To measure efficiency, you needn’t count every customer.
Brad Kates is CEO of Opinion Dynamics, an energy advisory consultancy with a particular focus on smart grid, demand response, and energy efficiency evaluation. Kates served for over a decade on the board of directors of the Association of Energy Services Professionals, including as AESP Chair for two years.
It's time for you to purchase a new car. How much are you willing to pay? Are you just looking for something to get you from point A to point B, or something more? New or used? The choices are endless. Car manufacturers realize this, and they long ago worked to develop messaging to fit the attributes of the car buyer they seek to lure. Watch any car commercial on television. You will see the actors portraying the lifestyle you want to lead and how the car can help you lead it.
The consumer-based world in which we live has moved towards segmenting customers to allow marketers to determine both the likelihood that a given consumer may be interested in a product, and the likelihood that said customer will actually purchase a product. This is not a new concept - marketers have segmented customers for decades, and the results prove the tactic to be overwhelmingly successful.
Why are we discussing this in a utility industry publication? Over the past few years, the business of energy efficiency has moved away from one-size-fits-all - where demand is high for energy efficient products, and energy saving goals are easily attainable - to a more customized approach driven by predictive analytics and the need to reach customers that need more convincing to take energy efficiency actions.