Peter Shaw - "Gamification to Drive Smart Energy Behaviors"

Smart Energy Behavior Using Game Dynamics to Engage Consumers GSummit June 20, 2012 San Francisco Peter Shaw, Senior Director Smart Energy Practice J.D. Power and Associates© 2011 J.D. Power and Associates,The McGraw-Hill Companies, Inc.All Rights Reserved.

The energy behavior challenge • Low-involvement category • Utilities being asked to go green • Smart grid transformation • Asking customers to join the party2

What is a “smart grid”?6

What is a “smart grid”?7

Customers = virtual power plants Customer Programs Smart Grid Future Power Grid • Pricing and service plans Offices • Energy efficiency programs Solar Panels Houses • Demand Response Storage / PEVs Generators Storage / PEVs Wind Technologies Farm • Smart meters Industrial Plant • Networking of homes, appliances and Storage vehicles Generators • Customer-owned generation and storage • Plug-in electric vehicles Storage Isolated Microgrids / PEVs Central Power Plant Source: iTeres8

Traditional incentives • Mandated standards • Rebates • Free stuff • Marginal cost pricing9

Green Button – government spurring innovation Standardizes way for customers and app developers to download consumption data, use it to manage usage How do we incentivize smart energy behaviors?10

Smart energy behavioral segments J.D. Power classified U.S. electric customers into six behavioral segments But how engagement-ready are U.S. electric customers?11

Most consumers are not proactively engaged Stages of Engagement Industry Stage 1: Pre-Active 18% Stage 2: Reactive 44% Stage 3: Active 25% Stage 4: Proactive 12%12

Customers want more than bill savings E a rn po int s f o r re duc ing my e ne rg y us e 13.6 Smart Energy Service Plan Features S ho w me ho w muc h e ne rg y ( mo ne y) I s a v e if I t a k e a c t io n 12.6 S ho w me ho w muc h e ne rg y ( mo ne y) I’ m s a v ing whe n I t a k e 12.1 a c t io n D is pla y ho w muc h e le c t ric it y my a pplia nc e s a c t ua lly us e 11.8 Inf o rma t io n o n ho w muc h e le c t ric it y I’ m us ing /s pe nding o n a ny g iv e n d a y/we e k 10.2 A llo w me t o re mo t e ly a djus t my t he rmo s t a t o r t urn o n/o f f a p plia nc e s 9.0 Inf o rma t io n o n ho w muc h I a m pro je c t e d t o us e /s pe nd t his mo nt h 7.0 A le rt me t o a n o ut a g e whe n I a m no t a t ho me 5.4 L e t me s e t a n e le c t ric it y bud g e t a nd re c e iv e a le rt s if I e xc e e d it 5.3 S ho w me ho w muc h I us e c o mpa re d wit h ho us e ho lds lik e mine 3.9 A le rt me t o a n o ut a g e a f f e c t ing f a mily me mbe rs 3.0 Illus t ra t e ho w my e le c t ric it y u s e is impa c t ing t he e nv iro nme nt 2.1 E nro ll in a " P a y A s Yo u G o " pa yme nt pla n 1.9 G iv e me a n o nline g a me t ha t he lps me s a v e e ne rg y 1.1 P ro v id e me a s o c ia l me dia t o o l t o c o mpa re us a g e a nd s ha re inf o rma t io n 0.813

What bothers most customers… • Their “monthly mystery bill” • Can’t relate usage to bill amount • Don’t know how much energy they’re wasting • Don’t get any feedback on their good efforts to be efficient • Want information they can use, not data • They don’t talk “utility speak” – kWh, load shapes, etc.14

Key ingredients for sustained energy engagement • Provide usage/spend information • Put it in context; comparison with peers • Education and messaging • Price signals • Consistent feedback • Challenge and reward them!15

The game mechanic’s arsenal Supersized Incentives Social Pressure FREE!!! Social Comparison Accomplishments “Free Lunch”16

How do we measure impacts of game strategies? • Improve customer value (empowerment, affordability, fun) • Increase enrollments • Generate conservation savings S mar t E ner gy • Generate peak reduction • Improve customer sentiment17

Innovation storm Facebook Unveils Social Energy App18

The Platform For Customer Engagement Customer Social Game Program Engagement Mechanics Participation Web Portal Mobile Social Messaging19

BACKGROUND Successful demonstration of Simple Energy platform value through San Diego’s Biggest Energy Saver program in 2011 – Participants saved an average of 20% – Paved the way for results at scale in 2012 through the San Diego Energy Challenge program21

SAN DIEGO ENERGY CHALLENGE PROGRAM STRUCTURE/TIMING SDUSD School Teams compete from June 11th – November 30th, 2012 to: – Sign up the most households – Reduce the most energy on Peek Time Rebate days – Win prizes22

PRIZES • Prizes for teams and individuals – Monthly iPad drawings – Sign-up/referral contests – Daily iTunes gift card drawings – iPad and gift card drawings for those who consume 80-100% less than their baseline on a PTR (Peek Time Rebate) day.23

INCENTIVES/MECHANICS • Supersized Incentives (Extrinsic Rewards) – iPads and iTunes gift cards for individuals and groups • Social Comparison (Intrinsic Motivators) – Approval/Shame – Status24

ENGAGEMENT Social Web Portal Mobile Messaging25

BIGGEST ENERGY SAVER – WINNER PROFILES BIGGEST ENERGY SAVER: Erica F. SAVINGS “When we first learned of the contest, my husband said, ‘we’re going to win this.’ So, we started looking for ways to save energy. We changed chemicals in the pool so we could turn off the pool pump, we plugged our home entertainment system into a power strip and made sure it was off when we 46.5% weren’t watching it, and we turned off our computers instead of just letting them go to “sleep.” Near the end, when it got close, we cut back on TV and washed our dishes by hand.” “I’ll admit, we got really into the contest. All of the my friends knew about it and 1,356 they wrote notes on my Facebook wall encouraging us to keep it up.” “We didn’t win any of the three drawings for an iPad; but, now that I think about kWh it, we saved more than enough money to buy a brand new iPad!” MONLTHY DRAWING WINNERS September: Josephine G. October: Linda H. November: Tracy G.* SAVINGS VS SAVINGS VS SAVINGS VS 2010 2010 2010 34.2% 42.8% 12.6% 1,506 1,488 106 kWh kWh kWh “I had no idea how much energy the ‘can “We paid a lot of attention to the daily "Every time I can see that there are lights’ in the kitchen used – and, I updates. In fact, when my boyfriend’s other people on the leaderboard saving probably never would have thought to brother came to visit, I saw our energy more energy than I am, I’m motivated to investigate that – but, the daily reminders use going up. When he left, I could really save even more.” motivated me to. Now, unless I need all see the difference. It ‘s just amazing how of those lights, I use as few as possible.” much we were saving.”26 *Joined 11/1/11; Only November data included.

Questions? Peter Shaw, Senior Director Smart Energy Practice J.D. Power and Associates peter_shaw@jdpa.com27

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Peter Shaw - "Gamification to Drive Smart Energy Behaviors"

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