Shedding Light on Demand-Side Management

by Amy Hebard, Earthsense Chief Research Officer, Co-founder

Nikkie knows that celebrating Earth Day means more than turning off lights and turning down thermostats. As one of the 88 million U.S. adults who fall into what Earthsense calls the “Green Core,” her attitudes towards the environment and her energy-related behaviors are in sync: she uses energy-saving light bulbs, has had a home energy audit and believes that people can make a difference in the environment. The Green Core represents 37 percent of the U.S. adult population and accounts for 70 percent of “green purchases.”

An increasing number of electric utilities are initiating Demand Side Management (DSM) services as part of a portfolio of consumer-focused energy programs such as carbon offsets, renewable energy, home energy audits and major appliance replacement rebates. Despite offering a range of incentives for reducing energy use, many utilities are finding that consumers are not embracing these programs as enthusiastically as marketers had hoped.

Earthsense’s Eco-Insights Survey provides actionable information useful for reaching the best DSM targets. Even though the environment and energy costs are among the top issues on Americans’ minds, all consumers are not equally good DSM targets. Eco-Insights data show how their attitudes, behaviors, demographics and media use vary–insights critical to finding prospects most likely to respond favorably to DSM offerings.

Energy-Related Attitudes

Agree with statements: Green Core Not Green Core Individuals can protect the environment 87% 65% Government should regulate carbon emissions 84% 71% Alternative energy should be top 3 U.S. priority 84% 66% Recycling should be mandatory 81% 57% Increase government environmental regulation 72% 50% Pollution directly linked to modern day health problems 69% 46% Gas credit for fuel efficiency 63% 40% Global warming directly caused by humans 59% 39% Would consider price premium for “green” electricity 45% 20% Source: Eco-Insights, 2008 Earthsense.com

Energy-Related Actions

Consumer Behaviors: Green Core Not Green Core Turn off lights when leave room 90% 79% Recycle cans/bottles/newspapers 80% 57% Replace traditional bulbs with fluorescent 69% 39% Turn off computer monitor 69% 53% Limit water use in home 59% 33% Lower hot water heater setting 54% 30% Donate electronic equipment for recycling 41% 17% Use mass transit/bike/carpool 21% 12% Source: Eco-Insights, 2008 Earthsense.com

 

Channeling Your Energy. Many of the traditional demographic descriptors used to identify targets like the Green Core have seen limited success (at least at the national level): knowing a person’s gender, race and household size tells only part of the story. For example, Green Core consumers are nearly 20% more likely than total adults to be self-employed and/or political independents. And they are more likely to be found in major cities like San Francisco, New York, Boston, Philadelphia, and Washington, D.C.

The Green Core also uses media differently than the average adult. For the significant number (often the majority) of Green Core consumers who don’t respond to direct marketing or bill inserts, other media can be leveraged. Some of the media where the Green Core concentrates include “green” magazines such as Body & Soul and Plenty, photography and epicurean magazines, technology websites (like wired.com), and niche cable networks (like the Sundance Channel).

The Takeaway. Nikkie joined millions of Americans March 28, in observance of “Earth Hour,” and she eagerly awaits Earth Day. But, reaching her and other strong prospects for DSM and utility-related programs, takes more than conventional targeting. It also requires different offerings that appeal to specific customers. With energy costs and environmental concerns worrying consumers, marketers need to customize messages to the right consumers via the best communications avenues.

The information in this article represents only a sampling of the data Earthsense offers on energy-related attitudes and behaviors, including satisfaction levels on 38 utilities across the country. For more information, please contact us.