The challenge:To help Irish electricity customers reduce their costs and carbon emissions through better energy decisions.
Background
In 2019, ESB Networks began replacing electricity meters in every home and business across Ireland. For suppliers, this presented a regulatory challenge, but also a huge opportunity to provide electricity data to customers in a meaningful and way for the first time.
In Electric Ireland, when we worked on our future press release, our vision was to empower customers to use less electricity, reduce their bills and as a result, their carbon footprint.
Since every property in Ireland would have someone calling to their door and switching off their power, we knew that awareness wouldn’t be an issue, but the real challenge was to differentiate Electric Ireland’s smart meter products from the other suppliers.
The problem
When we travelled around the country and talked to electricity customers, we found that they didn’t have the time or the tools to understand their electricity or what a kilowatt hour even meant.
Compounding this issue was the role of price as the overwhelming factor for customers looking to switch. They would move supplier every year, chasing the best deal, led by welcome bonuses and discounts.
So with nothing stopping a competitor from dropping their prices and pulling away customers, we needed to ensure that Electric Ireland customers found the right plan and then give them a compelling incentive to stay.
The solution
-
Choosing the right plan
To get both existing and new customers off to the right start, we designed new tariffs and product selection journeys.
We used the customer’s address to determine what plans were compatible with their meter. Then, based on their usage, we could give more accurate bill projections to help them make a more informed choice.
We created a simpler naming convention and clearer pricing for smart plans, focusing on tangible benefits.
-
Becoming energy literate
With a smart plan, customers could see their usage throughout the day and by appliance. A monthly email contained energy insights and advice to highlight which appliances were driving the cost of their bill.
The idea was to empower customers through positive reinforcement, giving them the tools to reduce their cost and carbon emissions by shifting their usage to off peak times.
-
Reinforcing good habits
As customers used their online account, they would see patterns in their usage. The longer they stayed with Electric Ireland, the better the accuracy of the data.
Customers could start to see usage trends which were benchmarked against similar households, so they knew whether they were above or below average.
-
Retaining valued customers
Towards the end of their contract, we offered a price comparison of all smart plans based on their usage.
Coupled with an enduring discount, this took the anxiety and guess work out of choosing a new plan or supplier. Customers could switch to the new plan in less than a minute and start saving.
The conclusion
We knew that changing customer sentiment wouldn’t happen overnight. Over the course of 12 months, we staggered advice and education, allowing customers to learn progressively and ultimately take control of their electricity usage.
Over the course of a year, we measured a massive reduction in churn from 12% to 3%. This meant that customers with a smart plan were 4 times less likely to leave Electric Ireland than those on standard plans.
In an industry where there is little differentiation aside from price, we showed the value of empowering customers to save money and reduce carbon emissions.