Connect Presentation: Energy Efficiency, Impacting Behavior Change

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This presentation was given during a breakout session in May, 2009 at the Connect Conference in Las Vegas.

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  • Connect Presentation: Energy Efficiency, Impacting Behavior Change

    1. 1. Energy Efficiency: Impacting Behavior Change May 13, 2009 Great River Energy
    2. 2. Introductions <ul><li>Tara Collins </li></ul><ul><li>David Ranallo </li></ul><ul><li>Holly Blake </li></ul>
    3. 3. What are your expectations?
    4. 4. What will we cover today? <ul><li>Quickly ~ who is Great River Energy? </li></ul><ul><li>Why are we marketing to sell less of our product? </li></ul><ul><li>What are the steps that lead to behavior change? </li></ul><ul><li>What’s new and emerging </li></ul><ul><ul><li>Beyond statement stuffers and newsletters? </li></ul></ul><ul><li>How did we gain leadership buy-in? </li></ul><ul><li>How much will it cost and what can you get back? </li></ul><ul><li>What were lessons learned? </li></ul>
    5. 5. Quickly ~ who is Great River Energy? <ul><li>Second largest wholesale electric power supplier in the state and the fifth largest generation and transmission (G&T) cooperative in the U.S. </li></ul><ul><li>Serve 28 retail distribution cooperatives across Minnesota </li></ul><ul><li>Headquartered in Elk River, MN until April, 2008 </li></ul>
    6. 6. Great River Energy (continued) <ul><li>We had a vision…to Lead by Example </li></ul><ul><ul><li>Move Towards Sustainability ~ Triple-Bottom Line (Competitive Rates, Reliable Service and Environmental Stewardship) </li></ul></ul><ul><ul><li>Achieve LEED Platinum Certification </li></ul></ul>How can we ask others to conserve and be efficient if we aren’t doing it ourselves?
    7. 7. Why are we marketing to sell LESS of our product? <ul><li>As a Marketing Team we’ve been asked to: </li></ul><ul><ul><li>Sell less of our product </li></ul></ul><ul><ul><li>Give people money for consuming less of our product </li></ul></ul><ul><ul><li>Track and measure how much people don’t use our product </li></ul></ul>Governor PAWLENTY SIGNS NEXT GENERATION ENERGY ACT May 25, 2007 Electric Companies must reduce their energy consumption by 1.5% in the year 2010 and every year thereafter.
    8. 8. Building Momentum 1.0% 111,000,000 2010 .85% 94,000,000 2009 .7% 78,000,000 2008 .6% 62,000,000 2007 .3% 35,000,000 2006 .3% 32,000,000 2005 Percent of Member Sales kWh Saved Program Year
    9. 9. Determine Residential Priorities <ul><ul><li>Lighting (5) = 51% </li></ul></ul><ul><ul><li>HVAC (10) = 41% </li></ul></ul><ul><ul><li>Appliances (10) = 5% </li></ul></ul><ul><ul><li>Other (8) = 4% </li></ul></ul>Energy Savings
    10. 10. Change Behavior vs. “Communicate” <ul><li>Changing public behavior means “impacting where people rank an issue in their priority of compelling social causes – it is about long term or permanent attitudinal shift that is manifested in peoples’ commitment to taking action to create change…it requires a multi-dimensional approach to changing attitudes and impacting behavior” </li></ul><ul><li>~ building Public Will, Metropolitan Group, February, 2005 </li></ul>
    11. 11. Five Steps to Impact Behavior Change <ul><li>Structure the Problem </li></ul><ul><li>Know your Audience </li></ul><ul><li>Create an Integrated Plan </li></ul><ul><li>Deploy Integrated Strategies </li></ul><ul><li>Measure , Analyze and Adjust </li></ul>
    12. 12. 1. Structure the Problem <ul><li>Legislation in Minnesota is a reality </li></ul><ul><li>Reporting savings is a mandate </li></ul><ul><li>Gain distribution member buy in /end use member engagement </li></ul><ul><li>Striking a balance between need for conservation and the co-ops’ need to increase member revenue </li></ul><ul><li>Currently, the choice is voluntary; there’s an incentive, but no penalty (eg. Gas prices) </li></ul><ul><li>Perception is that conservation is “going without”, but efficiency is being smart </li></ul><ul><li>Need to frame the issue in a positive light ~ better manage your energy costs through energy efficiency </li></ul>
