Digital Marketing Archives - Page 5 of 13

The Benefits of Personalized Videos for Utilities

With the proliferation of digital media and communication channels, capturing the attention of utility customers is more challenging than ever. As businesses compete for attention, one tool has risen above the rest in its ability to engage and captivate: personalized video. Recognized for their unique ability to connect with viewers on a deeper level, personalized videos are revolutionizing the way we communicate with customers.

Imagine opening an email from your favorite company. Instead of a generic message, there’s a video made just for you. It addresses you by name, discusses your unique needs, and offers tailored discounts or information for products that you’re interested in.

As futuristic as it may sound, the reality is that personalized video is available now, and many companies are already embracing this powerful marketing tactic.

“Personalized video combines the entertainment value of video marketing with the data-driven targeting of other digital tactics,” says Brian Lindamood, Questline Digital’s VP of Marketing and Content Strategy. “The ability of a video message to speak directly to each customer leverages all the best aspects of digital engagement in a uniquely powerful way.”

Personalized videos can lead to higher retention and conversion rates, as well as increased customer engagement. In fact, data shows that using personalized calls-to-actions (CTAs) result in 202% more conversions than those without. Building on the success seen in other industries, utilities can now harness this tool foster stronger relationships and drive customer satisfaction.

The Emergence of Personalized Videos

The rise of video marketing is hardly surprising given its unique ability to convey complex messages succinctly, evoke emotions and create a sense of connection. Data shows that 80% of customers are more likely to purchase from a brand that provides these tailored, emotional experiences. Today, video is not just an add-on to a digital marketing strategy, it’s an essential component that can significantly enhance your utility’s visibility and impact.

Quotation from Adobe - Personalized videos get 16x more click-throughs compared to non-personalized videos

One facet of video marketing that’s gaining widespread popularity is personalization. By tailoring messages to each customer, businesses can make customers feel more valued and recognized. Personalized videos leverage customer data to create a unique viewing experience for each individual. This could be as simple as addressing the viewer by name or as complex as providing product recommendations based on their interests and engagement history.

For utilities, this could mean personalized program recommendations based on a customer’s energy use, explaining changes to a bill, introducing a new rate plan, updating customers on relevant energy efficiency programs, and more.

The result? A powerful marketing tool that stands out from the digital clutter and resonates on a personal level with customers.

Several leading brands have already harnessed the power of personalized video marketing to deliver exceptional results. For example, in Nike’s “Outdo You with Nike+” campaign, the company used personalized videos to connect with customers. Each video was tailored with information from a user’s location, activity and personal Nike+ movement data, providing a unique and highly personal viewing experience. This innovative approach not only helped Nike connect with their audience, it also motivated customers to achieve their fitness goals.

Spotify’s end-of-year Wrapped campaign is described as “all about celebrating the endless ways that millions of creators and fans connect through audio each and every day.” Through the “Made for You” recommendations and usage data, Spotify is able to provide personalized videos to each user at the end of the year that allows them to view summaries of their activity. Spotify includes the names of the listener’s top musicians and songs, genres and their listening personality, all delivered in a seamless personalized video.

Why Personalized Videos? Why Now?

The sudden surge in the popularity of personalized videos can be attributed to several factors. In today’s digital age, consumers increasingly expect personalized experiences that cater to their specific needs and preferences. In fact, 71% of consumers expect companies to deliver personalized interactions, and 76% get frustrated when this doesn’t happen.

Personalized videos meet this expectation by providing content that is tailored to each viewer’s individual circumstances and preferences. Moreover, personalized videos have proven to be highly engaging and effective at increasing customer retention and conversion rates. According to Adobe, personalized videos get 16 times more click-throughs compared to non-personalized videos.

Personalized videos can also help brands stand out in the crowded digital landscape, providing a unique and highly personal viewing experience that can capture the customer’s attention and leave a lasting impression. This not only increases the likelihood of the customer taking the desired action, but also strengthens their relationship with your utility.

“Personalized videos really help utilities connect with their audience on a deeper level and drive more effective engagement,” says Lindamood. “With relevant, targeted content like this, customers can see that their utility understands and respects their preferences, which is the foundation of a successful, long-term digital relationship.”

Additionally, with the rise of digital technologies and data analytics, creating personalized videos has become more accessible and cost-effective, further contributing to their use as a key marketing tactic in a wide variety of industries.

5 Benefits of Personalized Videos

Personalized videos allow utilities to connect customers with relevant information based on their interests and information. This tool also has the ability to deliver complex information, such as energy usage or billing details, in a clear, concise and engaging manner. The goal is to enhance customer understanding and interest by creating content that speaks directly to them, addressing their specific needs and circumstances.

The benefits of personalized videos for utilities are substantial, including:

Simplifying complex information
Enhancing customer engagement
Driving behavioral change
Boosting customer satisfaction
Building strong customer relationships

Simplifying complex information

Personalized videos are an effective tool for simplifying complex information. They leverage the power of visualization to break down intricate concepts or data sets into digestible, easy-to-understand content.

For example, your utility can use a personalized video to explain a customer’s energy usage pattern or billing details, using animated charts and customer-specific data. This not only makes the content more relatable but also helps customers better understand their consumption patterns or charges.

By presenting complex information in a clear and engaging manner, these videos can significantly improve customer comprehension, reduce confusion and enhance overall communication effectiveness. Additionally, by improving customer understanding, your utility will foster greater trust and transparency in the long run.

“Energy technology, programs and rate options are getting more complex,” says Lindamood. “It’s critical for utilities to use a communications tool that can effectively educate customers about these topics and help them take control of their energy use.”

Enhancing customer engagement

Let’s face it — customer attention spans are short and competition is fierce. By leveraging customer-specific data and presenting it in an engaging, visual format, personalized videos can cut through the clutter to deliver information in a way that resonates with each viewer.

