AESP Spring Conference

Moving Beyond Incentives:Using Program Data to Transform the Grocery

Marketplace in the PNW

Stephen AchillesMay 13, 2014

The data in our programs is a deeply underutilized opportunity.

A New Model

• Introduction

• The How

• Behind the success

• Implication

Overview

Markets Served

First Two Years - Mediocrity

• Started in 2005• Standard approach for a year and half• Measures installed• Free gaskets• Free vending misers• Low cost or free strip curtains

• Fly by night contractors

Three Changes

Trust Formula

Resulting Impact• 90% market penetration

• Expanded into related markets

• New technology

• introductions

• Over 250M kWh in top 4 years

HOW ESG USED DATA

Program Data

Audit data Installed Measures

Market TrendsIndustry relationships

Promotions: The $2M Drive for Savings

• Limited time promotion

• Bonus incentive dollars

• Measures of interest

• Improve the Grocer’s business

How it Worked

Grocer suggestion

Plan the promotion

Utility approval

Begin campaign

Campaign

• Select measures and incentives

• In-person, mail and e-mail/fax

• Utility involvement

• Limited time

Major Impact

• Demand increase

• Spoke grocer’s language

• Powerful call to action

• Market velocity

Buying Groups: Floating Head & Suction

How it Worked

Grocers interested but no purchased

Group prospects by geography

RFP Process

Begin projects

Major Impact

• Demand increase

• Price reductions of almost 30%

• Market awareness

• Pricing stayed low

• Reduced energy bills

Buy Down

How it Worked

Manufacturer interest

Grocer interest

RFP Process

Begin projects

Major Impact• Demand increase

• 38% price reduction

• Increased revenue for contractors

• Pricing stayed low

• Opened new markets

• Multiple measures implemented

BEHIND THE SUCCESS

Trustworthiness

𝐶𝑟𝑒𝑑𝑖𝑏𝑖𝑙𝑖𝑡𝑦+𝑅𝑒𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦+ 𝐼𝑛𝑡𝑖𝑚𝑎𝑐𝑦𝑆𝑒𝑙𝑓 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡

Market Knowledge

National Chains

Regional Chains

Local Chains

Independent Stores

Industry Associations

Ethnic Grocers

Refrigeration Contractors

Electrical Contractors

Data Accuracy

• RFPs

• Bidders requirements

• Additional incentive pool

• Future credibility

IMPLICATIONS

Market Transformation

Behavior Change

Market Aware-

ness

Demand Creation

Contact Information:

Stephen AchillesConserveNW

[email protected]

Save The Dates

For more information - www.aesp.org

AESP’s Summer ConferenceSan Francisco, CA

AESP’s National ConferenceOrlando, FL

Aug. 4-6, 2014

Feb. 9-12, 2015