consumer pulse research program – wave 1, september 2011 smart grid consumer collaborative market...

Consumer Pulse Research Program – Wave 1, September 2011

Smart Grid Consumer CollaborativeMarket Segmentation Research

Peer Connect

October 19, 2011


Purpose of This Presentation

• Review the SGCC’s objectives for this research

• Discuss “Why Segmentation”

• Provide a snapshot of how this segmentation was done

• Introduce the five segments identified by this study

• Review the profile of one segment in depth as orientation to the report

• Briefly overview the other four segments

• Talk a little about how the segmentation might be used

• Answer questions

Download the Consumer Pulse Wave 1 summary report from the SGCC website starting November 1.

2


Consumer Pulse – Wave 1 SGCC Research Objectives

• Help establish SGCC’s thought leadership in the realm of smart grid consumer issues.

• Establish baseline measures of consumer smart grid awareness, understanding, favorability, program interest, concerns, etc.

• Develop a clear, actionable segmentation framework that will help SGCC member companies to:

− Design and execute segment-targeted smart grid-enabled products, programs and services

− Create informational/marketing campaigns with targeted concepts and media strategies for specific customer segments

• Provide in-depth information about each segment:

− Describe each segment’s characteristics, attitudes, values and motivations for engagement

− Identify key information needs and existing attitudes toward smart grid, smart meter, and energy efficiency within each segment

3


Survey Methodology

• Telephone survey

− Fielded August 15 to September 6, 2011

− N = 1,200

− Quotas by region, age, gender, income, and ethnicity

− Weighting to align with national population parameters

• Qualifications to participate

− Age 18+

− Head of household

• Sample source

− National RDD landline and cell phone sample

• Statistical validity

− For the total sample of 1,200, the margin of error is +/-3.2 percentage points at a confidence level of 95%

• Research and analysis conducted by Market Strategies International

4


Why Segmentation?

5

“The first commandment of marketing is to segment the market, choose the best segments, and develop a strong position in each chosen segment.”–Phillip Kotler, Northwestern University, Ten Deadly Marketing Sins

Markets are heterogeneous mix of attitudes, values, & beliefs

• Single marketing plan, message, service strategy, will not be the most effective strategy

Divide market into groups based upon similarities

• Provides ability to target and implement most effective strategies by segment

• Competitive advantage for SGCC member companies


Segmentation Approach: Segmentation Using MSTargetsSM

6

• Proprietary process for designing, conducting, and implementing market segmentation research

• Combines industry expertise and an optimal mix of advanced analytics

• Ensures that all relevant views of customers are included

• Produces segments that are accurately descriptive, concretely actionable, and easily targeted

Theory, Experience, Knowledge, and Research

Strategic Platforms

Tactical Platforms

Integrated Segmentation

Scoring / Typing Tools

Multiple Platform Approach


Easy Street20%

DIY & Save16%

Concerned Greens31%

Young America

23%

Traditionals11%

The five segments

7

Easy Street

“We can afford to pay for electricity. The cost isn’t

that much, on our budget.”

DIY & Save

“Energy efficiency and smart grid programs sound

appealing, because they would help us save

money.”

Concerned Greens

“Smart grid and smart meters will help protect the

environment.”

Young America

“We wish someone would tell us how smart grid can

help us save money and help the environment.”

Traditionals

“Frankly, we’re not at all sure Smart Grid is needed.”


Segment Profiles


9

“We can afford to pay for our electricity. The cost isn’t that

much, on our budget.”

“Honestly, we probably make less of an effort to save energy than

most people.”

“We turn off the lights when we’re not in the room. That’s about all

we do to conserve energy.”

“I do believe that global warming is real, and that saving

energy is good for the environment.”

Easy Street20% of population


10

Easy StreetKey Characteristics

• 20% of population• High levels of education• Highest income of any segment – 28% above $100K• Middle aged, moderate-liberal politics• Fairly diverse: 15% Hispanic, 13% African American• Concentrated in the South (West South Central and

South Atlantic) and Midwest (East North Central) regions

Distinctive Attitudes and Behaviors

• Low levels of interest in smart grid programs or using smart meter information for energy management

• Moderately concerned about the environment at a global level, but not interested in making individual-level environmental efforts

• Believe global warming is real and the government should do more to promote energy efficiency and alternative fuel sources

• Low likelihood to try to minimize impact on the environment through daily actions

• Believe the most important reason to save energy is for the environmental benefits, followed by “for children and grandchildren,” then saving money

SGCC Member Opportunities• Easy Street customers are unlikely exhibit a high level of

engagement with energy management. Simplicity and ease-of-use are keys to acceptance.

• Messaging should emphasize environmental benefits and stewardship for future generations.

• It will be a challenge to motivate them to change; they are satisfied with their current energy consumption habits and expenditures.


22%

53%

23%

25%

54%

Smart Grid and Smart Meter Awareness and Knowledge

11

Basic to complete level ofknowledge (%2–3)

Positive favorability(%6–10)

I support the idea that my electric utility should start now and work quickly to implement smart

grid and smart metering technology(%4–5)

Easy Street

Smart Grid Smart Meter

A6. Has your electric utility installed a smart meter at your home? Base: Among Easy Street who have heard of smart meter, n=73A1/A2. Which of the following statements comes closest to describing your current level of knowledge about smart grid/meter? Base: Easy Street, n=238A4/A5. Considering what you know about the smart grid/meter, would you describe your general feelings about the smart grid/meter as favorable or unfavorable? Base: Among Easy Street who have heard of smart grid/meter, n=65/73AA4. Please tell me whether you support the idea that your electric utility should start now and work quickly to implement Smart Grid and Smart Metering technology. Base: Easy Street, n=238

Easy StreetTotal

70%

highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence

Smart meter installed in home(%Yes)

Basic to complete level of knowledge (%2–3)

Positive favorability(%6–10)

