.

By Matthew Wolfrom

 

The experience of the past few years shows that the smart grid faces two major hurdles.  One is technical.  Here, most industry participants seem to relish the debate and roll-up-the sleeves intellectual challenge posed by compatibility, bandwidth, pricing, security  and similar issues.  The second is communications – an area that, conversely, inspires about as much excitement for most as going to the dentist.

 

However messy and fitful, communication is the essential tool for forging a new customer/utility relationship – which, of course, is a fundamental prerequisite of the advanced metering infrastructure revolution.   Poor or inadequate customer communications endanger the potential of the smart grid vision as much as technical deficiencies. 

 

Education is the over-arching challenge facing the utility industry today.  According to a survey by GE Energy, more than three-quarters of consumers in the U.S. (79%) still are not familiar with the term “smart grid;” close to seven in ten of those who know the term couldn’t say if they are connected to a smart meter.   Indeed, it is tempting to see this knowledge gap as the root of all the customer relationship problems that impede the industry today. 

 

Here are five best-practice insights to helping address this situation:

 

1.     Suiting the Message to the Market:  When most utilities dissect their markets, they usually do so based on traditional criteria – age, education, income or sector (e.g. residential, commercial or industrial).  We are just beginning to see the use of more productive market segmenting techniques, which define consumer groups based on shared behaviors, beliefs and motivations.   Reaching consumers based on their interests and needs is an important step in enlisting their trust and support for smart metering. 

2.     K.I. S.S.:  A study of successful pilot programs in Illinois confirms that utilities struggle to communicate about the smart grid in simple and clear language.  Jargon and unnecessary acronyms are rampant, and these ultimately breed confusion, suspicion and mistrust among consumers.    Ontario-based Hydro One, by way of positive example, has done a strong job in using digital animation and Internet-based graphics to clearly illustrate how the smart gird works and what its benefits are. 

 

3.     The Power of Third Parties:  According to a study by Accenture, consumers trust third parties more than utilities for information on optimizing electricity consumption.  Often in this regard traditional adversaries can become cooperative partners.  For example, the Natural Resources Council of Maine has supported smart meter installation in that state, lending a reasoned and credible voice to the debate over Central Maine Power’s smart meter roll-out.  These kinds of groups should not be overlooked for collaborative educational outreach, if and when possible.

 

4.     The Forest and the Trees:  When it comes to the smart grid, it is vital that customers understand the big picture – the larger context of and justification for smart meter deployments.  This is especially important because most of the long-term economic benefit of the smart grid could come not from reduced utility bills but from mitigated rate increases due to the inevitable, long-term rise in the costs of generation.

5.     Embracing New Media:  Ultimately, endorsements from friends and peers are the most effective way to spur adaptation of the spectre of technological change posed by the smart grid.  Generally, utilities have been slow to employ the most powerful tool available today to achieve this: social media.  Through a technology platform provided by Virginia-based OPower, utilities are engaging online communities of enthusiastic smart grid advocates through Facebook and Twitter ‒ who make up just five percent of their customer base ‒  to spur adaptation from the other 95 percent.  Innovative utilities understand that social networks represent a powerful channel for in-depth engagement with residential users, and are embracing them.

 

Research suggests that consumers, while wary about utilities’ motives, are generally open to a changed relationship with their power company – provided they are approached correctly.   Therein lies the challenge – and the good news.

 

Matthew Wolfrom is an Executive Vice President of the Technology & Energy Markets Practices at Makovsky + Company, one of the world’s leading independent integrated communications consultancies.

.

You may also be interested in …

Discovery Showcase: GridGlo launch marks new era in smart grid consumer marketing

Galvin launches smart grid rating system with focus on consumer needs

How OPOWER is crushing its competition

 

Talk Back to the Author

Current Comments (1)

Leave a Comment

---

Best Audience for the Best Practices

A complicating factor for electric utilities is that we sell the ultimate commodity. Virtually nothing so fundamental to modern life is so taken for granted as electricity. And the last thing most customers want is more complexity and a new learning curve in their life -- just to continue getting what they have always taken for granted. That's what makes best practice #1 so critical: Suiting the Message to the Market. In this ocean of indifference there are islands or interest, such as early adopters, conservationists, and alternative energy supporters. The challenge then is to energize these groups (that power of third parties thing, #3) to become the wedge that widens buy-in among the larger population. There is no magic bullet, these five best practices will need to be continuously implemented at a professional level, by all smart-grid-related entities, for many years to come.

John Morley - 05/16/2011 - 08:19

Leave a Comment

New to this Blog? Need some help?

Email: [?] We will send you an email with an appproval link you must click for your comment to appear.
Full Real Name:	[?] Real comments need a real name.
Subject:	[?] Please provide a short subject for your comment.
Comment:[?] Do not post commercial/sales messages here. They will be deleted. Try: pr@smartgridnews.com PLEASE NOTE:  All HTML codes will be removed from your comment.
CAPTCHA Security Code The numbers (0) and (1) are not used. [?] Please type the characters you see into the box above.
Remember my name? (Uncheck to forget.)
You can not edit or delete your comment once it is posted. Please check for spelling now. Your IP Address is: 72.44.48.122