What does this mean for energy providers?
Energy providers are in an acute period of transformation as they seek to become leaders in a net zero world, while simultaneously experiencing cost and margin pressures. Momentum for climate change, which was already building at pace, has now been accelerated by the COVID-19 pandemic.
The good news is that persuading consumers to adopt sustainable behaviours may not be as big a task as anticipated. As our research shows, consumers are ready and willing but not always able – because energy companies do not yet have the right products, services and strategies in place. The challenge here is to make it easier for consumers to turn awareness into action with simple and attractive options.
Energy consumers want more detailed, holistic data on their household energy management and carbon footprint. By meeting this need – for example, through an easy-to-use carbon footprint app – energy companies can both build trust and create powerful nudges to change consumers’ behaviour.
Localisation of products and services may also be a key factor in persuading customers to adopt new behaviours. Energy companies could see this as an opportunity to offer community energy schemes and demonstrate their local presence.
The willingness of many consumers – particularly younger generations – to pay a premium for sustainable services offers energy companies a potential route to success. Energy companies must respond by providing younger customers with carefully-targeted sustainable products and services that will satisfy demand and generate greater customer lifetime value.