This relevance and personal touch can lead to higher view rates, longer watch times and more meaningful interactions, all of which translate into increased customer engagement and program participation.

“When customers complain about receiving too many marketing messages, what they mean is they get too many message that they’re not interested in,” explains Lindamood. “Customers are willing to spend time with messages that they are interested in. A useful, relevant message isn’t considered to be clutter at all. That’s why personalization is so important for all digital marketing tactics, including video.”

Driving behavioral change

By presenting usage data in an engaging and accessible way, personalized videos can make customers more aware of their consumption patterns and the impact they have on both their bills and the environment.

For instance, a video showing a customer’s energy use over time, compared to more efficient usage scenarios, can be a powerful motivator for change. It can prompt customers to adopt more energy-efficient behaviors, such as turning off lights when not in use or optimizing heating and cooling systems. This not only helps customers save money but also contributes to broader sustainability goals. Personalized videos can also be used to recommend specific programs or products that a customer might be interested in based on their behavior and preferences.

Through personalized insights, recommendations and clear visualizations, personalized videos can inspire proactive change and foster more responsible consumption habits among utility customers.

Boosting customer satisfaction

One of the common challenges in the utility industry is making customers aware of programs or services that are relevant to them or could assist them, such as rebate programs. Personalized videos can address this challenge by presenting such information in a clear and personalized manner. This can improve customer understanding, reduce confusion, and ultimately lead to higher customer satisfaction.

Additionally, personalized videos focus on relevant recommendations, only promoting programs that a customer is eligible for and likely interested in — and not promoting programs that don’t apply to the customer.

By proactively addressing customer needs and concerns through personalized content, utilities can make their customers feel valued and well-served, further boosting satisfaction levels.

Building strong customer relationships

Personalization as part of any digital marketing strategy shows customers that their utility knows them, understands their needs and values their business. This can foster a sense of connection and trust with the customer. Moreover, by providing useful, personalized recommendations, such as energy-saving tips based on a customer’s specific usage patterns, utilities can position themselves as helpful, trusted energy advisors rather than just service providers. This can enhance customer loyalty and strengthen long-term relationships.

Best Practices for Creating Personalized Videos

Implementing a successful personalized video marketing strategy involves several best practices.

One of the most important aspects to consider is exactly how to make the content more relatable. To achieve this, it’s crucial to understand your audience’s needs and preferences, and use customer data to tailor the content to each viewer’s specific circumstances. This also means not only personalizing the content based on individual data, but also considering factors like the viewer’s stage in the customer journey, their specific needs and interests and current trends or events.

Storytelling can be a powerful tool for personalization. By weaving customer data into a compelling narrative, you can create a more immersive and emotionally engaging viewing experience. Remember, the goal is not just to present data, but to use that data to create a connection with your customers.

Keeping the content relevant and concise is another best practice for creating effective personalized videos. Customers’ time is important, which is why it’s essential to deliver your message quickly and clearly. Avoid including unnecessary details or complex jargon that could confuse viewers. Instead, focus on the most important information that your customers need to know and present it in a straightforward manner.

Additionally, an effective personalized video should always include strong calls-to-action (CTAs). The CTAs are what prompt your customer to take the desired action after watching the video, whether that’s signing up for a service or adopting more energy-efficient behaviors. Make sure your CTAs are compelling and easy for the viewer to carry out.

It can also be beneficial to personalize the CTA based on the viewer’s individual circumstances or the specific content of the video. For instance, if the video shows a customer’s high energy usage during peak hours, the CTA could drive customers to sign up for your utility’s time-of-use (TOU) rate plan and encourage them to shift some of their usage to off-peak times. This not only makes the CTA more relevant, but also helps drive more effective behavioral change.

You also need to consider the length of the video; if it’s too long, you might lose customers’ interest before they even arrive at your CTA. Typically, the shorter, the better. Consider the most concise point you’re trying to make and keep the story as succinct as possible.

It’s important to remember that personalized videos should only be one part of your marketing strategy. “Some topics and program promotions really lend themselves to personalized videos. But some may also benefit from follow-up email campaigns, SMS, or other digital outreach,” says Lindamood. “Personalized videos are an important tactic, but they should be part of an overall mix to reach different customers in their preferred channels.”

Harness the Potential of Personalized Videos

Personalized videos offer utilities a potent tool to develop a deeper connection with their customers. By delivering tailored, relevant, and engaging content, your utility can enhance customer loyalty, boost conversions and stand out in today’s crowded digital landscape.

As technology continues to evolve, personalized videos are set to shape the future of digital marketing, offering endless possibilities for utilities to connect with their audience like never before.

Learn how Questline Digital’s personalized video solution can help your utility build stronger digital relationships and boost customer engagement.

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Leveraging Webinars: The Perfect Utility Employee Training Tool

In today’s rapidly evolving utility landscape, keeping employees up to speed with the latest industry trends and best practices is essential. For energy utility program managers and key account managers, the need for continuous learning is even more critical to ensure they have the tools to understand customer needs and build customer satisfaction. One effective solution is using webinars to train utility employees.

Using webinars for training offers an opportunity to deliver complex information in an engaging manner. Regardless of the location of the employee or their schedule, webinars for utility employees can provide evergreen content in an engaging format that can be presented live and recorded for on-demand viewing.

The Educational Potential of Webinars for Utility Employees

Webinars are live, online educational presentations where viewers can submit questions and comments in real time. Using webinars for training allows participants in different locations to see and hear the presenter, ask questions, and engage with the content, irrespective of their geographical location or time zone.

“There’s a level of engagement that’s available in a live webinar experience that cannot be matched by just watching a video or reading an article,” says Chris Loehrer, Questline Digital Webinar Manager. “You can do real-time Q&A, you can provide real-time resources to the attendees to increase their value proposition for you.”

The concept of webinars dates back to the 1990s when software was developed to enable business conference calls. Since then, they have grown into a prevalent tool for organizations to share information and connect with vast audiences.

