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Revealing the values of the new energy consumer v24

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Accenture Report - Revealing the values of the new energy consumer

Accenture Report - Revealing the values of the new energy consumer

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  • 1. Revealing the Values of the New Energy Consumer Key FindingsCopyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  • 2. Agenda• Why this survey?• Methodology and sample• Detailed survey results• Appendix Copyright © 2011 Accenture All Rights Reserved. 1
  • 3. Research context• The ARBS team has launched a multiyear global research program aimed at gaining a deeper understanding of consumers’ attitudes, opinions and preferences toward energy management programs. Completed in 2010, phase one of the program, the Understanding Consumer Preferences in Energy Efficiency, was a global consumer survey that produced fascinating insights into consumer preferences in energy efficiency, readiness and willingness to take action. For highlights of the 2010 research key findings, please see the appendix.• To create a more comprehensive set of insights, in 2011, we moved on to phase two of the program— Revealing the Values of the New Energy Consumer—a research study among more than 10,000 end-consumers worldwide to further explore their preferences, opinions and priorities toward the value they perceive in beyond-the-meter products and services investigating the following questions: - What are the energy consumer’s traditional and non-traditional values surrounding in-home technologies, electricity management programs, and related products and services? - How much value do consumers place on smart home appliances, mobile applications and non - traditional channels? - How can utilities/electricity providers differentiate electricity management programs? - Do consumers value electricity management programs that are convenience focused? - Are consumers interested in the delivery of energy management programs through utilities/electricity providers and third parties? Copyright © 2011 Accenture All Rights Reserved. 2
  • 4. Agenda• Why this survey?• Methodology and sample• Detailed survey results• Appendix Copyright © 2011 Accenture All Rights Reserved. 3
  • 5. To understand the ‘new energy consumer,’ Accenturecommissioned a global survey of consumer opinions andpreferences toward electricity management programs• Survey targeted residential end-customers• 10199 individuals in 18 countries surveyed in December 2010• Selected countries represent a range of regulated and deregulated markets• For countries with large and/or diverse populations, participants were selected from a broad spectrum of locations• Quantitative survey with a sample statistically representative of the general population in every country*• Approx. 30 minute survey, conducted online in native languages• Data collection completed for Accenture by Harris Interactive*In Brazil, China and South Africa sample representative of the urban populationsCopyright © 2011 Accenture All Rights Reserved. 4
  • 6. Survey sample detailsInterviews by country: Repartition by gender, age, income: # INTERVIEWS # INTERVIEWS GENDER Australia 500 Singapore 510 Men 49% Belgium 512 South Africa * 500 Woman 51% Brazil * 510 South Korea 537 Canada 500 Spain 550 AGE China * 502 Sweden 511 18-24 years 16% Denmark 505 United Kingdom 724 25-34 years 22% France 514 United States 1202 35-54 years 36% Germany 500 > 55 years 26% Italy 548 Japan 530 INCOME Netherlands 544 Low (bottom 25% in every country) 25% Medium 50% High (top 25% in every country) 25% *In Brazil, China and South Africa sample representative of the urban populations Copyright © 2011 Accenture All Rights Reserved. 5
  • 7. Agenda• Why this survey?• Methodology and sample• Detailed survey results• Appendix Copyright © 2011 Accenture All Rights Reserved. 6
  • 8. Key findings1. Emerging marketplayers - While consumers regard their utilities as the primary provider for energy-related products and services, dynamic business models are emerging2. Beyond price - Price is the pivotal factor in the acceptance of electricity management programs, but price alone will not drive adoption3. Diverse consumer preferences - A wide array of consumer preferences is driving the need for differentiated propositions and experiences4. Unlocking value - Consumers will respond to programs that consider their full spectrum of values and preferencesCopyright © 2011 Accenture All Rights Reserved. 7
  • 9. Key finding No. 1 While consumers regard their utilities as the primary provider for energy-related products and services, dynamic business models are emergingCopyright © 2011 Accenture All Rights Reserved. 8
