Changing Behaviour - harnessing the power of the consumer

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Pilgrim Beart's presentation to the Technology World, London, 8th Dec 2010

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Changing Behaviour - harnessing the power of the consumer

  1. 1. Changing behaviour - harnessing the power of the consumerCan a cultural shift be achieved in how people use energy?Talk for Technology World 20108th Dec 2010Pilgrim Beart – Founder Director, AlertMe
  2. 2. Today 1. Domestic consumption is a big part of the problem 2. Consumer psychologyAGENDA 1
  3. 3. Domestic consumption • Consumers are a big part of the carbon emissions problem • 30% of all UK energy is consumed at homeDOMESTIC CONSUMPTION 2
  4. 4. Domestic consumption • Consumers are a big part of the carbon emissions problem • 30% of all UK energy is consumed at homeDOMESTIC CONSUMPTION About 50% of the nation’s energy is consumed directly by you and me! 3
  5. 5. Domestic consumption • Consumers can be a big part of the carbon emissions solution • 30% of all UK energy is consumed at homeDOMESTIC CONSUMPTION About 50% of the nation’s energy is consumed directly by you and me! 4
  6. 6. Consumer psychology How do consumers think? Abstract Concrete Consuming Energy Using a washing machine Motivation – Empowerment = FrustrationCONSUMER PSYCHOLOGY Motivation + Empowerment = Action 5
  7. 7. Consumer psychology Motivation: Money • Energy bills ≈9% of disposable income • 90% of householders concerned about bills • Standing charge exactly the wrong model • Rule of thumb: 1W = £1/yearCONSUMER PSYCHOLOGY 6
  8. 8. Consumer psychology We are social animals • Motivated by Competition, Collaboration, and Peer pressureCONSUMER PSYCHOLOGY 7
  9. 9. Consumer psychology So what empowers consumers? • Householders today feel un-empowered • View energy bill as outside their control • Like mortgage or rent • Bring energy costs into the here-and-now • Per-use • Associate cost with useCONSUMER PSYCHOLOGY 8
  10. 10. Consumer psychology Make energy visible 9
  11. 11. Consumer psychology Analytics – beyond kW and kWh • from Data into InformationCONSUMER PSYCHOLOGY 10
  12. 12. Consumer psychology Segmentation “He who would do good to another, must do it in Minute Particulars. General Good is the plea of the scoundrel, hypocrite and flatterer” Blake • There are challenges for every segment • Affluent – cost not an issue, but reputation is • Sociable middle class – community peer pressure • Children and young adults – education and online • Social housing – local governmentCONSUMER PSYCHOLOGY • Home Workers – as extension to CRC • Some offer a particular challenges: • Elderly – ensure they don’t economise, help insulate • Illiterate/Innumerate – need non-numerical visual representation • Less well off – help with false economies, help to budget 11
  13. 13. Consumer psychology If you can’t understand numbers… Coloured speedometerCONSUMER PSYCHOLOGY Ambient light : At Home Tumble Drier Away/Night 12
  14. 14. Consumer psychology Reveal false economiesCONSUMER PSYCHOLOGY • If you buy, A class £1000 cheaper over 10 years Assumptions: 5 washes/week • If you rent, A class immediately cheaper electricity at 13p/kWh 13
  15. 15. Consumer psychology Helping budgetCONSUMER PSYCHOLOGY 14
  16. 16. Delivering change 3 steps, and repeat Reveal Reduce Reduce Renew Renew RecycleDELIVERING CHANGE 15
  17. 17. Delivering Change • AlertMe works alongside the utility to benefit consumer through 3 phases of the journey • Provides visibility, control & automation • Enabling consumers to reduce energy use, cost and CO2 • Takes consumer on a journey through behaviour change, control and onto self-generation • Active behaviour change can offset energy price rises Overall home energy usage and bill over time “Usage Shock” Possible Net Bill Position Better tariff Turn off standby Reductions necessary to offset likely future Identify consumer energy price rises appliances Smarter useDELIVERING CHANGE using most More efficient appliances energy Use Sustained usage levels “Free” energy contribution - self appliances more cost generation (eg. Solar panels) effectively REVEAL REDUCE RENEW (Diagnostics) (Establishing Active Behaviour Change) (Self-Generation) Stages of Behaviour Change 16
  18. 18. Conclusion • Consumers are a big part of the problem solution • We won’t hit our targets without them • Consumer psychology • Motivations include Money, Competition & Collaboration, Peer pressure • Need Empowerment too: • Explain running-costs up-front • Bring per-use costs into the “here & now” • Everyone is different! • Our deregulated market empowers consumersCONCLUSION 17
  19. 19. Changing behaviour - harnessing the power of the consumerCan a cultural shift be achieved in how people use energy?Talk for Technology World 20108th Dec 2010Pilgrim Beart – Founder Director, AlertMe

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