In the context of energy utilities, using webinars for training can be particularly powerful. They provide a platform for program managers, key account managers and marketers to deliver complex industry-specific information in an interactive format. Whether it’s about the latest renewable energy technologies, regulatory updates, or demand response programs, webinars can effectively bridge the knowledge gap, foster dialogue and facilitate learning.

“While customers have goals they’re trying to reach as an individual, employees have goals that they’re trying to reach as an organization,” says Loehrer. “Webinars allow for an active learning experience for both groups and are particularly effective training methods.”

Webinars offer a perfect blend of convenience and interactivity. In an age where utility key account managers need to “have all the answers” for their customers, webinars for utility employees provide an easy way to access that information. They allow energy utility professionals to stay updated with the industry’s fast-paced changes without disrupting their schedules. Plus, the real-time interaction of webinars enables immediate clarification of doubts or questions, promoting a deeper understanding of the topics discussed.

Why Webinars are Ideal for Utility Employee Training

Using webinars for training is becoming increasingly popular, and for good reason. For one, they offer unparalleled convenience in terms of location and time flexibility. Unlike traditional in-person seminars or conferences, webinars eliminate the need for travel, allowing employees to participate from anywhere with an internet connection. Plus, webinar platforms offer the option to record sessions, meaning that employees can access the training materials at a time that suits them best, creating an array of evergreen content for employees to use in the future.

“Webinars exceed other methods of education,” says Loehrer. “They give context to content that’s hard to translate in, say, a whitepaper. You can’t beat live or video content. Plus, articles, infographics and whitepapers can all be integrated into a webinar event. I see webinar events as a launch point for continued content.”

Webinars also have the capacity to reach multiple employees simultaneously. This scalability makes webinars for utility employees a cost-effective training solution. Whether your utility is using webinars for training 10 employees or a thousand, the cost effectively remains the same. Plus, the ability to deliver consistent training to all employees ensures that everyone gets the same information, reducing discrepancies in knowledge and skills across your utility.

A Southeast utility, for example, utilized Questline Digital’s webinar program to increase training opportunities for its account managers. With a one-person training team and busy internal subject matter experts, the utility simply didn’t have the time or resources to produce quality educational assets for its 300-plus employees.

Example of a utility using webinars to train new employees

By producing webinars for a wide range of industries that its account managers worked in, such as architecture and manufacturing, the utility’s account managers were able to stay engaged in topics that interested them, while also learning on their own time and at their own pace. The webinars were also recorded and made available for account managers to access on-demand for continuing education unit (CEU) credits.

The interactive features of webinars for utility employees are key: encouraging active participation, which is critical for effective learning. Most webinar platforms support real-time Q&A sessions, polls and surveys, allowing employees to engage with both the content and the presenter. This two-way communication fosters a more dynamic learning environment, promotes deeper understanding, and makes the training more enjoyable and engaging.

“You have to consider — would you enjoy this webinar experience?” says Loehrer. “The focus needs to be on the content and the execution of the content. You need to make it as engaging as possible to keep the attention of those who it’s mandatory for, but also attract the people for whom it’s optional.”

How to Effectively Implement Webinars for Employee Training

Webinars for utility employees are a flexible, scalable, and interactive tool for training and education. Whether it’s sharing industry best practices, discussing emerging trends or teaching new technologies, webinars enable utilities to reach a wide audience and make a significant impact on their employee and customer engagement.

Implementing webinars for utility employees involves careful planning and execution. You have to use expanded resources — there are too many specialties and integrations available in a webinar experience. Having someone who is dedicated and has the expertise to leverage, guide and develop a webinar experience for your utility will help drive its success.

Loehrer says there are a few things to consider when planning a webinar:

Know what your attendees need to know in the next three, six and 12 months
Establish and align your webinar to the goals you’re trying to achieve
Outline the curriculum and the time frame
Brainstorm different formats to vary the type of delivery
Consider what subject matter experts you can include or interview
Build a story arc that can help you in developing further training series

Additional elements to consider when developing webinars include:

Choose a reliable webinar platform that suits your organization’s needs. Questline Digital’s webinar platform, for example, offers various features like screen sharing, real-time Q&A and recording capabilities.
Decide on the topic of your webinar and prepare a clear, concise presentation that covers this topic in depth. Remember to include a mix of different content types, such as slides, videos and live demonstrations, to keep the session interactive and engaging.
Practice, practice, practice. The importance of holding a dry run of the event can’t be overstated. Dry runs allow your utility to ensure your presenters feel comfortable and ensure any technology difficulties are settled behind the live event.

Keeping your audience engaged during a webinar presentation is crucial for effective learning. One way to achieve this is by encouraging active participation. Questline Digital often uses polls and surveys throughout the webinars to gather instant feedback and maintain audience interest. Plus, a designated Q&A time toward the end of the webinar lets audience members get their questions answered in real time. After the webinar, provide downloadable resources such as the presentation deck to those who attended as well as those who registered but didn’t attend live.

Loehrer says that using the text chat feature during a webinar event is essential. “People love to ask questions anonymously, they love to read other people’s questions and see answers from the experts,” he says. “They love to have a certain amount of levity without any pressure, and then all that data that’s collected in a chat is qualifiable data to use in your follow-up communications.”

Additionally, it’s important to develop and promote webinars in a way that makes attendees want to come back for more. “You should be serializing your content. Don’t have a customer come and only watch one and think they’re getting their entire knowledge base from one event,” says Loehrer.

The effectiveness of using webinars for training can be seen in other qualitative and quantitative ways. Gauging attendees’ interest by their poll responses and questions is one way. Another way is reviewing the metrics of the webinar, including:

Registrations
Attendees
Registration-to-attendance rate
Average time in the room
Average time engaged

By understanding these metrics, your utility can better prepare future events to boost engagement and education amongst employees.

What’s Next for Webinar-Based Utility Training?