Smart Grid and Smart Meter Implementation Support


16%

19%

10%

8%

10%

2%

5%

4%

Smart Grid or Smart Meter Will Lead To…

12

Saving energy

Saving money

Improved ability to manage energy usage

Improved accuracy of electric bills

Elimination of meter reading

Control over energy usage

Improved reliability

Easier to read meter

A7A. Please tell me about any specific improvements or benefits you think would result from the introduction of Smart Grid or Smart Meters.A7. Please tell me about any specific problems or negative issues you think would result from the introduction of Smart Grid or Smart Meters. Base: Among Easy Street who have heard of smart meter, n=73

Bills will go up

Loss of control

Cost to implement

Accuracy concern

Privacy concern

11%

6%

6%

7%

1%

Benefits ProblemsEasy StreetTotal


Easy Street


53%

36%

8%

3%

33%

58%

6%

3%

Using smart meter data for energy management

Critical peak pricing

TOU pricing

Program Participation and Monitoring Energy Usage

13

Likelihood to Participate in Energy Management Programs

Base: Easy Street, n=238How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane)AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage…AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days…AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used…AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Easy Street, n=71AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Easy Street who would prefer free website at over $100 in-home device, n=45

55%

53%

7%

Easy StreetTotal

Energy Management Monitoring Options

$100 in-home device

Free website

Don’t know

Refused

Of those who would prefer the free website rather than the $100 in home device

Free in-home device

Free website

Don’t know

Refused

(%4–5)


Easy Street


81%

83%

80%

81%

78%

74%

66%

Message Effectiveness

14

Smart grid and smart meters will …

Help me save money by using energy more efficiently

Deliver more reliable electric service and more timely power restoration by helping my utility avoid power outages and

manage any outages that do occur more effectively

Help people avoid wasting energy

Help protect the environment

Supports a more independent and secure energy future for America, reducing the need for foreign sources of energy

Give me more control of my home energy use, helping me make smarter energy decisions

Give me more choices, allowing me to sign up for a range of rate and billing programs, that offer more flexibility in how I’m

billed for electricity usage and more control over my energy costs

Base: Easy Street, n=238AA6–AA12. Tell me whether each [of the following statements] increases or decreases your support for going ahead with smart grid and smart meters. “Smart grid and smart meters will …”

Easy StreetTotal

Message Effectiveness (%4–5)


Easy Street


26%

24%

10%

13%

7%

8%

8%

7%

4%

Reasons to Implement / Not Implement

15

To help consumers save money

To help improve energy efficiency

To help meet demand for electricity

To reduce outages

Remotely read/no meter readers

Accurate readings/bills

To help reduce greenhouse gas emissions

To increase reliability

To give people more control over how much electricity they use

Base: Easy Street, n=238AA1. Based on the information provided, in your opinion, which what is the most convincing reason to implement Smart Grid and Smart Meter technology?AA2. And what would you say is the most important reason not to begin implementing Smart Grid/Smart Meter technology?

Easy StreetTotal

Cost (unspecified)

Increased cost to the customer

Cost to implement

Eliminates jobs

Too much government/ utility control

Reliability of the technology

Compliance

Will not improve/lower costs

Equipment upgrade required

16%

8%

12%

9%

2%

1%

4%

5%

3%

Reasons to Implement Reasons Not to Implement


Easy Street


It is important to me to know my home is energy efficient and that I have done all that I can to lower energy costs (%6–10)

Compared to most people, I make more of an effort to save energy in my home

(%1–2)

73%

45%

39%

Energy Efficiency Knowledge, Importance, and Effort

16

EE Knowledge

Base: Easy Street, n=238Please tell me how knowledgeable you feel you are about each of the following…KN1. Actions I can take to make my home more energy efficient.KN4. How a smart meter can be used to help manage home energy consumption.KN3. Specific programs and services offered by your electric utility to help you use energy efficiently.EU1. How important is it to you, personally, to know that your home is energy efficient and that you have done all that you can to lower your energy costs?EU2. Compared to most people, would you say that you make more of an effort to save energy in your home, make less of an effort to save energy, or about average?

Actions I can take to make my home more energy efficient

How a smart meter can be used to help manage home energy

consumption

Specific programs and services offered by your electric utility to help

you use energy efficiently

Easy StreetTotal

EE Importance and Effort

89%

39%


Easy Street

Easy StreetTotal

79%

27%

26%

19%

I believe it is worth spending more on Energy Star appliances and electronics

It is too difficult to determine whether I will save money by buying energy-efficient products

Energy-efficient products are too expensive - the extra cost outweighs the benefit

I like to buy appliances that save me time and effort - I am less concerned about how much energy

they use

Appliance Efficiency

Easy StreetTotal

(%4–5)

ES4. I believe it is worth spending more on Energy Star appliances and electronics. ES6. It is too difficult to determine whether I will save money by buying energy-efficient products. ES7. Energy-efficient products are too expensive - the extra cost outweighs the benefit. ES1. I like to buy appliances that save me time and effort - I am less concerned about how much energy they use.


88%

67%

74%

61%

Shopping Habits and Technology Adoption

17

I carefully research and compare products and brands before I choose

the product that best meets my needs

In my household we like to ”do-it-ourselves” in order to save money�

I would generally spend more on an environmentally-friendly product than

on one that is not

I do most of my comparison shopping on the Internet, rather than talking to

sales people or comparing goods at the store

Shopping Habits

%4–5, Total Agree shownBase: Easy Street, n=238GS2. I carefully research and compare products and brands before I choose the product that best meets my needs. GS4. In my household we like to ”do-it-ourselves” in order to save money. �GS6. I would generally spend more on an environmentally-friendly product than on one that is not. GS5. I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store. DI3. I only buy new products or technologies after the ones I am currently using wear out or become obsolete.DI1. I am always eager to be the first one to buy new products or technologies.

