DMI - Case Studies (Utilities)

Utilities Case Studies

Utility Avoids Peak Usage Rates with Targeted Energy Conservation Campaign

Background

A municipal utility faces increasing demand for power, with strong peak loads in the summer months. The cost of building a new power plant is daunting; the prospect of angering customers with enforced rolling brown outs is not appealing. A solution needs to be found.

Challenge

How to identify likely "energy partners" willing to have their air conditioning remotely turned off for brief periods to keep power demand down. How to incentivize these people to allow installation of a remote switch and empower the utility to control their air conditioning in an area where temperatures can soar over 100 degrees regularly in the summer.

Solution

Model from current customers who are willing to pay more for green sourced power. Design program with modest ($10/month) utility bill reduction for 3 months; an ‘opt out’ so those who join can ‘block’ a rolling switch for a special day/event at their home; encourage customers to reduce their overall bill by reducing use when at work. Roll out a 3-touch direct mail campaign to target prospects starting in late Spring.

Results

Received a 5.3% response rate to initial mailing— signing up 530 energy partners; reducing potential use during peak times so no new power plant needs to be built, saving the municipality millions.

Green Energy Program Boosts Enrollments to Meet Mandated Standards

Background

A utility hires a national market consulting firm to help design and position product supply energy and develop market for green energy to meet the regulatory mandated goals for participation from its customers.

Challenge

Customers are being asked to pay more for their energy in a recession when every penny of home expenditure is under scrutiny. How to motivate people to choose the more expensive green energy. How to overcome consumer concerns about how valuable the program really is.

Solution

Analyze internal data; apply DMI demographic variables and model; implement direct mail with test cells; examine responses and modify campaign for constant improvement.

Results

Targeted data for on-going improvement; 21% increase in participation in 1 year through all channels (7,000 gross enrollments, 4,280 net enrollments); define cost of acquisition.

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