Experience. Innovation. Results.

Presented by:

Jill SchaeferWECC Marketing Services

March 1, 2012

Energy Pulse™ Motivating customers to complete the energy-

efficiency journey

Experience. Innovation. Results.

FINDINGS PREVIEW…

“Americans aren’t making the right number of improvements to make their homes energy efficient.”

“Home energy audits continue to be the colonoscopy of energy efficiency.”

“LOWER-INCOME AMERICANS CAN’T AFFORD TO LOWER THEIR UTILITY BILLS.”

There is a “significant amount of energy-efficient improvement activity despite the recession.”

Experience. Innovation. Results.

Agenda• Energy Pulse defined• Homes & Energy• Renewables• Audience

Characteristics• Other Facts (to impress

people)• Takeaways• Questions/Discussion• Resources

Experience. Innovation. Results.

About the Energy Pulse Report

• Released in 2011• Residential • Polled 1,502 Americans (1,000 online, 502 by telephone)

• Provides insights into:– No./type of energy-efficiency improvements people complete– How incentives/energy messaging impacts spending– How demographic factors influence energy decisions– Views on traditional vs. alternative energy sources

• Conducted by Shelton Group, advertising agency based in Knoxville, TN

Experience. Innovation. Results.

HOMES & ENERGY

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Home Improvement Priorities

Remodel Kitchen/ Bathroom

Replace windows

Replace flooring

Get high-efficiency HVAC

Buy energy-efficient appliances

0% 10% 20% 30% 40%

35%

30%

29%

22%

19%

If given $10,000, customers would…

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If you had to pick one…

54%

34%

12%

Would you make your home…

More energy efficientMore comfortableMore beautiful

Experience. Innovation. Results.

Home Energy Use

Bottom Line: Most people think their homes are energy efficient.

Efficient Neutral Inefficient0%

10%

20%

30%

40%

50%

60%49%

28%23%

Home Efficiency

Experience. Innovation. Results.

Experience. Innovation. Results.

Breaking Point

$76-100 $100+ $26-50 $51-750%5%

10%15%20%25%30%35%

35%

24% 22%

12%

How much would your utility bill have to go up BEFORE you spent money on energy efficiency?

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Magic Number of Energy-Related Home Improvements

4

Experience. Innovation. Results.

Energy Saving Actions--BASIC

Changed Behaviors

Use CFLs/LEDs

Caulking

Bought ENERGY STAR appliance

Unplug Things

Install Programmable Thermostat

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

79%

74%

60%

55%

55%

48%

What do you do to save energy?

Experience. Innovation. Results.

Energy Saving Actions--ADVANCED

What energy efficiency improvements did you do? What order did you do them in?1. Installed new windows (23%)2. Purchased ENERGY STAR appliance

(19%)3. Added caulk/weather stripping

(21%)Bottom Line: Homeowners don’t do improvements in the order that makes the most

sense in terms of cost and energy use.

Experience. Innovation. Results.

RENEWABLES

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Renewable Energy Attitudes• 56% couldn’t name one form of renewable

energy.• 53% said they are “unlikely” to buy a solar

electricity system for their home.• 46% rated messages that manufacturers

either buy renewable energy credits OR installed solar panels/wind turbines as “equally good” for positively influencing their opinion of a company or its products.

Experience. Innovation. Results.

AUDIENCE CHARACTERISTICS

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Demographics• True Believers: – 35-44 and 55–64 age groups. Homeowners.– Educated; driven by environmentalism– 91% rate energy conservation as important

• Cautious Conservatives: – 45–64 age group. Homeowners.–Mostly men; educated, wealthy– Informed about energy. Not driven by

environmental issues.

Experience. Innovation. Results.

Demographics…continued• Concerned Moms:– 18–34 age group. Homeowners (29%).– Married or widowed women; lower income– Driven by saving money and controlling energy

costs. Fall into low (0-2) efficiency activity range.

• Working Class Realists: – Younger; 25% age 18-24. Renters.– Men; lower income, less educated– Purchased few energy-efficient products; have

few conservation habits

Experience. Innovation. Results.

OTHER FACTS (Impress your friends)

Experience. Innovation. Results.

Food for Thought• People think they use less energy than

they really do.• Only 15% of people have had an energy

audit.• BARIERS = Cost (43%)• BENEFITS = Reduce utility bill (28%);

avoid wasting energy (15%)• 65-79% rate energy conservation as

important or very important.

Experience. Innovation. Results.

Food for Thought…continued

• Most respondents (29%) said developing more oil and natural gas production was the most important energy issue.

• 55% “believe” human activity is causing global warming.

• Only 4% of respondents knew electric generation is the main cause of global warming.

• Most (33%) don’t know how electricity is generated.

Experience. Innovation. Results.

TAKEAWAYS

Experience. Innovation. Results.

WECC’s RoleHousing Stock• Target homes between 11 and 30 years old; 45% of these

homes have done < 3 energy-efficient improvements.Getting to 4 (Magic number for real results)• Increase follow-through/incentive levels to encourage

customers to do 4 measures, go from 3 measures to 4, etc. • Prioritize the 4 most important measures customers should do.• Offer packaged incentive programs to sweeten the deal for

every action completed.• Increase reward amounts.Educate• Consider increasing awareness-building efforts.

Experience. Innovation. Results.

We’ve got work to do…

Experience. Innovation. Results.

Questions?Discussion…

Experience. Innovation. Results.

Resources>> Complete Energy Pulse report:S:\Marketing\Marketing Articles\Energy Pulse Report\EnergyPulse2011.pdf

>> This presentation:S:\Marketing_Staff\JillS\Lunch and Learn ENERGY PULSE.pptx

>> Shelton Group:sheltongrp.com