Easy StreetTotal

I only buy new products or technologies after the ones I am currently using wear

out or become obsolete

I am always eager to be the first one to buy new products or technologies

69%

20%

Adoption (%4–5) (%4–5)


Easy Street


99%

83%

84%

96%

35%

Environmental Opinions

18

I believe that saving energy helps the environment (%4–5)

I try to minimize my impact on the environment through my daily actions (%4–5)

The Government should take a stronger role in promoting energy efficiency and alternative fuel sources

(%4–5)

I believe that global warming is real and we need to make immediate, substantial efforts to combat it (%4–5)

I have contributed my time and/or donated to an environmental organization in the past year (%Yes)


Base: Easy Street, n=238EN5. I believe that saving energy helps the environment.EN3. I try to minimize my impact on the environment through my daily actions.EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it.EN2. In the last year, have you contributed your time or given a donation to any environmental organizations?

Easy StreetTotal


Easy Street


The money I can save

For the future of our children and grandchildren

To reduce the need for foreign sources of energy

The environmental benefits

To be socially responsible

To improve America’s ability to compete with other countries

66%

46%

54%

17%

Energy Management Reasons and Opinions

19

When I make an effort to save electricity in my home, I see a corresponding

reduction in my electric bill

I have already done everything I can to save energy in my home

The most important thing about my home’s heating and cooling equipment is

how comfortable it makes my family

I find the whole issue of energy efficiency difficult to understand

Energy management Opinions

Base: Easy Street, n=238AB5. When I make an effort to save electricity in my home, I see a corresponding reduction in my electric bill.AB4. I have already done everything I can to save energy in my home.AB1. The most important thing about my home’s heating and cooling equipment is how comfortable it makes my family, not how much energy is used. AB3. I find the whole issue of energy efficiency difficult to understand.AB10. In your personal opinion, which of the following is the most important reason to save energy?

Easy StreetTotal

18%

24%

15%

21%

12%

5%

The Most Important Reason to Save Energy (%4–5)


Easy Street


96%

92%

86%

61%

63%

51%

60%

50%

48%

24%

Beliefs, Attitudes, and Viewpoints

20

Base: Easy Street, n=238LA1-LA11. I’m going to read a series of statements that may or may not describe you and the way you feel about things. PV1. Compared to one year ago, do you consider the current financial situation in your household to be... PV4. Considering your overall political views, would you describe yourself as...

It is important to help others who are less fortunate

I would like to set an example for young people

I like the challenge of doing something I have never done before

I would like to understand more about how the universe works

I don’t like it when others tell me what to do

My religion guides the way I live

I have more ability than most people

I like my life to be pretty much the same from week to week

I like being in charge of a group

I follow the latest trends and fashions

Easy StreetTotal

Beliefs, Attitudes and Viewpoints

Current Financial Situation

Better (%4–5)

Worse (%1–2)

Conservative (%4–5)

Liberal (%1–2)

25%

22%

25%

42%

Overall Political Views

(%4–5)


Easy Street


Demographics

21

Employment StatusEmployed full-time

Employed part-timeUnemployed

RetiredHomemaker

Temporarily laid offStudent

OtherCurrent Financial Situation

Much worseSomewhat worse

About the sameSomewhat better

Much betterPolitical Views

Very liberalSomewhat liberal

Middle of the roadSomewhat conservative

Very conservativePolitical Affiliation

DemocratRepublican

IndependentOtherNone

Overall Satisfaction of Electric Utility

% Satisfied (6–10)Overall Favorability Towards Electric Utility

% Favorable (6–10)

Average Electric BillLess than $50

$50 to $100$101 to $200$201 to $300$301 to $400

More than $400Included in rent

Smart Meter Installed at Home% Yes

Region New England

Middle Atlantic East North Central West North Central

South Atlantic East South Central West South Central

Mountain Pacific

Home OwnershipOwn/buying

Rent# of Bedrooms

Mean# People in Home

Mean# of people under 18 in Home

Mean

3%25%

18%22%15%17%

70%13%15%

3%

44%56%

4%20%31%28%

1%

16%23%

60%

66%15%

8%2%1%8%

Age 18-24 25-34 35-44 45-54 55-64

65 or olderRace

WhiteAfrican-American

HispanicOther

GenderMale

FemaleIncome

<$30,000$30,000-$50,000

$50,000-$100,000$100,000+

Low Income% Low income

EducationHigh School or Less

Some CollegeCollege or Post Graduate

Internet Accessed Most Frequently At my home/home computer

At work/office Through a mobile phone

Public library Friend/relative’s house

None/do not use the internet

56%8%5%

21%6%0%

2%

6%16%

52%19%

7%

13%29%30%

17%9%

42%17%30%

1%4%

84%

79%

3.2

2.8

1.0


Easy Street

6%30%41%

12%3%2%2%

23%

2%5%19%

8%22%

6%14%8%16%

83%16%


Geographic Distribution

22

Pacific

Mountain

West North Central

East North Central

West South Central

East South

Central

South Atlantic

Middle Atlantic

New England

Less than 7.8%

7.8%-19.0%

19.0%-21.9%

More than 21.9%

Easy Street


In their own words

23

I’m concerned about the lack of having our whole house air conditioned in extremely hot weather. In 98 or 100 or up, that is when this would reroute the power, but also when it’s needed most.” “I feel like I’ve been told lots of good things about smart meters, but I would like to know what the cost impact would be, and does it pose any risks? For example, could anyone else monitor my usage and possibly determine if I’m home or not?” “I don’t like that smart meters can turn off your power even if you don't want them to. Smart Meters should have been discussed at public forums and meetings, and I think that consumers are being left out of the loop when it comes to fair distribution of energy to all who need it.” “I worry that smart meters could reduce my air conditioning on days I would need it the most, and it might limit my use of other electric appliances.”

“

Easy Street


24

“Our values and religion are important to us.”

“Energy management and smart grid programs sound appealing - they would help us save money.”

“With a large family and moderate income, money is always tight.”

