Consumer demand for new energy-related products and services is high, especially among millennials (ages 18-34), according to new research by Accenture. This group will drive much of the future value for energy providers.
Accenture’s 7th annual survey of energy consumers explores the views of almost 10,000 respondents across 17 countries including seven in Europe. The research, The New Energy Consumer: Thriving in the Energy Ecosystem found that millennials strongly influence key consumer engagement trends amid an increasingly complex set of competitors vying for energy products, services and experiences.
Early adopters
Millennials want to be the first to sign up for new energy products and services: 24% of that demographic are classified as early adopters, compared with 17% among the 35-54 age range and 7% of those aged over 55. Examples include high receptiveness to distributed energy resources (DER) products and services (87% of millennials compared to 60% among those aged over 55) while almost 80% said they’d be more satisfied if offered an in-home digital assistant and monitoring service that suggested customized products and services, compared to 62% of respondents aged over 55 years of age.
When it comes to in home energy management, 61% of millennials declared themselves likely to sign up for an application to remotely monitor and control home elements in the next five years vs. 36% of those aged over 55. Notably, 56% of millennials (twice as many as people aged over 55) are likely to sign up for solar panels in the next five years.
More demanding
The survey found that millennials view energy and engage with energy providers in a far deeper way and from a completely different perspective than older respondents. They want information, and they want everything to be instantaneous and accessible on their terms. Their expectations are also high when it comes to digital channels. 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 for interacting with their energy providers. Moreover, 83% would be discouraged from signing up for additional products and services if their provider could not provide a seamless experience.
Engaging with this influential group
The survey showed that energy providers have substantial opportunities to engage with millennials as they gain in influence over other consumers. For example, 41% 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. 77% 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.
“Energy providers must take these and other insights about these groups to heart, to unlock value, because consumers’ preferences and behaviors 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.”
Are you ready to serve the millennial influencers?
View more findings from the New Energy Consumer 2016 survey on SlideShare
