E Source Identifies Who Is Most Likely to Participate in Energy-Efficiency Programs

E Source Announces Four Segments of Energy-Efficiency Buyers for U.S. Households. End Quote

(1888PressRelease) August 18, 2010 - BOULDER, CO - E Source has developed "Four Segments of Energy-Efficiency Buyers," a method for segmenting U.S. households that identifies their readiness to participate in demand-side management (DSM) programs, particularly those focused on energy efficiency. These four segments can be used by utilities and efficiency implementers to better market DSM program offerings and to better understand the motivations of the consumers in each segment. The four energy-efficiency segments are:

EE AchieversTM (12 percent of the population). The EE (energy-efficiency) Achievers segment includes those customers most engaged with DSM programs. They have demonstrated willingness to participate in more than one DSM action, which could include recent rebate activity, weatherization, audits, load management, or more than one compact fluorescent lamp purchase. E Source considers this the prime target segment for additional DSM programs.

EE AnticipatorsTM (26 percent). The EE Anticipators segment is dominated by customers who are very inclined to participate in DSM programs but have not yet done so extensively. They have some of the same demographic characteristics and attitudes as the EE Achievers, and they say they will start participating in the coming 12 months. We consider the EE Anticipators to be a strong secondary audience for DSM programs.

EE UncommittedsTM (25 percent). Although consumers in the EE Uncommitteds segment show high interest in saving money through saving energy, they are not ready to commit to participating in utility programs. EE Uncommitteds appear to have significant barriers to participation and could therefore be a good segment for low-cost and no-cost approaches to energy savings.

EE IndifferentsTM (37 percent). The EE Indifferents, our largest segment, is the least promising target audience for DSM program marketing. They are taking very few, if any, DSM actions. They are also the least enthusiastic about saving money through energy savings.

These segments can be used for marketing purposes by linking with Nielsen Claritas PRIZM geodemographic data or other customized approaches. E Source research is based on a 2009 Nielsen Claritas national survey of 32,471 U.S. respondents. The survey focused on products and services as well as the saturation of appliances and equipment. Residential customers were asked about their current and planned participation in more than 20 programs, products, and services, including efficiency programs, load management, utility billing options, and value-added services. In addition, E Source conducted an exhaustive analysis of 50 energy-using home appliances and equipment, including computers, entertainment equipment, major appliances, HVAC equipment, and other less-common equipment such as well pumps and backup generators.

"Understanding exactly what customers need and want from their utility is critical to developing energy-efficiency programs and demand-response plans that get results," said E Source Research Manager Alexandra Behringer. "Our research shows that after participating in one DSM program, the chances that a customer will participate in another DSM program nearly doubles-and keeps increasing over the next several programs in which they participate."

These four segments were featured in "Energy-Efficiency Segmentation," an E Source report written by Behringer. E Source also developed two reports from the national residential energy-use studies: "Residential Products and Services Survey" by Ethan Brown and Bill LeBlanc, and "Residential Appliance and Equipment Survey" by Brown.

Learn more about how E Source can customize this energy-use data for a specific utility's service territory or region at www.esource.com/Residential_Energy-Use_2010.

About E Source
E Source has been providing unbiased, objective energy business intelligence to over 300 utilities and large energy users for more than 20 years. Our research analysts and consultants are among the best minds in the business, delivering significant and timely research that equips our customers with the right information at the right time to make better, faster decisions. We predict and address trends, technologies, and problems related to energy efficiency, utility customer satisfaction, program design, marketing, customer management, and sustainability. For more information, visit www.esource.com.

Public Relations Contact
For information about scheduling interviews with the research staff or service manager involved with this study, please contact:
Wendy Bloechle, Director of Marketing, E Source
wendy_bloechle ( @ ) esource dot com
303-345-9158

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