integrated marketing strategies: focus on the customer – delivering solutions 2009-2011 and beyond...
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Integrated Marketing Strategies:Focus on the Customer – Delivering Solutions
2009-2011 and Beyond
CPUC Integration Workshop
March 7, 2008
Long Term Statewide Strategic Plan:Marketing Education & Outreach Strategies
Statewide Vision: Californians are engaged as partners in the state’s energy efficiency, demand-side management and clean energy efforts for 2009 and beyond with the dual goals of informing them of the importance of energy efficiency, and their opportunities to take action.
Statewide Strategies:– Explore the use of a recognizable and trustworthy brand for California’s energy
efficiency and other DSM consumer products and services.– Utilize statewide segmentation research to develop targeted and highly relevant
energy efficiency and DSM marketing messages to incite behavior change/action.
– Use social marketing techniques to build awareness and change consumer attitudes and perceptions.
– Explore developing a website with statewide information on GHG reductions, efficiency and DSM awareness and options.
PG&E’s Strategies will Support Long Term Strategic Plan
The Long Term Strategic Plan (2009-2020) focuses on Statewide strategies and overall vision
In order to support the statewide strategies and the CPUC direction, each IOU will deliver on integrated offerings for their particular customers in the near term (2009-2011):
– Integration of Programs– Integrated Marketing Strategies– Integrated Delivery Strategies– Modifications to Traditional Regulatory and Funding Approaches
PG&E’s Integrated Marketing and Outreach Efforts
Integrated marketing begins with understanding the customer and creating consistent messaging that addresses:
– Their Personal Goals (for residential customers)– Their Business Goals (for business customers), – Their Own Customer / Employee Needs (for business customers) and – Their Green / Global Climate Change Goals
Integrated Marketing requires a better understanding of the customer:– In-depth market segmentation of residential and business customers to
understand customers’ wants and needs. – This will help to cater our offerings to customers based on their interests
and ability to execute projects.
Integrated Marketing Process
Phase 2
Develop/Execute
Phase 3Evaluate/Refine
Phase 2 Plan
Phase 1Analysis
Imp
act
Imp
act
•Deeper understanding of the customer to identify like process, needs, lifecycle, regulation and other energy-profile identifiers
•Coordinated planning effort across all Customer Experience
•Identify repeatability, scalability, impact
•Providing a sharable, actionable view of the customer across the company
•Integrated efforts of delivery channels and programs
•Focused on customers, businesses and messages
•Optimized delivery
•Best practices/path to execution & communication
•Scalability of approach
Integrated Program Offerings
Based on Segmentation, Integrated Marketing allows each IOU to provide bundled program offerings that are specific to each customer segment.
Program bundles can include offerings from:– Energy Efficiency– Demand Response– Solar and Distributed Generation Options– Water Efficiency (if applicable)– ClimateSmart (if applicable)– AMI (if applicable)– Low Income (if applicable)
Integrated Marketing is supported by case studies of integrated program successes in each market sector
Integrated Delivery – Residential Customers
Mass Markets will integrate offerings based on the current portfolio.
Initially, we will integrate these programs based on customer segmentation results. Included in these offerings will be the following:
– EE Rebates– Smart Metering through roll out of AMI and Related Pricing Plans– Solar installations– A/C Cycling– ClimateSmart – Low Income Programs
Integrated Delivery – Business Customers
Develop and execute integrated sales strategy and training for Sales and Service staff
– Sales and Services personnel will develop account plans based on the long term needs of their customers
– Sales and Services will present comprehensive / integrated offering to customers that best meets their needs and integrates multiple offerings
Integrated assessments / audits of targeted customers will include all pertinent offerings, including Energy Efficiency, Demand Response and Distributed Generation
Implementation of projects and programs will require coordination across all offerings for optimal solution to customer
Feedback will result in modifications to the approach and collateral.
Questions
Transitioning to Integrated Customer Offerings:Programs, Approaches and PilotsFocus on the Customer – Delivering Solutions
2009-2011 and Beyond
CPUC Integration Workshop
March 7, 2008
Platform For Integrated Offerings
The 2009-11 application and programs must include an integrated approach to customers through energy efficiency, demand response, distributed generation and solar.
