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- 1. Moving Beyond Incentives: UsingProgram Data to Transform the Grocery Marketplace in the PNW Stephen Achilles May 13, 2014
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- 4. • Introduction • TheHow • Behind the success • Implication Overview
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- 6. First Two Years- Mediocrity • Started in 2005 • Standard approach for a year and half • Measures installed • Free gaskets • Free vending misers • Low cost or free strip curtains • Fly by night contractors
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- 8. Resulting Impact • 90%market penetration • Expanded into related markets • New technology • introductions • Over 250M kWh in top 4 years
- 9. HOW ESG USEDDATA
- 11. Program Data Audit dataInstalled Measures Market TrendsIndustry relationships
- 12. Promotions: The $2MDrive for Savings • Limited time promotion • Bonus incentive dollars • Measures of interest • Improve the Grocer’s business
- 13. How it Worked Grocersuggestion Plan the promotion Utility approval Begin campaign
- 14. Campaign • Select measuresand incentives • In-person, mail and e-mail/fax • Utility involvement • Limited time
- 15. Major Impact • Demandincrease • Spoke grocer’s language • Powerful call to action • Market velocity
- 16. Buying Groups: FloatingHead & Suction
- 17. How it Worked Grocersinterested but no purchased Group prospects by geography RFP Process Begin projects
- 18. Major Impact • Demandincrease • Price reductions of almost 30% • Market awareness • Pricing stayed low • Reduced energy bills
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- 20. How it Worked Manufacturerinterest Grocer interest RFP Process Begin projects
- 21. Major Impact • Demandincrease • 38% price reduction • Increased revenue for contractors • Pricing stayed low • Opened new markets • Multiple measures implemented
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- 23. Trustworthiness 𝐶𝑟𝑒𝑑𝑖𝑏𝑖𝑙𝑖𝑡𝑦 + 𝑅𝑒𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦+ 𝐼𝑛𝑡𝑖𝑚𝑎𝑐𝑦 𝑆𝑒𝑙𝑓 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
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- 25. Data Accuracy • RFPs •Bidders requirements • Additional incentive pool • Future credibility
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- 29. Save The Dates Formore information - www.aesp.org AESP’s Summer Conference San Francisco, CA AESP’s National Conference Orlando, FL Aug. 4-6, 2014 Feb. 9-12, 2015
Editor's Notes
- #6 “If you have get a third of the grocers to do something you will be a rock star.” Highly remote – pop of 13.5M and target population of 7M Some of the lowest electric rates in the country ($0.03-$0.075 per kWh) 400M sq ft covered about 220M (3rd largest state (Cal is 163.7) or (almost 18 Marylands) Harney Electric Cooperative: territory is the size of West Virgina – they have 4,000 customers
- #8 THEME: We looked at this as a business and not an energy efficiency program Rebuilt the program with a customer focus Hired different people, focus on customer Trust formula Tell 3 stories : May Au The Mikes Paul
- #9 Within 4 years
- #11 Big vs Small data Big data will be able to predict opportunities Small data uses what we have
- #13 Grocers know promotions so we used their tools
- #14 It started when a grocer commented to a field rep – “You should run a sale. You know we understand a sale.” We planned a promotion and built it with the utility We selected key measures and incentive increases Cost of sales Price will fall and not return
- #15 We did what a grocer would do … we ran a promotion We did it ourselves – limited marketing expertise We focused on measures that were identified as a frequent opportunity but not selected. We then used our market knowledge to focus on 3 measures: Case motors Case curtains Fred Meyer/Kroger story
- #16 We tripled expectations What are we going to do next
- #17 Ask question: Who is familiar with this measure A complex measure – lots of interest but too expensive A promotion was not going to work – limited providers The cost of sales is high
- #18 Define a Buying Group Over 120 interested but did not buy Over 60 would join the effort Over 50 stores Cost of sales Again: Price will fall and not return Spinoff effect was large – within 18 months twice the number of projects were completed
- #20 Not just for residential
- #21 Lots of industry players GE Story
- #22 GE story Kroger/Fred Meyer story Product had to be brought in from other markets All in a territory with some of the lowest rates in the country
- #23 The data is not enough
- #24 If the market does not trust you this will not work Market knowledge: Ryon – top contractor Ali – ethnic grocers Mike – grocer of the year
- #25 The data makes it happen but market knowledge is key to a great program
- #27 The data is not enough
- #28 Positive feedback Market Transformation: Demand increase Market price dropped Increased awareness Get people excited about energy Changed behavior
- #29 Positive feedback