  • 10. While consumers’ first instinct is to go to their utility, …Please select all of the providers that you would be ready to consider for the followingproducts and services Get personalized information Purchase electricity and on your electricity usage choose an electricity Purchase energy- allowing you to understand pricing program for your efficient products (e.g., which appliances are using home smart thermostat) the most electricity Utility 73% 54% 67% Your retailer 25% 50% 26% Your online site (e.g., 21% 32% 29% Amazon, Google) Your phone or cable provider 23% 22% 27%Base: All respondentsCopyright © 2011 Accenture All Rights Reserved. 9
  • 11. … they also consider alternative providers for purchasingelectricity and beyond the meter products and servicesYou may currently, or in the future, have new companies offering you electricity,energy-efficient products (e.g., smart thermostat), and/or related services (i.e.,customized information on your electricity consumption) on top of their traditionalproducts and services.Would you consider purchasing electricity, energy-efficient products, and/or relatedservices from the following providers? Retailer 59% Respondents that would consider at least one provider (i.e., retailer, 49% phone or cable provider, Phone or cable provider online site) other than a utility/electricity provider = 73% Online site (e.g., Amazon, Google) 45% Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 10
  • 12. Alternative providers considered to purchase electricity, energy efficient products, and/or related services - Country breakdown Would you consider purchasing electricity, energy-efficient products, and/or related services from retailers, phone or cable providers or online sites? Respondents that would consider at least one provider (i.e., retailer, phone or cable provider, online site) other than a utility/electricity96% 96% 95% provider 91% 90% 82% 79% 77% 75% 74% 73% 69% 68% 65% 60% 60% 59% 50% 23%CN ZA SG SK BR ES IT CA USA SE AVG AU UK DK NL JP DE BE FR Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 11
  • 13. Alternative providers considered to purchase electricity, energy efficient products, and/or related services - Country breakdown by provider Would you consider purchasing electricity, energy-efficient products, and/or related services from retailers, phone or cable providers or online sites? %100 Retailer90 Phone or cable provider Online site8070605040302010 0 SG ZA CN BR CA ES USA UK IT SE AU AVG SK DK DE NL JP BE FR Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 12
  • 14. Consumers interest in learning about electricity managementprograms can be met by specific events and providersWhen are you most likely to be interested in learning about electricity managementprograms? Top three moments of truth* When my electricity prices increase 61% When I sign up f or electricity service 55% When I am purchasing new appliances/household electronics 53% When I get my bill 46% When I am moving into a new home 42% When I am renovating my home 28% When I sign up f or telephone or internet service 12% When I meet with a community organization that I belong to 3%Base: All respondents*All moments of truth appeared among respondents’ top threeCopyright © 2011 Accenture All Rights Reserved. 13
  • 15. While utilities have the opportunity to improve consumer trust,they are better positioned than alternative providersWhat organizations do you trust to inform you about actions you can take tooptimize your electricity consumption? 2011 2010 (% Trust) Consumer associations 6% 39% 55% 49% Environmental associations 10% 36% 54% 53% Academics /schools /scientific associations 6% 41% 53% 51% Government /governmental organizations 25% 45% 30% 28% Utilities/electricity providers 25% 47% 28% 29% Online service providers 16% 62% 22% 20% (e.g., Google, Microsoft) Home service providers (e.g., cable television provider, 28% 57% 15% 13% telecommunications provider, etc.) Retailers /equipment manuf acturers 28% 58% 14% 13% Do not trust Neither trust Trust nor distrustBase : All respondentsCopyright © 2011 Accenture All Rights Reserved. 14
  • 16. Where there was active energy efficiency and pricing programs, countries experienced volatility in trust - Country breakdown Do you trust your utilities/electricity providers to inform you about actions you can take to optimize your electricity consumption?54% 54% Trust - 2010 47% Trust - 2011 41% 39% 40% 40% 40% 32% 34% 34% 33% 32% 32% 32% 29% 29% 31% 28% 28% 29% 26% 24% 21% 23% 20% 21% 19% 20% 18% 17%16% 16%14% 14% 14% 10% SG SK CN DK JP BR ZA FR USA AVG CA BE ES AU NL UK DE SE IT Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 15