“In our house, we like to do it ourselves and save money.”

DIY & Save16% of population


25

DIY & SaveKey Characteristics

• 16% of population• Middle-income • Families; 20% have three or more children at home• Diverse range of ages from 25-65+• Largely White, 12% Hispanic• Average levels of education• Conservative politics• Higher concentrations in Mountain states, but wide

dispersion across almost entire U.S.


• High levels of interest in smart grid programs, especially TOU pricing, primarily for the financial benefits

• Believe the most important reason to save energy is to save money

• High percentage of homeowners, and 84% agree they like to “do it themselves” to save money

• Low level of environmental interest and involvement• Not motivated to minimize impact on the environment

through daily actions• Most likely segment to say “Religion guides the way I

live.”

SGCC Member Opportunities• Product and program design and messaging should

emphasize saving money and de-emphasize environmental benefits.

• There are opportunities to market products and programs that leverage their DIY interest and experience.

• Consider outreach through religious affiliations and communities.


61%

32%

3%

4%

28%

61%

9%

2%



TOU pricing


26


Base: DIY & Save, n=189How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane)AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage…AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days…AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used…AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: DIY & Save, n=71AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: DIY & Save who would prefer free website at over $100 in-home device, n=45

73%

66%

64%

DIY & SaveTotal


$100 in-home device

Free website

Don’t know

Refused


Free in-home device

Free website

Don’t know

Refused

(%4–5)


DIY & Save


91%

84%

58%

57%

Shopping Habits and Technology Adoption

27

I carefully research and compare products and brands before I choose

the product that best meets my needs

In my household we like to ”do-it-ourselves” in order to save money�

I would generally spend more on an environmentally-friendly product than

on one that is not

I do most of my comparison shopping on the Internet, rather than talking to

sales people or comparing goods at the store

Shopping Habits

Base: DIY & Save, n=189GS2. I carefully research and compare products and brands before I choose the product that best meets my needs. GS4. In my household we like to ”do-it-ourselves” in order to save money. �GS6. I would generally spend more on an environmentally-friendly product than on one that is not. GS5. I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store. DI3. I only buy new products or technologies after the ones I am currently using wear out or become obsolete.DI1. I am always eager to be the first one to buy new products or technologies.

DIY & SaveTotal

I only buy new products or technologies after the ones I am currently using wear

out or become obsolete


70%

13%

Adoption (%4–5) (%4–5)


DIY & Save


In their own words

28

I like the way that with a smart meter you can make decisions on how much energy you use, and it helps prevent outages.” “I think smart meters would help with awareness of usage. It just makes you more aware every time of the amount of power you’re using.” “One benefit to smart meters is that you can have peak charges. I may be able to have lower my electricity costs during the day, then use it later. I like the idea of being able to monitor my electric usage on a daily basis.”

“

DIY & Save


29

“We believe global warming is real and the government

should take a stronger role in promoting energy efficiency.”

“Smart meters will give me more control of my home energy use,

helping me to make better decisions.”

“Smart grid and smart meters will help protect the environment.”

“Protecting the environment really matters to us.”

Concerned Greens31% of population


30

Concerned GreensKey Characteristics

• 31% of population• Highest levels of education, • High income – 23% above $100K• Moderate/liberal politics• Higher concentrations in Pacific and Northeast

(New England and Mid-Atlantic) regions• Middle aged (65% are between 25-54)• More women than men• Largely White, 14% Hispanic


• Most concerned and active regarding environmental issues

• High Smart Grid knowledge, favorability and support

• Most likely to participate in smart grid programs• Eager to buy new products and technologies• Want to save energy for the future of our children

and grandchildren and for the environmental benefits; not as concerned about saving money

SGCC Member Opportunities• Segment is receptive to environmental concerns and tries

to protect the environment through their own actions. • This segment is the most naturally inclined toward

participating in energy efficiency and smart grid programs.• Like new technology, and have the resources to make

investments in better energy management.


63%

29%

2%

6%

37%

57%

4%

2%



TOU pricing


31


Base: Concerned Greens, n=370How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane)AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage…AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days…AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used…AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Concerned Greens, n=71AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Concerned Greens who would prefer free website at over $100 in-home device, n=45

89%

91%

87%

Concerned GreensTotal


$100 in-home device

Free website

Don’t know

Refused


Free in-home device

Free website

Don’t know

Refused

(%4–5)


Concerned Greens


100%

99%

93%

99%

46%


32




(%4–5)




Base: Concerned Greens, n=370EN5. I believe that saving energy helps the environment.EN3. I try to minimize my impact on the environment through my daily actions.EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it.EN2. In the last year, have you contributed your time or given a donation to any environmental organizations?

Concerned GreensTotal


Concerned Greens


In their own words

33

Most people don't believe climate change is a big deal, however I do. The things I can do are somewhat limited. We need to think about how we are producing our energy. New technologies have to be developed because the use of fossil fuel has gotten out of control.” “Any technology that moves us forward is a good technology. We need to be more efficient for economic reasons and the future. All that combined will make our country a cleaner and safer place to live.” “Accessibility for new, clean energy to use the grid is the most convincing reason to implement smart grid technology.” “Better cost and more efficient and green delivery of power means that they can better utilize green technology and reduces the need for new power plants.”

“

Concerned Greens


34

“We believe global warming is real and the government should

take a stronger role in promoting energy efficiency.”

“I’m not sure that any of that smart meter stuff applies to me,

since I live in an apartment.”“We wish someone would tell us how smart meters can help us

save money and the environment.”

“We don’t know much about smart meters and the smart

grid. They seem complicated.”

Young America23% of population


35

Young AmericaKey Characteristics

• 23% of population• Youngest and most ethnically diverse segment• Lowest levels of education and income• Least likely to have kids under 18 at home• Likely to live in apartments/condos/mobile homes• Concentrated in the South and Midwest (East North

Central) regions


• High level of concern regarding environmental issues.• Think energy efficiency is important, but lack

knowledge of how it works and feel they may have already done all they can to save energy.

