independent environmental engineers, scientists and consultants communicating the value of water...

INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS

Communicating the Value of Water

CITIES FOR A STRONG AMERICA SUMMIT

AND

2005 URBAN WATER SUMMIT

Hyatt Hotel

Albuquerque, New Mexico

September 30 – October 1, 2005



The value of water is situational.

It can have no value, a negative value or a high value.

Your water utility is expected to provide reliability and quality



Why communicate at all? After all, you have a monopoly?

Research indicates that informed consumers are:

• Less likely to complain about perceived billing errors

• Less likely to complain about taste & odor problems

• More likely to be satisfied with utility performance


Communicating the Value of Water Your customers do not need to be educated about the

value of water per se.

As their water rates increase – and they will – your customers need to understand what they are paying for:

Greater reliability

Improved safety

Improved taste

Meeting or besting all health standards

Responsible fiscal management



How much are customers willing to pay?

One pint of bottled water at a baseball game, a local airport or a county fair sells for as much as $4* within spitting distance of a drinking fountain. People are paying for peace of mind.

*Believe it or not, that is $10 million per acre-foot.



Where are the costs in providing bottled water?

Acquisition

Treatment

Storage

Transportation

80% or more of consumersIn the West, Southwest andSoutheast regularly drinkeither bottled water or homefiltered water.


Communicating the Value of Water These are the same costs incurred by your own

utility. Acquisition – Treatment – Storage – Transportation.

We just haven’t done as good a job as the bottled water industry has in convincing people of value added to water.

Why not? Because they have one additional huge cost – Marketing – that few cities incur.

Communicating is marketing.



The vast majority of the costs of producing and selling a bottle of water are marketing and packaging. Example: The “sports tip” on small bottles of water costs about 10 cents purchased in bulk. The water inside the bottle costs much less than one penny to acquire, treat and fill. The lesson is an old advertising maxim – sell the sizzle and not the bacon.



Case Study: Long Beach, California

Long Beach has embarked on a long-term project to produce commercial quantities of desalted seawater for public consumption. This project will be costly, but is supported by the community because they believe it will lead to greater reliability and better quality.


Long Beach Water SupplyLong Beach Water Supply

GroundwaterGroundwater38%38%

ConservationConservation14%14%

RecycledRecycled6%6%

MWDMWD42%42%

GroundwaterGroundwater33%33%

ConservationConservation15%15%

RecycledRecycled12%12%

MWDMWD30%30%

DesalinationDesalination10%10%

20042004 20102010

Conjunctive Use


$0.00$0.00

$10.00$10.00

$20.00$20.00

$30.00$30.00

$40.00$40.00

$50.00$50.00

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Comparison of Monthly Water Bills Comparison of Monthly Water Bills for Single Family Residences in South Bay Regionfor Single Family Residences in South Bay Region

Among Lowest Water Rates in South Bay Region


-10%

-5%

0%

5%

10%

15%

20%

1997 2004

Consumer Price Index

Average Water Bill

Water Rate Water Rate Affordability Affordability

IndicatorIndicator

Long Beach has also done a good job marketing the affordability of desalinated water.


Phase 3:Phase 3: Full-scale Demonstration Plant

Phase 2:Phase 2: Prototype (Haynes) 300,000 g/d300,000 g/d

Jan

‘96

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Jan

‘97

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Jan

‘98

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Jan

‘99

-

Jan

‘00

-

Jan

‘01

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Jan

‘02

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Jan

‘03

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Jan

‘04

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Jan

‘05

-

Jan

‘06

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Jan

‘08

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Jan

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Jan

‘10

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Jan

‘07

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9,000 g/d9,000 g/dPhase 1:Phase 1: Pilot-scale Research

Authorization

CurrentCurrentAppropriations

Funding Agreement

9.4 mg/d9.4 mg/dConstructionConstruction

Pre-constructionPre-construction

Start-upStart-up

FederalPartnership

Long Beach Water DepartmentLong Beach Water Department Three-phase Project ScheduleThree-phase Project Schedule


Long Beach’s Goal?:

Diversify their water portfolio to minimize risk

Improve Water Quality

Benchmark the cost of “new” water against other sources




What are your goals for improved communication? (The “why,” not the “how”)

Fewer customer complaints

Less resistance to required rate hikes

Use of utility as profit center

Greater cooperation to conserve

Fill in the blank _________________



What is the first thing that comes to mind to communicate with your customers

?



Did you think bill stuffers or web pages

?


Communicating the Value of Water Quality communications enlist a host of

activities and some professional help.

People want real people to answer the telephone at the agency

People generally do not read bill stuffers

More than 85 percent of the information people know about your agency or city came from the media. The media generally does not report that your agency met all water demands last month.



The media will report that you did not meet all demands last month or that you were cited by a local or state health department.

Result: When people do hear of your agency from someone other than you or the agency, it is usually negative information. You cannot combat that with bill stuffers and web pages.



Quality communications means:

Identifying an audience and keying your message to that audience

Diversifying the mediums used for your message

Being consistent Having emergency communications

plans in place The customer comes first


Communicating the Value of Water Quality communications also means:

Communicating the bad with the good

Maintain political awareness

The customer comes first

Providing educational opportunities for those who want to take advantage

Educating members of the media

Training agency spokespeople.

The customer comes first.



And finally, a cliché worth remembering:

We never know the value of water until the well runs dry!



Final Thoughts: AWWARF Project Controlling your brand

Remember that Evian spelled backwards is naïve!

independent environmental engineers, scientists and consultants communicating the value of water...

Documents

value of water cities

water utility

bottle of water

water rates

filtered water

value of water case

bottled water industry

pint of bottled water