The future of using webinars for training in the energy utility industry is promising, with digital learning and webinars becoming increasingly prevalent tools for knowledge sharing. According to a report by the Electricity Markets and Policy Group, webinars on various energy-related topics, including renewable energy, electric system planning and energy efficiency, are becoming more common. These webinars not only provide information on the latest developments but also allow for interactive discussions on emerging trends and challenges.

The growing demand for flexible, remote learning solutions suggests that webinars will continue to be popular. As the utility industry continues to evolve, so too will the need for ongoing education on new technologies, regulations and best practices. Using webinars as a training tool offers a scalable, cost-effective solution for meeting this need. By using webinars for training, utilities can ensure that their employees stay informed, skilled and ready to tackle the challenges of the future.

“You only have one chance to make a first impression. Don’t haphazardly jump into content delivery,” says Loehrer. “It’s about engagement, engagement, engagement. Make these topics interesting. Partner with someone so you can concentrate on the content and make it effective. You can’t just go into this — you have to have a strategy in place or else it’s going to fail.”

Learn how Questline Digital’s webinar solution can support your utility’s employee training needs.

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Is There Anyone Left to Enroll for Paperless Utility Bills?

It can be hard to believe that there are still customers left to enroll in paperless billing. After all, with the tremendous growth of electronic billing, automatic payments, mobile apps and digital currency, most customers now prefer a paperless way of paying utilities.

However, some customers remain reluctant to adopt paperless utility bills. Habits can be hard to break — and many customers are accustomed to receiving a paper bill in the mail. Energy utilities are faced with the challenge of converting resistant customers who may not realize the many benefits of going paperless.

“When I think of who is left to enroll in paperless billing, two categories of customers come to mind,” says Melissa Thom, Brand Engagement Lead at Idaho Power. “One group is those who don’t regularly engage with us and haven’t considered whether we have a paperless option or not. The other group is older generations who have a set routine for paying their bills, and that usually involves paper.”

For utilities, developing a plan of action to encourage these customers to enroll in e-billing programs and finally go paperless can make all the difference.

Prioritize Proactive Outreach to Utility Customers

The latest research finds that customers spend only eight minutes per year interacting online with their utility, and only six minutes per year thinking about their energy bill. According to Thom, encouraging a paperless way of paying utilities starts with proactive outreach and ongoing digital communications.

“If customers are not thinking about Idaho Power, they’re also not actively looking at ways to enroll in our programs,” Thom says. “That’s why we do proactive outreach on programs like paperless billing, auto pay and budget pay for customers who haven’t needed to think about us in a while.”

To boost program enrollments, Idaho Power recently revamped its My Account portal. When customers log in, they now see a list of programs with either a red “X” or green check mark by each one. This indicates whether or not they have enrolled in the programs.

“On a behavioral level, we think customers will want to see all green check marks, pushing them to enroll in paperless billing and other programs,” Thom explains. “This also makes the enrollment process much easier since they are already logged into their account.”

My Account pop-up ads are another marketing tactic that has been effective for Idaho Power. The pop-up ads highlight the benefits of paperless utility bills, including more convenience and greater security. When customers click on an ad, it will take them directly to the paperless billing enrollment page.

Educate Customers on the Benefits of Paperless Utility Bills

It’s important to explain the benefits of e-billing, including faster payments, easier access to online payment options, and reducing clutter in customers’ homes. These benefits should be presented clearly and concisely in email campaigns, website landing pages and other communications.

One of the biggest benefits of paperless utility bills is the ability to pay anytime and anywhere. An e-bill marketing campaign from a Pennsylvania-based energy utility focused on how e-bill was a must-have for summertime. Customers have the opportunity to pay their bill “from across the nation to around the world.”

Example of email promoting paperless way of paying utilities with benefits

Feedback from customers who have resisted a paperless way of paying utilities can also be useful. Utility marketers should identify the common objections or concerns customers have about paperless billing and address them in future marketing campaigns.

For example, many customers have concerns about the security and privacy of their personal information when making digital payments. Ease customer concerns by emphasizing how they can access their bills through secure portals, reducing the risk of personal information being compromised in the mail. In addition, encryption technology adds extra security measures to protect customer information.

Discover the Impact of e-Bill Incentives

Offering incentives can be the push that resistant customers need to make the switch. This might include discounts on monthly bills, cash back or small rewards like $5 Amazon gift cards.

There is no one-size-fits-all incentive that works across all utilities. For example, in a city with a large percentage of sports fans, customers may be motivated by the offer of tickets to the big game. Cities with a focus on the great outdoors may be motivated by environmentally minded giveaways like energy-efficient appliances.

PSEG Long Island took advantage of various incentives to encourage a paperless way of paying utilities, including a chance for 10 winners to receive $1,000 each. The utility also tried smaller incentives like free LED light bulbs.

Example of email promoting paperless way of paying utilities with incentive

Through testing of numerous incentives, PSEG Long Island identified what worked best for their target audience and successfully increased paperless billing enrollment by 51,000 customers. The energy utility discovered that tangible, guaranteed incentives drove greater engagement.

Idaho Power utilized a sweepstakes to encourage customers to enroll in paperless utility bills. Customers who enrolled in paperless billing were automatically entered into a drawing to win an iPad Mini. According to Thom, it made sense to offer a digital prize for a campaign encouraging customers to switch from paper to digital bills.

Example of animated gif promoting paperless utility bills enrollment incentive

During the sweepstakes, 38,000 customers logged into My Account and were shown the pop-up ad. With a click-through rate of 3%, around 1,100 customers clicked through to the paperless billing enrollment page.

Make the Paperless Enrollment Process Easy

Oftentimes, a complicated enrollment process is the main barrier preventing customers from signing up for paperless utility bills. Providing simple and straightforward instructions can go a long way in encouraging customers to switch.