• Say they have low likelihood to participate in smart grid programs, but they are interested in using information from a smart meter for energy management.

• They say the most important reasons to save energy are saving money and for the future of our children and grandchildren

SGCC Member Opportunities• The primary focus in communication with this segment

should be education. • They are concerned about environmental issues and

face financial constraints - let them know how Smart Grid products and programs can help address both.

• May be considered a longer tem developmental opportunity, as they mature and become more likely to be homeowners.


60%

27%

8%

5%

28%

54%

11%

7%



TOU pricing


36


Base: Young America, n=277How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane)AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage…AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days…AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used…AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Young America, n=71AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Young America who would prefer free website at over $100 in-home device, n=45

63%

49%

41%

Young AmericaTotal


$100 in-home device

Free website

Don’t know

Refused


Free in-home device

Free website

Don’t know

Refused

(%4–5)


Young America


98%

90%

85%

88%

29%


37




(%4–5)




Base: Young America, n=277EN5. I believe that saving energy helps the environment.EN3. I try to minimize my impact on the environment through my daily actions.EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it.EN2. In the last year, have you contributed your time or given a donation to any environmental organizations?

Young AmericaTotal


Young America


In their own words

38

I don't know anything about a smart grid, so I don't know what it would do. I have a smart meter but don't know anything about it or how it functions.” “I know I have a few things already hooked up with my meter, but I’m not sure if it is a smart meter. When my air conditioning is on, I have a little box so whenever there is a high volume, it cuts the power. I'm also on an equal payment plan. It may be I have a smart meter on my air conditioning, but I’m not really sure.” “I like the fact that smart meters would help use more green energy instead relying on fossil fuels. I also like that the smart meters can reroute electricity, because I use a lot of smaller electronics that are sensitive to power surges.” “Smart grid will save more energy and we’ll have to build fewer power plants, use less energy, which is better for the environment. It would also be nice to know the different times of day to know when energy is less expensive; I would be able to conserve more.”

“

Young America


Traditionals11% of population

39

“We can make our own decisions about how much

energy to use.”

“Frankly, we’re not at all sure Smart Grid is needed.”

“We don’t spend a lot of time worrying about the environment

or how to conserve energy.”“We just want to be comfortable

in our home.”


40

TraditionalsKey Characteristics• 11% of population• Predominantly older (25% are age 65+)• The most politically conservative and religious

segment• Higher concentrations in the Mountain states and

Mid-South• Relatively low levels of education• Average income• More men than women• Mostly white

Distinctive Attitudes and Behaviors• Least favorable segment toward smart grid

programs• Lowest interest in monitoring energy usage• Least engaged in environmental issues• Prefer comfort and saving time and effort over

saving energy• Feel their financial situation compared to a year ago

is worse

SGCC Member Opportunities• Segment is probably not a high priority initial target for

smart grid programs. • Program/product design and promotion for this segment

should emphasize immediate money savings and de-emphasize environmental considerations.

• Messaging may also communicate that energy efficiency can contribute to having a comfortable home.


42%

32%

9%

17%

37%

43%

10%

10%



TOU pricing


41


Base: Traditionals, n=127How likely you would be to participate in programs that you may be offered, that are based on smart grid technology… (Full question text in notes pane)AP3. Smart meters continuously collect information about household electricity usage. People can use this information to manage and try to reduce electricity usage…AP2. One program would encourage people to reduce their energy use during peak periods when energy usage is expected to be high, such as on very hot days…AP1. One program would be a rate plan that would charge different prices for electricity depending on when it is used…AP4. Energy management information from smart meters can be provided in two different ways. Please tell me which of the two would be best for you…Base: Traditionals, n=71AP4A. What if, instead of costing $100, the in-home device was provided by your utility for free? Then which option would you prefer? Base: Traditionals who would prefer free website at over $100 in-home device, n=45

11%

13%

27%

TraditionalsTotal


$100 in-home device

Free website

Don’t know

Refused


Free in-home device

Free website

Don’t know

Refused

(%4–5)


Traditionals


47%

37%

54%

53%

50%

43%

52%

Message Effectiveness

42

Smart grid and smart meters will …

Help me save money by using energy more efficiently

Deliver more reliable electric service and more timely power restoration by helping my utility avoid power outages and

manage any outages that do occur more effectively

Help people avoid wasting energy

Help protect the environment

Supports a more independent and secure energy future for America, reducing the need for foreign sources of energy

Give me more control of my home energy use, helping me make smarter energy decisions

Give me more choices, allowing me to sign up for a range of rate and billing programs, that offer more flexibility in how I’m

billed for electricity usage and more control over my energy costs

Base: Traditionals, n=127AA6–AA12. Tell me whether each [of the following statements] increases or decreases your support for going ahead with smart grid and smart meters. “Smart grid and smart meters will …”

TraditionalsTotal

Message Effectiveness (%4–5)


Traditionals


25%

1%

71%

61%

16%


43




(%4–5)




Base: Traditionals, n=127EN5. I believe that saving energy helps the environment.EN3. I try to minimize my impact on the environment through my daily actions.EN6. The Government should take a stronger role in promoting energy efficiency and alternative fuel sources. EN4. I believe that global warming is real and we need to make immediate, substantial efforts to combat it.EN2. In the last year, have you contributed your time or given a donation to any environmental organizations?

TraditionalsTotal


Traditionals


In their own words

44

What if I’m sitting here and I have my home cool, and they decide I’m running too much power? …I just do not need the federal government involved and placing these restrictions on the company that provides my power. That is an agreement between me and the company.” “Smart meters are going to be relying on computers, and there's no way that stuff is reliable. There's only one way our power comes in to us and they would have to add another line just for the grid. The part about power plants is a bunch of crap. It's not reducing any greenhouse emissions or anything.” “The smart grid, that certainly does make sense because it could effectively control how much electricity is being sent to certain areas, but as far as smart meters I would be very suspicious of them. I have no faith in any business. They don't have the public’s interest at heart.” “I don’t believe anybody should be able to regulate my power and take away my power at any time of the day. If I need an oxygen tank, I don't believe they should be able to tell me that I could only use it at a certain time of the day. As far as greenhouse emissions go, I don't think it would affect anything. It’s still coming from the same places.”

