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Utilities making greater use of market research tools to guide program development, test marketing messages and segment customers
ATLANTA – More than ever, utilities rely on customer surveys – not just to measure customer satisfaction, but to guide product/program development, develop effective messaging and predict potential take rates. In 2009, nearly 74% of utilities Chartwell surveyed about market research tools said they regularly or extensively use customer surveys, compared to only 41% in 2007, according to one of Chartwell’s latest reports, Utility Market Research.
Utilities’ use of a wide variety of market research tools is growing by leaps and bounds. They find that conducting market research on the front end reduces the risks involved in developing and launching a new product, program or marketing campaign. Through market research, utilities can ensure they launch the right products or programs at the right time, adapt the product or program appropriately for local audiences, and monitor results.
For example, the Chartwell report shows a number of utilities have found that testing marketing messages is an effective way to save on advertising costs, as tests have shown that it’s not necessarily the flashiest and more costly campaigns that are the most effective. In 2009, 39% – vs. only 13% in 2007 – said they regularly or extensively test marketing messages, ranking their use of this market research tool a 4 or 5 on a scale of 1 (“do not use”) to 5 (“use extensively”), the Chartwell report says.
The use of customer segmentation, especially in marketing products like e-bill or renewable energy, also has grown as utilities come to understand its importance in marketing and communicating more appropriately with various customer groups. As might be expected, larger, investor-owned utilities use customer segmentation at a greater rate than small, member-owned utilities, the data in Utility Market Research reveals. Their marketing budgets are larger and their customer bases are more varied in composition.
In addition, online customer panels and surveys are growing rapidly as more utilities have customer email addresses. Online surveys can speed the data-collection process and allow utilities to respond to customers faster.
The 40-page report includes an examination of data from a Chartwell survey of 84 utilities; analysis of industry trends and best practices in utility market research; and four in-depth case studies focusing on success stories from Southern California Edison, Commonwealth Edison, Florida Power & Light and Teco Peoples Gas.
Utility Market Research is available from Chartwell for $795 and is part of Chartwell’s Products, Services & Programs Research Series, which focuses on utility products, services and marketing issues.
ABOUT CHARTWELL INC.
Chartwell is a specialized information provider that facilitates knowledge exchange among utility professionals responsible for management practices and technology solutions. Chartwell publishes best practices case studies, quantitative research and electronic newsletters, and hosts conferences and other events for utility professionals.
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