Make enrollment easy by reducing the number of steps needed and providing multiple ways to enroll, including online, through the utility mobile app and via text message. The more clicks involved in enrollment, the more likely customers will navigate away from the page out of frustration.

A fast enrollment process was the focus of this email from a large Northeast energy utility. With just a few clicks, customers could go paperless in seconds.

Example of email promoting paperless way of paying utilities with simple enrollment

Utilities should also provide paperless sign-up directly through their mobile app. Customers who download the app are more likely to be tech-savvy and prefer a paperless way of paying utilities. This is also an ideal channel to promote the benefits of paperless billing.

“We promote a lot of programs together, like paperless billing, auto pay and the mobile app, because we think if customers enroll in one, they are likely to enroll in another,” Thom says. “If they’re engaged in My Account or the mobile app, it’s much more convenient for them to enroll in paperless billing.”

Reach the Next Generation with e-Bill Promotions

Every day, younger generations are becoming the next wave of utility customers. While Gen Z are more likely to show interest in paperless utility bills, they aren’t keen on paying with traditional methods like debit cards and online banking.

Gen Z customers prefer paying with new money management tools like apps and digital wallets. Research also finds that less than 50% of Gen Z customers have traditional bank accounts. In the coming years, energy utilities will need to think about how paperless billing will evolve to meet Gen Z’s preferences.

Idaho Power will soon be expanding its payment options, as a growing number of customers prefer paying with mobile payment services like Apple Pay.

“We will soon have more digital payment options, including Apple Pay, Google Pay and PayPal in the very near future,” Thom says. “If a customer loves using Google Pay anywhere they go, they should be able to pay their energy bill in the same way. We have to constantly be thinking about the preferences of younger generations.”

Reach Remaining Customers with Paperless Ways of Paying Utilities

For energy utilities, there will always be customers to enroll in paperless utility bills, whether brand-new customers or those finally ready to make a change. According to one study, three in four adults across all ages would likely switch at least one bill to paperless. In fact, 87% of millennials were likely to pay at least one bill digitally.

“I look at paperless billing two-fold,” Thom says. “If most of our customers know that it’s an option for them, I’m happy. I’m never going to force any customers into the program. I just want them to know their options — that’s the awareness side of marketing paperless billing. Then there’s the conversion side — sometimes all customers need is an extra little push to make the switch.”

Enroll more customers to receive paperless utility bills with Questline Digital’s proven marketing solutions.

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SMS Marketing vs. Email Marketing: Which Is Most Effective for Utilities?

Staying connected with energy utility customers is more important than ever. Utility marketers are constantly looking for effective ways to engage with their audience and deliver timely information about programs, services and energy-saving tips — all while cutting through the digital clutter that make it hard to attract customers’ attention.

Two popular marketing channels have emerged as top contenders in this space: SMS (Short Message Service) marketing vs. email marketing. While both channels share an ability to connect with customers efficiently, they differ in terms of reach, immediacy and user preferences.

The Differences Between SMS Marketing vs. Email Marketing

It’s essential for utilities to employ effective marketing strategies to reach their target audiences. While SMS marketing vs. email marketing have their own strengths and weaknesses, which one is more effective for utilities?

SMS marketing involves sending promotional messages directly to customers’ mobile phones. Research shows that the average SMS marketing campaign has a high open rate of 98%, making it an effective way to grab people’s attention quickly. Additionally, we know that 95% of text messages are read and responded to within three minutes of being received. SMS messages can also be tailored to specific audiences, allowing utilities to send personalized messages that are more likely to convert.

On the other hand, email marketing involves sending promotional emails directly to customers’ inboxes. It has a lower average open rate than SMS at only 20%, but offers more customization options such as dynamic information about customers, images and videos. Your utility is also more likely to have a greater number of customer emails than phone numbers.

When comparing SMS marketing vs. email marketing, it’s important to consider:

Customer preferences
Campaign data
Communication circumstances

Customer preferences

While the 98% open rate achieved by SMS marketing is impressive, it doesn’t tell a full story. In fact, according to Statista, between 2020 and 2021 almost 50% of survey respondents preferred receiving business communications through email, while only 25% of respondents preferred SMS.

When compared to email, one study says that 2023 will be the year we reach 4.37 billion email users worldwide — more than half of the global population. In 2023 alone, the number of emails sent and received is 347 billion, and that number is expected to reach 393 billion by 2026.

All of this data makes one thing clear: customer preferences are fluid.

There will always be customers who prefer email over SMS and vice versa. Choosing to use just one of these communication mediums isn’t recommended. Your customers want the option to choose which is best for them.

Campaign data

SMS marketing campaigns and email marketing campaigns differ in the types of performance metrics that are available for evaluation.

SMS marketing campaigns typically yield information such as delivery rates, open rates, click-through rates (if using short links) and opt-out rates. Additionally, utilities can track the time it takes for customers to open and engage with messages, enabling them to optimize future campaigns based on user behavior patterns.

However, due to the character limitations of SMS messages and the absence of visual elements, the data collected through this channel may be less comprehensive compared to email marketing. Still, the high open rates and immediacy of SMS marketing make it an effective tool for utilities to communicate time-sensitive information and gauge customer responsiveness.

On the other hand, email marketing offers utilities a more extensive range of data points to analyze, thanks to its versatile format and richer content options. Besides open rates, click-through rates and conversion rates, email marketing allows utilities to track user engagement with specific elements within the email, such as images, videos and call-to-action buttons. This granular data helps utilities better understand their audience’s interests and preferences, allowing for more targeted and personalized communication.

Additionally, utilities can gather demographic information through email sign-up forms, enabling them to segment their audience and tailor content accordingly. While email marketing may not boast the immediacy of SMS, its ability to collect in-depth engagement data makes it an invaluable tool for fostering long-term customer relationships.

Communication circumstances

One element that you must consider in the SMS marketing vs. email marketing conversation is their different use cases. For example, email marketing can provide more personalization and creativity in its messages, connecting with customers not only through written text, but with design, too.