“

Traditionals


Using market segmentation


Using market segmentation to address real world strategic and tactical issues

• Smart Grid/Smart Meter marketing manager − Understand which segments are most represented in your service territory

− When launching Smart Meters, shape customer communications around the aspects that will speak to your customers, based on their segment membership.

− Design a menu of targeted Smart Meter-enabled programs focused on distinctive needs and preferences by segment.

• Website management − Create clickpaths designed for each segment. When a customer arrives at the homepage,

he sees a variety of statements. He selects which one that most represents his opinions and needs, and clicks on it. That takes him to a page designed for customers in that segment. That way, for example, the website could focus on money-saving opportunities for customers who are looking for them, while focusing on environmental aspects for other customers.

46


Companies can make strategic and tactical use of market segmentation in a variety of ways.

• Call center management…

• Channel management…

• Finance/accounting…

• Regulatory…

• Product development…

47


Appendix: Segment Overviews


49highlighting indicates segment is significantly higher or lower than all other segments combined at 95% confidence

Segment Overview

Smart Grid Knowledge Total TraditionalsConcerned

GreensYoung

AmericaEasy Street DIY & Save

I’ve heard the term, but don’t know much about what it means 24% 23% 23% 22% 27% 26% I have a basic understanding of what it is and how it would work 16% 14% 22% 10% 16% 14% I have a fairly complete understanding of what it is, how it would

work, and how it would affect homes and businesses7% 15% 6% 4% 7% 9%

I have not heard that term 51% 43% 47% 61% 50% 49% Don’t know 2% 5% 2% 3% 1% 2%

Smart Meter Knowledge I’ve heard the term, but don’t know much about what it means 23% 20% 24% 22% 23% 24%

I have a basic understanding of what it is and how it would work 18% 22% 22% 15% 16% 18% I have a fairly complete understanding of what it is, how it would

work, and how it would affect9% 15% 9% 6% 9% 11%

I have not heard that term 48% 40% 44% 56% 51% 45% Don’t know 2% 2% 2% 2% 2% 2%

Smart Grid Favorability % Total Positive 52% 29% 61% 48% 53% 50%

Smart Meter Favorability % Total Positive 54% 36% 63% 43% 54% 65%

Smart Meter Installed in Home % Yes 27% 15% 30% 26% 23% 36%

Smart Grid and Smart Meter Implementation Support % Total Support 68% 33% 83% 65% 70% 63%



Segment Overview

Total TraditionalsConcerned

GreensYoung


Improvements Due to Smart Grid/Smart Meter Technology Saving energy 16% 12% 19% 11% 16% 18% Saving money 16% 9% 16% 9% 19% 22%

Need more information/ education 10% 10% 12% 11% 12% 6% Improved ability to manage energy usage 10% 5% 13% 9% 10% 10%

Negative mentions (no positive mentions noted) 7% 14% 3% 14% 5% 7% Improved accuracy of electric bills 7% 2% 8% 8% 8% 7%

Elimination of meter reading 6% 3% 4% 5% 10% 8% Control over energy usage 3% 2% 4% 3% 2% 5%

Improved reliability 3% 0% 4% 0% 4% 7% Easier to read meter 3% 0% 3% 3% 5% 3%

Good idea/helpful (unspecified) 2% 2% 2% 3% 2% 1% Better grid distribution 2% 1% 2% 0% 6% 1%

Improved power quality 2% 1% 2% 2% 2% 2% Environmental benefit 2% 1% 4% 0% 1% 0%

Faster restoration of service after an outage 1% 0% 1% 2% 2% 1% Improved ability to use renewable energy 1% 3% 1% 0% 1% 0%

Have to build fewer power plants 1% 0% 1% 0% 1% 0% Other 7% 6% 10% 5% 3% 11%

Don’t know 19% 24% 17% 20% 19% 19%Problems Due to Smart Grid/Smart Meter Technology

Bills will go up 9% 11% 8% 9% 11% 9% Loss of control 7% 23% 3% 8% 6% 4%

Cost to implement 5% 2% 7% 6% 6% 1% Accuracy concern 4% 3% 3% 5% 7% 1%

Privacy concern 3% 7% 2% 3% 1% 5% Technology is still unproved 3% 1% 4% 3% 4% 2%

Power reliability 2% 0% 3% 1% 3% 2% Loss of jobs 2% 2% 2% 2% 2% 1%

Security concern 2% 0% 4% 0% 2% 2%



Segment Overview


GreensYoung


Likelihood to Participate in Energy Management Programs % Total Would ParticipateUsing smart meter data for energy management 67% 27% 89% 63% 55% 73%

Critical peak pricing 62% 13% 91% 49% 53% 66%TOU pricing 49% 11% 87% 41% 7% 64%

Energy Management Monitoring OptionsChoice: Free Website or $100 In–Home Device

$100 in-home device 33% 37% 37% 28% 33% 28% Free website 56% 43% 57% 54% 58% 61%

Don’t know 7% 10% 4% 11% 6% 9% Refused 4% 10% 2% 7% 3% 2%

Sub–Choice: Free Website or Free In–Home Device Free in–home device 59% 42% 63% 60% 53% 61%

Free website 31% 32% 29% 27% 36% 32% Don’t know 7% 17% 6% 8% 8% 4%

Refused 4% 9% 2% 5% 3% 3%Message Effectiveness % Total Increase Support

Protect the environment 78% 37% 93% 78% 81% 72%Save money by using energy more efficiently 80% 53% 91% 78% 81% 80%

