GREEN POWER STRATEGY: What are you really selling, and to whom are you selling it? This is the second in a series of discussion papers about strategy, brand, and marketing issues, from a customer-centric perspective.

Less than 3 percent of your customers will choose green power, if offered the choice. This estimate is evidenced both in our research and the experience of a growing number of utilities. In addition, green initiatives will take money, time, and resources away from other areas. So why bother, if so few customers are interested?

Because a much higher percentage of your residential customers find value in having options or choices, including the option of choosing green power. In our research and in national polling, a substantial majority of residential customers like the idea of green power and have indisputably said so for years. Do they all choose it? Of course not! Therefore, your strategy, communications, and customer value articulation should not be aimed primarily at those who will most likely choose green power. You should have bigger game in mind. Offering green power is a vehicle for you to:

• Enhance customer value
• Improve corporate image
• Increase customer satisfaction
• Inoculate yourself against some of the negatives associated with fossil fuel facilities
• Sell energy efficiency and green-related products and services
• Build channel power by encouraging visits to your web site
• And, oh yes, sell green power

The Components
A comprehensive green strategy has a number of components. Naturally, the order in which you address these components will vary depending on your specific market and customer characteristics.

• Tangible actions and results – Highlight any green-related developments with pictures, tours, and educational information. Partnering with local environmental organizations can also provide support. It is important that you visibly embrace these activities.
• Message strategy – Content, context, timing, and target, are critical issues. There are a number of constituencies (including regulators) on which you will want to have an impact. We have seen dramatic differences in how people respond to messages, depending on when the message is delivered and the circumstances surrounding it.
• Corporate image – In our research we have found that residential customers have the expectation that their utility will be a good corporate citizen. Customers believe that good citizenship includes supporting their communities, being honest and trustworthy, and being a good steward of the environment. However, utilities frequently receive low scores on issues such as "cares about me as a customer," "is innovative," "is willing to change," and "is environmentally responsible." As a result, green initiatives can be a tool for directly improving these aspects of corporate image.
• Channel power - There are many other potential ways to leverage green initiatives. Link the green initiative information to your current web page on DSM and AMR issues -- will many people use that information? – maybe not, but it is still good to have it there. Provide energy conservation and insulation information, along with energy efficiency ratings of various appliances. Make your web site a resource center for information, advice and eventually, links to channel partners.

Target Market

• Everyone who thinks that a utility monopoly means not having choices
• Everyone who thinks that having choices is a good idea
• Everyone who thinks that it is important for their utility to be a good steward of the environment and a good corporate citizen
• Everyone who likes the idea of green power, and of course,
• Everyone who would like to do their part to help the environment.

Conclusion
Remember, the goal is not turn your company into a tree hugger, or to become the largest provider of green power, or even to make a lot of money from selling green power. The goal is to improve your customers’ perception of you as a responsive and responsible steward of resources and a trusted resource for information.

Longer term, the goal is to extend your brand to become part of your customers’ choice set when they are looking for energy-related, products and services as well as a trusted information channel for other company approved suppliers of products and services. (See article "Spreading Your Brand Umbrella" at www.energymarketsolutions.com for an overview of strategic brand building.)