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SMUD’s SmartPricing Options Marketing Strategy

SMUD’s SmartPricing Options Marketing Strategy. Jennifer Potter July 31, 2014. Powering forward. Together. Marketing objectives. Marketing objectives and strategy. Encourage SMUD customers to participate in a SmartPricing Options plan by educating them on

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SMUD’s SmartPricing Options Marketing Strategy

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  1. SMUD’s SmartPricing OptionsMarketing Strategy Jennifer Potter July 31, 2014 Powering forward. Together.

  2. Marketing objectives

  3. Marketing objectives and strategy • Encourage SMUD customers to participate in a SmartPricing Options plan by educating them on • (1) the rate and time-variant pricing and • (2) the benefits of reducing their energy use during the summer’s critical peak periods. • Develop a portfolio of materials to support each combination of recruitment strategy, rate design, and technology offer. • Portfolio will educate customers on the foundational concepts of: • time-variant pricing • challenges caused by peak demand • how peak consumption impacts customers and the environment

  4. What customers want: • Specific information about peak hours, examples of ways to conserve electricity. • Industry terms explained clearly (e.g., kWh, peak hours) and examples that help them understand the possible savings involved. • Low-cost or no-cost measures that are easy to implement. • Messages that have a friendly tone and easily connect conservation with saving energy and money, and helping the environment. • Realistic situations and images in materials. Locations that appear to be in or around Sacramento.

  5. Marketing – recruitment

  6. Recruitment strategy • Marketing activities included a mix of channels and tactics and a phased approach: • Phase 1: Pre-recruitment education • Phase 2: Recruitment • Phase 3: Recruitment & notification

  7. Print ad Savewithsmud.org Pre-recruitment education campaign - 2011 Web ad

  8. Recruitment campaign • 2011 Recruitment – • direct mail • web & print ads • microsites • 2012 Recruitment & notification – • direct mail • web & print ads • microsites • door hangers • outbound calling

  9. Opt-in brochures

  10. Microsites

  11. Follow-up postcards

  12. Mass media web and print ads

  13. Mass media campaign web landing page

  14. Door hanger campaign

  15. Opt-out brochures

  16. Recruitment channels and enrollment

  17. Marketing - Retention

  18. Retention & education strategy To provide participants with tips and tools on how they can manage their energy use to be successful on these rates. Channels & Tactics • Welcome packet • Social media • Facebook groups for each combination of recruitment strategy, rate design, and technology offer • YouTube • Pinterest • Sweepstakes & giveaways • Welcome back kit (for second summer)

  19. Welcome packet

  20. Yesterday’s Data Today

  21. Educational videos Learn more about how time-of-use electricity pricing works. Learn how to manage your electricity use with the charts in My Account.

  22. Online energy saving tips Staying cool. Interactive charts Air conditioners are one of the biggest energy users during hot summer days. Reduce your use and set your thermostat to pre-cool your home before 4:00 p.m. Then turn your thermostat up a few degrees higher from 4:00 p.m. to 7:00 p.m. and use fans to help cool your home.

  23. Facebook

  24. Facebook contests

  25. Pinterest

  26. Electricity Use Display postcard

  27. Infographics

  28. Educational game

  29. Retention goals Over 100% of our retention goals in all but one treatment group. Most drops are due to customer moves. Attrition is at 8% for opt-in groups and 10% for opt-out groups.

  30. Customer Satisfaction

  31. Customer satisfaction is very high for all pricing plans and there is no real difference across plans

  32. Customers on the standard rate are less likely to think their pricing plan is fair than customers on any of the time based pricing plans

  33. Customers on the standard rate are much less likely to think their pricing plan provides them with opportunities to save money 75% of opt-in customers feel that their pricing plan gives them opportunities to save money. There are no meaningful differences in responses between customers on CPP or TOU plans.

  34. Roughly half of default customers and more than 70% of opt-in customers think SMUD should offer their plan to all customers Almost no one feels somewhat or strongly that the plan should not be offered to others.

  35. Three quarters of opt-in customers and roughly half of default customers indicate they would like to stay on their pricing plan 5 to 10% of respondents said they somewhat or strongly disagree with this statement.

  36. Lessons learned • On Facebook, customers are more responsive to simple Q&A type contests. • When customers understand goals, it increases satisfaction. • Focus on the benefit to the customer. • Eliminate the Welcome Back letter and just send the Welcome Back Kit. The letter generated drops from the program. • Boost website traffic by starting the summer with a big promotion, like The Home Depot Grill Sweepstakes.

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