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3 marketing techniques retailers use that utilities should never employ

Posted by Sheera Eby on September 11, 2014

Utility marketing can be challenging. It isn’t always easy to engage a utility’s customer base. Retailers seem to have it easy compared to utilities. Customers seem to have an innate interest in retailer’s products. Many utility and energy marketers are stretching to find new techniques that can be tested from other industries. Retail might not be the first industry that many utilities would consider borrowing techniques from for their marketing communications efforts. This article will explore whether any of the techniques that retailers employ make sense for utilities, and if there are any learnings or adjustments that can be applied to utility marketing.

 

1. Visually driven communications
We all receive retail emails daily and hourly. Many of retailer’s emails feature a nice big beauty shot of a product. These communications seem engaging and are luring the user in to click to explore more. One of the top marketing techniques for 2014 is image-centric content1 as seen on sites such as BuzzFeed and image-driven sites such as Pinterest and Instagram. Image-oriented communications have been proven to drive a large volume of traffic.

 

So would this technique be useful for a utility? In focus groups, customers often ask questions like, “Why is my utility spending money on advertising? Just lower my rates.” I’d argue that utilities need to be very sensitive to how much their communications feel like “propaganda.” However, there might a learning here that utilities can apply. Simplicity and visual support are attributes in the design that utilities might want to consider. Although utilities are not selling the newest, most fashionable product, borrowing from other industries might be a consideration. Consider testing emails that have simpler, more streamlined designs, with some visual support. Also testing the different levels of information and content within an email versus a landing page can help construction of future marketing communication programs. Email is a cost effective way to test and gauge customer acceptance before investing significant dollars in a multichannel campaign.

 

2. One-day sales
Another marketing technique that has been adopted by many retail companies is the “today only sale,” “flash sale” or the “one-day discount.” Some retailers have gone as far as limiting a sale for an hour or one afternoon. The idea behind the method is that a limited-time offer drives action. While a good technique for retailers, it is unlikely that it’ll make any sense for utilities. Utilities don’t tend to have the pricing and offer flexibility that retailers enjoy. Regulated utilities are unlikely to have the ability to implement something that resembles a flash sale. The tenets of this retail approach are built on limited-time offers and expiration dates. The limited-time offer technique is something that utilities should consider. Testing expiration dates can help improve the performance of your communications. Deadlines almost always work to generate action. Even if the goal is to get more online bill pay enrollments, consider using a small giveaway and asking customers to act by a certain date. This technique, while not as aggressive as the retail approaches, will likely still provide a bump in response.

 

3. Coupons
Couponing is one of the most popular retail marketing techniques. Traditional, online and mobile coupons continue to have widespread usage. While it is difficult for utilities to envision including any type of price-driven coupon marketing program, there might be some applications for coupon-like mechanisms. Consider utilizing coupons as a vehicle for promoting in-person or online energy audits or energy-efficiency programs. Even if the coupons are utilized as more of a promotional, attention-getting device, they can be an engaging way to get email users to click through and direct mail recipients to view a landing page. Coupons are synonymous with saving money. Customers do like to save money, and as long as the communications aren’t gimmicky (a no-no for utilities in the minds of customers), coupons can help generate higher engagement and conversions.

 

 

Testing can provide answers
While on the surface it seems that retailers wouldn’t have many techniques that utilities can borrow, it turns out that there are proven techniques that can be adapted for this industry. Utilities have an opportunity to embark on testing that can help them determine the best ways to communicate with different target audiences. The reality is that certain techniques are likely to work for certain audiences, but it is unlikely that a one-size-fits-all approach will work for any utility that has such a broad customer base.

 

 

Sources:

Topics: Utility Industry

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