Combi-Oven in a Butcher Shop: The Unique Challenges of Engaging the SMB Sector in Energy Efficiency
WRITTEN BY JESSE HITCHCOCK & ANGELICA PEREIRA ∙ TORONTO, ONTARIO
The customer experience revolution was slow to reach the energy industry, and small and medium business (SMB) customers can often be considered the forgotten segment. Unlike residential customers, SMBs are uniquely diverse in their energy usage and are more challenging to serve.
To reach SMB customers, utilities need to invest in innovative technologies and digital solutions to enhance the customer experience. That said, technology alone won’t inherently engage business owners and drive action toward energy efficiency. In order to implement technology that will be utilized successfully by this customer segment, program managers have to first pinpoint a clear and distinct use case.
Accenture found that 39% of SMB customers access digital channels of interaction at least once every three months, compared to just 27% of residential customers. Despite this, SMB is an underserved market. Why have utilities struggled to leverage these numbers to educate, engage and funnel SMB customers into energy efficiency programs?
Program uptake begins with trust. Utilities must distinguish themselves as the best source of energy information/advice for SMB to make informed decisions about their energy consumption. Residential customers are offered a suite of programs, services and communication channels. Commercial and Industrial customers have dedicated Account Managers and custom programs. Through all of this, the SMB segment often falls through the cracks.
In order to build trust with this hard-to-reach segment, utilities need to target and engage their customers with information that is timely, relevant and most importantly, convenient. Imagine you could concisely communicate information and tools that would enable your SMB customers to take action instantly with the click of a button?
Targeting Customers
Personalization is no longer a nice to have for a utility, all customers now expect personalized communication with information pertaining to their specific business. Personalized communication is also a means to retain and delight existing customers.
MyEnergyXpert doesn’t simply target customers based on their business sector. We study your energy efficiency programs, understand which customers have the highest savings potential, and target them with specific programs and incentives based on these insights.
By-in-large, residential housing stock is more easily understood and is heavily dependent on the functioning of the building envelope. Businesses do not benefit from this consistency, in large part due to the broad range of appliances used in their operations. Two similarly sized retail operations can have very different energy efficiency requirements, and simply directing both customers to a generic suite of program offerings is not sufficient. Small business owners are extremely busy, and taking the time to sift through utility offerings creates a significant barrier to program participation.
Time is money, and utilities should ensure that any time spent pursuing energy efficiency will result in energy and cost savings for the business. Why should a local butcher shop owner read about the Combi-Oven Rebate Program, when it won’t benefit their specific business? The utility needs to show the butcher shop owner the Refrigerator or Anti Sweat Heater Control Rebates, and save the Combi-Oven Rebate for the bakery down the road. In doing so, the utility will ensure the process delivers a return on investment -- of both time and money -- for their SMB customers.
Engaging Customers and Program Uptake
Millennials are moving into the phase of their lives where they are an important part of the growing decision-making workforce. The technology-obsessed segment spends a vast amount of their time online, and this carries into their role as decision-makers. By observing customers behaviour across market segments, we have been able to gauge insights into the best methods of engaging with SMB customers which has resulted in one of Canada’s leading Natural Gas utility companies increasing their SMB customer energy efficiency program user sign-up from 39% to 60%. MyEnergyXpert uses a 3-step process to break down the sign-up process, and it has significantly increased program uptake from 6% to 18% overall.
The right technology tools can help a utility understand a SMB customer's unique needs and requirements, and target them with what is timely and relevant. By simplifying the process, the utility streamlines the customer journey and builds trust in the SMB sector. These changes together foster a positive utility-business relationship and ensure SMB customers can take full advantage of their energy efficiency opportunities.
To learn more about MyEnergyXpert and MEX Program Manager, contact us to schedule a demo!
