comfort decline and awareness Hot days and events correspond - this masks the effect of events Very few are aware their devices have been activated, but everyone knows when it is hot outside!

43 Research Challenges Every summer is different! The relationship between weather and capacity prices may change over time, changing the effect on participants. If it is economical to have more events on days that are not as hot If it is not economical to have events even on the hottest days

44 Contact David Ladd CADMUS, ENERGY SERVICES DIVISION (608)

45 Engaging Residential Consumers Amena Ali, SVP & GM, WeatherBug Home

46 Weather matters: Weather is the biggest driver of home energy use

47 Consumer Engagement with Weather Weather is the #1 Mobile Content Category Portals Search Weather Social Networking Entertainment News & Current Events Music City Guides/Maps Instant Messaging Shopping/Auctions Videos/Movies Sports Banking/Online Games Food/Dining Technology/Science TV Travel/Vacation Health/Fitness Business/Finance News Automotive Real Estate Education/Careers Finance/Insurance/Investm WeatherBug Mobile Subscriber Penetration (%) among content sites

48 What if We Engage Consumers for Energy When They Come for Weather? Link weather to energy use Real-time and Interactive

49 650,000 Consumers Engaged with Energy 150,000 consumers interacted with the thermostat slider Average time/visit: 4 mins, 21 secs

50 Consumer Feedback Over 3K consumers provided feedback, interested and engaged with energy and connected devices: 47% very interested/interested in seeing their daily whole energy use 47% very interested/interested in learning about their home s energy efficiency 45% very interested/interested in learning about connected tstats/devices to increase their comfort and home energy efficiency 36% currently own a connected tstat/device

51 PERSONALIZATION: Two Houses, Same Street, Same Energy Profile? House A 5 Bedrooms 3.5 Baths 3,806 sq. ft. Built in 2001 House B 5 Bedrooms 3.5 Baths 3,670 sq. ft. Built in

52 Home Insight ScoreCard Comparison House A House B

53 Personalized Analytics Are Key House A House B

54 Consumers Value Personalized Analytics Top two box rating (scale of 1-5) on the ScoreCard: #1 Most Helpful Sections: #2 - tie 88% its easy to understand 54% it was very helpful/helpful in saving them energy 71% it helped them understand HOW they re using energy 56% it helped them understand WHY they re using energy 66% are more mindful of their energy use because the SC 63% are more likely/likely to recommend their utility provider (REP) because the SC Notable comments: I would like to understand more about setting the thermostat and best way of managing heat/cool? #2 - tie I'm very thankful for this analysis. It has helped tremendously with my usage goals. 54

55 What Opportunities Created for DR? Leverage daily weather app engagement which spikes with temperature/weather extremes for in/voluntary DR? Leverage big weather data and algorithms for a homespecific thermodynamic profile to drive smarter, more comfortable DR? Leverage multiple connected devices in the IoT to drive engagement and intelligence for comfort, EE and DR?

56 Thank You! Contact: