Energy Efficiency: Impacting Behavior Change

May 13, 2009Great River Energy

Introductions

• Tara Collins

• David Ranallo

• Holly Blake

What are your expectations?

What will we cover today?

• Quickly ~ who is Great River Energy?• Why are we marketing to sell less of our

product?• What are the steps that lead to behavior

change?• What’s new and emerging

Beyond statement stuffers and newsletters?• How did we gain leadership buy-in?• How much will it cost and what can you get

back?• What were lessons learned?

Quickly ~ who is Great River Energy?

Second largest wholesale electric power supplier in the state and the fifth largest generation and transmission (G&T) cooperative in the U.S.

Serve 28 retail distribution cooperatives across Minnesota

Headquartered in Elk River, MN until April, 2008

Great River Energy (continued)

• We had a vision…to Lead by Example Move Towards Sustainability ~ Triple-Bottom Line

(Competitive Rates, Reliable Service and Environmental Stewardship)

Achieve LEED Platinum Certification

How can we ask others to conserve

and be efficient if we aren’t doing it

ourselves?

Why are we marketing to sell LESS of our product?

• As a Marketing Team we’ve been asked to: Sell less of our product

Give people money for consuming less of our product

Track and measure how much people don’t use our product

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.

Building Momentum

ProgramYear

kWh Saved

Percent of Member

Sales

2005 32,000,000 .3%

2006 35,000,000 .3%

2007 62,000,000 .6%

2008 78,000,000 .7%

2009 94,000,000 .85%

2010 111,000,000 1.0%

Determine Residential Priorities

Lighting (5) = 51% HVAC (10) = 41% Appliances (10) = 5% Other (8) = 4%

Energy Savings Energy Savings

Change Behavior vs. “Communicate”

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” ~ building Public Will, Metropolitan Group, February, 2005

Five Steps to Impact Behavior Change

1. Structure the Problem2. Know your Audience3. Create an Integrated Plan4. Deploy Integrated

Strategies

5. Measure, Analyze and Adjust

1. Structure the Problem

• Legislation in Minnesota is a reality• Reporting savings is a mandate

• Gain distribution member buy in/end use member engagement

• Striking a balance between need for conservation and the co-ops’ need to increase member revenue

• Currently, the choice is voluntary; there’s an incentive, but no penalty (eg. Gas prices)

• Perception is that conservation is “going without”, but efficiency is being smart

• Need to frame the issue in a positive light ~ better manage your energy costs through energy efficiency

2. Know Your Audience

• Research conducted with Himle Horner indicated: 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

82% of our member base is concerned about the affordability of electricity

2. Know Your Audience

• Additionally: 75% of members want to support energy efficiency,

but don’t want to pay for it 59% take environmental action mainly in order to

lower their energy bill, another 15% do so for future generations

When asked “How often do you take actions to

conserve energy” ~ 89% said everyday

“…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

3. Create an Integrated Plan

• Determine Key Messages – Make it Personal: Low cost/no cost actions Affordability – control your rising rates Future generations – do it for your kids/grandkids

• Determine Priorities High impact Low cost Innovative programs

• Gain Leadership Buy-In• Develop Integrated Marketing Strategy

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

5. Measure, Analyze and Adjust

• Determine promotion goal and economics• Develop promotions with emphasis on

measurement and analytics

• Provide weekly measurement statistics to all key stakeholders

• Provide comprehensive end-of-promotion report

• Identify gaps to drive change for future promotions

In Summary

• We knew what residential areas needed focus

• What key messages would resonate

• We needed to have a flexible approach for our member cooperatives

• We needed to make it easy for the consumer and the member cooperatives

Case Study: CFL Promo

What did we set out to accomplish? 9,370,800 kWh savings

Case Study: CFL Promo

How did we set out to accomplish this?

