Our world revolves around relationships — from romantic love to rapport with coworkers. For energy utilities, digital customer relationships are vital to grow customer engagement, increase program conversions and improve customer satisfaction scores. In fact, brands that lead in great digital customer experiences outperform the competition by nearly 80%.

How does your energy utility build stronger digital customer relationships?

Just like you need to join a club to make new friends or download a dating app to meet someone special, your energy utility needs the right tools to connect with customers. Questline Digital’s 2021 Energy Utility Benchmarks Report provides industry trends, insights and data to help energy utilities build digital relationships through consistent customer touchpoints. Read on for key takeaways from this year’s report.

Infographic showing how energy utilities accelerate digital customer relationships with performance metrics

Digital engagement is booming

The coronavirus pandemic has forever changed consumer behavior — and customers in 2021 expect to have a digital relationship with their energy utility.

This relationship goes beyond transactional messages like billing notices, outage alerts and other generic emails. Your customers are looking for ongoing touchpoints that address their unique needs and interests, such as relevant program promotions, educational eNewsletter content and behavioral emails based on their actions. 

With record-high email open and engagement rates last year, it was clear that customers wanted to hear from their energy provider during the pandemic. In fact, the average open rate of 40.4% in March 2020 was 49% higher than Questline Digital’s previous benchmark rate. Even customers who are less digitally savvy opted for the convenience of digital communications. For example, paperless billing promotions experienced a 7.5% CTOR in 2020, more than 53% higher than the previous year.

In 2021, as life begins to return to normal, maintaining strong digital customer relationships will continue to be a driving force of energy utility communications.

Personalization is powerful

Today’s consumers are accustomed to a world of personalization and expect a similar experience from their energy provider. Personalization is a must-have marketing strategy to drive customer engagement and build stronger digital relationships.

The latest research finds that personalized emails deliver six times higher transaction rates, and targeted emails generate 58% of all revenue for marketers.In 2020, energy utilities took advantage of personalization in virtually every touchpoint, including Welcome Series, eNewsletters, program promotions and ancillary messages. For example, many energy utilities now use abandoned cart emails, popular in the retail industry, to boost traffic to their marketplaces.

Segmentation is a popular tactic in the “personalization” bucket, especially when looking to capture attention with program promotions and eNewsletters. Instead of sending a generic message to an entire email list, many energy utilities are now sending relevant messages to a targeted segment. Whether creating marketing personas for paperless billing campaigns or industry-specific eNewsletters to reach business customers, energy utilities have successfully utilized segmentation to increase conversions and engagement.

Digital engagement: The gift that keeps on giving

Digital engagement with one customer touchpoint offers far-reaching benefits and extends to other types of energy utility communications.

For example, Welcome Series graduates — customers who have opened at least one Welcome Series email — engage with future email communications from their energy utility at a 29.8% higher rate compared to non-graduates. The higher engagement from relevant, consistent eNewsletters is another benefit of ongoing customer touchpoints. Our Benchmarks data finds residential eNewsletter readers open promotional emails at a 16.1% higher rate.

In 2020, energy utilities discovered the true value of digital customer relationships, in good times and in bad. Engaged customers with an established digital relationship with their energy utility were much easier to reach than unengaged customers. That’s why it’s essential for energy utilities to start building stronger digital relationships now, so they can easily connect with customers when the unexpected happens.

Accelerate your digital customer relationships

Two-way communication is key for any successful relationship, and this is especially true between energy utilities and their customers. It’s all too easy for customers to lose interest in their energy utility’s marketing messages if they aren’t relevant or don’t provide some benefit to their daily lives. To accelerate your utility’s digital customer relationships, start planning your engagement strategy for every touchpoint throughout the customer journey.

Download the Energy Utility Benchmarks Report to discover more industry trends, data and insights to build stronger digital customer relationships.

In digital marketing, continuous change is the one thing that will never change. After a tumultuous 2020 that showed us how critical it is to maintain strong customer relationships, it’s more important than ever to stay ahead of the latest email marketing trends. Sure, the tortilla wrap TikTok trend might not prove valuable for our work, but there are plenty other marketing trends that are important for energy utilities.

Let’s review some of the top email marketing trends we see for 2021. With these ideas in mind, your energy utility is sure to keep your brand ahead of the curve and on the path to greater customer engagement and satisfaction.

1. Personalization

We’ve said it before, and we’ll say it again — customers expect communications that are tailored to their specific needs and interests. Customer segmentation has been proven to increase digital engagement, with research showing that personalized messages improve click-through rates by 14% and conversions by 10%.

Maureen Huss, Questline Digital Group Account Director, has seen exciting growth in customer engagement by using targeted, industry-specific content in solutions such as eNewsletters. “We’ve seen dramatic increases in engagement specifically from business audiences in education, healthcare and manufacturing by segmenting content that speaks directly to their needs,” she says. “When comparing these metrics to communications without targeted content, our clients are seeing the impact that personalization truly makes.”

We suggest:

2. Automated campaigns

Automated campaigns, also known as “drip” campaigns,go hand-in-hand with personalization as they are tailored to the actions of an individual. Emails in these campaigns are triggered when a customer performs a certain action, such as sending the customer product recommendations after they purchase a smart thermostat from your energy utility marketplace.