SMS marketing campaigns, on the other hand, focus on brevity and immediate impact. You must tell a customer exactly what they need to know in a matter of a few characters, using only text and short links.

When considering which circumstances to use SMS marketing vs. email marketing, one thing is important to maintain across both sectors: ask for permission.

Your utility wants to communicate essential information to customers, not annoy them. Therefore, it’s important to ask for permission from your customers before messaging them, especially when it comes to SMS marketing. Text messages are considered more personal, and sometimes more invasive, than emails, so getting permission is critical.

In fact, it’s not just a best practice — it’s the law. The Telephone Consumer Protection Act (TCPA) is the federal legislation that governs telemarketing, text messaging and the Do-Not-Call List. One of the rules of this legislation is that companies must receive prior written consent ahead of contacting customers with commercial or marketing offers.

Other elements to consider between SMS marketing vs. email marketing include:

Timing: Maintain a regular cadence with email marketing so customers know when they can expect communications from you. But only send SMS messages to customers on a limited basis — they don’t want to hear from you every day.
Content length: Share long-form content and messages via email. With SMS, brevity is critical; only send brief updates about programs or services.
Personalization: Input dynamic customer data into emails to deliver a truly personalized message. Realize that texts come across more personal no matter what, as they are in a more intimate setting.
Content types: Share general updates about programs or marketplace products via email. But share time-sensitive offers and updates via text, such as an exclusive coupon on an electric vehicle charger or a last-minute chance to register for an e-bill giveaway.

Example of mobile solutions text alerts for energy utility

Which Communications Channel is Best for Utility Customers?

While it’s great to understand the differences between SMS marketing vs. email marketing, it’s important to understand which ones are right for your utility and, more importantly, your utility’s customers.

SMS marketing campaign use cases:

Outage notifications: SMS marketing campaigns are ideal for sending real-time power outage alerts, ensuring customers receive crucial information promptly, even when they don’t have internet access.
Billing reminders: Utilities can send timely SMS reminders for upcoming bill payments, helping customers avoid late fees and keep track of their monthly payments.
Emergency alerts: In case of urgent situations, such as gas leaks or severe weather warnings, SMS messages can quickly inform customers about the issue and any necessary actions to take.
Energy-saving tips: Short, actionable tips can be sent via SMS to encourage customers to reduce their energy consumption, especially timely messages during seasonal high-bill situations.

Email marketing campaign use cases:

Newsletters: Email marketing is perfect for distributing utility newsletters that contain detailed information about new programs, services, industry updates and energy-saving initiatives.
Personalized recommendations: Based on customer data, utilities can send personalized emails suggesting relevant energy efficiency programs, rebate offers, or home improvement tips tailored to individual needs.
Educational content: Utilities can leverage email marketing to share in-depth educational resources, such as energy efficiency advice, infographics and videos, helping customers make informed decisions about their energy usage.

BONUS: Customer surveys and feedback. Both SMS and email are effective channels for inviting customers to participate in surveys or provide feedback on your utility’s services to gather insights for continuous improvement. The type of service provided and the length of the survey will be deciding factors in which channel your utility should use to promote surveys.

When to Use Both SMS Marketing and Email Marketing

Although the impending death of email has been predicted for decades, and text messaging was once seen as an ephemeral chat tool for teens, the truth is that these two marketing capabilities are valuable and dependable ways to connect with customers. The best marketing strategy isn’t comparing SMS marketing vs. email marketing and picking one or the other, but rather determining how to best combine both marketing channels to improve customer communications.

Incorporating both an SMS marketing and email marketing strategy is critical to connecting with all customers. In doing so, your utility will maximize its ability to communicate about programs and services on the platforms that customers prefer.

Learn more about how Questline Digital can help your utility develop an engagement strategy to connect with customers on all channels.

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Strategies to Improve Residential Energy Customer Satisfaction

Maintaining energy customer satisfaction is a top priority for energy utilities nationwide. As energy prices continue to rise and inflation affects prices across industries, customer satisfaction is taking a hit.

According to J.D. Power’s 2022 Electric Utility Residential Customer Satisfaction Study, overall residential electric utility satisfaction is down as customers experience higher monthly bills and struggle financially. “Utilities need to be sensitive to the financial challenges that some customers are experiencing,” John Hazen, Managing Director of Utility Intelligence at J.D. Power, said in a recent press release.

Additionally, service reliability and lack of transparent communications are impacting residential energy customer satisfaction.

6 Ways to Raise Energy Customer Satisfaction

Despite the challenges that utilities face, there are several strategies for achieving high energy customer satisfaction. Utilities ranked highest in their respective regions share their tips and tactics, including:

Focus on the customer experience
Communicate proactively and consistently
Offer convenient services and programs
Provide energy efficiency tips and energy savings advice
Educate and empower customers
Champion and encourage employees

Focus on the customer experience

For Louisville Gas & Electric Company and Kentucky Utilities Company (LG&E and KU), high residential customer satisfaction stems from a mission to provide safe, reliable service at a reasonable cost, communicate with customers and focus on the customer experience.

“It has to be across the entire company. Everyone has a responsibility, whether it’s on or off the job, they’re representing our brand,” says Debbie Leist, Director of Customer Services and Marketing at LG&E and KU. “It’s a huge initiative for us. We need to make sure we’re addressing the evolving needs and expectations of our customers because they’re constantly changing.”

The customer experience includes every touchpoint the customer has with their utility, including payments, outage alerts, energy efficiency and more. Energy customer satisfaction also comes from understanding customers’ needs, interests and preferences.

“Cost and reliability are customers’ greatest concerns,” says Leist. “Reliability is very important, especially on the residential side with more customers working from home. There’s greater awareness from customers, even with brief interruptions or outages.”