  • 17. Key finding No. 2 Price is the pivotal factor in the acceptance of electricity management programs, but price alone will not drive adoptionCopyright © 2011 Accenture All Rights Reserved. 16
  • 18. A reduction in consumers’ electricity bills is a key driver ofadoptionWhat factors would most encourage you to use electricity management programs? Top three factors* 2011 It would decrease the amount 91% of my electricity bill 2010 88% It would decrease my personal 69% environmental impact 66% It would allow me to better control the heating- 68% cooling in my home 51% It would decrease the time required to 41% manage my electricity use 38% Knowing that I am one 16% of the highest electricity user in my peer group 9%Base: All respondents*All factors appeared among respondents’ top threeCopyright © 2011 Accenture All Rights Reserved. 17
  • 19. Not surprisingly consumers place the most importance onimpact on their electricity bill for the adoption of an electricitymanagement programWhen consumers make decisions regarding electricity management programs, theyplace different levels of importance on the components Program 17% Program elements: •Information display •Service •Usage adjustment •Provider •Loyalty rewards Impact on your electricity bill 83% Impact on your electricity bill choices: • 15% reduction • 5% reduction • No change • 5% increaseBase: All respondentsMethodology note: Results based on a conjoint analysisCopyright © 2011 Accenture All Rights Reserved. 18
  • 20. Surprisingly, nearly 29% of consumers would adopt a programthat increased their billWhen consumers make decisions regarding electricity management programs, theyplace a decreasing level of importance on the reduction of the bill beyond 5% insavings. % of adoption(certainly and probably) 100% 94% 90% 85% 89% 90% 80% 81% 73% 70% 65% 60% 57% 60% 50% 47% 40% 39% 33% 30% 29% 20% 10% 0% -5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% % increase on the % reduction on the electricity bill electricity billBase: All respondentsMethodology note: Results based on a conjoint analysis. Simulation test with “Existing device, full set up, manual adjustmen t, single provider, with loyalty rewards.”Copyright © 2011 Accenture All Rights Reserved. 19
  • 21. The importance of the impact on the bill is reasonablyconsistent across geographies- Country breakdownRelative importance (weight) of each component in the decision to adopt electricitymanagement programs Program elements Impact on your electricity bill8% 12% 14% 15% 16% 16% 16% 16% 17% 18% 18% 19% 20% 21% 21% 21% 25% 27% 33%92% 88% 86% 85% 84% 84% 84% 84% 83% 82% 82% 81% 80% 79% 79% 79% 75% 73% 67%JP ES BR UK SE SK AU NL AVG CN ZA DE USA SG DK CA BE IT FR Base: All respondents Copyright © 2011 Accenture All Rights Reserved. Methodology note: Results based on a conjoint analysis 20
  • 22. When consumers make decisions regarding electricitymanagement programs, they place different levels ofimportance (weight) on the program elements Usage adjustment Provider Information display Service Loyalty rewards In order to optimize your You can receive The program gives you the You may choose to You may have an electricity bill you have to your device, ability to monitor and adjust setup and service opportunity to enroll in a change the time at which you information, and your electricity usage the device(s) on rewards program. This use some appliances (e.g., pricing program through a device. This your own or you rewards program will allow heating/cooling of your home, from a single device may be a separate may choose to have you to collect points which dishwasher, and clothes provider or multiple unit that only provides a certified can be redeemed for goods washing machine). You have providers. information on your technician do it for and services (e.g., travel the choice between manual electricity usage, or may be you. and personal electronics). turn on or off based on real incorporated into already time pricing information and existing devices in your automatic turn on or off home (i.e., computer, through a device television, telephone, mobile device).Base: All respondentsMethodology note: Results based on a conjoint analysisCopyright © 2011 Accenture All Rights Reserved. 21
  • 23. The mix of program elements significantly fluctuatesbetween geographies– Country breakdownRelative importance (weight) of each element in the adoption of electricitymanagement programs Loyalty rewards Service Information display Provider Usage adjustment 23% 20% 24% 29% 38% 36% 35% 42% 41% 39% 49% 48% 47% 47% 45% 52% 49% 65% 28%71% 23% 35% 16% 19% 22% 48% 18% 11% 12% 23% 22% 28% 42% 30% 40% 11% 20% 23% 32% 9% 9% 11% 33% 5% 4% 15% 16% 4% 7% 16% 8%14% 1% 17% 21% 41% 5% 20% 2% 10% 1% 13% 13% 29% 27%4% 10% 27% 11% 20% 5% 14% 22% 19% 13% 1% 9% 16%9% 3% 10% 7% 7% 7% 6% 7% 4% 3% 5%2% 1% 2% 1% 1%ZA UK CN ES BR SG DE AVG AU BE USA DK JP CA SK IT SE NL FR Base: All respondents Copyright © 2011 Accenture All Rights Reserved. Methodology note: Results based on a conjoint analysis 22
