SMUD’s SmartPricing Options Marketing Strategy Jennifer Potter July 31, 2014 Powering forward. Together.

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Marketing objectives

Marketing objectives and strategy Encourage SMUD customers to participate in a SmartPricing Options plan by educating them on –(1) the rate and time-variant pricing and –(2) the benefits of reducing their energy use during the summer’s critical peak periods. Develop a portfolio of materials to support each combination of recruitment strategy, rate design, and technology offer. –Portfolio will educate customers on the foundational concepts of: time-variant pricing challenges caused by peak demand how peak consumption impacts customers and the environment 4

What customers want: Specific information about peak hours, examples of ways to conserve electricity. Industry terms explained clearly (e.g., kWh, peak hours) and examples that help them understand the possible savings involved. Low-cost or no-cost measures that are easy to implement. Messages that have a friendly tone and easily connect conservation with saving energy and money, and helping the environment. Realistic situations and images in materials. Locations that appear to be in or around Sacramento. 5

Marketing – recruitment

Recruitment strategy Marketing activities included a mix of channels and tactics and a phased approach: –Phase 1: Pre-recruitment education –Phase 2: Recruitment –Phase 3: Recruitment & notification 7

Pre-recruitment education campaign Print ad Web ad Savewithsmud.org

Recruitment campaign 2011 Recruitment – direct mail web & print ads microsites 2012 Recruitment & notification – direct mail web & print ads microsites door hangers outbound calling 9

Opt-in brochures 10

Microsites 11

Follow-up postcards 12

Mass media web and print ads 13

Mass media campaign web landing page 14

Door hanger campaign 15

Opt-out brochures 16

Recruitment channels and enrollment 17

Marketing - Retention

Retention & education strategy To provide participants with tips and tools on how they can manage their energy use to be successful on these rates. Channels & Tactics Welcome packet Social media –Facebook groups for each combination of recruitment strategy, rate design, and technology offer –YouTube –Pinterest Sweepstakes & giveaways Welcome back kit (for second summer) 19

Welcome packet 20

Yesterday’s Data Today 21

Educational videos 22 Learn more Learn more about how time-of- use electricity pricing works. Learn how Learn how to manage your electricity use with the charts in My Account.

Online energy saving tips Staying cool. Air conditioners are one of the biggest energy users during hot summer days. Reduce your use and set your thermostat to pre- cool your home before 4:00 p.m. Then turn your thermostat up a few degrees higher from 4:00 p.m. to 7:00 p.m. and use fans to help cool your home. Interactive charts 23

Facebook 24

Facebook contests 25

Pinterest 26

Electricity Use Display postcard 27

Infographics 28

Educational game 29

Retention goals Over 100% of our retention goals in all but one treatment group. Most drops are due to customer moves. Attrition is at 8% for opt-in groups and 10% for opt-out groups. 30

Customer Satisfaction

Customer satisfaction is very high for all pricing plans and there is no real difference across plans Page 32

Customers on the standard rate are less likely to think their pricing plan is fair than customers on any of the time based pricing plans Page 33

Customers on the standard rate are much less likely to think their pricing plan provides them with opportunities to save money 75% of opt-in customers feel that their pricing plan gives them opportunities to save money. There are no meaningful differences in responses between customers on CPP or TOU plans. Page 34

Roughly half of default customers and more than 70% of opt-in customers think SMUD should offer their plan to all customers Almost no one feels somewhat or strongly that the plan should not be offered to others. Page 35

Three quarters of opt-in customers and roughly half of default customers indicate they would like to stay on their pricing plan 5 to 10% of respondents said they somewhat or strongly disagree with this statement. Page 36

Lessons learned On Facebook, customers are more responsive to simple Q&A type contests. When customers understand goals, it increases satisfaction. Focus on the benefit to the customer. Eliminate the Welcome Back letter and just send the Welcome Back Kit. The letter generated drops from the program. Boost website traffic by starting the summer with a big promotion, like The Home Depot Grill Sweepstakes. 37