[BETA] Fortnightly

Consumers want one-stop shopping - everything in one package, and the telephone, too.

The role of the local electric utility could take on a much larger proportion if residential consumers and small business owners have their way.

These customers are increasingly interested in purchasing bundled products and services, according to a nationwide survey. And they're looking first to their local energy providers for additional services, even for products the suppliers have no experience providing, such as telecommunications.

RKS Research & Consulting, a North Salem, N.Y.-based research firm, in September surveyed 804 residential and 406 small business customers across the country. It finds that these customers expect any bundled products and services to be offered at a discount of at least 5 percent, and their interest in specific packages increases in direct proportion to the size of the discount.

The survey demonstrates, according to RKS, that interest in new products is inversely related to the customer's satisfaction with its energy supplier. While some of the customers most interested in new products are least satisfied with their energy providers, others who are happy with their energy and long-distance providers are much less interested in combined products.

The customers who want bundling won't be satisfied with a generic approach, however. They want personalized packages of products and services to meet their individual needs, according to Charleen Heidt, vice president of RKS residential research.

"These are not mass markets, but clearly niche segments that will require highly tailored promotional strategies," she says. "And where customer satisfaction is low, a substantial investment will be required to establish and improve relationships in advance of any product or service offering."

Among many specific customer segments addressed in the study, residential consumers are receptive to a package of energy-related offerings. This might consist of heating and air conditioning repair and maintenance, home appliance repair and electrician's services. Small business customers, on the other hand, express interest in power quality consulting and energy audits. Both groups view their local energy supplier as the first choice for providing these additional services.

Respondents revealed that they also are open to buying packages of telecommunications-related products and services from their energy provider. While they favor AT&T as the number one provider of a telco bundle, the local electric utility is a close second, ahead of MCI and Sprint.

"Based on the responses of the customers we sampled, a combination of a respected energy provider, linked up with a credible national brand to offer discounted telecommunications services, would be a potent entrant in these emerging markets," says Heidt.

The RKS survey was sponsored by U.S. and Canadian energy companies. For more information, access the RKS web site at www.rksresearch.com.

Customer-preferred Suppliers of Bundled Energy-related Services

(in decreasing order):

Residential Customers Small-Business Customers

Current Electric Provider Current Electric Provider

Local Contractor Local Contractor

Current Natural Gas Provider National Service Company

National Service Company Competing Electric Provider

National Appliance Manufacturer Current Natural Gas Provider

Competing Electric Provider

Customer-preferred Suppliers of Bundled Telecom Services (in decreasing order):

Residential Customers Small-Business Customers

AT&T Competing Electric Provider

Current Electric