  • 24. While rebates are the preferred reward, non-cash incentivesalso appeal to consumersHow would you like to be rewarded for enrolling in an electricity managementprogram? Top three rewards* Rebate on your electricity bill 91% Free in-home technology installation services 57% Loyalty rewards that you can use in a store f or products 55% and services of your choosing Electronics and computer rewards 48% Travel rewards 19% Books, music, and movie rewards 14% Activities and entertainment rewards 10% Base: All respondents *All rewards appeared among respondents’ top three Copyright © 2011 Accenture All Rights Reserved. 23
  • 25. Gender and age influence reward preference– Gender and age breakdownHow would you like to be rewarded for enrolling in an electricitymanagement program? Gender Income 82% 90% 88% Rebate on your electricity bill 93% 92% 96% 51% 60% 54%Free in-home technology installation services 55% 54% 66% 45% Loyalty rewards that you can use in a store 50% 54% f or products and services of your choosing 60% 60% 56% 55% 54% 48% Electronics and computer rewards 42% 46% 44% 28% 19% 22% Travel rewards 20% 18% 15% 20% 13% 16% Books, music, and movie rewards 13% 16% 18-24 yrs 10% 25-34 yrs 16% 9% 15% 35-54 yrs Activities and entertainment rewards Men 9% 12% Women 5% 55+ yrs Base: All respondents Note: Top three rewards i.e., all rewards appeared among respondents’ top three Copyright © 2011 Accenture All Rights Reserved. 24
  • 26. Key finding No. 3 A wide array of consumer preferences is driving the need for differentiated propositions and experiencesCopyright © 2011 Accenture All Rights Reserved. 25
  • 27. When a full spectrum of adoption variables are evaluated, abalanced distribution of six core consumer segmentsemergeElectricity management programelements:• Information display Tech-savvys Self-reliants• Set up• Usage adjustment 14% 13%• Provider• Loyalty rewards Traditionalists Social 15% 18% independents 18% Service-centrics 22% Cost-sensitivesBase: All respondentsMethodology note: Results based on a conjoint analysisCopyright © 2011 Accenture All Rights Reserved. 26
  • 28. Consumer segment preferences for electricity management program elements are fragmented Importance of levels Social Cost- Service- Self-reliants sensitives centrics Traditionalists Tech-savvys independents Pricing inf ormation displayed on a new device 0,0 2,8 0,0 0,0 0,0 0,0 Pricing inf ormation displayed on existing devices 11,8 0,0 6,0 2,1 3,8 4,2 Self set-up of the device with phone support 0,0 39,7 0,0 0,0 0,0 0,0 Full set-up and assistance by a technician 3,0 0,0 8,2 81,0 2,9 11,3 Manual management of appliances 76,5 1,8 1,4 0,0 0,2 0,0 Automatic management of appliances by the device 0,0 0,0 0,0 3,8 0,0 74,0Multiple providers f or the device, inf ormation and pricing 0,7 39,3 2,8 2,2 0,0 4,3 program Single provider f or the device, inf ormation and pricing 0,0 0,0 0,0 0,0 82,6 0,0 program No loyalty rewards program 0,0 16,4 0,0 0,0 0,0 0,0 Loyalty rewards program 8,0 0,0 81,6 10,8 10,5 6,3 Base: All respondents Methodology note: Results based on a conjoint analysis Copyright © 2011 Accenture All Rights Reserved. 27
  • 29. The six segments are present in all countries Self -reliants Social independents Cost-sensitives Service-centrics Traditionalists Tech-savvys 11% 11% 11% 11% 11% 10% 9% 8% 9% 16% 14% 14% 14% 13% 13% 12% 13%20% 20% 11% 13% 18% 19% 18% 18% 18% 20% 20% 25% 15% 16% 18% 20% 23% 21% 26%15% 15% 10% 13% 18% 14% 31% 23% 20% 13% 22% 20% 26% 25% 28% 20% 22% 17%23% 22% 32% 26% 17% 21% 21% 23% 15% 15% 18% 17% 17% 14% 25% 14% 18%17% 20% 25% 13% 31% 10% 14% 20% 16% 20% 14% 13% 17% 10% 18% 15% 17% 15% 17%14% 10% 11% 9% 9% 25% 15% 15% 13% 14% 14% 17% 15% 13% 14% 18% 17%11% 12% 13% 12% 12% 13% 13%USA CA AU DK NL DE BR AVG ZA IT UK ES FR BE SE SK JP CN SG Base: All respondents Copyright © 2011 Accenture All Rights Reserved. Methodology note: Results based on a conjoint analysis 28
