1. The Energy Saving Trust: Consumer Segmentation Jon McGowan Head of Consumer Marketing July 2008

2. Our Mission is to lead 60m people to act on Climate Change Promoting the need for action Providing Info and Advice on what to do Offer practical support to help through advice centres, website, through the media and communities Our Vision and Mission - Emission Impossible http://www.energysavingtrust.org.uk/aboutest/who/emissionimpossible/

3. Who we work with Work with consumers: Householders Communities Employees Businesses Green Fleet Reviews Best Practice in Building Manufacturers / Retailers Public Sector Practical Help Nottingham Declaration

4. Importance of local authorities Own 20% of housing stock Run large fleets of vehicles Planning departments set building standards Renewable energy sources for community heating Channel to reach consumers Work with public & private agencies in local community

5. Energy Saving Trust consumer segmentation Segmentation developed to identify households with best potential for generating carbon savings through targeted marketing activities Bespoke segmentation developed with Experian –using the 61 Mosaic types –overlaying data of Household energy consumption Car use Environmental attitudes

6. Consumer segmentation

7. EST Mosaic UK Segments UK Household % 1.Environmentally Mature 9 2.Educated Advocates 9 3.Discerning Elders 5 4.Comfortable Conservatives 9 5.Britain Today 9 6.Restful Retirement 6 7.Driving Dependency 10 8.Financially Burdened11 9.Ethnic Tradition 4 10.Environmentally Indifferent28

8. 1 Environmentally Mature High consumers of HH and vehicle energy. 2 Educated Advocates Critical Gp in next few yrs as lifestyle will develop to larger homes and more cars 3 Discerning Elders Energy bills still quite high. Moderate vehicle ownership 4 Comfortable Conservatives HH and vehicle emissions above average – scope for reducing emissions 5 Britain Today HH & vehicle emissions not high. Below average attitude towards environment 6 Restful Retirement Those that are independent will want to save money & so potentially interested in saving energy 7 Driving Dependency Relatively new houses with lowest CO2 emission score 8 Financially Burdened New large housing. Demands of family make energy consumption relatively high 9 Ethnic Tradition High proportion of extended families resulting in high energy consumption CO2 emissions just below average. Vehicle ownership low 10 Environmentally Indifferent

9. Guiding central marketing strategy

10. Local marketing tactical tool Local advice centre network Set targets to focus on key segments Developed toolkit –Local profile –Ward counts, maps –Marketing matrix

11. Developing segmentation insights Database profiling –Customer contacts by advice centre –Grants applicants –Website commitments Research –Behaviour and attitudinal tracking

12. Advice centre feedback - contact profiling

13. Renewables grant programme

14. Linking to other research models Not accepting problems, or simply unwilling to change Willing to change, not doing anything at moment Small behaviour change Larger behaviour change Q5a Thinking about your overall attitudes towards energy usage and climate change, which of these statements best reflects how you currently feel? LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 6 Base: Total Sample (1192) Good correlation between the EST Segments and the six levels of behavioural change – Feb 07

15. Use at local level –North East

16. Identifying hot spots to target Overlaying segmentation on GIS mapping of database of home characteristics Maps: - GIS map showing CWI potential in NE - GIS map showing distribution of top EST segments (this map includes groups: 1,3,4 & 5) analysts then combine both maps and extract a data address file for 'hotspots' - areas with a high proportion of unfilled cavities and also a high proportion of top segments.

17. GIS map showing CWI potential in NE

18. GIS map showing distribution of top EST segments

20. Boosting response rates through targeting and tailoring Non tailored mailing – – simply offering the 0800 number - response rates +/- 5% Normal response (no targeting) mailing to all segments – non 'hotspot' approach e.g. a council tax mailing, returns at approx 5% Better response from certain segments – – In LA areas with a low population of 'top segments' (below 15%) - return rate as low as 2-3% –compared to areas with a high population of EST segments (over 50%) - generated an 8.6% return

21. Evidence of success: North East Combining HEC mailer with council mail-out to 394,839 households –8% response rate segments 1 - 4 –4% response rates segments 5 -10 % response

22. Hotspot mailing materials

24. Tailored Home Energy Check

25. Excellent response rates Hotspot tailored marketing – (segments 1, 3, 4, 5) –1. Mailing to top segments within Castle Morpeth area offering a Home Energy Check (HEC). –Posted out to 4600 homes, 520 HECs returned = 11.3% return –2. Mailing to top segments within Derwentside area offering a HEC. –Posted out to 5520 homes, 724 HECs returned = 13.1% return.

26. Local authority emissions model Combined Defra and EST /Experian emission data and segmentation model to –Rank LA in household+ car emissions per household –Identify segments responsible within each authority –Engage with selected authorities to target high potential areas

27. Areas with highest CO2 emissions per household

28. Teesdale – who to target

29. The Energy Saving Trust: Consumer Segmentation Further details – Jon.McGowan@est.org.uk