There are many current challenges in the energy sector. The sector is adapting to increased demand for sustainable energy and balancing new renewable sources with the current loads of the users connected to the grid. The generation of energy by renewables such as wind and solar at industrial scale is not the only challenge the utilities need to find a sustainable way to implement but also how to feed the electricity created by distributed generation and prosumers onto the grid.
Communicating with prosumers
These challenges are not only for the engineers to figure out – they create an energy marketing challenge – how good are the energy brands in communicating with end customers of energy and how strong are the brands in creating a dialogue with different stakeholders in order to implement the renewables and different types of technology and adapt users to the new reality of the energy space.
A new two-way dialogue between energy company and consumer
Distributed generation and prosumers have created a whole new dialogue between utilities and the public – the public is no longer just the recipient of energy but is starting to feed electricity into the grid. It has been a headache for the regular consumer to understand the normal energy bills, imagine how the regular prosumer is able to understand the bill when he or she is the one charging the utility. This requires clear communication, good utility marketing and a good energy marketing communication needs the clear vision of the energy brand behind it.
The democratisation of energy will happen on some scale in the coming years. The advancements in solar technology and small-scale generation of energy mean that price will come down. Powered by blockchain technology and smart devices, microgrids will begin to become more frequent where people trade energy they generate with their neighbours. Peer to peer trading of energy might become as common as running water is today. The energy customer of tomorrow might sell excess electricity that came from the rooftop and stored in their car onto the grid. Development and implementation of vehicle-to-grid solutions has already begun.
Adjusting to a new reality
Energy companies, whether it is the traditional utility or energy retailers might have to adjust to this new reality of microgrids and peer to peer energy trading. Although the need for their traditional services might not be as needed as it is today, they are trusted as experts in electricity and their brands might take advantage of that brand asset. Energy as a service will become an invaluable part of the business model and it will be interesting to follow the development of the unique value propositions that the future energy brands will offer their customers.
Before energy suppliers begin the journey of their energy marketing, there are multiple issues that need to be addressed. The most basic issue and the foundation of any energy brand is the general idea of what the brand is about before creating and delivering the marketing message. Branding is the basic strategic philosophy any organisation should build their whole operations around.
Create a unique value proposition
The key to any successful brand is the unique value proposition. Many energy brands are abandoning the lowest price race to the bottom and have started to emphasise on creating an emotional connection to the customer. Customers are attracted to them because of a vision that goes beyond simply providing a commodity. Anyone can become an energy supplier and the secure supply of energy is a given in liberalised markets. The best energy brands have created a unique, compelling reason for customers to become their customer by creating a bond on the emotional level.
Know your customer segments
Multiple branding case studies from the energy industry have shown that effective energy marketing comes from a good brand that is a credible source of information for the customer. There are multiple methods of branding energy but there is not a secret formula for a successful retail energy strategy but rather a toolkit that any brand should use for success. One of the most important tools for utility marketing to become successful is brand segmentation – know who you will be talking to and know how to talk to different segments.
Be consistent and authentic
Once the segments have been identified – you can know how your energy brand can communicate its value proposition to the different brand segments. From segmentation, effective branding strategies can be developed. There are brand building companies and retail energy consulting firms that help with branding but the brand needs to be authentic in all their communication with the customers. Look at any branding case study from the energy industry and you will see that all effective utility marketing (or energy marketing) programme comes from a credible source – an effective energy brand.
There are multiple technical challenges for the energy sector and there have always been. But the biggest challenge for the sector is knowing how multiple stakeholders perceive utilities and services and products for the sector. To be able to be effective in marketing energy services, utilities need to be able to understand the customer and communicate through a powerful energy brand. This same principle applies to different parts of the electric energy sector – from generation, transmission, distribution and sales of electricity.
CHARGE is a bit unique in terms of location. Technically, CHARGE Energy Branding is an energy conference that is located on two continents. It is an energy conference in Europe as well as being an energy conference in America. Iceland rests on the tectonic plates of both Europe and America. But the conference is also an international event in terms of presenters and attendees. The location is not as central as energy conferences in Europe or North-America, the trip to Iceland is not that much further than travelling between big cities on both sides of the Atlantic. Just add an hour or two and in return, you will have a more spectacular energy conference experience than anywhere else.
Reykjavik is not known for neon lights but more noticeable are the northern light illuminating the night sky from early September.
Being technically both an energy conference in America and an energy conference in Europe has some perks. For one, people can see with their bare eyes where the tectonic plates are drifting apart but it also means that Iceland has a lot of geothermal energy that is widely used both for district heating and more importantly
On the way to or from the international airport in Keflavik, you could enjoy the unique experience of the Blue Lagoon spa – maximizing the exhaust geothermal heat from the nearby geothermal power plant and is known for its healing powers.
If you have a bit more time, we suggest that you do it like a local and enjoy some of the multiple community swimming pools. Each neighbourhood in Reykjavik has its own swimming pool. If you don’t like swimming that much, take advantage of the several hot tubs each pool has and lie down in the cool tubs in between. The pools that are located closest to the conference hall are Sundlaug Vesturbæjar in area 107 where deals are brokered and decisions are made, Sundhöll Reykjavikur in area 101 where hipsters meet and sweat off last evening or go out of the capital to the municipality of Setjarnanes to relax while enjoying a great view of the Atlantic Ocean.