    13. 13. 2. Know Your Audience <ul><li>Research conducted with Himle Horner indicated: </li></ul><ul><ul><li>95% of our members are satisfied with our member cooperatives as their electric provider and that the local electric cooperative is a credible messenger for energy efficiency and conservation messages </li></ul></ul><ul><ul><li>82% of our member base is concerned about the affordability of electricity </li></ul></ul>
    14. 14. 2. Know Your Audience <ul><li>Additionally: </li></ul><ul><ul><li>75% of members want to support energy efficiency, but don’t want to pay for it </li></ul></ul><ul><ul><li>59% take environmental action mainly in order to lower their energy bill, another 15% do so for future generations </li></ul></ul><ul><ul><li>When asked “How often do you take actions to conserve energy” ~ 89% said everyday </li></ul></ul>“… human beings consistently think they are better than they are…self-serving bias. …94 percent of men rank themselves in the top half according to male athletic ability.” The irrational side of change management. The McKinsey Quarterly, 2009
    15. 15. 3. Create an Integrated Plan <ul><li>Determine Key Messages – Make it Personal : </li></ul><ul><ul><li>Low cost/no cost actions </li></ul></ul><ul><ul><li>Affordability – control your rising rates </li></ul></ul><ul><ul><li>Future generations – do it for your kids/grandkids </li></ul></ul><ul><li>Determine Priorities </li></ul><ul><ul><li>High impact </li></ul></ul><ul><ul><li>Low cost </li></ul></ul><ul><ul><li>Innovative programs </li></ul></ul><ul><li>Gain Leadership Buy-In </li></ul><ul><li>Develop Integrated Marketing Strategy </li></ul>
    16. 16. 4. Deploy Integrated Strategies Marketing Communications Grassroots Key Messages Mnbrighterideas.com PR Student Presentations Presentations Articles Videos Film Festival Promotions/Contests Advertising Sell Sheets Case Studies Events/Sponsorships
    17. 17. 5. Measure, Analyze and Adjust <ul><li>Determine promotion goal and economics </li></ul><ul><li>Develop promotions with emphasis on measurement and analytics </li></ul><ul><li>Provide weekly measurement statistics to all key stakeholders </li></ul><ul><li>Provide comprehensive end-of-promotion report </li></ul><ul><li>Identify gaps to drive change for future promotions </li></ul>
    18. 18. In Summary <ul><li>We knew what residential areas needed focus </li></ul><ul><li>What key messages would resonate </li></ul><ul><li>We needed to have a flexible approach for our member cooperatives </li></ul><ul><li>We needed to make it easy for the consumer and the member cooperatives </li></ul>
    19. 19. Case Study: CFL Promo <ul><li>What did we set out to accomplish? </li></ul><ul><ul><li>9,370,800 kWh savings </li></ul></ul>
    20. 20. Case Study: CFL Promo <ul><li>How did we set out to accomplish this? </li></ul><ul><li>Co-creating program with member cooperatives </li></ul><ul><ul><ul><li>Universal GE Coupon </li></ul></ul></ul><ul><ul><ul><li>Wal-Mart Instant Mark-Down Offer </li></ul></ul></ul><ul><ul><ul><li>Home Lighting Makeover Sweeps </li></ul></ul></ul>
    21. 21. Case Study: CFL Promo <ul><li>How did we set out to accomplish this? </li></ul><ul><ul><li>Gave member co-ops flexible ala carte tools </li></ul></ul>
    22. 22. Case Study: CFL Promo Runestone Dakota Meeker Connexus Itasca-Mantrap
    23. 23. Case Study: CFL Promo <ul><li>126,455 bulbs sold </li></ul><ul><li>9,610,580 kWh saved </li></ul><ul><ul><li>30% Coupons </li></ul></ul><ul><ul><li>70% Wal-Mart instant markdown </li></ul></ul>102% of goal obtained during the 3-month promotion