  • 30. A closer look at each segment Self-reliants Social independents Cost-sensitives I prefer to manage my electricity I like testing new technologies I look above all for the best consumption on my own (13%) (18%) financial rewards (22%)Adoption attributes: Adoption attributes: Adoption attributes:• Highest willingness to manage manually • Highest interest in setting up personally their • Highest sensitivity to loyalty rewards, appliances based on real time pricing in-home device with phone support especially loyalty rewards that can be used in information to optimize electricity bill • Higher interest in monitoring and adjusting their a store for products and services of my• Higher interest in monitoring and adjusting electricity usage through a new device choosing their electricity usage through an existing • Highest interest in receiving their device, • Highest sensitivity to a program that would device information, and pricing program from multiple decrease the amount of their bill• More uncomfortable with sharing data with a providers • More likely to be interested to learn about a third party for commercial purposes • More uncomfortable with sharing data with a program when bill increases• Higher readiness to purchase energy efficient third party to make a program work • Higher interest in a program that can be product from online sites • Lowest interest in loyalty rewards but would customized to their personal needs and value electronics/computer rewards usage • More likely to be dissatisfied with a poorDemographics +: communication of changes in the program Demographics +:• Higher proportion of women (54%) • Higher proportion of women (55%)• Higher proportion of 55+ years old Demographics +: • Higher proportion of 25 and 34 years old • Higher proportion of men (56%) • Higher share of lower income • All ages and levels of income • Higher interest in a program which is fun to • Value a program allowing to connect with a use and is easy to use for the whole family community to share experience • Also value a program that would be regarded as trendy by family and friends Base: All respondents Methodology note: Results based on a conjoint analysis; significant differences from the average have been highlighted Copyright © 2011 Accenture All Rights Reserved. 29
  • 31. A closer look at each segment (Cont’d) Service-centrics Traditionalists Tech-savvys I want the best service for me and I prefer a familiar experience I value convenience and efficiency my family (18%)%) (15%) (14%)Adoption attributes: Adoption attributes: Adoption attributes:• Highest interest in full set-up of the device • Highest interest in receiving their device, • Highest interest in automatic management of and assistance by a certified technician information, and pricing program from a their appliances by a device• Highest sensitivity for a program that would single provider • Higher interest in full set-up of the device and allow them to better control the • Lower readiness to go to a retailer, assistance by a certified technician heating/cooling of their home phone/cable provider or online site to • Most likely to install a SetAndForget program• More likely to be interested in learning about purchase electricity, energy efficient products, • Highest interest in monitoring their a program when moving into a new home and/or related services consumption on their mobile phone or latest• More likely to be dissatisfied by a program • Highest likelihood to purchase energy personal electronics with poor customer support and poor product efficient products with their utilities • Highest readiness to consider online sites to installation • More likely to be interested in learning about purchase electricity, energy efficient products,• Highest preference for dealing with their a program when they are renovating their and/or related services utilities to purchase electricity, energy efficient home products and get customized information in Demographics +: their electricity usage Demographics +: • Higher proportion of men (54%)• Higher interest in an in-home device display • Equal repartition in terms of gender • Higher proportion of 25 and 34 years installed at no cost • Higher proportion of 55+ years old • Higher proportion of high income • All levels of income • More likely to choose a program thatDemographics +: simplifies their life• Higher share of women (53%)• All ages and level of income• Higher interest in a program which is easy to use for the whole family Base: All respondents Methodology note: Results based on a conjoint analysis; significant differences from the average have been highlighted Copyright © 2011 Accenture All Rights Reserved. 30
  • 32. Key finding No. 4 Consumers will respond to programs that consider their full spectrum of values and preferencesCopyright © 2011 Accenture All Rights Reserved. 31
  • 33. Consumers express interest in a broad set of unconventionalvalues and preferencesHow important would each of the following characteristics be in your selection ofan electricity management program? Is customized to my personal needs and usage 42% 50% 92% Somewhat important Very important Simplif ies my lif e 45% 45% 90% Is easy to use f or the whole f amily 40% 49% 89% Is f un to use 39% 14% 53% Includes the latest technologies 36% 15% 51% Allows me to connect with a community to share experience 36% 11% 47% and tips Is regarded as trendy by my f amily and f riends 18% 6% 24% Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 32