For PSE&G, the utility has dedicated teams focused on specific customer experience categories, such as corporate citizenship or billing and payment, that influence perception, explains Cynthia Foose, Manager of Customer Assessment at PSE&G.

“We have subject matter experts within those areas to understand what we’re currently doing and where there are gaps in customer experience that we can improve upon, whether it’s with a process, technology or people,” says Foose.

An important part of corporate citizenship is supporting the utility’s local communities. PSE&G encourages employees to volunteer and regularly communicates the importance of doing so.

Additionally, PSE&G develops customer journey maps to look at its processes from customers’ perspectives. “We’ve been doing journey mapping for a few years,” says Foose. “We get a lot of learnings from it. It’s not a process map, it’s really going through the customer experience, from the customer’s point of view, and looking at things differently.”

Communicate proactively and consistently

As the energy industry continues to change, it’s important to keep customers in the know. This starts with proactive communication and consistent touchpoints.

In a world of quick Google searches and hyper-personalization, keeping up with changing customer expectations can be a challenge. “We’re a utility, but we’re not being compared to other utilities, we’re being compared to Amazon and other retailers that are quicker to market or more agile,” says Foose. “We have to be just as nimble and provide similar experiences that our customers have come to expect.”

PSE&G leverages a variety of messaging formats to communicate with customers and impact energy customer satisfaction, including newsletters and email campaigns. “We find email has a very strong recall, but we also do bill inserts, bill messages, social media and website updates,” says Foose.

Whether it’s an outage, gas emergency, billing updates, or self-service technology enhancements, PSE&G believes communicating to customers in a way that will resonate with them is critical. The utility sends messages in various channels and reviews the metrics of each to help its internal team understand where they need to make tweaks in the communication — both in messaging and in the delivery channel.

Leist says there’s been a large focus in recent years on educating customers about economic development and what LG&E and KU are doing to make service more reliable. The utilities also regularly communicate with customers about:

Safety
What to do in the event of an emergency
How to contact LG&E and KU
Programs and services that are available
Payment options
Self-service opportunities
AMI awareness and preparation

“Communication is important,” says Leist. “We take what we call a surround-sound approach to that, in meeting customers on platforms that they use most, so we don’t just rely on one way to communicate to our customers.”

LG&E and KU communicate to customers via social media, the utility corporate website, a monthly newsletter, bill inserts, email and direct mail. Additionally, when there is important information that will affect a lot of customers, LG&E and KU reaches out to community leaders to make them aware and act as advocates in sharing the information.

“Communication is critical for us,” says Leist. “We have a lot going on at any given time, so we try really hard to keep customers informed of everything that is happening.”

Offer convenient services and programs

No one likes jumping through hoops to find an answer to a simple question. Customers expect to easily find relevant information or interact with their utility in their preferred channels.

“Convenience is important,” says Leist. “When we say convenience, we’re talking about offering a variety of options to customers — not everyone likes to pay or interact with us in the same way. It’s important that we can meet customers where they want to be met and we offer a variety of technology and tools to give them the flexibility to do that.”

One way LG&E and KU offer convenience is through a mobile app that the utility implemented in 2021. It allows customers to make payments, track their energy usage, report and track outages and more. The utility’s app currently has more than 450,000 downloads, 13,000 ratings and a 4.8-star rating in the App store. Additionally, it has 3,350 ratings and a 4.7-star rating in the Google Play store.

“In a single calendar year, our customers conducted 5.4 million transactions on the app alone,” says Leist. LG&E and KU offer other self-service options through their automated phone system and My Account portal as well.

Screenshot example of LG&E and KU utility mobile app to improve energy customer satisfaction

“We realize that the digital experience is the key to being better in a lot of ways. There really has been a focus in the past six years on improving the digital experience with our customers,” says Leist. “We continue year after year to see increases in the use of our self-service channels. While you can’t do everything self-service, we try really hard to have the basic, simple functions be available via self-serve.”

PSE&G offers three digital self-serve options to customers, including My Alerts, an opt-in text notifications program, mobile app and My Account web portal. Customers who are enrolled in PSE&G’s My Alerts program and mobile app rank higher in energy customer satisfaction. This is attributed to the fact that customers receive more proactive information and updates.

Provide energy efficiency tips and energy savings advice

Rising energy rates and overall inflation are major concerns for customers. More than 20 million American households — one out of six homes — are now behind on their utility bills, by an average of $788. According to the U.S. Energy Information Administration, there is no relief in sight.

Educating customers about the options available to them and how to manage their energy usage is a top priority for both PSE&G and LG&E and KU. This strategy has a high impact on energy customer satisfaction.

Screenshot example of PSE&G utility payment assistance website to improve energy customer satisfaction

“We have a very robust communication plan. There’s a conscious effort to let customers know what programs are available to them, whether they’re PSE&G energy efficiency programs or federal and state payment assistance programs,” says Foose. “We do targeted campaigns as well as general awareness campaigns to make sure that customers who are eligible for assistance know how to apply and access programs.”

Within the past year, PSE&G has implemented both rate increases and decreases. In either scenario, transparent communication is key. For rate increases, the utility focuses communications on how to save money, use its home energy analyzer, assess personal energy usage and more. Additionally, the utility includes information on programs and services that could help customers mitigate the costs of rate increases. For rate decreases, PSE&G communicates when and how much customers can expect in bill impacts and provides continuing energy efficiency education to keep the costs down.

“We work very closely with our residential energy efficiency program managers to make sure we know the program benefits and how to communicate the benefits of the programs to customers,” says Foose. “With increasing prices and the economic challenges that our customers are facing, we need to be able to have that partnership with our customers so that they see the value and opportunity in our efficiency programs.”

LG&E and KU offers a WeCare Program, which is a “voluntary program designed to create savings through weatherization and energy education to help income-eligible customers in need.” This program provides assistance to eligible customers, offering energy efficiency tips and even making home repairs when needed.

