The Energy Saving Trust: Consumer Segmentation

Jon McGowanHead of Consumer Marketing

July 2008

Our Mission is to lead 60m people to Our Mission is to lead 60m people to act on Climate Changeact on Climate Change

• Promoting the need for action• Providing Info and Advice on what to do• Offer practical support to help through advice

centres, website, through the media and communities

• Our Vision and Mission - Emission Impossible

http://www.energysavingtrust.org.uk/aboutest/who/emissionimpossible/

Who we work withWho we work with

• Work with consumers:• Householders• Communities• Employees

• Businesses• Green Fleet Reviews• Best Practice in Building• Manufacturers / Retailers

• Public Sector• Practical Help• Nottingham Declaration

Importance of local authoritiesImportance of local authorities

• Own 20% of housing stock

• Run large fleets of vehicles

• Planning departments set building standards

• Renewable energy sources for community heating

• Channel to reach consumers

• Work with public & private agencies in local community

Energy Saving Trust consumer Energy Saving Trust consumer segmentationsegmentation

• Segmentation developed to identify households with best potential for generating carbon savings through targeted marketing activities

• Bespoke segmentation developed with Experian – using the 61 Mosaic types – overlaying data of

• Household energy consumption• Car use• Environmental attitudes

Consumer segmentationConsumer segmentation

EST Mosaic UK Segments

UK Household %

1. Environmentally Mature 92. Educated Advocates 93. Discerning Elders 54. Comfortable Conservatives 95. Britain Today 96. Restful Retirement 67. Driving Dependency 108. Financially Burdened 119. Ethnic Tradition 410. Environmentally Indifferent 28

1 Environmentally Mature

High consumers of HH and vehicle energy.

2 Educated Advocates

Critical Gp in next few yrs as lifestyle will develop to larger homes and more cars

3 Discerning Elders

Energy bills still quite high. Moderate vehicle ownership

4 Comfortable Conservatives

HH and vehicle emissions above average – scope for reducing emissions

5 Britain Today

HH & vehicle emissions not high. Below average attitude towards environment

6 Restful Retirement

Those that are independent will want to save money & so potentially interested in saving energy

7 Driving Dependency

Relatively new houses with lowest CO2 emission score

8 Financially Burdened

New large housing. Demands of family make energy consumption relatively high

9 Ethnic Tradition

High proportion of extended families resulting in high energy consumption

CO2 emissions just below average. Vehicle ownership low

10 Environmentally Indifferent

Guiding central marketing strategyGuiding central marketing strategy

Local marketing tactical toolLocal marketing tactical tool

• Local advice centre network• Set targets to focus on key segments• Developed toolkit

– Local profile– Ward counts, maps– Marketing matrix

Developing segmentation insights Developing segmentation insights

• Database profiling– Customer contacts by advice centre– Grants applicants– Website commitments

• Research– Behaviour and attitudinal tracking

Advice centre feedback - contact profilingAdvice centre feedback - contact profiling

Renewables grant programmeRenewables grant programme

Target: Schri Applicants Base: Scottish Households

EST Segments Schri Applicants % Scottish Households % Index

1 1 - Environmentally Mature 852 55.58 188,448 8.32 668

2 2 - Educated Advocates 30 1.96 132,367 5.85 33

3 3 - Discerning Elders 99 6.46 114,499 5.06 128

4 4 - Comfortable Conservatives 300 19.57 167,290 7.39 265

5 5 - Britain Today 13 0.85 109,181 4.82 18

6 6 - Restful Retirement 27 1.76 189,702 8.38 21

7 7 - Driving Dependency 46 3.00 283,917 12.54 24

8 8 - Financially Burdened 89 5.81 252,061 11.13 52

9 9 - Ethnic Tradition 2 0.13 13,163 0.58 22

10 10 - Environmentally Indifferent 75 4.89 813,108 35.92 14

K

Total 1,533 100.00 2,263,736 100.00 100

Schri Applicants Profile

33

128

18

21

24

52

22

14

0 50 100 150 200

The EST segmentation classifies all consumers in the United Kingdom by allocating them to one of 61 Mosaic Types. In turn these 61 types are grouped into 10 EST Segmentsbased on their current attitudes & behaviour towards the environment.

5 42

7

26

31

37 37

22

15

64

Don't believe thereare climate

problems caused byenergy use and I'm

not willingto changemy behaviour

Whether thereareissues or not, Iam not willing to

change mybehaviour

Climate change iscaused by energy

use and I'mbeginning to think

that I should dosomething

I'm doing a fewsmall things to helpreduce my energyuse and emissions

I'm doing quite anumber of things to

help reduce myenergy use and

emissions

I'm doing lots ofthings to help reducemy energy use and

emissions

Segs 1-4 Segs 5-10

Linking to other research modelsLinking to other research models

Not accepting problems, or simply unwilling to change

Willing to change, not

doing anything at moment

Small behaviour change

Larger behaviour change

Q5a Thinking about your overall attitudes towards energy usage and climate change, which of these statements best reflects how you currently feel?

LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 6

Base: Total Sample (1192)

Good correlation between the EST Segments and the six levels of behavioural change – Feb 07

Use at local level –North EastUse at local level –North East

Identifying hot spots to targetIdentifying hot spots to target

• Overlaying segmentation on GIS mapping of database of home characteristics

• Maps:• - GIS map showing CWI potential in NE• - GIS map showing distribution of top EST

segments (this map includes groups: 1,3,4 & 5)• analysts then combine both maps and extract a

data address file for 'hotspots' - areas with a high proportion of unfilled cavities and also a high proportion of top segments.

GIS map showing CWI potential in NEGIS map showing CWI potential in NE

GIS map showing distribution of top EST GIS map showing distribution of top EST segmentssegments

GIS map showing distribution of top EST GIS map showing distribution of top EST segmentssegments

Boosting response rates through targeting Boosting response rates through targeting and tailoringand tailoring

• Non tailored mailing – – simply offering the 0800 number - response rates +/- 5%

• Normal response (no targeting) mailing to all segments– non 'hotspot' approach e.g. a council tax mailing, returns at

approx 5%

• Better response from certain segments –

–  In LA areas with a low population of 'top segments' (below 15%) -

return rate as low as 2-3% 

– compared to areas with a high population of EST segments (over

50%) - generated an 8.6% return

Evidence of success: North EastEvidence of success: North East

• Combining HEC mailer with council mail-out to 394,839 households– 8% response rate segments 1 - 4– 4% response rates segments 5 -10

0

2

4

6

8

10

12

% response

Hotspot mailing materialsHotspot mailing materials

Tailored Home Energy CheckTailored Home Energy Check

Excellent response ratesExcellent response rates

• Hotspot tailored marketing – (segments 1, 3, 4, 5)

– 1. Mailing to top segments within Castle Morpeth area offering a Home Energy Check (HEC).

– Posted out to 4600 homes, 520 HECs returned = 11.3% return

 – 2. Mailing to top segments within Derwentside area offering a

HEC.

– Posted out to 5520 homes, 724 HECs returned = 13.1% return. 

Local authority emissions modelLocal authority emissions model

• Combined Defra and EST /Experian emission data and segmentation model to– Rank LA in household+ car emissions per

household– Identify segments responsible within each

authority– Engage with selected authorities to target high

potential areas

Areas with highest CO2 emissions per Areas with highest CO2 emissions per householdhousehold

2345678910

B H I J K L M N O P Q R

Local/Unitary AuthorityTotal CO2

Emissions Per Year

Total CO2 Emissions Per

Year %

UK Households

UK Households %

Household Emissions

Index

Vehicle Emissions

Index

Total Emissions

IndexTeesdale 158,831 0.07 10,761 0.04 160 151 157Hambleton 502,550 0.21 35,899 0.14 139 167 149South Bucks 347,742 0.14 25,216 0.10 138 163 147Chiltern 479,406 0.20 35,324 0.14 135 161 144Uttlesford 388,815 0.16 28,727 0.11 128 172 144Moyle 86,430 0.04 6,429 0.03 148 133 143Orkney Islands 117,369 0.05 8,750 0.03 128 169 143Surrey Heath 431,745 0.18 32,423 0.13 129 164 142

0 50 100 150 200

Total CO2 Emissions Per Year Household CO2 Emissions Per Year

Vehicle CO2 Emissions Per Year

Teesdale – who to targetTeesdale – who to target

#REF!

#REF!

Teesdale

Energy Saving Trust SegmentsTeesdale

Household CO2 Emissions (t)

Teesdale % Household CO2

Emissions

United Kingdom Household CO2

Emissions (t)

United Kingdom % Household

CO2 EmissionsIndex

B 01 Environmentally Mature 35,628 34.08 19,523,303 12.59 271C 02 Educated Advocates 0 0.00 13,404,230 8.64 0D 03 Discerning Elders 2,723 2.60 7,944,609 5.12 51E 04 Comfortable Conservatives 22,343 21.37 16,293,198 10.51 203F 05 Britain Today 2,216 2.12 12,923,406 8.33 25G 06 Restful Retirement 3,786 3.62 7,843,331 5.06 72H 07 Driving Dependency 1,832 1.75 13,572,320 8.75 20I 08 Financially Burdened 12,659 12.11 17,285,183 11.15 109J 09 Ethnic Tradition 0 0.00 5,366,727 3.46 0

10 Environmentally Indifferent 23,369 22.35 40,921,901 26.39 85

Household estimate 2005 104,556 100.00 155,078,207 100.00 100

Profile of Household CO2 Emissions in Teesdale vs United K ingdom by Energy Saving Trust

Segments

Profile of CO2 Emissions within Local Authorities

Local Authority

0

51

25

72

20

109

0

85

0 50 100 150 200

The Energy Saving Trust: Consumer Segmentation

Further details – Jon.McGowan@est.org.uk