Millennials are becoming the largest demographic and are the largest generation employed in the Canadian workforce. Their clout and spending power will only increase until the middle of the century. While 34 percent currently own their own home, 82 percent of those who don’t say they plan to purchase within the next five years. Millennials are building relationships with utility providers, and the marketing insights they provide are crucial.
Millennials are concerned with environmental sustainability and affordability while being extraordinarily social media and tech savvy – 80 percent of Millennials are on Twitter and 91 percent have a Facebook profile. How can utilities improve Millennials’ customer satisfaction – and boost their return on equity? By abiding by the three “Cs” in dealing with Millennials: clean, cheap and convenient.
Clean Energy Sources
Millennials have been a driving force behind shifting to clean energy sources, with 56 percent saying that utilizing clean energy sources is important. Eighty-six percent think the government should establish a plan for energy strategy. Socially conscious Millennials spend their money with companies whose values align with their own, and Millennials have been dubbed Green Champions, concerned with environmentalism.
An Accenture energy consumer survey shows that 56 percent of Millennials want to incorporate solar panels into their energy sources. Additionally, more than 60 percent are willing to pay for a smart grid to easily integrate clean energy sources into the grid. Thirty percent believe that a smart grid’s biggest selling point is the environmental benefits.
Cheap Options Desired
Millennials reached adulthood during the Great Recession or shortly thereafter, so their spending habits often are more in tune with the Silent Generation, who grew up during the Great Depression. Add to that outsized student debt and stagnant wages that have only recently begun to climb, and many Millennials spent their young adulthoods pinching pennies.
It isn’t surprising to learn that 84 percent of Millennials are confident in their ability to manage their finances – or that they frequently use technology to do so. Millennials also are savers – when they can be. Those who are able to do so begin to save earlier and with more discipline than older generations. However, many simply don’t have the money to put into savings.
Millennials’ earnings are low in comparison to earlier generations at the same point in their careers, however; half of what their parents were making at the same point in their careers. Because of the bleak economic picture when many Millennials entered the workforce, nearly 70 percent don’t have enough saved for retirement, with 27% having nothing saved at all. It’s no wonder they look for savings in every aspect of their lives, including energy consumption.
Convenience Is Critical
Millennials are interested in energy-saving web-based technologies, and 50 percent of them are willing to pay for real-time information according to marketing insights, despite their thriftiness. Millennials’ demand for such technology is high, with 61 percent likely to sign up for an app that remotely monitors their energy usage and control home elements by 2021.
Millennials expect a seamless experience across all channels; four-fifths would consider changing providers if not provided one. They interact most frequently with providers using social media, with 41 percent have expressed the desire to log onto their provider’s portal using their social media credentials, and they are twice as likely to use digital channels to contact their utility provider.
This is important, because digitally engaged consumers are more likely – by 10 percentage points – to trust their energy providers. In fact, more than 70 percent of digitally engaged homeowners trust their provider to share their information with third parties. This allows for packaging, or offering multiple products in one place. Utilities have increasingly begun to partner with other businesses to offer expanded services to consumers, serving as a portal for a range of services and providing additional marketing insights.
One of those services is a home warranty, which provides speedy and reliable home repair from licensed and insured local contractors for a low monthly cost. HomeServe provides service line and interior electric coverage – contact us to learn how you can engage your customers with this value-added service.