Developing Marketing Communications that Motivate Homeowners to Embrace Energy Efficiency and Carbon

1
Developing Marketing Communications that
Motivate Homeowners to Embrace Energy Efficiency
and Carbon Reduction
Energy Solutions Center Conference, Oct. 16,
2007 Ed Thomas, Market Development
Group www.marketdevelop.com
2
Marketing Communication Tactics That Link to
Strategies

• Ways to Leverage
• National brands like ENERGY STAR
• Evaluation research findings on non-energy
  benefits such as comfort, health, safety and home
  value
• Channel partners such as remodelers, HVAC
  installers, plumbers and Realtors who are key
  influencers in homeowner decision-making
• Carbon footprint and other community value
  messages in non-traditional ways to appeal to
  early adopter and highly visible market niches

3
(No Transcript)
4
Strategy-to-Tactic Link

• Load Strategy Energy (gas and electric)
  Efficiency
• End-Use Whole House Energy Improvements
• Traditional Channel
• Home Improvement Retailers, Remodelers, HVAC
  Contractors,
• Program Challenge Conflicting energy savings
  claims and piece meal approach

5
Home Energy Use in the US

• Average homeowner spends 1900 annually on energy
• Some complain of monthly bills higher than 300
• 45 kBtu/SqFt/Yr average - some homes almost
  twice that
• Over half of all single-family homes in the US
  were built before modern energy codes.1
• Many have no wall insulation, high levels of air
  infiltration, poor duct systems, and inefficient
  heating and AC systems.
• 60 of households report having winter drafts2
• 62 complain of a room that is too warm in the
  summer3
• 1 The Changing Structure of the Home Remodeling
  Industry, Harvard Joint Center for Housing
  Studies
• 2 2001 Residential Energy Consumption Survey,
  Energy Information Administration
• 3 2004 American Home Comfort Survey, Decision
  Analyst

6
When Houses Dont Work Who Do YourCustomers
Call?

• Utility for an energy audit?
• Recommendations but no delivery
• Who can fix my problem home?
• Contractor to replace failing system?
• HVAC, Window, Insulating company just selling one
  solution
• Most home problems need a custom solution

7
The ENERGY STAR? Family
Homes
Commercial Buildings
Consumer Electronics
Office Equipment
Windows
Appliances
Residential Lighting
HVAC
Insulation
Exit Signs
Home Improvement Services
8
Home Performance with ENERGY STAR Starts with a
whole-house assessment and provides the
infrastructure of qualified contractors and
quality assurance to allow homeowners to follow
through and complete comprehensive improvements.
9
Home Performance with ENERGY STAR

• More than contractor training and certification
• Training or certification is one step and only
  qualifies a contractor to participate
• Improving contractors service delivery with
  building science
• More than an energy audit
• A whole-house evaluation with diagnostic tests
  and recommendations is one step and only
  identifies where improvements are needed
• Making improvements is the goal
• More than installing energy efficient products
• Equipment and products need to be installed
  correctly to be effective.
• Test-out is an important step at the end to
  verify that improvements to the home will be
  effective
• House as a system approach
• No new label for existing homes
• Label applies if a home meets the new homes
  criteria
• Difficult for most existing homes
• Improving performance is the goal not a label

10
This Whole-house Approach Saves Energy and QA
Confirms it

• Identify which improvements save the most energy
• Avoid one size fits all solutions
• Whole-house solutions can save substantial energy
  in homes
• Not to mention delivering additional customer
  benefits like
• Affordability
• Comfort
• Health and safety,
• Improved durability of the home
• With QA protocols, sponsors have confidence in
  program savings

11
Home Performance with ENERGY STAR National
Activity - Sept. 2007
WI Focus on Energy
ME Energy Office
OR - Energy Trust of Oregon
VT Efficiency Vermont
ID Energy Division
NY - NYSERDA
WY Energy Office
MA RI NGRID NStar
Peoria TRICON
NY - LIPA
NJ - NJBPU
CO - E-Star Colorado Ft Collins Utilities
City of Bolder Colorado Springs
City of Anaheim So. California Edison
Existing Programs Launching Programs Considering
Programs
Atlanta Southface
Austin Energy
12
Home Performance with ENERGY STARMarketing
Toolkit
13
EPA/DOE Provide Guidance

