Who Is Most Likely to Participate in Energy-Efficiency Programs?
Published: July 21, 2010
Alexandra Behringer
Energy marketers know intuitively that certain residential customers are much more inclined to pursue energy efficiency than others. But what differentiates the doers from the potential doers from the people who are unlikely to participate in utility programs? E Source recently partnered with Nielsen Claritas on an extensive national survey of 32,471 U.S. respondents that focused on products and services, including energy efficiency, rate options, and green energy.
Based on the survey findings, we segmented U.S. households by their readiness to participate in energy-efficiency programs. Utilities and efficiency implementers can use these four resulting segments to better market demand-side management (DSM) program offerings and to better understand the motivations of the consumers in each segment.
- EE AchieversTM (12 percent of the population). The EE (energy-efficiency) Achievers segment includes those customers most engaged with DSM programs. They have demonstrated willingness to participate in more than one DSM action, which could include recent rebate activity, weatherization, audits, load management, or more than one compact fluorescent lamp purchase. E Source considers this the prime segment for marketing of additional DSM programs.
- EE AnticipatorsTM (26 percent). The EE Anticipators segment is dominated by customers who are very inclined to participate in DSM programs but have not yet done so extensively. They have some of the same demographic characteristics and attitudes as the EE Achievers, and they say they will start participating in the coming 12 months. We consider the EE Anticipators a strong secondary audience for DSM programs.
- EE UncommittedsTM (25 percent). Although consumers in the EE Uncommitteds segment show high interest in saving money through saving energy, they are not ready to commit to participating in utility programs. EE Uncommitteds appear to have significant barriers to participation and could be a good segment for low-cost and no-cost approaches to energy savings.
- EE IndifferentsTM (37 percent). The EE Indifferents, our largest segment, is the least promising target audience for DSM program marketing. They are doing very few, if any, DSM actions. They also are the least enthusiastic about saving money through energy savings.
As part of the survey, we collected detailed appliance saturation data and demographic data on respondents, including age, income, education, household characteristics, and geography. We found substantial differences among the four energy-efficiency segments. For example, there is a stark divide between the more-involved and less-involved segments when it comes to household size. More-involved segments are more likely to have three or more people in the household and are much less likely to have only one person in the home.
Of the DSM programs we asked about, appliance rebates are the most popular both for those saying they have participated in the past year and for those who say they are likely to pursue one through their utility in the next 12 months. Our research shows that after participating in one DSM program, the chances that a customer will participate in another DSM program nearly doubles—and keeps increasing over the next several programs in which they participate.
E Source has more information about energy-efficiency segmentation as well as two National Residential Energy-Use Studies based on the results from the Nielsen Claritas national survey. Results can also be customized for specific utility service territories. Contact us for more information. |
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About the Author
Alexandra Behringer
RESEARCH MANAGER, E SOURCE
Alexandra Behringer, a research manager at E Source, focuses on utility products, services, and programs; energy-efficiency and demand-response programs; and retail marketing trends and communication strategies. She has written reports on various topics, including how utilities use social media channels, appliance and compact fluorescent lamp recycling programs, appliance and service-line protection plans, energy-use display programs and pilots, direct-installation programs, innovative demand-response programs, promoting energy-efficient lighting and appliances through retail partnerships, customer segmentation, and DSM department organization structures. |