    24. 24. Case Study: CFL Promo
    25. 25. Case Study: CFL Promo <ul><li>Key Learnings: </li></ul><ul><ul><li>Extremely pleased with results for our first statewide promotion </li></ul></ul><ul><ul><li>Home Lighting Makeovers were labor intensive </li></ul></ul><ul><ul><li>Ensure GE provides us pictures of every Wal-Mart store set up </li></ul></ul><ul><ul><li>Include “End Cap on Main Walkway ” in contract </li></ul></ul><ul><ul><li>Don’t invest in downloadable coupons, not enough people took advantage of them </li></ul></ul><ul><ul><li>Determine organization’s tolerance for non-member purchases </li></ul></ul><ul><ul><li>Coupons are extremely important to some of our member cooperatives (i.e. BENCO = 13% return rate vs. overall 2% return) </li></ul></ul><ul><ul><li>Co-ops did a GREAT job marketing the program to their members </li></ul></ul><ul><ul><li>Cost per kWh for this promotion estimated to be only $0.018 </li></ul></ul>
    26. 27. Case Study: Appliance Promo <ul><li>Objective: </li></ul><ul><ul><li>Drive energy savings generated through refrigerator and washer sales </li></ul></ul><ul><ul><li>Target between four and five million kWhs saved </li></ul></ul><ul><li>Strategies: </li></ul><ul><ul><li>Increased rebate dollars for six week period </li></ul></ul><ul><ul><li>Standard rebate process with any appliance retailer </li></ul></ul><ul><ul><li>Coupons good at Minnesota Best Buy stores </li></ul></ul><ul><ul><li>Fill Your Fridge Sweepstakes </li></ul></ul><ul><li>Tactics: </li></ul><ul><ul><li>Required recycling of old fridge </li></ul></ul><ul><ul><li>Best Buy contributed to rebate dollars </li></ul></ul><ul><ul><li>Mom and Pop stores could participate and add rebate dollars </li></ul></ul>
    27. 28. Case Study: Appliance Promo
    28. 29. Case Study: Appliance Promo (continued) Result: 4.5M lifetime kWh saved Power over 411 homes for an entire year Meet annual household savings goal of 110 kWh for 41,095 homes The kWh savings generated during the appliances’ lifetime are enough to:
    29. 30. Case Study: Appliance Promo (continued) <ul><li>Key Learnings: </li></ul><ul><ul><li>Start early ! </li></ul></ul><ul><ul><li>Don’t launch promo the same week it’s announced that banks are failing and economy begins to go downhill </li></ul></ul><ul><ul><li>Use big box that mirrors cooperative “feel” </li></ul></ul><ul><ul><li>Actively engage Mom and Pops sooner than later </li></ul></ul><ul><ul><li>Cost per kWh for this promotion estimated to be only $0.022 </li></ul></ul>
    30. 31. Case Study: 2009 Appliance Promo
    31. 32. What were lessons learned? <ul><li>Create strong partnerships with retailers that resonate with your member base (i.e. Best Buy vs. Sears) </li></ul><ul><ul><li>Always include a local / community option so you don’t alienate “mom and pops” </li></ul></ul><ul><li>Member cooperatives trust you when you add value </li></ul><ul><li>The right message resonates and it needs to be disseminated in many different ways </li></ul><ul><li>Offer ala carte options for our member cooperatives </li></ul><ul><li>Start planning now for 2010 </li></ul>
    32. 33. What’s new and emerging beyond statement stuffers and newsletters? <ul><li>Bored with your typical marketing tactics? </li></ul><ul><li>INTEGRATE! </li></ul><ul><li>Social Media (Facebook, LinkedIn, Twitter) </li></ul><ul><li>Contests Linked to Education </li></ul><ul><li>Cable TV </li></ul><ul><li>Sponsorships </li></ul><ul><li>Community Outreach </li></ul><ul><li>Sell Sheets </li></ul><ul><li>Ads (web and newsletter) </li></ul><ul><li>Cast Studies </li></ul><ul><li>In-Store Events </li></ul><ul><li>Trade Ally Engagement </li></ul><ul><li>Press </li></ul><ul><li>Articles </li></ul><ul><li>Web </li></ul><ul><li>Coupons </li></ul>
