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2011 Marketing Executives’ Conference: Clean

Conscience

Erwin FurukawaSenior Vice President

Customer Service Business UnitSouthern California Edison

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Smart Grid Vision

Hydro

Renewables

Nuclear

Natural gas

Expanded, enhanced transmission Cleaner,

more efficient distribution

Energy-storage possibilities for communities, homes and intermittent resources

Plug-in electric vehicles

Edison SmartConnect™ meter

© Copyright 2008, Southern California Edison

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Evolving Technologies Change How We Serve Customers

How people use energy is changing

Where people get energy is changing

How people manage their usage is changing

The network is changing

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Evolving the Customer Relationship to Higher Levels of Engagement

Starting with this(Monthly bill arrives after-the-fact)

This is where we’re headed(Daily cost/usage updates throughout the month)

Establish a Two-Way Continuous Engagement with CustomersEstablish a Two-Way Continuous Engagement with Customers

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Trigger Marketing

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Create a series of targeted, holistic

and integrated marketing

communications that delivers the right message at the right time to the

right customers in a

COST EFFECTIVE MANNER

Trigger Marketing

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Handraiser Channels (Triggers)

Automated curriculum maintains inertia

Leverage momentum of handraisers to

send prescribed messages to capitalize on hot leads vs. for a

relevant campaign

Direct MarketingCell CenterWebsite Events

MyAccount Sign-Up

Account Activation Program Participation

Strategic Trade PartnershipsGeneral advertising

High Bill

Customers can actively or passively trigger an event that initiates a

communication curriculum

(not inclusive)

Conceptual Solution

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Trigger Marketing Tracks

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HEESHEES

High Bill Inquiry or Calculated % Increase

High Bill Inquiry or Calculated % Increase

Data and analytics drive the content of the curriculum

ARPARP

Save Power Day Alerts

Save Power Day Alerts

Budget AssistantBudget

Assistant

A/C Tune Up

A/C Tune Up

Energy Upgrade

CA Participatio

n

Energy Upgrade

CA Participatio

n

My AccountMy Account

Trigger Qualifiers Programs SCE Could Offer

• Not Taken HEES

• In COTO’d District

• Not enrolled in

any ESC program

• No Pool

• Have AC

• High Income Area

• Not Taken HEES

• In COTO’d District

• Not enrolled in

any ESC program

• No Pool

• Have AC

• High Income Area

CSICSI

Initiating An Engagement Track (example)

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Energy Leaders Partnership Program

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Local Government Partnerships: Energy Leader Model

Reward Level 1 Reward Level 2 Reward Level 3

Partner receives stepped levels of incremental supportAchieving 5% savings in Partner facilities and Community-wide triggers incentive

20%

10%

5%

Valued Partner

Silver Level

Gold Level

Platinum Level

Cu

mu

lati

ve k

Wh

savin

gs

from

2

00

3(P

erc

enta

ge o

f to

tal ci

ty-w

ide e

nerg

y

use

)

Agreement between SCE and individual local governments designed primarily to help cities and counties with a sustainability vision to address demand-side management opportunities in their facilities and communities.

Tiered incentive structure that offers increasing incentives based on performance to the Partner to fund new city/county EE, DR and Solar PV projects.

SCE has 29 Partnerships that assist over 100 cities, counties and state agencies (including Department of Corrections, UC/CSU System, Community Colleges, etc.) to help them and their constituencies save energy and money.

Basic EE Incentive

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Thank you!

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Appendix

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• Customers are exposed to programs they have not participated in yet

• HEES survey as part of call-to-action (if not yet completed)

• Responders to any communication would drop out of current track and be placed into appropriate follow-up track

e e e

Touch 1

+2- 4 weeksTouch 2

+3 weeksTouch 3

+3 weeks

e

Re-engagement

+12 weeks

•ARP•Refrigerator rebate•Energy Upgrade CA

Messaging and calls-to-action dependent on user triggers.

CustomizedMessaging

Trigger Engagement Curriculum

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Trigger Engagement Templates

Touch 1 Letter

Touch 2Direct Mailer

Touch 4Email

Touch 3Postcard

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Welcome Track

P: primary message S: secondary message

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P: primary message S: secondary message

SmartConnect Track

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Selection criteria—Spike in monthly bill amount (% change in kWh) to same month prior year+70% change in kWh - all accounts+35% change in kWh - account with 600+ kWh usage per month

High Bill Track

P: primary message S: secondary message