When energy hits home, will providers be left out in the cold?

The energy experience of today is out of step with the speed and breadth of the consumer transformation underway. EY research shows that a new approach is needed to address the full, 6-step engagement path from awareness to advocacy, resolving points of dissatisfaction and removing barriers. Providers need to deliver energy omni-experiences that are seamless, effortless and orchestrated across multiple channels, providers and energy solutions. Providers that act now can build trust and point consumers in the right direction, engaging and inspiring them on their journey and creating a more sustainable future for all of us.

Energy is becoming even more central to our lives, with the energy transition now a prominent topic of discussion around dinner tables and boardrooms, and a priority issue for governments. But consumers still struggle to understand the transition that they are part of. Our research reveals that less than one-third of consumers have a good understanding of terms such as renewable energy, sustainability, carbon neutral and net zero.

The good news is that they are eager to learn. Online searches for items such as “solar panels” and “heat pump” have increased nearly 50% worldwide in the past year, and in some markets, the increase is much higher. In the UK, for example, these searches have tripled.

More than half (59%) of consumers surveyed would like to turn to their energy providers for advice and support on sustainability, but most providers are falling short. The gap between consumers’ desire for information and providers’ ability to offer it presents an opportunity for energy companies to use education and awareness to strengthen relationships, create new revenue streams and meet sustainability goals. They can get started by:

• Leveraging data-driven consumer insights to tailor messaging and proactively engage with different groups
• Orchestrating channels and experiences to deliver the right information to the right consumer at the right time and place
• Engaging across the ecosystem to be part of consumers’ conversations with diverse organizations about energy

As consumers increasingly transform into omnisumers, so does their preferred way of interacting with providers. Understandably, digital self-serve channels are the top choice in most situations, but hybrid digital interactions that leverage digital channels to engage with a person — email, webchat and social media — are increasingly more popular, including for researching and purchasing new energy products and services. Consumers have fully embraced a new paradigm for interaction, with “technology when I want it, a person when I don’t” at the core.

Providers can enhance consumer interest in energy by both improving the most basic of interactions and taking a bolder leap into emerging technologies. Redesigning the energy bill is a great start. Only 33% of consumers find it very easy to understand and pay their energy bills, and nearly all (92%) want new digital bill capabilities, including the ability to analyze usage.

At the other end of the technology spectrum, consumers are curious about new ways to interact with providers. Nearly three-quarters (73%) say they are ready for the metaverse, particularly its potential for tangible energy experiences, including seeing how new products and services work. 

Capturing the interest of different consumers at different phases of their energy journey will require mastering a mix of channels. Providers should consider:

• Blending digital and hybrid digital channels, to deliver seamless experiences to the right consumer at the right time and place
• Enhancing digital billing to capitalize on opportunities to engage more deeply with consumers
• Exploring metaverse energy experiences that inspire and excite consumers around new products and services

Are energy consumers converting their interest and intentions around sustainability into actions? The answer is more complicated than you might think.

For many of the consumers we surveyed, their energy transition is starting at home with lifestyle changes aimed at saving energy. Eighty-two percent have purchased energy-efficient appliances, 65% wash clothing in cold water, and 65% say they turn down heating or cooling regularly.

Only 12% of consumers say they have bought an EV, but nearly half (48%) are seriously thinking about it. Sixty-two percent have bought, or are thinking about buying, solar panels and 50% are considering, or have already bought, battery storage. In our two years of surveying, adoption and interest in new energy products and services has grown across every category.

But people are paradoxes — more than a third of us think it’s okay to increase our energy use if we do our part for the environment in other ways. Nudging consumers toward those bigger actions that will make a more significant impact on reducing carbon, managing peaks in usage or lowering bills will require providers to:

• Adopt a broader view of consumers’ lives to understand their motivations for lifestyle changes and better guide actions
• Develop behavioral science capabilities to better understand how to navigate the paradoxes of consumers’ intentions and actions
• Capture momentum in high-interest areas — EVs, rooftop solar, batteries and heat pumps —to convert consumers excitement into action