    33. 34. Case Study: State Fair Marketing Communications Grassroots Key Messages -Buy CFLs -Buy ENERGY STAR Appliances -Conserve Energy Mnbrighterideas.com -Drive to web for quiz/sweeps Sustainability Stage Presentations - Conservation Doesn’t Have to Mean “Going Without” – It Can Simply Mean “Waste Less” Co-op Volunteers Educate Visitors About Promos and Rebate Programs Long-Standing Sponsorship New Venue—Eco Experience Building Integrated CFL Promotion Giveaway = CFL Coupon On-Site Sweepstakes – ENERGY STAR ® Refrigerator Advertised in Local Paper, Web and at HQ
    34. 35. Case Study: State Fair
    35. 36. Case Study: MNBrighterideas.com
    36. 37. Case Study: MNBrighterideas.com <ul><li>Goals for Website </li></ul><ul><li>Engage consumers in how they can: </li></ul><ul><ul><li>Conserve energy </li></ul></ul><ul><ul><li>Waste less electricity and use electricity wisely </li></ul></ul><ul><ul><li>Save money </li></ul></ul><ul><li>Lay the ground work for conservation programs and marketing </li></ul><ul><li>Position local co-ops as conservation/energy efficiency information brokers </li></ul><ul><ul><li>Local resource for consumers </li></ul></ul>
    37. 38. Key Site Messages <ul><li>Based on research done by Himle Horner, the following information should be communicated strongly and clearly through the website: </li></ul><ul><ul><li>How to take practical steps to control energy costs </li></ul></ul><ul><ul><li>How to become more energy efficient and help save the environment by putting good intentions to work through no-cost/low-cost actions </li></ul></ul><ul><ul><li>Small steps we can take to secure a cleaner, more energy-efficient future for our children </li></ul></ul>
    38. 39. Today’s www.MNBrighterideas.com
    39. 40. Integrated Member Experience mnbrighterideas.com
    40. 41. Case Study: MNBrighterideas.com <ul><li>Results: </li></ul><ul><ul><li>1,744 visits in first month </li></ul></ul><ul><ul><li>5:27 average time on site </li></ul></ul><ul><ul><li>Spikes with newsletters/CFL Promo </li></ul></ul><ul><ul><li>Level of engagement is strong based on per visit pages and time </li></ul></ul><ul><ul><li>Out-state visitors over represented on site and have better than average engagement stats </li></ul></ul><ul><ul><li>Half of visits come directly to the site </li></ul></ul><ul><ul><li>Half of direct visitors are visiting for a second time </li></ul></ul><ul><ul><li>Co-ops are significant source of traffic representing 70% of all referrals </li></ul></ul><ul><ul><li>CFL Sweeps is the largest driver of site traffic </li></ul></ul><ul><ul><li>Meaningful traffic for Quiz, Events, Tools </li></ul></ul>
    41. 42. Keeping it Fresh <ul><li>Evolution of MNBrighterIdeas.com </li></ul><ul><ul><li>Dynamic Children’s/Youth/Education section (leveraging Touchstone Energy Assets) </li></ul></ul><ul><ul><li>MN Brighter Ideas Film Fest </li></ul></ul><ul><ul><li>Promotion of our Programs/Rebates </li></ul></ul><ul><ul><li>Social Media Implementation/PR </li></ul></ul><ul><ul><li>Several New Videos on You Tube account </li></ul></ul>
    42. 43. How did we gain leadership buy-in? <ul><li>Senior Staff </li></ul><ul><li>Board of Directors </li></ul><ul><li>ACT Committee </li></ul><ul><li>DSM Member Services </li></ul><ul><li>Weekly reports – actual vs. goal </li></ul><ul><li>Analytics/economics before, during and after promotions </li></ul>
    43. 44. How much will it cost? What can you get back? <ul><li>Rule of thumb: Goal is to be below .07/kWh </li></ul><ul><li>Actual is .01/kWh </li></ul><ul><li>Marketing is .22% of annual budget </li></ul><ul><ul><li>Plus cost of rebates </li></ul></ul><ul><li>Measurable energy savings supported by strong on-line/off-line tools: </li></ul><ul><ul><li>CFL Promo </li></ul></ul><ul><ul><li>Appliance Promo </li></ul></ul><ul><ul><li>LED Holiday Lighting </li></ul></ul>
    44. 45. Did We Meet Your Expectations?

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