WRITTEN BY jESSE HITCHCOCK & ANGELICA PEREIRA ∙ TORONTO, ONTARIO

Segmentation is important because it allows a utility to focus on serving customers the way they like to be served. More importantly it provides their customers with the necessary knowledge to help them really understand their energy consumption as well as ways the utility can help them reduce that consumption. Breaking customers into smaller, data-driven segments helps utilities really understand the savings potential of buildings in their service area and decide exactly how to reach them  -- this is the essence of  customer segmentation. 

The intelligent, data-driven segmentation of customers with few inputs and no requirement for consumption data is what makes Retrofit AI stand out from other customer engagement, customer segmentation and even virtual energy auditing tools. Retrofit AI leverages data science to perform evaluation-grade building analyses, enabling utilities to predict what their customers need to live more comfortably in their homes and what retrofit opportunities would be most fruitful. 

Retrofit AI allows utilities to turn a few basic data inputs into evaluation-grade building analyses for their entire customer base. A robust machine learning engine enables these  virtual audits that can then intelligently sort customers based on program qualification or how much energy their buildings can potentially save. The customer input for such functionality is minimal to none, giving them a seamless experience and bolstering the propensity for savings and energy efficiency program participation. 

The healthcare industry is a great example of skillful and applied segmentation. If a patient walks into a hospital complaining about chest pain, the nurse does not send them to a heart surgeon. They are triaged. The patient may need to either go to a pharmacy, see a General Practitioner, see another specialist or, ultimately, see the Heart Surgeon. Similarly, energy efficiency programs are not made for every single customer and not every single home needs an intensive on-site audit. Retrofit AI triages all customers’ homes and allows a utility to focus their efforts on homes that could save the most and need retrofitting. 

There are many ways a utility can benefit from segmenting their customers: 

Achieving Savings Targets
More audits yield more efficiency. Retrofit AI can virtually audit homes in a way that is accurate and scalable. Once audited, utility customers are segmented, prioritized and those customers that actually require retrofit services are targeted to make sure that dollars are spent on those who need it the most. This process maximizes the energy savings that deep retrofit programs can deliver.

Understanding Customers
By gaining evaluation-grade insights into customers buildings, a utility can customize a curated list of recommended rebates, incentives and programs for their customers as well as the associated cost saving potential. Due to the nature of energy efficiency programs, each segment consists of a large volume of customers. 

A customer can be provided with tailored messaging for specific services and utilities can ensure that customers get the best customer experience. Today’s customers are sophisticated and are demanding relevant, personalized offerings from their service providers. This is no longer optional. Segmentation offers utilities the opportunity to understand which customers are most  in need of services, and which customers stand to benefit the most from retrofit programs.

Return on Investment
Energy efficiency programs do not require a mass marketing method, but they do need to manage free-ridership. The entire utility customer base is not going to benefit from seeing an advertisement regarding deep retrofit programs, and spending program dollars to engage and audit ineligible or low-impact customers is detrimental to cost-effectiveness. Retrofit AI allows the utility to allocate resources where they will be most impactful, and similarly allows the customer to understand the cost and opportunity associated with potential upgrades. Overall, this segmentation allows a utilities marketing team to reduce their workload and focus on the marketing message for program enrollment. 

Brand Loyalty and Awareness
Modern utilities are striving to build relationships with their customers and stay top of mind. We know that being continuously reminded of the value of a service or product encourages customers to engage with new services and offerings, and this bodes well for the future programs offered by a utility. Providing these thorough building analyses will bolster this relationship with the customer and set the stage for success.

Now is the time for utilities and other energy efficiency delivery organizations to leverage innovative technology to bolster their program success. Retrofit AI offers the opportunity to turn a few basic data points into robust building analyses that can inform programs, segment customers, and meet the goals and targets of tomorrow.