Tag Archives: brand building

Efficient Energy Brand Communication

The Energy Brand, the heart of strategy and communication. Image credit: LarsEn Energy Branding
The Energy Brand, the heart of strategy and communication. Image credit: LarsEn Energy Branding

One of the most challenging tasks of utility companies is how to reach the ears and eyes of stakeholders and potential customers in a way that it gets noticed and remembered. Though energy efficiency has been a hot topic for energy companies, the most important task ahead is efficiency in communication – if communication goes by unnoticed, resources have been wasted.

Every company in the energy space needs to be able to communicate efficiently, it does not matter where in the chain the company operates – TSO brands, DSO Brands, Energy Generation Brands, retail brands and brands that are bundled in one or more aspects of the energy value chain, all need to be able to communicate their message in an efficient way.

Brand or be branded

Communication needs to come from a credible source – a source that the audience wants to listen to and notice in the first place – but also a source that is considered believable. The source of communication in utility marketing is always the brand. It does not matter if the utility does not consider it self to be in branding. If the utility does is not actively invested in its brand building then the brand, its image and credibility is out of the hands of the utility and the image of the utility is shaped by everyone else.

Utility marketing should start with building a brand. Communication efforts will not be taken seriously if the energy company has not effectively built a brand and has taken branding seriously. Communication processes such as the tone of voice and proactiveness can be created but to know how the processes are created, a good strategic tool is to know the brand and how the brand would behave as a person.

The cornerstone of every interaction

The big question facing many brand builders in the energy space is how to brand energy since electricity is a commodity that can not be differentiated. The answer to the question is easy: differentiate your company with a unique brand that can be heard in the noisy clutter of communication people are bombarded with every day. The hard part is to follow up on the brand building and have the energy company behave as the brand at every level at the operation and at every touchpoint. If the brand behaves in accordance with what people expect and is consistently behaving as a brand at every touchpoint, the brand becomes credible.

Don’t settle with a credible brand – aim for incredible

With a strong brand that is incredible at getting the attention of their customers in a positive way, challenges become easier. An incredible brand has consistency and is dependable. Good energy brands know how to communicate with new challenges such as distributed energy and prosumers, they know how to fit new green energy technology to their service offering, know when and how to showcase their green electricity offering and how to add value for their customers with effective ingredient branding of either their power source.

Join the discussion at CHARGE 2018. CHARGE Energy Branding is the only utilities and energy conference that has a clear focus on energy branding and how utilities at every stage in the energy stream can benefit from a strong brand that delivers consistent and efficient communication to stakeholders.

Know you segments

market_sementation

Segmenting the market and the customer base has in a way followed energy companies since the start. Market segmentation for utilities used to be less complicated – the customer was everyone living in a certain geographic area over a certain age. In short: everyone was the customer and everyone got the same message in a form of a bill or announcement of outages.

Enter the competitive retail energy markets

The competitive energy markets require more detailed segmentation. It is almost no longer possible to deliver the same message and the same service to just about everyone. And everyone is not looking for the same service from an energy retailer. Some people are following the lowest price, others are looking for a pleasant user experience, a group of consumers are after green energy and sustainable energy savings… the list goes on and most consumers are after a mixture of everything mentioned but put different emphasis on different factors.

How to segment energy consumers?

First off, there are, broadly speaking, four different types of segmentation.

Geographic segmentation segments users based on their location. This might seem like an outdated segmentation tool but rural energy customers have different needs than urban users. There are even different needs for users in different cities.

Demographic segmentation is along with geographic segmentation the most easily understood methods of segmentation and most used. Segmenting users by age, gender, income and family size sounds pretty familiar to everyone.

But electricity is not something bought off the shelves in supermarkets located in cities of a specific population density – electricity is not an easy made meal for a woman aged 35-42, married with two-point-two kids aged 7-12.

That is why energy requires more detailed segmentation.

Psychographic segmentation looks at lifestyles, personal characteristics – attitudes and how consumers live their lives. Branding is after all about creating something intangible on top of the core commodity – a certain spirit or experience. Psychographic segmentation looks at how people look at life and that is where it is likely for a brand to succeed.

Geographic and demographic segmentation still play a part and one type of segmentation does not exclude another.

Your brand can speak to different groups. But you should not change the brand for each group your brand is speaking to but your brand can approach each group differently but with a coherent voice.

Moving from the macro-segmentation of the market to the micro-segmentation of your customers.

While speaking to the market at large, the brand also needs to communicate with customers and customers can usually be segmented. This is where behavioural segmentation comes in (remember – one approach does not exclude the next) to offer different types of customers different types of incentives. Big data and data analysis of your customers should be used to analyze their behaviour and see which groups of customers behave in a similar way.

Stakeholders

The energy sector is not only commanded by customers but also different stakeholders. For brands operating a regulated monopoly business and large energy companies with a global brand footprint – it is important to realise and map stakeholders in general. Stakeholder mapping helps utilities to visualise different stakeholders such as politicians, regulators, trade unions, environmentalists, large energy consumers and household consumers.

Tailoring the message for different segments

Building an effective energy brand and energy marketing is not only about customer engagement but also knowing who your brand is communicating to and how it should communicate at different points. Different segments are communicated to with a different type of message through different channels. One of the brand’s customer segments is price conscious while another is concerned about the environment. To make energy savings a point of brand value, the brand would approach the groups with a different message, the price savers would respond better to a message regarding how much money they would save from being energy efficient while environmentally concerned customers are more likely to respond to message regarding how they can contribute to saving the environment with energy efficiency.