Connecting the new energy customer

Article

Connecting the new energy customer

Connected Future | Future Connected

The customer’s relationship with energy is being reframed. It’s evolving from a low involvement ‘grudge’ purchase to one where customers are empowered by technology, and where they expect sustainable solutions, transparency and low costs. The challenges for incumbent providers are in recognising this change and being able to respond quickly. Potential new entrants can disrupt the sector and will fundamentally change and contest this incumbency if they do not respond.

To learn more about the new energy customer please download our latest report.

Connecting the new energy customer

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We have tested a range of new energy propositions with customers. Outlined below are the attractiveness scores for 12 such propositions. We invite you to develop your own propositions and simulate how they score against the 12 we have selected.

Proposition score between 1-10, based on customer segment. (Higher scores are more attractive)

Score

Please select or deselect offers to view on the graph for easy comparison.

Build your own proposition

What the propositions are made up of

This section relates to what is included in your energy package

Electricity only

The bundle only includes electricity.

Electricity and gas

The bundle only includes both electricity and gas.

Electricity and fixed solar panels

The bundle only includes electricity, as well as a set of solar panels for your home.

Electricity and an electric vehicle

The bundle only includes electricity and an electrical vehicle to use.

Electricity and efficient appliances (e.g. heating/cooling)

The bundle only includes electricity and a number of energy-efficient appliances.

Electricity and portable solar panels and battery

The bundle only includes electricity, a set of portable solar panels (that can be moved at will - e.g. when you move houses), and a battery for your home.

All energy services (electricity, gas, solar panels, and battery)

The bundle includes electricity, gas, solar panels and a battery.

All utilities

The bundle includes all utilities that you may need for your house (electricity, gas, water, internet, mobile etc.)

This section relates to who you manages your energy, and where you purchase your energy

Energy retailer

You would purchase your energy through your energy retailer (e.g. Origin, AGL, EnergyAustralia).

Telco provider

You would purchase your energy through your telco provider (e.g. Telstra, Optus, TPG).

Local community (e.g. neighbours)

You would purchase your energy through your local community (e.g. neighbours or a local program).

Local council

You would purchase your energy through your local council.

Automotive clubs

You would purchase your energy through your local automotive clubs (e.g. NRMA, RACV, RACQ, RACT, RACA, RAA, RAC, AANT).

Electric vehicle dealer

You would purchase your energy through your electric vehicle dealer (e.g. Tesla).

Employer

You would purchase your energy through your employer.

Landlord

You would purchase your energy through your landlord.

Bank

You would purchase your energy through your bank.

Aggregator (e.g. iSelect)

You would purchase your energy through an aggregator (e.g. iSelect).

Technology company (e.g. Google, Amazon)

You would purchase your energy through a technology company (e.g. Google, Apple or Amazon).

This section relates to how you contact your energy provider.

Digital channels only

Interaction points will be digital only (e.g. website, app).

Contact centres and digital channels

Interaction points will be digital, as well as contact centre (i.e. you can call your energy provider).

Physical stores, contact centres and digital channels

Interaction points will be digital, phone, as well as have a physical store you can visit if required.

Artificial intelligence managed smart home

Interaction points will be in a smart-home managed by an AI that you can talk to and interact with about your energy needs.

All the above

Interaction points will be all of the above (digital, phone, store, smart-home).

This section relates to how you will pay for your energy.

Fixed fee unlimited usage with energy provider

A fixed monthly subscription fee which allows you to use unlimited energy through your energy provider.

Pay for what you use through energy provider

A pay-as-you-go service through your energy provider (similar to what happens now).

Pay through mortgage payments

Pay for your energy as an additional fee on your mortgage payments.

Pay through car loan repayments

Pay for your energy as an additional fee on your car loan repayments.

Pay through council rates

Pay for your energy as an additional fee on your council rates.

Included in salary package

Pay for your energy through salary packaging.

Pay through taxes

Pay for your energy through your taxes.

Prepaid energy

Prepay for your energy and top up as required.

This section relates to how you will deal with any excess energy you generate.

Trade for a rebate payment

Your excess energy can be traded for a rebate from your energy provider.

Trade for credit towards other utilities

Your excess energy can be traded for a credit towards other utilities (e.g. water, internet, mobile).

Share with friends and family

Your excess energy can be shared with friends and family.

Donate to charity/those in need

Your excess energy can be donated to charity / those in need.

Trade for shares in renewable energy generation

Your excess energy can be traded for shares in renewable energy generation.

Share with local community

Your excess energy can be shared within the local community.

Trade for redeemable energy credits

Your excess energy can be traded for redeemable energy credits (i.e. you can pay for energy with these credits later).

Total Population (100%)

Representative of the Australian population.

Green Tech Adopters (14%)

Millennial homeowners with young children in the middle to high income bracket that are pioneering the green energy transition by adopting sustainable energy solutions. Willing to be the first to try innovative options. They have already invested, or are strongly interested in making investments, such as solar panels, batteries and electric vehicles for their homes.

Cost Conscious Baby Boomers (25%)

A money conscious segment Baby Boomers, where price is the biggest driver, and often barrier to, investing in energy assets in their homes. They have already installed solar panels making use of the incentives and will switch retailers and/or move to payment plans to reduce cost. They are interested in adopting technology solutions, if it can be proven to reduce their costs.

Green Conscious Renters (19%)

Transparency and fairness are the primary drivers for these renting families. There is an underlying interest in green energy, but their renting situation is likely to be the most prominent barrier to investing in technology and assets. As this segment evolves in life stage, and as they transition into home ownership, they will migrate to Green Tech Adopters.

Comfort Seekers (17%)

Young single homeowners for whom energy consumption is a lower priority than maintaining a comfortable home life. They have little to no interest in making investments in smart home technology or green energy assets. This segment may migrate towards Unengaged or Green Tech Adopters as they progress through their life stages.

Unengaged (25%)

Customers that have no real interest in engaging with energy, viewing it only as a necessary commodity. As renters, Unengaged prefer a largely transactional relationship with their energy providers. This segment has little or no interest in green energy or smart home technology and they don’t feel the drive to take any action at all around their energy.

Published: March 2021

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