Date post: | 06-Jan-2017 |
Category: |
Engineering |
Upload: | black-veatch |
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Using Customer Segmentation to Improve Energy Efficiency, Water Conservation, and Program Participation
Robert Brnilovich, Black & Veatch & Harman Sandhu, SUS
| @Black_Veatch| www.bv.com
About the Speakers
Harman Sandhu• 15 years in analytics and technology• Experienced executive helping utilities with management
strategy, Smart Grid, and technology roadmaps
Robert Brnilovich• 31 years in enterprise management & technology consulting• Focused on helping E&U companies become more customer
focused and solve environmental issues with technology.
| @Black_Veatch| www.bv.com
Utility Customer is changing• Continued focus on energy efficiency and water
conservation requires engaged customers and demand side management.
• Customer side technologies (DER, EV, Home Automation) will require specific interactions for different customers.
• Utility customer is rapidly changing from a homogenous group to a multi cohort population with unique aspirations!
Multi-channel EngagementEnergy Efficiency &
Water Conservation
Distributed Energy Resources
Home Automation
Electric Vehicles
| www.bv.com | @Black_Veatch
Translating Consumer Awareness Into Action:
58% customers want efficiency
recommendations, only 7% access
rebates
60% dishwashers purchased are
eligible for rebates, only 29%
are claimed
80% of consumers are broadly aware of energy efficiency, but limited
action (Source: McKinsey & Company, 2015 & Accenture, 2013)
A 2013 EPA survey of households revealed that incremental improvements
in consumer and awareness about energy efficiency are small and take time
While progress is being made in moving customers from greater awareness to
taking action, much work remains.
| @Black_Veatch| www.bv.com
Utility Expectations & Experiences
(Picture Source: https://www3.epa.gov/region9/greenbuilding/codes/standards.html#labeling )
Electric & water utilities face many hurdles to improving energy
efficiency and water conservation adoption rates among their
customers: Greater levels of differentiation among customer segments:
Household demographics (age, family size, family structures)
Differences by income level(s) and/or educational attainment
Variations in lifestyles, including constraints on time
Limited utility resources available for marketing programs and customer
outreach
Greater regulatory scrutiny to verify operational effectiveness & results
Efficiency programs vary widely: A “one-size-fits-all’ approach to
marketing and customer outreach is no-longer an effective strategy.
Standardized labeling of energy and bill savings obtainable through energy efficiency is an important first step.
| @Black_Veatch| www.bv.com
Tracking Utility Program Performance & Results is Key
MEASURABLE & VERIFIABLE ENERGY AND WATER SAVINGSMeasured energy savings of 8-9% in the 1st year Measured water conservation savings of 5-6%
CUSTOMER ADOPTION RATE(s)Energy Efficiency Technology Penetration Rate of Somewhere between 4% and 18% per year
MARKETING & OUTREACH$3-$5 per customer on energy efficiency marketing = A Utility budget of between $180k - $300k/year
Performance Tracking Must Be Done for Each Major Market Segment Targeted By the Utility.| @Black_Veatch| www.bv.com
Measurements to Drive Change
“You can’t manage what you can’t measure.”- Peter Drucker
…we can measure, therefore we can change!
| @Black_Veatch| www.bv.com
A Look at SegmentationSegmentation is the process of dividing the customer base into groups of individuals that are similar in particular ways such as demographics, usage habits, interests, attitudes, etc.
Traditionally Utilities have used segments based on customer class or the type of program offered.
| @Black_Veatch| www.bv.com
However the Energy Use Profiles vary… PG&E ACEEE Summer Study (2012)
15-minute residential electric usage data
8,337 households, 43 days
Aggregated data to 6 peak load shapes
We believe that you can solve the problem by getting in front of
the right person with the right message, than we can grow
participation.
| @Black_Veatch| www.bv.com
Multi-factor Segmentation Data on customers easily accessible
today – More sources, better
resolution
Micro segmentation of customers
based on past behavior, demographic
data, and energy/water end use How
much they use? When do
they use?Who are
they?
Why they use?
| @Black_Veatch| www.bv.com
Cloud Technologies Make it EasyThe cloud-based analytics requires little effort to setup and can create detailed signature energy and water use profiles for each customer along with an Efficient Use Baseline for each segment.
• Real-time analysis using continuous data processing
• Data from third party sources for property, weather, and customer demographics
• Social Norm based messaging through multi-channel customer engagement showing customer comparisons and call to action
Property Attributes Weather Profile
Energy Usage Customer History
Smart iQ Energy Platform(Continuous Data Processing, Multifactor Correlation Modeling,
Machine Learning, Delivery Services)
Customer Energy/Water Signature Profile +Efficient Use Baseline
(Property, Use, and Weather Normalized)
Social Norm Based Messaging
| @Black_Veatch| www.bv.com
Reduce Cost
Improve Participatio
n
Achieve Targets
New Data Sourc
es
Energy /
Water Analy
tics
Access To Informatio
n
Energy /
Water Manageme
nt
INFORMED
AND
ENGA
GED
CUSTOMER
• Real-time, two-way Communication
• Usage Analysis• Efficiency Ranking• Consumption Projection
Portal / IOS / Android +
Social Media Integration
Smart MetersSmart Thermostats
(Green Button Data)
Coupling Analytics with Engagement
Utilities can increase the response rates, reduce the outreach costs, and improve the program impact by using the right combination of segmentation analytics and engagement techniques.
Bringing it Together
Key Success Factors
Customer
Segmentation
Relevant
Messaging
Multi Channe
l Engagement
Real-time
Information
Two-way
Communicatio
n
| @Black_Veatch| www.bv.com
Black & Veatch StudySUS commissioned Black & Veatch to conduct a statistical analysis of the Smart Customer Mobile Portal (SCM) portal service to determine if customers w/ SCM modify electricity and water use compared to non-SCM customers:
Multivariate Statistical Model Control for other factors influencing Usage:
o Weathero Seasonal variations in usageo Trend changes that occur over time
Include customers that do not have SCM (i.e. a control group )
| @Black_Veatch| www.bv.com
Black & Veatch FindingsA robust statistical revealed that customer use of the Smart Customer Mobile Portal (SCM) contributed to:
Lower electricity use among regular residential customers (without PV-solar), following registration in SCM
Lower electricity usage among customers that did have solar panels, following registration in SCM
Water usage was also measurably lower among both residential customers w/ and w/o solar panels that registered for SCM
Innovative Technology DeliversMeasurable and Verifiable
Customer Value!
| @Black_Veatch| www.bv.com
Group Discussion
Further Questions, Contact Us!
| @Black_Veatch| www.bv.com