PG&E is responding to the CPUC direction and customers’ request for support in meeting green goals in 2008, prior to the 09-11 filing
PG&E’s Integrated Marketing/ Outreach Plan is being developed and rolled out with the following key considerations:– Input from the CPUC’s 2020 Strategic Planning Process– On-going meetings with internal PG&E groups working on Demand-Side
Management Programs– Coordinating on regulatory front to have consistent messaging (SB1, LIEE,
DR)– Market segmentation work to define the wants and needs of customers to
better target programs
PG&E’s 2008 Integrated Transition Plan
Key components of the integrated plan include:– Working initially with targeted customers identified by Service & Sales and the CEE
Targeted markets group, Local Government Partners and possibly third party contractors – Developing integrated marketing materials to be used as individual and aggregated pieces – Conducting integrated EE/DR audits for targeted customers – Focusing on various targeted markets including industrial, food & ag, large commercial,
high tech – Inclusion of Demand Response Goals with Energy Efficiency Goals for Energy Efficiency
Managers and Teams
Key Goals for 2008 Transition:– Gather customer information in order to improve program integration for 2009 and beyond. – Support long term coordination of these programs internally and externally with the
appropriate resources and incentives to drive desired behavior and outcomes with PG&E customers.
Integration in 2009-2011
Ramp up integration efforts based on what we learn in 2008 through this transition pilot and through our market segmentation work.
Pursue integrated offerings with customers based on receptivity to various programs.
Begin integration of energy efficiency offerings and demand response. Pull in the Solar and SGIP programs through integrated marketing, given that these programs have a different administrative and marketing approach.
As pilots are developed, we can become more comfortable with energy savings from integrated offerings and use them in our future planning process.
Integrated “Pilots”
PG&E Is Pursuing Integrated Offerings to Customers in 2008
We have examples of near term integrated approaches and opportunities in the following sectors:– Commercial Office Buildings– Ag and Food Processing– Retail– Healthcare– Residential New Construction– Local Government
These “pilots” will ultimately integrate multiple offerings including EE, DR, Solar and DG, LIEE, ClimateSmart, Emerging Technologies, Sustainable Communities AND
Will be offered through multiple delivery channels including Core Programs, Third Parties and Local Government Partnerships
Commercial Office Building (Location TBD)
Scope– Super efficient high-task-low ambient lighting with daylight and DR controls
Objective– Demonstrate high quality at effective levels of about 0.4w per sf and DR
Timing– Currently in development and in progress in 2008
Customer Selection– Customer selection is driven by customer interest and building characteristics
Information from Approach and Scalability– Project will potentially yield radically reduced requirements for general office lighting that can
be scalable to other similar sites– Results will be monitored and verified
Policy Issues Addressed– Barriers to integrating across programs and funding will be identified– Issues related to codes and standards and Emerging Technology may be identified– Issues related to tariff integration with DR will likely be identified
Ag and Food Processing – Kendall Jackson
Scope– Provide a Comprehensive Energy Management and GHG Assessment– Develop an Energy Action Plan and Corporate Culture Transformation Activities– Conduct a Water-energy study to target projects that can combine water conservation opportunities with energy
savings projects
Objective– Test the process as an energy management tool / market transformation approach for KJ– Understand how GHG reduction opportunities will drive energy reduction projects– Understand the energy savings potential of water conservation opportunities
Timing– Currently in development and in progress in 2008
Customer Selection– The company was driven to do more and committed to resource efficiency
Information from Approach and Scalability– Data specific to the customer that could be applied to other opportunities in Ag & Food – Process can be scaled to a toolkit for use by all customers
Policy Issues Addressed– Water / Energy relationship and potential pilots – Barriers to integrating across programs and funding will be identified
Retail – Safeway Stores
Scope– Provide multiple DSM offerings – EE, DR, Emerging Technologies and Self-Gen
Objective– Meet the customers needs through integrated program offerings
Timing– Currently in development and in progress in 2008
Customer Selection– Safeway senior leadership is engaged and committed to energy management through an
integrated DSM approach– PG&E is dedicated to partner with Safeway to maximize their participation in IDSM offerings
Information from Approach and Scalability– Through serving Safeway better, we hope to learn how to serve the grocery customer segment
