The possibilities of branding within the energy sector are enormous. Not only for retail but other aspects as the origin of energy, the natural monopoly as well as using the source of energy to create brand value for other products. Here are few of the areas we will cover in September in Iceland at CHARGE – The World’s First Energy Branding Conference.
From the merchant to the aisles of the supermarket
While most brands we know today used to be mere commodities sold by the pound over the counter by the merchant – electricity is still mostly sold by the kilowatt-hour by the utility. To understand why branding is a necessary step in evolution in energy, it is important to look first at branding in the general context. Though the basics of branding are the same for electricity and bananas, there are key differences needed to approach the consumer.
A brand is never more powerful than its ability to communicate its meaning to consumers and decipher communication from consumers. Being able to talk to the consumer has been considered easier with new mediums and social media popping up everywhere but the task to deliver a relevant message that resonates above all the clutter has become more difficult. In a similar manner it has become easier to hear multiple stakeholders voices but the task of engaging in a relevant conversation can be a tricky task for energy companies.
Commodity and monopoly branding
Creative thinking can create engagement for consumer for once considered mundane commodities such as salt and water and how services such as telecommunications became the hottest thing since sliced bread. Branding applies to the natural monopolies as well. With the rise of the prosumer, the monopolies are not only transmitting to the end consumer but receiving from them as well and this two way relationship requires two way communication as well.
Energy Marketing requires a brand
For any energy marketing effort to be fruitful, a powerful brand is needed as foundation for efficiency. A brand that has full organizational support is proven to spill over to all aspects of the operation, be it payroll, the service center or attracting the most qualified candidates for open positions. Efficiency in energy can never be fully realized without a brand mentality.
The origin effect
Soon, electricity will be known for its origins, a city or province or even a country will give a stamp of quality for the energy produced there. How can the origin of electricity create more value for consumers?
Updating the utility
While most retail industries went through radical transformations in the last century, electricity is still mostly sold and delivered today as it was when Edison lit up the world. Groceries, media, music and airlines have all been disrupted and distributed in radical new ways with advances and innovation in technology and updated business models.
The utility of the 1900’s is still the dominant business model but will soon be run over by the energy brand of the 21st century. The energy brands are not only updating the business model according to advances in technology but are connecting to the minds and hearts of the customers in ways the utilities have not been able to think of.