  • 34. Consumers view technology as a key component of electricitymanagement programsWould you be interested in any of the following functionalities/features that may beincluded with an electricity management program? Technology that can completely automate the management of 60% my electricity Monitoring and managing my usage through the latest personal 36% electronics (e.g., tablet PC) The ability to customize the design of the in home display 35% or the online portal of my electricity management program Applications I can download on my mobile phone to measure 32% my personal electricity consumption in real time Family activities/games around electricity consumption 20% (e.g., contest on who is consuming the least each week) Automatic integration of my electricity usage with popular social internet websites (e.g., Facebook, Twitter) which 13% allows me to share and compare my success against f riends Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 33
  • 35. Men tend to be more interested in technology enabledsolutions– Gender breakdownWould you be interested in any of the following functionalities/features that may beincluded with an electricity management program? Technology that can completely automate the management of 64% Men my electricity 56% Women Monitoring and managing my usage through the latest perso nal 41% electronics (e.g., tablet PC) 31% The ability to customize the design of the in home display 39% or the online portal of my electricity management program 31% Applications I can download on my mobile phone to measure 36% my personal electricity consumption in real time 29% Family activities/games around electricity consumption (e.g., 20% contest on who is consuming the least each week) 21% Automatic integration of my electricity usage with popular 15% social internet websites (e.g., Facebook, Twitter) which allows me to share and compare my success against f riends 12% Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 34
  • 36. The interest in mobility varies significantly by age group – Age breakdown Would you be interested in any of the following functionalities/features that may be included with an electricity management program? % 60% 65 60% 18-24 years 60 60% 25-34 years 55 35-54 years 50% 50 58% 44% 55+ years 45 40% 40 42% 38% 44% 35 35% 33% 30% 29% 30 26% 25 30% 23% 27% 20 17% 20% 20% 15 11% 9% 10 6% 5 0Technology that can Monitoring and managing The ability to Applications I can Family activities/games Automatic integration ofcompletely automate my usage through the customize the design download on my mobile around electricity my electricity usagethe management of my latest personal of the in home display phone to measure my consumption with popularelectricity electronics personal consumption social internet websites Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 35
  • 37. Surprisingly, a majority of consumers are comfortable with a third party having access to their usage data in order to make an electricity management program workSome electricity providers may need to work with third parties to deliver electricitymanagement programs. With your consent, these third parties may have access to yourusage data to make the program work.Would this prevent you from signing up? Yes 37% 63% of consumers f eel comf ortable with a third No 63% party having access to their usage data to make an electricity program work Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 36
  • 38. Across geographies the majority of consumers would be open to sharing their usage data to make the program more effective - Country breakdownSome electricity providers may need to work with third parties to deliver electricitymanagement programs. With your consent, these third parties may have access to yourusage data to make the program work.Would this prevent you from signing up? No77% 72% 72% 69% 67% 67% 66% 66% 64% 64% 63% 63% 62% 61% 61% 58% 55% 53% 41%DK ZA SE JP USA BE AU ES SG IT AVG UK CA DE SK FR BR NL CN Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 37
  • 39. Furthermore nearly half of consumers would also becomfortable to share their data for commercial purposesIf you provide consent, your utility may share your personal information with thirdparties. These third parties may come back to you to offer additional services outsideof the electricity management program to help you save on your electricity bill.Would this prevent you from signing up for an electricity management program? Yes 52% 48% of consumers f eel comf ortable with a third party having No 48% access to their usage data to of f er additional services to help save money on their billBase: All respondentsCopyright © 2011 Accenture All Rights Reserved. 38
