There's a "magic 5%" of customers out there - but what will make them buy?

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Jennifer Arran

Tuesday, 19 February 2013

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During 2012 the Delta-ee Microgen Insight team completed an extensive customer research programme covering RSLs, social housing associations, building developers, self builders and owner occupiers. This customer research has produced a rich database of evidence which allows us to explore the awareness of, and attitudes towards, microgeneration; the factors that influence customers to consider buying microgeneration; and what they are most willing to pay for.

Our completed research with owner-occupiers includes four focus groups; an on-line survey with 1,000 home owners; and, most recently, a conjoint study. We are continuing to extend and deepen this research in 2013, starting with more focus groups planned for late February and tele-depth interviews with selected customer types in March. We have commissioned leading market research agency Accent to undertake this field work.

The top 5 headlines from our owner-occupier research include:

There is a "magic 5%" of customers out there who are most likely to take up a low carbon heat or microgeneration system.
On gas and off gas customers are not that different after all.
We can identify a number of distinct customer voices and attitudes to each technology.
The key influences on decision making for the "magic 5%" are lower fuel bills and long warranties.
We see a significant gap between what these customers say is important to them, and the current approach of many companies in the industry to promoting their products.

We conclude that many players in the industry need to rethink the way they present their customer propositions – particularly with regard to warranties. The players who get this right have the best chance to beat the competition and get market share. And if the industry as a whole can get this right, this is the first step at growing the market beyond the "magic 5%".

To read the full White Paper that provides more detail on this topic and research findings please follow this link: "There's a magic 5% of customers out there"

Our on-going research and support is used by subscribers to the Microgen Insight Service to forecast technology uptake and to develop winning customer propositions. Follow this link for details of the Microgen Insight Service, or contact us.

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microgen heat pumps

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About the author

Jennifer Arran

Jennifer is has nearly 10 years’ experience in the Energy Sector and since joining Delta-ee in 2010 she has been instrumental in developing new research service offerings around heat, including developing our internal customer research and building our capability in technology forecasting, strategic support and scenario development. In 2012 she co-authored a ground-breaking report on pathways for domestic heat to 2050 commissioned by the ENA, and she continues to be involved in high profile consulting assignments for our major clients.

Jennifer holds an MSc (distinction) in Ecological Economics from the University of Edinburgh.

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