Utilities, Segmentation

 

BUSINESS SITUATION:

A major regional electric utility company wished to conduct a segmentation study in order to engage their customers and encourage energy efficiency.

 

RESEARCH OBJECTIVES:

The client wanted to develop more targeted programs and message campaigns to truly connect to more of their customers, including mailings to select lists of their customers.  A secondary objective was to understand how to better encourage use of smart meters.

 

METHOD:

Burke designed and implemented a research program which included qualitative and quantitative phases.  In the qualitative phase we uncovered some of the deeper values and motivations that drive energy savings behaviors and used that insight in the design of the quantitative survey.  We sampled customers using both online and telephone methods and employed our SEGUE protocol to optimize targeting ability.

 

OUTCOME:

In collaboration with the client we segmented their customers based on attitudes toward energy efficiency and personal values which enabled the client to craft messages that would resonate with the wide variety of customers that they serve.  We scored their customer data base so that they could create lists and targeted direct mail /e-mail campaigns.  Our client is still using the segmentation as a centerpiece of their energy efficiency initiatives.

 

 

 


Utilities, Segmentation

 

BUSINESS SITUATION:

An electric utility sought to better understand its current base of business customers who had enrolled in its energy demand-side management (DSM) programs, and to improve its success rate in attracting more customers to enroll.

 

RESEARCH OBJECTIVES:

·         Profile existing energy DSM program enrollees

·         Develop a market segmentation based on relevant needs, attitudes, and enrollment interest

·         Classify its entire B-to-B customer base into these market segments, so that members of higher-likelihood segments could be targeted.

 

METHOD:

Burke conducted a two-phase research and analysis initiative. In Phase 1, we conducted a business segmentation survey among DSM program enrollees and non-enrollees. The Phase 1 survey focused on business customers’ energy efficiency concerns, priorities, needs, and attitudes. Current DSM program enrollees were profiled on survey items as well as energy usage data supplied by the client. We then derived needs-oriented market segments and worked with the client to prioritize the segments whose needs profiles best matched DSM program benefits. In Phase 2, we appended third-party business profiling/targeting data to the survey data and used our SEGUE™ tool to derive an algorithm that predicted segment membership from these external variables. The client then appended the predictive external variables to its entire business customer database and applied our segment scoring algorithm.

 

OUTCOME:

The research yielded market segments that were clearly prioritized based on DSM program attraction potential, and framed in terms of needs and attitudes that could be addressed through sales and marketing communications campaigns. And by applying Burke’s scoring algorithm to its entire B-to-B customer database, the client could focus these marketing efforts on prospects with the greatest potential for DSM program enrollment.