Millennials’ Strong Interest in New Products and Services Will Drive the Most Future Value for Energy Utilities, But They Are Much More Demanding Consumers, Finds Research From Accenture
Connected living solutions, solar and other digital products and
services are at the top of their list
Consumer demand for new energy-related products and services is high,
especially for millennials (ages 18-34), demonstrating that this group
will drive much of the future value for energy providers, according to
new research by Accenture (NYSE:ACN).
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Accenture’s seventh annual survey of energy consumers explores the views
of almost 10,000 respondents across 17 countries. The report, The
New Energy Consumer: Thriving in the Energy Ecosystem found that
a large demographic, millennials, bring a strong influence on key
consumer engagement trends amid an increasingly complex set of
competitors vying for energy products, services and experiences.
Millennials want to be the first to sign up for new energy products and
services – 24 percent of that demographic are classified as early
adopters, compared with 17 percent among the 35-54 age range and seven
percent of those over 55. Additionally, 22 percent of millennials said
they wanted to experiment with new technologies, which was higher when
compared with other age groups (15 percent for those aged 35-54 and six
percent for those aged 55 or over).
Millennials, for example, are very receptive and far more likely to
consider distributed energy resources (DER) products and services after
receiving related information -- 87 percent compared to 60 percent among
those over 55. Almost 80 percent said they’d be more satisfied if
offered an in-home digital assistant and monitoring service that
suggested customised new products and services offers, compared to 62
percent of respondents over 55 years of age.
When it comes to in home energy management, 61 percent are likely to
sign up for an application to remotely monitor and control home elements
in the next five years vs. 36 percent of those over 55. Notably, 56
percent of millennials, twice as many as people over 55, are likely to
sign up for solar panels in the next five years.
Millennials: a generation more demanding of their energy providers
Millennials
view energy and engage in a far deeper way with energy providers and
from a completely different vantage point. While there’s obvious demand
for new products and services in this space from them, they want
information, and they want everything to be instantaneous and accessible
on their terms.
Millennials’ expectations when it comes to use of digital channels are
also higher. For example, they attach more importance than older
demographics to a personalized experience across digital channels as
well as access to the latest digital technologies that enable them to
interact with their energy providers. Moreover, 83 percent would be
discouraged from signing up for additional products and services if
their provider could not provide a seamless experience.
“Energy providers must take these and other insights about these groups
to heart, to unlock value, because consumers’ preferences and behaviours
are rapidly changing the market landscape,” said Tony Masella, managing
director of Accenture Energy Consumer Services. “Successful energy
providers will place design thinking at the heart of their business and
view customer and retail operations as a strategic asset.”
Engaging with this growing influential group
The survey
showed that utilities have substantial opportunities to engage with
millennials as they gain in influence over other consumers.
For example, 41 percent of millennials interact more frequently with
their energy provider using social media, and they would also be more
satisfied if they could log into their provider’s portal via social
media credentials.
The survey also showed that new value propositions are of higher
interest to millennials. Seventy-seven percent would be interested in an
online personalized marketplace to select and purchase energy-related
products and services. Additionally, just over a third would be
interested in automated home solutions and would be willing to pay for
them.
“Customer strategies must take a broad view of the trends shaping
today’s consumers, and more importantly, the consumers of tomorrow,”
said Masella. “To thrive, energy providers must move quickly to
architect their transformation, build new capabilities to seize new
opportunities, achieve scale and continuously innovate using
digitalization, automation and multi-faceted operations.”
About the research
The multi-year New Energy Consumer
research program is designed to help utilities understand emerging
consumer needs and preferences, to identify new challenges and
opportunities and to bring focus to the critical competencies required
to succeed in the evolving energy marketplace. The program draws upon
primary research insights from end consumers around the world, leading
practices from industry and cross-industry providers, and technology
adoption analysis.
Methodology
Accenture’s seven years of global research
surveys are based on questionnaire-led interviews with end consumers.
Surveys were conducted online in native languages for Accenture by
Harris Interactive. The selected countries represent a range of
regulated and competitive markets. In 2016, a total of 9,537 interviews
were conducted in 17 countries, including 1,358 in the United States,
647 in the United Kingdom, 532 in Canada, and 500 in Australia, Brazil,
China, France, Germany, Ireland, Italy, Japan, Malaysia, the
Netherlands, Philippines, Portugal, Singapore and Spain. For residential
consumers the survey sample was statistically representative of the
general population in each country, with the exceptions of Brazil,
China, Malaysia and Philippines, where the sample was representative of
the urban populations. For countries with large and/or diverse
populations, participants were selected from a broad spectrum of
locations. The surveys included attitudinal, behavioral and demographic
questions.
About Accenture
Accenture is a leading global professional
services company, providing a broad range of services and solutions in
strategy, consulting, digital, technology and operations. Combining
unmatched experience and specialized skills across more than 40
industries and all business functions – underpinned by the world’s
largest delivery network – Accenture works at the intersection of
business and technology to help clients improve their performance and
create sustainable value for their stakeholders. With approximately
373,000 people serving clients in more than 120 countries, Accenture
drives innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
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