CMO Council Study Finds Marketing by Utilities Must be Relevant, Targeted
PALO ALTO, CA—May 24, 2011—A new study by the Chief Marketing Officer (CMO) Council has found that utility marketers must turn an eye towards relevant, targeted content delivery and improved segmentation and targeting measures to improve outcomes, maximize profitability and effectiveness.
According to the findings of the “What’s Critical in the Utility Vertical” survey, consumers are making active decisions about bill payment priority, necessitating a shift in how utility marketers activate loyal consumers who would never consider making late payments or skipping them altogether. Nearly one in four consumers admitted that they have had to delay payment of bills, largely because funds were not available. An almost equal number indicate that their power bill is among their highest expenses alongside of their rent/mortgage, credit card and transportation costs.
Looking to address the wallet-depleting challenges of the customer, utility marketers are identifying key value-added communications and engagements to address key points of customer pain and need. Marketers intend to add value to the relationship by providing tips and ideas for conservation (62 percent); educating customers about charges, costs and service solutions (34 percent); and proactively addressing issues, complaints or concerns (34 percent). But only 19 percent of marketers are looking to deliver promotions, coupons or direct savings opportunities, despite a call from consumers for more opportunities to save.
The study, based on insights from an online survey of North America-based consumers (1,425) and global utility marketers (120), reveals that while general messaging about green practices is appreciated, specific conservation, reduction and savings tips are better received, recalled and actioned upon.
When asked to recall messages sent by utilities:
• Nearly 45 percent of consumers surveyed recalled receiving information about how to reduce consumption.
• 40 percent of consumers remember receiving information on how to lower or manage payments through various payment options.