• P1 - Proposed changes to HPwES quality assurance
  requirements
• P2 - Proposed minimum HPwES sponsor reporting
  requirements
• P3 - Proposed guidance for customer summary
  report
• P4 - Proposed HPwES certificate of completion
• P5 - Standard template for customer summary
  report
• P6 - Guidance on Post-Installation Tests and
  Inspections
• P7 - Job report review guidance and suggested
  follow-up protocols
• P8 - On-site inspection protocols
• P9 - Contractor feedback and corrective action
  guidance
• P10 - Customer survey guidance and suggested
  follow-up protocol
• P11 - Minimum contractor eligibility and
  participation guidance

14
Infrastructure Development

• Building Performance Institute
• Established standards
• Certifications for contractor staff
• Building Analyst, Shell Specialist, and HVAC
  Specialist
• Accreditation procedures for building performance
  companies
• Commitment to Whole House Approach
• Expanding to deliver nationally
• Growing network of BPI Affiliates
• Working with RESNET on common standards

15
Colorado Home Energy Makeover Contest
16
Maine Whole House Contest
Carpet and Rug Depot
Nu-Wool Cellulose
17
Maine Whole House TV Program

• Winning home from the Home Performance Makeover
  Contest was featured in a television show in
  which the MaineHP conducts an analysis of the
  home, recommends how to cut energy bills and
  demonstrates the installation of the
  energy-saving measures.
• Broadcast over 150 times at varying times to
  reach an anticipated viewing audience of over
  50,000 people
• Cross-section of local businesses and
  organizations donated products/services featured
  and provided other promotional consideration.
• Sponsors included Efficiency Maine, Maine Home
  Performance with ENERGY STAR, EPA, Northern
  Utilities, Lee Toyota, WarmTECH Solutions, Energy
  Kinetics boilers, Paradigm Windows and Carpet
  Rug Depot.
• Show excerpts produced as a separate DVD to be
  used by contractors to educate customers while
  contractors assess the house and other purposes

18
Strategic Goals of Home Performance Makeover
Contest

• Create homeowner awareness in a dramatic way
• Capture media attention with the program concept
• Prove that there is market demand for home
  performance to
• Contractors
• Program co-Sponsors
• Community Leaders
• Product/Service Providers
• Demonstrate the measures that pay for themselves
  through energy bill savings
• Demonstrate how to conduct a house performance
  analysis and communicate the results
• Model a collaborative process for home
  performance contractors to work together
• Constipate the traditional home improvement
  market!

19
Contest Process Description

• Plan contest promotion and recruit co-sponsors
• Pre-launch for employees, media and co-sponsors
• Launch contest and collect entries
• Screen entries and select possible finalists
• Screen finalists and select winners
• Announce winners
• Install improvements
• Conduct Home Energy Savings Workshops for the
  CONTEST LOSERS

20
Top 30 Rankings by MBTU/sq ft
21
Program Cost Components

• Contest Marketing/Publicity
• Contest Administration
• Prizes
• General Contracting for Audits and Improvement
  Installation
• Case Study Documentation and Publication
• Workshop Presentation and Publicity
• Program Consultation

22
Maine Contest Winner Report
23
Maine Contest Winner Report (continued)
24
Lessons Learned(Pioneers get the arrows...)

• Pick a typical home and saavy homeowner
• Award prizes based on building science rather
  than luck or need
• Focus media on winner AFTER measures installed
• Help losers do their own home performance
  makeover
• Cultivate media without playing favorites
• Rally all product/service providers for their
  conceptual as well as in-kind support but
  maintain overall control of messaging
• Showcase energy and non-energy benefits through
  the winners eyes

25
Integrating Energy with Non-Energy Benefits
26
Individual Recognition
27
Media Credibility
28
Unfair Competitive Advantage for your
ContractorsThat Inoculates Homeowners and
Embraces Stakeholders
29
8 Tips for Developing Marketing Communications
that Embraces Homeowners

• Communicate the link between tactics and
  strategies to employees, management and
  stakeholders
• Leverage national efforts like ENERGY STAR
• Be the whole house energy efficiency expert
• Help customers be smarter about how they use all
  energy in their home and work
• Integrate energy with non-energy benefits
• Translate energy savings to customer dollars,
  utility peak and global carbon reductions
• Hug your channel partners
• Link web, print and event efforts
• Steal the best practices and lessons learned from
  others to design implement your programs

30
To Learn More....

• Home Performance with ENERGY STAR
• www.energystar.gov/hpwes
• (compendium at www.hpwes.org)
• Maine Home Performance
• www.MaineHomePerformance.org
• Home Energy Makeover Contests
• www.HomeEnergyMakeover.org
• Market Development Group case studies
• www.marketdevelop.com