Nuts to You! Strategies for Cracking the Small Business Market

1. Nuts to You! Strategies for Cracking the Small Business Market Dr. Katherine Johnson, Johnson Consulting Group with Ms. Carla Haga, Columbia Gas of Virginia January 29, 2014

2. Overview of Columbia Gas • Columbia Gas of Virginia is one of the nine energy distribution companies of NiSource Inc. • Serves approximately 240,000 residential, commercial and industrial customers • Third largest natural gas utility in the state

3. Columbia Gas has a wide and diverse territory that makes it difficult to reach the C&I market

4. Qualifying Measures for Columbia Gas’Business Savings Program

5. Challenges in Cracking the C&I Market: Lack of Understanding of Program Benefits

6. Additional Challenges to Reaching C&I Customers • Difficult to identify the energy decision-makers in C&I organizations, as most often the energy bills were paid by the accounting departments. • “We get to the accounts payable folks but not the decision-makers. We need to look for the energy managers and engineers to direct the materials to.” • Poor Economic Conditions • “The bad economy is definitely deferring the decision process for making equipment upgrades.” • Lack of support or interest among trade allies • Only 20 contractors participated in the program, a small fraction of the more than 100 enrolled contractors.

7. Columbia Gas’ Response • Turning on the Savings!

8. Columbia Gas’ Response • Develop targeted C&I marketing messages • Columbia Gas set up an Advisory Group consisting of local business owners and leaders in the community. This feedback led to the development of specialized one-sheet marketing materials targeting specific C&I sectors, such as laundromats, financial organizations, and hotels and motels.

9. Highlighting Energy Savings Messages for Each Customer Niche

10. Other Key Strategies Used by Columbia Gas • Focused on identifying key decision-makers • Broadening the program reach • Revamp the online marketing presence

11. Results • The pre-rinse spray valves appealed directly to customers in the hotel and restaurant sectors, based on the specialized advertising materials that Columbia Gas provided. • Four commercial customers who received pre-rinse spray valves went on to make more substantial investments in energy efficiency, including installing new gas boilers.

12. Targeted Marketing • Decision-makers Lessons Learned • Small promotions can lead to big savings Columbia Gas’ approach which is similar to the free CFL giveaways used successfully by electric utilities offers an alternative to natural gas utilities looking to target C&I customers. • One size does not fit all Columbia Gas was able to make significant improvements by developing targeted, niche-oriented marketing materials highlighting the specific equipment for each market sector This is an effective contractor tool as well. • Target the key decision-makers not the bill payers Columbia Gas was able to identify the key decision-makers, which helped to both increase program awareness and interest among C&I customers. organization. • Leverage community connections Columbia Gas reached out to community leaders throughout its service territory. By creating an Advisory Group of small business and community leadersand to reach deeper into the community by linking up with local chambers of commerce and trade associations. • Small to Big • Leverage Community

13. Questions For more information: Dr. Katherine Johnson Johnson Consulting Group 301 461-4865 kjohnson@johnsonconsults.com

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