7 steps in transforming your electricity sales – part 1/7 – Understanding the 3 major transformations of the energy market

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This a series of 7 steps, brought to you during a 7-week period. The purpose is to give you the tools for better understanding the new opportunities within Home energy management business concepts. Stay tuned my friend, hope you will enjoy the stories.

I meet business owners from energy companies on a daily basis. I have had some truly great conversations regarding the future of electricity sales over the last months. Home Energy Management is under a strong buzz at the moment in this business area. There are two major reasons why:

  1. Electricity has become a commodity. Winning new customers and holding on to old ones is a harsh price competition where differentiators are needed.
  2. The search for finding more flexibility in the market. The growing amount of renewables increase the volatility and create the need for balancing solutions.

Home energy management concepts enable 3 major transformations of the energy market:

  1. Creating new customer experiences. Since electricity has been seen as a commodity, what are the customers’ expectations level? Naturally, we except to have the lights turned on when pressing the switch, but what else? The “Spotifys” and “Netflixes” of the energy market will be game changers for the whole industry.
  2. Dropping churn. When being able to turn your commodity sales into service sales, delivering customer experiences on another level you will be able to build a whole new relation with your customer. What do you think happens to your worst enemy “Mr. Churn”?
  3. Demand response. Homes equipped with smart technology can have their heating adjusted during a period of high demand in such a way that it won’t affect the comfort of the homes. The most expensive (and sometimes most polluting) forms of electricity generation can be avoided. A wider scale use of demand response also enables the cost efficient construction of renewable energy sources.

Home energy management will play a major part in redefining the energy market of tomorrow. During the 7-week period we will dive deeper into these issues. What are the major themes of development in your business at the moment? Share your thoughts by contacting me personally or tweeting us at @ThereCorp

Upcoming publications:

  • Working as a startup
  • Understanding the customer
  • How does Home energy management fit in your strategy?
  • Building the packaging
  • Defining the pricing
  • Making the sales happen