GSummit SF 2014 - Power Plants vs. Saving Energy: Changing behavior in a low engagement environment by Wayne Lin @wane1024

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  • Americans waste – WASTE – over $30B per year. That’s big money!
    That translates to about $20 per household every month. Wasted.
    And that’s real money, too.
    But we all know Americans aren’t really good at saving. And this message – that you could save a lot by reducing your consumption – isn’t resonating.
    Me? I like comfort and I’m willing to pay for it.
  • So, then people decided to describe energy savings in other terms:
    Like trees saved
    I mean, who doesn’t like trees?
    And if you like trees, then you have to love…
  • Polar bears
    Although this is kind of a mean one… right?
    This point is… we talk about the environmental impact of energy use
    More energy demanded -> more energy produced -> more coal burning -> more CO2
    And melting polar ice caps! and greenhouse this and that!
    And the message gets lost along the way

    And while I am personally passionate about environmental change, I have to say, images of polar bears don’t make me actually turn off the lights when I leave the room.
  • Why isn’t this working?
    Aren’t all these things true?
  • 6 minutes per year
    Not per day, not per month. 6 minutes per year!
    Why?

    Quick show of hands:
    How many of you checked your email this past week?
    How many of you checked Facebook or Twitter this past week?
    How many of you are on Facebook or Twitter right now?
    Now how many of you went to your utility’s web site to check on your energy use this past week?
  • Of course not.
    Because it’s boring!
  • Here is a real energy bill
    See? Boring!
    And confusing.
    What is a kWh?
  • And energy is inexpensive
    11 cents per kWh
  • OK, so talking about real impact like money and CO2 and the environment isn’t effective.
    And people aren’t spending any time thinking about it, it’s boring, and confusing, and too inexpensive.
    So how can we drive energy efficiency?
  • 12 reads/year
    Smartmeters – 35,000 reads/year
    3000x more data
  • parallel to regular architecture
    landscape of options
  • voting example

Transcript

  • 1. Power Plants vs. Saving Energy: Changing Behavior in a Low Engagement Environment GSummit 2014 Wayne Lin, Sr. Director Product Management
  • 2. We have an energy problem
  • 3. What if we didn’t use all that energy?
  • 4. Why isn’t this working?
  • 5. So what can we do?
  • 6. Opower: A big data customer engagement platform for the world’s leading utilities Working with 93 utilities in 8 countries to engage 32 million homes 500 Oployees Washington DC | San Francisco Tokyo | Singapore | London Big data customer engagement platform
  • 7. Data + Behavioral Science vs. Power Plants
  • 8. Energy usage data Reads/Year 12 Reads/Year 35,0003000x MORE DATA
  • 9. Many different approaches to meeting demand Levelized costs of electricity resource options
  • 10. The price of power skyrockets at peak times $300 $250 $200 $150 $100 $50 $0 $/MWh 2A M 4A M 6A M 8A M 10A M 12P M 2P M 4P M 6P M 8P M 10P M 12A M PJM Day-Ahead, Wholesale Electricity Prices 1100INCREASE (from lowest point)
  • 11. Power Plant
  • 12. Improve customer relationships Sustained energy savings Peak demand reduction (demand response) Opower Customer Engagement
  • 13. Behavioral Energy Efficiency & Demand Response email IVR SMS mail email
  • 14. $203/kW-yr
  • 15. $25/kW-yr
  • 16. NOx CO2 CO SO2 VOC s
  • 17. Zero Emissions
  • 18. 20-40% Efficiency
  • 19. 100% Efficiency Rapid pre-event communication
  • 20. Significant reduction at peak
  • 21. Sustained energy savings 2008 2009 2010 2011 2012 Today 4.2 TWh 9 GWh 53 GWh 204 GWh 773 GWh 1.9 TWh $470M in consumer bill savings 2.9M tons of CO2 abated
  • 22. Delighted utility customers 55% 64% 73% 62% 72% 76% My utility wants to help me save money My utility wants to help me reduce my home energy use My utility is a trustworthy source of information on energy efficiency Control Opower recipients
  • 23. Data + Behavioral Science Wins!
  • 24. 1. Get my attention 2. Help me make a decision 3. Help me follow through with an action When to use behavioral science?
  • 25. 1. Hey designer, get my attention (I dare you)
  • 26. Social norming We don’t like to be out of the norm.
  • 27. Loss Aversion The pain of giving up an object is greater than the joy associated with acquiring it.
  • 28. Collection/completion We are motivated to complete or correct.
  • 29. 2. Hey designer, Help me make a decision
  • 30. Social proof We do things that other people (like us) are doing.
  • 31. People’s decisions are influenced by how options are presented to them. • Anchoring • Priming • Defaults Choice Architecture
  • 32. Select your thermostat temperature
  • 33. Priming We can be influenced by things we see before making a decision.
  • 34. 3. Hey designer, I want to do this. help me follow through!
  • 35. Commitments If we commit to a goal, we are more likely to honor it because it’s now part of our self- image.
  • 36. Plan-making We’re more likely to follow through if we’ve unpacked a plan.
  • 37. Use social proof Ask users to commit or make a plan Frame options as a loss Apply choice architecture Appeal to collection/completion tendencies When to use behavioral science?