Give me more control of my home energy use 75% 43% 89% 73% 74% 74%More reliable electric service and more timely power 80% 54% 90% 77% 83% 80%

Supports a more independent and secure energy future for America

78% 50% 86% 78% 78% 78%

More choices, allowing me to sign up for a range of rate plans 75% 52% 87% 72% 66% 80%Helps people avoid wasting energy 80% 47% 92% 80% 80% 78%



Segment Overview


GreensYoung


Most Convincing Reason to Implement Smart Grid/Smart Meter To help consumers save money 26% 16% 28% 27% 26% 29%

To help improve energy efficiency 25% 15% 31% 22% 24% 26% To help meet demand for electricity 11% 10% 13% 10% 10% 12%

To reduce outages 11% 10% 11% 9% 13% 11% Remotely read/no meter readers 8% 7% 8% 12% 4% 10%

Accurate readings/bills 7% 3% 8% 8% 7% 9% To help reduce greenhouse gas emissions 7% 5% 10% 5% 8% 6%

To increase reliability 7% 7% 8% 3% 8% 9% To give people more control over how much electricity they use 6% 3% 8% 3% 7% 6%

To help the environment 6% 1% 9% 4% 8% 1% To enable faster restoration of service after an outage 5% 7% 5% 6% 7% 4%

To give people near real time energy usage information 5% 3% 7% 4% 5% 5% I like everything about it 5% 4% 4% 6% 6% 5%

To make it easier to use renewable energy sources 5% 1% 6% 4% 4% 5% Other 7% 8% 5% 10% 7% 6%

Don’t know 5% 4% 3% 11% 5% 5%Most Important Reason Not to Begin Implementing Smart Grid/Smart Meter

Cost (unspecified) 12% 6% 11% 10% 16% 16% Increased cost to the customer 11% 16% 7% 12% 8% 19%

Cost to implement 11% 9% 12% 5% 12% 14% Need more information 7% 3% 7% 9% 6% 5%

Eliminates jobs 6% 6% 5% 7% 9% 6% Too much government/ utility control 6% 20% 3% 4% 3% 6%

Reliabilty of the technology 5% 5% 4% 4% 5% 6% No/None/Not any/Nothing 17% 9% 24% 17% 17% 9%

Don’t Know 12% 13% 8% 18% 11% 9%



Segment Overview


GreensYoung


It is Important to Me to Know My Home is Energy Efficient and That I Have Done All That I Can to Lower Energy Costs% Total Importance 93% 85% 97% 96% 89% 90%

Effort to Save Energy in Your Home Compared to Most People Much more effort 21% 17% 27% 24% 11% 21%

More effort 32% 29% 35% 33% 27% 32% About average 45% 46% 36% 42% 59% 45%

Less effort 2% 8% 1% 1% 1% 1% Much less effort 0% 1% 1% 0% 0% 1%

Shopping Habits %Total Agree I carefully research and compare products and brands before I

choose the product that best meets my needs89% 83% 94% 83% 88% 91%

In my household we like to ”do–it–ourselves” in order to save �money

76% 75% 78% 77% 67% 84%

I would generally spend more on an environmentally–friendly product than on one that is not

74% 39% 91% 77% 74% 58%

I do most of my comparison shopping on the Internet, rather than talking to sales people or comparing goods at the store

55% 50% 62% 40% 61% 57%

Product Adoption %Total AgreeI only buy new products or technologies after the ones I am

currently using wear out or become obsolete69% 69% 68% 72% 69% 70%


19% 9% 24% 20% 20% 13%

Appliance Efficiency %Total Agree I believe it is worth spending more on Energy Star appliances

and electronics78% 62% 87% 78% 79% 72%

It is too difficult to determine whether I will save money by buying energy–efficient products

33% 37% 28% 41% 27% 35%

Energy0%efficient products are too expensive–the extra cost outweighs the benefit

29% 39% 20% 38% 26% 29%

I like to buy appliances that save me time and effort–I am less concerned about how much energy they use

25% 44% 19% 27% 19% 27%



Segment Overview


GreensYoung


EE Knowledge % Total KnowledgeableActions I can take to make my home more energy efficient 75% 74% 80% 69% 73% 76%

How a smart meter can be used to help manage home energy consumption

48% 43% 54% 46% 45% 49%

Specific programs and services offered by your electric utility to help you use energy efficiently

43% 45% 44% 43% 39% 41%

Environmental Opinions %Total Agree I believe that saving energy helps the environment 95% 61% 100% 98% 99% 97%

I try to minimize my impact on the environment through my daily actions

87% 71% 99% 90% 83% 74%


75% 25% 93% 85% 84% 46%

I believe that global warming is real and we need to make immediate, substantial efforts to combat it

70% 1% 99% 88% 96% 0%

In the last year, have you contributed your time or given a donation to any environmental organizations?

32% 16% 46% 29% 35% 20%

Energy management Opinions %Total Agree When I make an effort to save electricity in my home, I see a

corresponding reduction in my electric bill69% 53% 74% 75% 66% 67%

I have already done everything I can to save energy in my home

55% 53% 55% 65% 46% 52%

The most important thing about my home’s heating and cooling equipment is how comfortable it makes my family, not how much

energy is used53% 66% 43% 61% 54% 49%

I find the whole issue of energy efficiency difficult to understand 20% 19% 19% 29% 17% 16%The Most Important Reason to Save Energy

The money I can save 26% 40% 16% 31% 18% 38% For the future of our children and grandchildren 23% 14% 30% 20% 24% 18%

To reduce the need for foreign sources of energy 16% 26% 14% 15% 15% 19% The environmental benefits 15% 4% 19% 16% 21% 6%

To be socially responsible 10% 4% 14% 8% 12% 8% To improve America’s ability to compete with other countries 5% 6% 4% 4% 5% 7%



