Actionable Insights for the New Energy Consumer

To help energy providers successfully meet the challenges and opportunities presented by the evolving energy marketplace, Accenture launched a multiyear global research program aimed at gaining a deeper understanding of consumers’ attitudes, opinions and preferences toward energy efficiency, energy management and value-added products and services.

Understanding Consumer Preferences in Energy Efficiency in the Utilities Industry

Completed in 2010, phase one of the program, Understanding Consumer Preferences in Energy Efficiency, was a global consumer survey that produced valuable insights into consumer behaviors, preferences and attitudes toward energy efficiency, awareness, readiness and willingness to take action. The findings provide a view of consumers’ understanding of energy and their relationship with providers.

Revealing the Values of the New Energy Consumer

Accenture built upon those insights with phase two of the program—2011’s Revealing the Values of the New Energy Consumer. This worldwide end-consumer survey explored consumer preferences, opinions and priorities related to beyond-the-meter products and services offered by utilities or other emerging providers. With clear signals in the energy marketplace that new business models and nontraditional competitors were emerging, the findings explored the possible scope of the energy ecosystem and provided insights on the consumer preferences shaping opportunities today and in the future.

Actionable Insights for the New Energy Consumer

With a firm view of the consumer values and preferences related to energy efficiency, beyond-the-meter products and services and emerging new competitors, in 2012, we embarked on the third phase of the program. Phase three focuses on developing actionable insights and tactical implications for providers. Recognizing that smart technology represents just one of the trends creating opportunities and challenges for providers, Accenture’s latest consumer insights take a multidimensional approach to exploring consumer preferences and behaviors that define the operational considerations for addressing the new energy consumer.

Recognizing that energy providers want to take strategic and operational steps today, the findings are provided in the context of a consumer’s energy experience and specifically explore the consumer elements of:

• Choice. As consumer values related to energy change, so are the options and value propositions they want.
  
  No. 1: Offer the "right" mix of products and services.
  Consumers are increasingly interested in receiving additional energy and nonenergy-related products and services from electricity providers.
  
  No. 2: Maximize consumer willingness to pay.
  When it comes to paying a premium, consumers are more attracted to differentiated products than services.
  
  No. 3: Maximize consumer desire to save.
  The majority of consumers would forgo customer service in return for price discounts.
  
  No. 4: Create a value proposition with bundles.
  Consumers are interested in bundled packages that better suit their lifestyles and needs, particularly when they deliver savings, convenience or ease of use.

• Connection. Changes in technology and the continued consumer move to online channels are shifting the traditional preferences for interactions.
  
  No. 5: Optimize the value of self-serve.
  Low-touch channels and self-service have reached a tipping point where consumers prefer these options for most transactional interactions.
  
  No. 6: Unlock social media.
  Consumers in many geographies are interested in engaging with their electricity providers through social media, in particular, for service convenience.

• Loyalty. Engaging consumers and understanding the drivers of loyalty and satisfaction are critical to ongoing success.
  
  No. 7: Manage consumer engagement.
  Satisfaction and engagement actually decrease based on the length of time consumers interact with their providers.
  
  No. 8: Understand churn.
  In competitive markets, while switching decisions are largely price driven, loyalty rewards are emerging as an effective motivator for consumers to stay with their current provider.
  
  No. 9: Engage the next generation.
  Younger consumers can offer a paradox: they prefer a complex mix of high-touch interactions, self-service and social media engagement.

This 2011 Accenture research shows insights into the opportunities for value creation in an evolving energy marketplace.

This 2010 Accenture research shows insights into public understanding and preferences toward electricity management programs.