Utilities: Marketing Demand Flexibility Initiatives Isn’t Hard

Demand flexibility programs are increasingly important as utilities strive to balance supply and demand on the grid. These programs offer a win-win solution for utilities and homeowners: utilities can reduce peak demand and improve grid reliability. At the same time, consumers can save money on energy bills by tapping into distributed energy resources (DERs).

So, why aren’t more utilities actively marketing these programs to ensure program enrollment grows and these programs scale? The answer, surprisingly, often lies in the perceived complexity of marketing. But in reality, marketing demand flexibility initiatives to enhance customer engagement is more manageable than it might seem. You don’t have to be an experienced marketer to make them work either. Let me explain.

What is Demand Flexibility?

Demand-side management has evolved over the years. Demand flexibility is the ability of energy consumers to adjust their electricity usage in response to grid signals or incentives. This strategy allows utilities to balance supply and demand, especially during peak energy consumption by aggregating DERs using a distributed energy resources management system (DERMS). By controlling those DERs or by incentivizing customers to shift their energy usage to off-peak hours or reduce consumption during critical times, utilities can reduce the strain on the grid, defer the need for costly infrastructure upgrades, and improve overall grid reliability.

Once a program or demand flexibility initiative is defined and in-market, the key to success is participation from behind-the-meter device owners. Let’s dive into some easy strategies to beef up enrollment and participation.

Key Strategies to Drive Demand Flexibility Program Participation

Create an Omni-Channel Marketing Approach

Omni-channel marketing is a powerful strategy for promoting demand flexibility programs. By reaching customers across multiple platforms, utilities can deliver consistent messaging in many ways, increasing engagement and understanding. Additionally, this approach allows utilities to track customer interactions and measure campaign effectiveness, enabling data-driven adjustments to optimize enrollment and participation as the program scales.

Some channels to explore include:

• Direct mail: Send personalized letters or postcards to targeted customer segments.
• Email marketing: If you have access to the data, you can use targeted email campaigns to reach specific customer groups.
• Social media: Social media is a powerful tool for reaching potential demand response program enrollees. Platforms like Facebook, Instagram, and X (formerly Twitter) allow utilities to target specific demographics and interests, ensuring their message reaches the right audience. By leveraging these platforms, utilities can effectively communicate program benefits, answer questions, and encourage enrollment.
• Bill inserts: Leveraging monthly bills to include program information is a cost-effective and straightforward approach to reaching customers. By incorporating program details directly into these existing mailings, utilities can efficiently share the message with a wide audience.
• SMS/Text messaging: A 2022 study found that omni-channel campaigns that used SMS found an astounding 429% higher conversion rate! With cell phone numbers, you can send timely text reminders, incentives, and alerts to enrolled customers. You can even utilize text messaging to drive non-enrolled homeowners to your enrollment form.

Money talks! Offer Incentives

It’s no secret that money talks and can motivate! This makes incentives a powerful tool to use to drive demand flexibility program enrollments. While there are many types of incentives, like upfront payments, bill credits, or rebates to encourage enrollments you’re going to want to start with the basics. Tie incentives into your messaging strategy by educating behind-the-meter device owners on what a peak demand event is, how their participation helps the community, and how much they will earn once they’ve enrolled if they participate in those events. While the Office of Energy Efficiency and Renewable Energy found that financial incentives are an important motivator for customer participation and enrollment, remember that not only are many Americans interested in pursuing renewable energy solutions, but they are likely to participate if they know that their efforts will help.

Personalize the Experience

HubSpot’s recent State of Marketing report states that 94% of marketers say personalization boosts conversions. Personalizing marketing efforts is crucial when looking to build stronger customer relationships and drive higher engagement. By tailoring messages and content to individual preferences and behaviors, utilities can create a more relevant and impactful experience while driving enrollments. Personalized marketing not only increases the likelihood of enrollments but also fosters utility brand loyalty. In today’s competitive landscape, where consumers are inundated with information, personalization can set you apart by demonstrating a genuine understanding of their needs and desires.

To personalize your enrollment messaging, you’ll need to segment your homeowners and be able to identify specific segments to tailor your marketing efforts accordingly. For example, you don’t want to send a smart thermostat message to someone who owns a smart water heater. Knowing what devices they own and how they intend to use them will be key to your messaging.

Don’t Forget to Measure!

To ensure the success of your demand flexibility programs, it’s crucial to track key performance indicators (KPIs) of both your marketing efforts and your program performance. In 2011, FERC introduced the Measurement and Verification for Demand Response process, which was designed to demonstrate the efficacy of any demand flexibility program. This process included a framework for evaluating the cost-effectiveness of demand response programs, a means to measure and verify outcomes post-event, and tools to analytically assess those outcomes. By monitoring these metrics, you can gauge the effectiveness of your marketing efforts and make data-driven adjustments to optimize your strategies.

Metrics to measure to ensure your program is successful include:

• Enrollment Rate
• Participation Rate
• Customer Satisfaction & Feedback
• Peak Load Reduction
• Incentive payout totals

Marketing metrics you’ll want to keep an eye on include:

• Email Open and Click Thru Rates
• Social Media Likes, Comments, and Shares
• Video Watches
• Website Traffic

Utilities: Marketing Demand Flexibility Initiatives Isn’t Hard Conclusion

By implementing these easy, yet effective marketing strategies, utilities can market demand flexibility programs and drive significant enrollment. Remember, the key is to focus on the customer and make the program as easy to understand and participate in as possible. Marketing is nothing to fear and it doesn’t have to be hard!

About The Author

With almost two decades of leadership, growth marketing, and communication experience, Amber Mullaney drives the strategy behind Virtual Peaker's marketing initiatives. A proud Texan native, she graduated from the University of Houston with a degree in Public Relations and Interpersonal Communication. She is passionate and experienced in managing brands, product lines, marketing programs, and driving cross-functional teams.

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