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Moving Beyond Incentives:
Using Program Data to Transform the Grocery
Marketplace in the PNW
Stephen Achilles
May 13, 2014
A New Model
• Introduction
• The How
• Behind the success
• Implication
Overview
Markets Served
First Two Years - Mediocrity
• Started in 2005
• Standard approach for a year and half
• Measures installed
• Free gaskets
• Free vending misers
• Low cost or free strip curtains
• Fly by night contractors
Three Changes
Resulting Impact
• 90% market penetration
• Expanded into related markets
• New technology
• introductions
• Over 250M kWh in top 4 years
HOW ESG USED DATA
Program Data
Audit data Installed Measures
Market TrendsIndustry relationships
Promotions: The $2M Drive for Savings
• Limited time promotion
• Bonus incentive dollars
• Measures of interest
• Improve the Grocer’s business
How it Worked
Grocer suggestion
Plan the promotion
Utility approval
Begin campaign
Campaign
• Select measures and incentives
• In-person, mail and e-mail/fax
• Utility involvement
• Limited time
Major Impact
• Demand increase
• Spoke grocer’s language
• Powerful call to action
• Market velocity
Buying Groups: Floating Head & Suction
How it Worked
Grocers interested but no purchased
Group prospects by geography
RFP Process
Begin projects
Major Impact
• Demand increase
• Price reductions of almost 30%
• Market awareness
• Pricing stayed low
• Reduced energy bills
Buy Down
How it Worked
Manufacturer interest
Grocer interest
RFP Process
Begin projects
Major Impact
• Demand increase
• 38% price reduction
• Increased revenue for contractors
• Pricing stayed low
• Opened new markets
• Multiple measures implemented
BEHIND THE SUCCESS
Trustworthiness
𝐶𝑟𝑒𝑑𝑖𝑏𝑖𝑙𝑖𝑡𝑦 + 𝑅𝑒𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 + 𝐼𝑛𝑡𝑖𝑚𝑎𝑐𝑦
𝑆𝑒𝑙𝑓 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
Market Knowledge
National
Chains
Regional
Chains
Local Chains
Independent
Stores
Industry
Associations
Ethnic
Grocers
Refrigeration
Contractors
Electrical
Contractors
Data Accuracy
• RFPs
• Bidders requirements
• Additional incentive pool
• Future credibility
IMPLICATIONS
Market Transformation
Behavior
Change
Market
Aware-
ness
Demand
Creation
Contact Information:
Stephen Achilles
ConserveNW
800.789.4389
sachilles@conservenw.com
www.conservenw.com
Save The Dates
For more information - www.aesp.org
AESP’s Summer Conference
San Francisco, CA
AESP’s National Conference
Orlando, FL
Aug. 4-6, 2014
Feb. 9-12, 2015

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AESP Spring Conference

Notas del editor

  1. “If you have get a third of the grocers to do something you will be a rock star.” Highly remote – pop of 13.5M and target population of 7M Some of the lowest electric rates in the country ($0.03-$0.075 per kWh) 400M sq ft covered about 220M (3rd largest state (Cal is 163.7) or (almost 18 Marylands) Harney Electric Cooperative: territory is the size of West Virgina – they have 4,000 customers
  2. THEME: We looked at this as a business and not an energy efficiency program Rebuilt the program with a customer focus Hired different people, focus on customer Trust formula Tell 3 stories : May Au The Mikes Paul
  3. Within 4 years
  4. Big vs Small data Big data will be able to predict opportunities Small data uses what we have
  5. Grocers know promotions so we used their tools
  6. It started when a grocer commented to a field rep – “You should run a sale. You know we understand a sale.” We planned a promotion and built it with the utility We selected key measures and incentive increases Cost of sales Price will fall and not return
  7. We did what a grocer would do … we ran a promotion We did it ourselves – limited marketing expertise We focused on measures that were identified as a frequent opportunity but not selected. We then used our market knowledge to focus on 3 measures: Case motors Case curtains Fred Meyer/Kroger story
  8. We tripled expectations What are we going to do next
  9. Ask question: Who is familiar with this measure A complex measure – lots of interest but too expensive A promotion was not going to work – limited providers The cost of sales is high
  10. Define a Buying Group Over 120 interested but did not buy Over 60 would join the effort Over 50 stores Cost of sales Again: Price will fall and not return Spinoff effect was large – within 18 months twice the number of projects were completed
  11. Not just for residential
  12. Lots of industry players GE Story
  13. GE story Kroger/Fred Meyer story Product had to be brought in from other markets All in a territory with some of the lowest rates in the country
  14. The data is not enough
  15. If the market does not trust you this will not work Market knowledge: Ryon – top contractor Ali – ethnic grocers Mike – grocer of the year
  16. The data makes it happen but market knowledge is key to a great program
  17. The data is not enough
  18. Positive feedback Market Transformation: Demand increase Market price dropped Increased awareness Get people excited about energy Changed behavior
  19. Positive feedback