better– PG&E will learn about specific products and business economics that drive this customer class– PG&E should be able to scale programs for other grocery retailers
Policy Issues Addressed– Barriers to integrating across programs as opportunities will be identified– Integrated funding issues are likely to be identified
Healthcare - KaiserScope
– Provide multiple DSM offerings – EE, DR, Emerging Technologies and Self-Gen – Start with integrated audits of facilities and propose comprehensive offerings– Explore innovative solutions like self generation and thermal storage for data centers
Objective– Meet the customer’s needs through integrated program offerings
Timing– Currently in development and in progress in 2008
Customer Selection– Kaiser senior leadership is committed to energy management through integration– PG&E is dedicated to work with Kaiser to maximize their participation in IDSM offerings
Information from Approach and Scalability– Through serving Kaiser, we hope to learn how to serve the healthcare segment better– PG&E will learn about specific products and business economics that drive this class– PG&E should be able to scale programs for other hospitals and healthcare providers
Policy Issues Addressed– Barriers to integrating across programs as opportunities will be identified– Integrated funding issues are likely to be identified– Peak incentives related to thermal storage installations
PG&E’s RNC and CEC’s NSHP Program Integration Pilot
Target Customers– New Solar Homes Program and Residential New Construction – same
(res builders/developers/custom homes owners)
Goal– Encourage high levels of energy efficiency when building new homes– Aligned with loading order of the state’s Energy Action Plan (EAP)
Alignment– Energy Efficiency Tiers the same for RNC & NSHP EE– Builder rollout sessions – RNC & NSHP info dissemination– Strategic plan – Continue EE alignment– CSI Training – Include NSHP
Local Government - Green Cities Pilot
Proposed 2008 Pilot– Integrate marketing materials and approach to governments to include
multiple offerings and programs– Integration of Low Income and ClimateSmart will be key parts of these
strategies– Cross train PG&E staff on Sustainability messaging and opportunities for
PG&E “green” services– Consider tools for roll out in 2009 that will help with delivering energy use
data to local governments for GHG inventories and energy plan development
2009 Follow up and Consistency with Strategic Plan– Green Communities offerings will be proposed in the 09-11 EE filing. – Pending CPUC approval, an expanded Green Cities program will increase
demand for integrated service delivery within green communities
Integration of Emerging Technologies
Fume-hood assessments (EE/DR) (2007)
Wireless lighting controls (EE/DR) (current)
Small Commercial EMS (currently an EE assessment with possible DR oriented pilot in future)
In-Home Display pilot (EE/DR) (planned for summer 2008)
Programmable Communicating Thermostat assessment (EE/DR/AMI-HAN) (future)
Success of Integration Depends on Removing Barriers
Although Pilots will further identify barriers to full integration, we know that several exist today that we will need to address:
– Integrated Funding We will need to determine how to best integrate funding across programs and offerings
– Cost-Effectiveness We will need to determine how to assess cost-effectiveness of programs that have long term benefits and innovative approaches that have other important environmental benefits
– Incentives to Promote Integration We will need to determine appropriate incentive levels and budgets to drive integrated behavior with customers that follows the loading order
– Attribution We will need to determine how to attribute savings into various programs if customers participate in an integrated offering
PG&E looks forward to working through these issues and proposing solutions to make integrated offerings to customers successful
Questions
Integrated Account Services ApproachFocus on the Customer – Delivering Solutions
2009-2011 and Beyond
CPUC Integration Workshop
March 7, 2008
Integrated assessments / audits of targeted customers will include all pertinent offerings, with particular emphasis on integration of Energy Efficiency and Demand Response programs
Delivery channels will be leveraged based on customer relationships and will include:
–PG&E Sales and Service representatives–Third Parties–Local Government Partnerships–Service and Technology Vendors
Recent solicitations for third parties and LGPs are expected to result in integrated offerings and services to customers
Integrated Delivery – 2008 Roll Out
Sales and Service will Modify Approaches to Customers– Sales and Service personnel will develop integrated account plans
based on the long term needs of their customers– Sales and Services will present comprehensive/integrated offerings to
customers that best meets their needs and integrates multiple programs
Implementation of projects and programs will require coordination across all offerings for optimal solution to customer
Feedback will result in modifications to the marketing and sales approaches for optimal scaling of programs and offerings
Integrated Delivery – 2008 Roll Out
Questions