• Co-creating program with member cooperatives

1. Universal GE Coupon

2. Wal-Mart Instant Mark-Down Offer

3. Home Lighting Makeover Sweeps

Case Study: CFL Promo

• How did we set out to accomplish this? Gave member co-ops flexible ala carte tools

Case Study: CFL Promo

Runestone

Dakota

Meeker

Connexus

Itasca-Mantrap

Case Study: CFL Promo

• 126,455 bulbs sold

• 9,610,580 kWh saved 30% Coupons 70% Wal-Mart instant markdown

102% of goal obtained during the 3-month promotion

Case Study: CFL Promo

Case Study: CFL Promo

• Key Learnings: Extremely pleased with results for our first statewide promotion Home Lighting Makeovers were labor intensive Ensure GE provides us pictures of every Wal-Mart store set up Include “End Cap on Main Walkway” in contract Don’t invest in downloadable coupons, not enough people took

advantage of them Determine organization’s tolerance for non-member purchases Coupons are extremely important to some of our member

cooperatives (i.e. BENCO = 13% return rate vs. overall 2% return) Co-ops did a GREAT job marketing the program to their

members Cost per kWh for this promotion estimated to be only $0.018

Case Study: Appliance Promo

• Objective: Drive energy savings generated through refrigerator and washer

sales Target between four and five million kWhs saved

• Strategies: Increased rebate dollars for six week period Standard rebate process with any appliance retailer Coupons good at Minnesota Best Buy stores Fill Your Fridge Sweepstakes

• Tactics: Required recycling of old fridge Best Buy contributed to rebate dollars Mom and Pop stores could participate and add rebate dollars

Case Study: Appliance Promo

Case Study: Appliance Promo (continued)

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:

Result: 4.5M lifetime kWh saved

Case Study: Appliance Promo (continued)

• Key Learnings: Start early! Don’t launch promo the same week it’s

announced that banks are failing and economy begins to go downhill

Use big box that mirrors cooperative “feel” Actively engage Mom and Pops sooner than

later Cost per kWh for this promotion estimated to be

only $0.022

Case Study: 2009 Appliance Promo

What were lessons learned?

• Create strong partnerships with retailers that resonate with your member base (i.e. Best Buy vs. Sears) Always include a local / community option so you don’t alienate

“mom and pops”

• Member cooperatives trust you when you add value• The right message resonates and it needs to be

disseminated in many different ways

• Offer ala carte options for our member cooperatives

• Start planning now for 2010

What’s new and emerging beyond statement stuffers and newsletters?

• Bored with your typical marketing tactics?

INTEGRATE!• Social Media (Facebook, LinkedIn,

Twitter)• Contests Linked to Education• Cable TV• Sponsorships• Community Outreach• Sell Sheets• Ads (web and newsletter)• Cast Studies• In-Store Events• Trade Ally Engagement• Press• Articles• Web• Coupons

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 VolunteersEducate 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

Case Study: State Fair

Case Study: MNBrighterideas.com

Case Study: MNBrighterideas.com

Goals for Website

• Engage consumers in how they can: Conserve energy Waste less electricity and use electricity wisely Save money

• Lay the ground work for conservation programs and marketing

• Position local co-ops as conservation/energy efficiency information brokers Local resource for consumers

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Key Site Messages

• Based on research done by Himle Horner, the following information should be communicated strongly and clearly through the website: How to take practical steps to control energy costs

How to become more energy efficient and help save the environment by putting good intentions to work through

no-cost/low-cost actions Small steps we can take to secure a cleaner, more

energy-efficient future for our children

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Today’s www.MNBrighterideas.com

Integrated Member Experience

mnbrighterideas.com

Case Study: MNBrighterideas.com

• Results: 1,744 visits in first month 5:27 average time on site Spikes with newsletters/CFL Promo Level of engagement is strong based on per visit pages and time Out-state visitors over represented on site and have

better than average engagement stats Half of visits come directly to the site Half of direct visitors are visiting for a second time Co-ops are significant source of traffic representing 70%

of all referrals CFL Sweeps is the largest driver of site traffic Meaningful traffic for Quiz, Events, Tools

Keeping it Fresh

• Evolution of MNBrighterIdeas.com Dynamic Children’s/Youth/Education section

(leveraging Touchstone Energy Assets) MN Brighter Ideas Film Fest Promotion of our Programs/Rebates Social Media Implementation/PR Several New Videos on You Tube account

How did we gain leadership buy-in?

• Senior Staff• Board of Directors• ACT Committee• DSM Member

Services• Weekly reports –

actual vs. goal• Analytics/economics

before, during and after promotions

How much will it cost?What can you get back?

• Rule of thumb: Goal is to be below .07/kWh

• Actual is .01/kWh• Marketing is .22% of

annual budget Plus cost of rebates

• Measurable energy savings supported by strong on-line/off-line tools: CFL Promo Appliance Promo LED Holiday Lighting

Did We Meet Your Expectations?