“We have a team dedicated to these customers to help them make energy-saving changes to their home,” says Natasha Collins, Director of Media Relations for LG&E and KU. “They look at different ways energy is impacted in their homes and help them better manage their energy use, which ultimately impacts their energy bills.”

The utilities offer a budget payment plan, which levels out payments throughout the year so customers know what to expect and can budget for monthly payments. LG&E and KU customers can also take part in installment plans that allow them to extend their due dates to have more time to make payments. “We try to educate our customers on the investments that we’re making,” says Leist. “That’s one component of our consistent communications with them.”

AMI meters are also being installed, which allows customers to look at their energy usage in intervals and see how they can better manage their usage. “We want customers to be aware of the many programs available to them and help them be wiser energy consumers,” Leist adds.

LG&E and KU also offer website resources in a variety of content formats, which speaks to customer preferences. “Everyone likes to learn differently,” says Collins. “We offer energy efficiency videos on our website for those who like to learn more visually, in addition to our articles and text-based content.”

Additionally, the utilities put a large focus on community partnerships. One example is holding quarterly meetings with low-income agencies in their service territories. “We get together and talk about what’s going on, what we, as the utility company, can do to help make their jobs easier in being able to assist customers as quickly and effectively as they can,” says Leist. “We don’t want to be a bottleneck.”

Educate and empower customers

Educating customers about what is going on in the energy industry is a win-win for both the utility and customers. The more transparency and open communication there is among groups, the more energy customer satisfaction is impacted in a positive way.

“Our primary mission is safe, reliable, affordable and sustainable energy for our customers,” says Collins. “As a company, it’s all about empowering customers. We want to make sure that customers know they have control over how they’re using energy. Part of that is teaching them how to manage energy use in their homes and resources to manage their usage and cost as much as possible.”

In addition to the quarterly meetings with low-income agencies, the utilities also have an online panel of customers to expand their reach in the community. Conducted for 10 years, the panel currently has 1,000 participating customers. The utilities present and discuss information with customers, such as communications they’re planning to send out, which messages are resonating most, what features they’d like to see on the website or in the app, and more. This allows LG&E and KU to hear from engaged, responsive customers to see what they’re interested in.

“We want our customers to have a voice in what we do,” says Leist. “The online panel has been a very valuable tool for us to get insight to our customers to make sure we’re delivering and meeting their expectations.”

Additionally, LG&E and KU have a customer advisory panel, where customers throughout the service territory can learn about the utilities’ offerings and share them with others. Panel members are chosen after being recommended by employees or other community members. The panel consists of 20 customers from various parts of the utilities’ service territories who each serve a three-year term. “The purpose of these customers is for them to be advocates for us in the community,” says Leist. “They help get the word out — help educate, increase awareness and bring back learnings for us.”

PSE&G also touts the value of customer feedback in expanding and improving the utility’s energy customer satisfaction efforts. The utility has an online panel of about 2,500 residential customers that PSE&G can tap into for feedback. Customers opt-in to the panel to provide their opinions and perspectives. “We’ve gotten good response rates,” says Foose. “These customers are invested and interested in providing us feedback so that we can better their experiences.”

In addition to various customer panels, PSE&G and LG&E and KU look for feedback from J.D. Power research, email surveys, Gartner best practices and Chartwell research. The utilities stay tuned in with these different organizations to ensure they are constantly improving the customer experience and affecting energy customer satisfaction. PSE&G also has an in-house research team that produces ad-hoc research, including email surveys, to gauge its customers’ satisfaction and interest in the utility’s products and services.

Champion and encourage employees

In addition to encouraging customers to speak up and become involved in utility decisions, PSE&G and LG&E and KU find that championing employees leads to higher energy customer satisfaction.

“We share positive customer feedback with front-line associates and also with supervisors to share with their teams,” says Foose. “We’re looping that feedback back to the individual that provided that service, which really helps recognize the employee and drive employee engagement which then translates into better customer service.”

Utilities are people-focused organizations, both in how they operate internally and who is affected externally. Empowering employees directly impacts energy customer satisfaction.

“It’s more than just customer satisfaction,” says Foose. “When you really think about the customer and make a conscious effort internally of how to improve the customer experience, you’ve gained loyalty and advocates — both with employees and customers.”

What’s the Secret to Energy Customer Satisfaction?

Utility customers are unique in many ways. Research shows that customers think about their utility for only 10 minutes per year. In those 10 minutes, customers are most likely experiencing an emergency, such as an outage or billing issue.

What doesn’t make utility customers unique is the fact they want reliable service and easy interactions. Being able to quickly and efficiently ease customers’ anxieties will lead to an increase in energy customer satisfaction.

“You’re not dealing with something that’s static. We’re working with customers and their behaviors and experiences,” says Foose. “Everybody is unique so you have to be able to constantly adapt based on what the customer needs.”

Not one thing impacts customer satisfaction; there is a domino effect of factors influencing each other. Developing designated customer committees can assist in seeing the full picture, along with the nitty-gritty elements that impact customers. “It’s a continual process,” says Leist. “We have to identify opportunities for improvement, make sure we’re addressing the evolving needs and expectations of our customers and implement changes.”

Additionally, building awareness about utility services is key. Utilities aren’t just natural gas or electricity providers, they’re partners to customers and their communities. It’s not just about making sure the service is delivered, but seeing how the service is delivered, understanding the value of the service and how it’s resonating with customers.

“It’s about the overall customer experience,” says Foose. “It’s education, building awareness and making sure that we have strong customer service to back up the value that we’re presenting to customers.”

Customers must be put first, with an eye on constantly improving the customer experience in the long run. Customer centricity isn’t just a buzzword — it’s a tangible concept of working toward a customer-focused culture.

“We’re all people,” says Leist. “We’re trying to help customers the best we can in the best ways we know how. Communicating, educating and empowering customers and employees comes first. Then customer satisfaction, advocacy and loyalty follow.”

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