  • 40. Nearly half of all consumers would also opt for moreconvenience at a premiumIn the future, the price you pay for electricity will change throughout the day. Electricity could bemore expensive in the morning and cheaper at night (this may already be the case in yourcountry). This new pricing can save you money on your electricity bill if you actively manage thehours at which you use major appliances. If you don’t, your electricity bill will increase. Giventhis electricity pricing, changes in behavior could have an impact on your electricity bill.Please select your preferred scenario: I turn on or off pre-selected appliances four times a day resulting 55% in a 15 percent savings on my electricity bill I install a smart device that automatically turns on or off pre- selected appliances resulting in a 5 percent savings on my 35% electricity bill (SetAndForget program) I don’t take any actions resulting in no savings or even an increase in my bill of up to 10 percent 10% Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 39
  • 41. Consumers with higher incomes are more interested inSetAndForget programs- Gender and income breakdownIn the future, the price you pay for electricity will change throughout the day. Electricity could bemore expensive in the morning and cheaper at night (this may already be the case in yourcountry). This new pricing can save you money on your electricity bill if you actively manage thehours at which you use major appliances. If you don’t, your electricity bill will increase. Giventhis electricity pricing, changes in behavior could have an impact on your electricity bill.Please select your preferred scenario: Income I turn on or off pre-selected appliances 55% 51% 58% four times a day resulting in a 15 percent savings on my electricity bill I install a smart device that automatically turns on or off pre-selected appliances resulting in a 41% 29% 35% 5 percent savings on my electricity bill (SetAndForget program) I don’t take any actions resulting in no savings or 13% 10% 8% even an increase in my bill of up to 10 percent Low Medium High Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 40
  • 42. Consumers tend to favor face-to-face interactions for the purchase of various energy efficiency programs and products Some programs allow you to purchase energy- How would you want to purchase a efficient products (e.g., smart thermostat) at a SetAndForget program ? discount. How would you want to purchase such a product?With a staf f member at an 38% in store location With a staf f member at an 52% 66% pref er interacting 63% pref er interacting in store location with a staf f member to with a staf f member to purchase a purchase energy - SetAndForget program ef f icient productsWith a staf f member at my 25% place of residence With a staf f member at my place of residence 14% With a staf f member over With a staf f member over 9% 5% the telephone the telephone Online with no interaction Online with no interaction 28% 29% with a staf f member with a staf f member Base: All respondents interested in SetAndForget program Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 41
  • 43. In-person and online channel preferences vary significantly by geography - Country breakdownSome programs allow you to purchase energy-efficient products (e.g. With a staff member at an in store locationsmart thermostat) at a discount. How would you want to purchase With a staff member at mysuch a product? place of residence With a staff member over the telephone Online with no interaction with a staff member 33% 40% 48% 48% 46% 51% 52% 48% 49% 56% 54% 53% 55% 54% 61% 58% 58% 63%67% 12% 8% 8% 8% 28% 15% 14% 4% 15% 15% 5% 12% 14% 17% 3% 11% 13% 7% 2% 22% 24% 16% 6% 5% 13% 10% 5% 5% 2% 3%15% 9% 5% 2% 47% 8% 3% 42% 4% 38% 31% 31% 32% 34%6% 28% 28% 28% 29% 30% 21% 22% 24% 18% 18% 19%12%SG BE CA FR AU SE ZA ES CN IT AVG DE USA SK NL DK JP BR UK Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 42
  • 44. Agenda• Why this survey?• Methodology and sample• Detailed survey results• Appendix Copyright © 2011 Accenture All Rights Reserved. 43
  • 45. Consumers are most likely to become disengaged inelectricity management programs by lack of reliable service,billing errors, and poor customer supportWhich of the following would decrease your satisfaction with an electricitymanagement program? Top three factors* Lack of reliable service 71% Errors in my bill 62% Poor customer support 52% Poor product installation 44% The programs require a large investment of my time 31% Poor communication of changes in the program 22% Increased billing f requency 15% Base: All respondents *All f actors appeared among respondents’ top three f actors Copyright © 2011 Accenture All Rights Reserved. 44