Segment Overview


GreensYoung


Beliefs, Attitudes and Viewpoints %Total Agree It is important to help others who are less fortunate 94% 85% 96% 96% 96% 88%

I would like to set an example for young people 93% 84% 96% 93% 92% 93% I like the challenge of doing something I have never done before 86% 81% 92% 82% 86% 83%

I would like to understand more about how the universe works 67% 53% 77% 72% 61% 58% I don’t like it when others tell me what to do 62% 68% 60% 59% 63% 65%

My religion guides the way I live 58% 66% 48% 60% 51% 75% I have more ability than most people 57% 51% 62% 47% 60% 62%

I like my life to be pretty much the same from week to week 52% 61% 43% 58% 50% 61% I like being in charge of a group 48% 42% 59% 38% 48% 48%

I follow the latest trends and fashions 22% 11% 25% 26% 24% 16%Current Financial Situation

Much worse 11% 24% 6% 15% 6% 13% Somewhat worse 22% 24% 22% 24% 16% 24%

About the same 46% 37% 49% 44% 52% 40% Somewhat better 15% 10% 16% 11% 19% 15%

Much better 6% 4% 6% 4% 7% 7%Overall Political Views

Very liberal 8% 4% 11% 9% 13% 0% Somewhat liberal 22% 5% 31% 21% 29% 6%

Middle of the road 28% 17% 33% 32% 30% 16% Somewhat conservative 23% 32% 15% 22% 17% 42%

Very conservative 15% 38% 6% 12% 9% 32%Employment Status

Employed full–time 47% 39% 55% 27% 56% 54%Employed part–time 10% 6% 12% 12% 8% 9%

Unemployed 8% 8% 6% 17% 5% 3%Retired 23% 31% 19% 26% 21% 21%

Homemaker 6% 10% 4% 4% 6% 8%Temporarily laid off 0% 1% 0% 1% 0% 0%

Student 1% 1% 2% 2% 0% 1%



Segment Overview


GreensYoung


Political Affiliation Democrat 36% 8% 47% 47% 42% 9%

Republican 23% 47% 11% 15% 17% 48%Independent 31% 31% 34% 29% 30% 31%

Other 1% 2% 0% 0% 1% 3%None 4% 3% 4% 5% 4% 5%

Age 180%24 [19870%1993] 5% 6% 1% 13% 3% 0% 250%34 [19770%1986] 20% 16% 21% 16% 25% 18% 350%44 [19670%1976] 19% 22% 22% 12% 18% 26% 450%54 [19570%1966] 21% 14% 25% 20% 22% 20% 550%64 [19470%1956] 17% 17% 17% 18% 15% 17%

65 or older [19000%1946] 18% 25% 15% 21% 17% 20%Race

White 71% 88% 69% 59% 70% 81% Black or African American 11% 4% 9% 20% 13% 3%

Hispanic or Latino 13% 5% 14% 15% 15% 12% Other 5% 4% 7% 6% 3% 5%

Gender Male 47% 62% 42% 43% 44% 58%

Female 53% 38% 59% 57% 56% 42%Income

<$30,000 23% 15% 5% 74% 4% 11%$30,0000%$50,000 19% 23% 24% 8% 20% 23%

$50,0000%$100,000 26% 25% 34% 7% 31% 35%$100,000+ 18% 19% 23% 2% 28% 17%

Low income Low income 19% 15% 9% 55% 1% 11%

Education High School or less 18% 22% 12% 27% 16% 16%

Some College 29% 30% 25% 39% 23% 31% College or Post–Graduate 52% 47% 63% 33% 60% 53%



Segment Overview


GreensYoung


Internet Accessed Most Frequently At my home/home computer 68% 73% 71% 59% 66% 73%

At work/office 12% 10% 18% 4% 15% 10% Through a mobile phone 4% 2% 3% 4% 8% 3%

Public library 3% 0% 1% 7% 2% 2% Friend/relative’s house 2% 1% 1% 4% 1% 1%

None/do not use the internet 12% 15% 6% 21% 8% 11%Overall Satisfaction of Electric Utility

% Total Satisfied 83% 87% 84% 79% 84% 83%Overall Feelings of Electric Utility

% Total Favorable 81% 85% 81% 77% 79% 83%Average Electric Bill

Less than $50 7% 5% 7% 11% 6% 6%$50 to $100 32% 20% 32% 39% 30% 31%

$101 to $200 38% 51% 37% 29% 41% 39%$201 to $300 12% 14% 11% 10% 12% 12%$301 to $400 3% 2% 3% 2% 3% 5%

More than $400 2% 2% 3% 2% 2% 2%Included in rent 1% 0% 1% 0% 2% 0%

Smart Meter Installed at Home % Yes 27% 15% 30% 26% 23% 36%

Region New England 7% 6% 10% 6% 2% 5%

Middle Atlantic 13% 7% 19% 12% 5% 14% East North Central 14% 9% 9% 18% 19% 15% West North Central 7% 5% 7% 8% 8% 9%

South Atlantic 17% 12% 13% 20% 22% 15% East South Central 7% 17% 4% 9% 6% 4% West South Central 11% 12% 6% 15% 14% 11%

Mountain 8% 16% 9% 2% 8% 11% Pacific 17% 16% 23% 10% 16% 16%



Segment Overview


GreensYoung


Home Ownership Own/buying 77% 88% 77% 58% 83% 87%

Rent 23% 12% 23% 42% 16% 13%# of Bedrooms

Mean 3.1 3.2 3.1 2.6 3.2 3.3# People in Home

Mean 2.9 3.0 3.0 2.4 2.8 3.1# of people under 18 in HH

Mean 1.0 1.0 1.1 0.8 1.0 1.3

consumer pulse research program – wave 1, september 2011 smart grid consumer collaborative market...

Documents

consumer pulse wave

segmentation approach

sgcc research objectiveshelp

chosen segment

smart meter

segment competitive

sgcc website

effective strategies