KEY DRIVERS OF THE SMB MARKET
3 STRATEGIES FOR SMB ENGAGEMENT
1. Segment by vertical, and then segment the vertical
2. Talk less about savings to drive savings
3. Offer greater choice in technology and buying options
SNEAK PEAK: SMB MANAGED ENERGY
Q&A
SMBs consume
40-50% of
commercial energy
SMB programs are 75%
more expensive than
other C&I programs
Less than 2% of SMBs
participate in their utility’s
energy efficiency program
40% <2%75%
Sources: ACEEE, Small and Medium Sized Business Customers: Proactive Services to Increase the Installation Rate of Efficiency Upgrades, 2010. ACEEE, Expanding the Energy
Efficiency Pie: Serving More Customers, Saving More Energy Through High Program Participation, 2015. LBNL.
SMB Programs Spend versus Savings
Sources: Entrepreneur, Businesses Find Benefits in Going Green, 2013. ACEEE, Big Opportunities for Small Business, 2016.
0%
2%
4%
6%
8%
10%
12%
14%
16%
% of PortfolioSpending
% of PorfolioSavings
Represents utilities
that are getting out
what they’re putting
in for SMB programs
Each line represents
a utility program
Over 70% of small businesses
want to go green and be more
energy efficient
70%
And the savings from SMB programs justify
the investment for many utilities
40%
GROCERY STORES
• Food safety and product loss
• Razor thin margins (2-3%)
• Customer experience
• Diverse operations
• Strict safety protocols
• Guest dining experience
• Tenant turnover
• Employee health / safety / comfort
• Maintenance costs
• Quantifiable results and metrics
• Attracting new customers
• Customer experience
RESTAURANTS
OFFICES
RETAIL
GROCERY STORES
RESTAURANTS
OFFICES
RETAIL
Regional-level manager
• Willing to think about change but generally reluctant to outsourcing energy management
EXAMPLE USER PERSONA
• Wants to discuss energy savings and total sustainability, such as waste and water
• Pride-of-ownership makes some reluctant to pursue operational changes
Local store owner
• It’s all about the numbers – willing to get aggressive with more measures
Quick serve restaurantcorporate manager
Real estate investment trust
Nest made the thermostat something that customers wanted to buy, even at a premium – for benefits aside
from energy savings:
Simplifying their lives
Leading a high tech lifestyle
Having a more optimized home
Multiple Reasons People are Buying Smart Thermostats
Source: Houzz, 2016 U.S. Houzz Smart Home Trends Study.
^ = data was not available in 2013. Source: The Shelton Group, 2016 B2B Pulse Survey
31%
24%
23%
22%
17%
17%
15%
15%
42%
31%
16%
35%
11%
4%
17%
66%
0% 10% 20% 30% 40% 50% 60% 70%
Commitment to health & wellness
Consumer expectations^
Compliance with government mandates, policies orguidelines
Company culture/owner or CEO's values
Employee retention & recruitment
Availability of tax credits, rebates or incentives^
Concerns about climate disruption/extreme weather
Competitive differentiation/market opportunity
Energy savings and/or other cost reductions
2013
2016
Businesses that decide to
invest in energy efficiency do
so for many reasons, and
these rationales shift over time.
In recent years the percentage
of respondents citing energy
and cost savings has
declined, while the percentage
noting concerns about climate,
employee retention, and
regulations has increased.
TECHNOLOGY GROCERY RESTAURANTS OFFICE RETAIL LODGING
Smart thermostats
Lighting
Water efficiency
Refrigeration
HVAC upgrades
Plug loads
People want to buy
discounted EE products online
Midstream program designs can dramatically
increase unit sales at a lower cost/kWh
year-over-year increase in energy
savings from sales of EE products
through a utility-sponsored
marketplace
Sources: The Cadmus Group, Mass Save: Online Promotions. Ecova research.
0
100,000
200,000
300,000
400,000
500,000
600,000
2014:Downstream Only
2016:Midstream + Downstream
Midstream Program Unit Sales
(Real Utility Example)
Solution: SMB Managed Energy
Solution: Virtual Energy Assessment
Whitepaper: Utility Commercial Customer Engagement:
The 5 Analytics-Enabled Strategies That Matter Most
Data Sheet: Virtual Energy Assessment