  • 46. Satisfaction factors- Smart meter breakdownWhich of the following would decrease your satisfaction with anelectricity management program? Top three factors* 73% Smart meter installed Lack of reliable service 72% No smart meter installed 63% Errors in my bill 62% 51% Poor customer support 52% 46% Poor product installation 43% 27% The programs require a large investment of my time 32% 23% Poor communication of changes in the program 21% 16% Increased billing f requency 14%Base: All respondents*All factors appeared among respondents’ top threeCopyright © 2011 Accenture All Rights Reserved. 45
  • 47. Preference for SetAndForget program - Country breakdown In the future, the price you pay for electricity will change throughout the day. Electricity could be more expensive in the morning and cheaper at night (this may already be the case in your country). This new pricing can save you money on your electricity bill if you actively manage the hours at which you use major appliances. If you don’t, your electricity bill will increase. Given this electricity pricing, changes in behavior could have an impact on your electricity bill. I install a smart device that automatically turns on or off pre- selected appliances resulting in a 5 percent savings on my electricity bill (SetAndForget program)49% 44% 42% 39% 39% 37% 36% 35% 35% 33% 33% 33% 32% 32% 31% 31% 30% 27% 25%CN SK JP ZA DE IT SG SE AVG BE FR BR DK USA CA UK AU NL ES Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 46
  • 48. Consumers sensitivity to share their data for commercial purposes varies between countries - Country breakdown If you provide consent, your utility may share your personal information with third parties. These third parties may come back to you to offer additional services outside of the electricity management program to help you save on your electricity bill. Would this prevent you from signing up for an electricity management program?67% 64% No 56% 55% 54% 53% 51% 50% 49% 49% 48% 45% 44% 43% 43% 42% 39% 39% 35%SE JP SK DK ZA AU IT BR ES BE AVG CA SG DE NL USA FR UK CN Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 47
  • 49. Most preferences are proportionally consistent by age group – Age breakdown How important would each of the following characteristics be in your selection of an electricity management program? % of Very/somewhat important 18-24 years 25-34 years 35-54 years 55+ years Is customized to my personal needs and usage 90% 92% 92% 91% Simplif ies my lif e 91% 92% 90% 87% Is easy to use f or the whole f amily 89% 90% 89% 86% Is f un to use 58% 60% 53% 44% Includes the latest technologies 58% 58% 50% 45%Allows me to connect with a community to share experience 50% 50% 46% 43% and tips Is regarded as trendy by my f amily and f riends 35% 31% 23% 14% Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 48
  • 50. Age and income influence consumers propensity to share their usage data to make the program more effective - Age and income breakdownSome electricity providers may need to work with third parties to deliver electricitymanagement programs. With your consent, these third parties may have access to yourusage data to make the program work.Would this prevent you from signing up? Age Income 37% 36% 34% 36% 33% Yes 41% Yes 41% 63% 64% 66% 64% 67% No 59% No 59% 18-24 25-34 35-54 55+ Low Medium High years years years years Base: All respondents Copyright © 2011 Accenture All Rights Reserved. 49
  • 51. 2010 End Consumer Research Understanding Consumer Preferences in Energy Efficiency 2010: Key Findings Countries Surveyed 1. Consumer Paradox - There is a significant contradiction between consumer perceptions and Australia Netherlands their actual knowledge of energy efficiency. Brazil Singapore 2. Trusted Advisor - Consumers first instinct is to contact utility/electricity providers for energy- Canada South Africa efficiency activities, however, providers still need to build trust and credibility. China South Korea Denmark Spain 3. Emerging Barriers - While price remains a key factor to adoption, the extent of the utility/electricity France Sweden providers’ control over energy use has emerged as a potential barrier. Germany United Kingdom Italy United States 4. Channel Diversification - Channels and contact points for utility/electricity providers to Japan communicate with consumers are diverse. 5. Complexity of Consumer Preferences - AdoptionTo access last year’s research, please access of electricity management programs is influencedUnderstanding Consumer Preferences in Energy by fragmented and nontraditional consumer preferences.Efficiency here.