These emails give the customer a better sense of control over their overflowing inbox. When customers receive emails based on topics they’ve been looking for, they connect with the message, instead of feeling fatigued by one-off promotional emails.

We suggest:

  • An automated Welcome Series campaign to say hello to new or moving customers, triggered when they sign up for service. Our 2021 Energy Utility Benchmarks data shows 2020 had the highest engagement rates in Benchmarks history with a 51.3% open rate and 11.2% click-through rate.
  • Anniversary emails celebrating a year of service for your customers. These emails let customers know that their energy utility is thinking of them, and that they are more than just another bill payment.
  • Send recommended products or cart-reminder emails to customers depending on their behavior on your energy utility marketplace.

3. Interactive emails

Interactive elements within an email tend to boost customer engagement as customers can find exactly what they’re looking for within the email itself. They no longer have to go through numerous clicks to reach the right page — interactive elements create a seamless user experience right in the email itself. When you make it easier for customers to complete an action, you increase the likelihood of them actually doing so.

We suggest:

  • Animated buttons and CTAs
  • Rollover effects to show products or services
  • Interactive image carousels that can be controlled by the customer
  • Quizzes or games within the email

4. Email design trends

As fashion trends change each year, so does email design. In 2021, customers are looking for bold and bright colors that help your message stand out. Color attracts attention and is also a great way to evoke emotion and drive action — you can make a customer feel excited about a new product using a bright yellow or feel calm about a change in billing plans with a light blue.

Customers also want clear and concise copy that makes emails easier to read. As we all know, attention spans are shorter than ever, which means copy needs to be shorter as well. Get to the point quickly using bullet points or icons.

In addition, dark mode has stood out as a major trend this year, allowing customers to adjust the brightness of the content they’re consuming. Many customers use this feature for low-light or nighttime environments, as it is easier on the eyes and can improve content legibility. (Or they simply like the look of it better.)

“Users want to look at their phone or computers the way they choose,” explains Joe Pifher, Questline Digital Creative Director. “If we dictate how they see it, and not allow them to personalize it to their liking, it won’t be the best user experience.” Dark mode needs to be considered in the design of your emails to ensure copy and imagery can still be read easily no matter what mode they choose.

We suggest:

  • Using your brand colors in bold ways to make your content stand out, evoke emotions and drive action
  • Adjusting email design to be compatible with dark mode
  • Un-cluttering your copy with the use of bullet points or short paragraphs

5. Multichannel marketing

Although digital marketing is critical, traditional marketing is still alive and well and should be utilized to expand your promotions beyond smartphones and laptops. Multichannel marketing works because it meets customers where they are, including through email, social media, video, direct mail and more. Through cross-channel engagement, you can feel confident that your energy utility’s message is reaching customers.

“It’s not only about deciding where to share and promote your content,” advises Alexandra Greenberg, Questline Digital Content Strategist, “you need to keep your strategy in mind as you plan and create, too. Consider your target audience as you write to ensure your content is relevant and accessible across multiple channels.” 

We suggest:

  • Creating a strategy for each unique campaign that repurposes elements of the campaign to be used on multiple platforms

Email marketing trends get personal

What do personalization, automation, interactivity, design and multichannel marketing all have in common? People.

The main takeaway for this year is that it’s all about your customers. If the coronavirus pandemic has taught us anything, it’s that people crave human interactions and connection. By focusing on a customer-centric experience and their needs, it will set up your energy utility for digital marketing success.

Download the 2021 Energy Utility Benchmarks Report to see how your email performance metrics compare to industry trends.

Does your energy utility have an effective digital relationship with customers? The answer may surprise you. Most energy utilities email program promotions to customers, text them outage alerts and offer electronic billing options — creating the impression of a strong connection. However, these transactional tactics actually fall far short of a true digital customer relationship.

To effectively build engagement, energy utilities need to think beyond the monthly bill and generic notifications. A digital customer relationship requires consistent touchpoints, relevant content and messaging that responds to each customer’s specific interests.

What is a digital customer relationship?

A digital customer relationship means that an energy utility proactively uses two-way communication channels to connect with customers, listen to their needs and interests, and deliver targeted, personalized messages to build long-term engagement.

The “digital” part indicates how you reach customers — through email, text, web and social platforms. But the “relationship” in this equation is about much more than which channel you use. Customers expect a digital relationship to be responsive and relevant to their interests.

An energy utility can’t simply replace its old snail-mail outreach with email and consider that to be a digital relationship. Likewise, most digital marketing efforts do not constitute a digital relationship. Those are one-way channels — pushing messages or promotions that are only important to your energy utility, not your customers. An effective digital relationship is built on two-way communications: listening to customer needs and delivering messages that are important to them.

The Netflix secret to a successful digital customer relationship

You probably get at least one email from Netflix every week with movie recommendations you might enjoy or gentle reminders to finish watching a series you started. You might get one of these emails every day!

Are these emails simply marketing messages? After all, the objective is to get you to watch more Netflix so that you won’t cancel your subscription. Or, are these recommendations also a type of customer engagement, helping you get more enjoyment out of your free time by guiding you toward entertaining Netflix content?

Of course these messages can be both a type of marketing and effective customer engagement. The key is personalization. Netflix isn’t promoting the same program to all its customers; the streaming service is making a targeted recommendation, promoting specific content that it thinks you will find relevant and useful. That’s not just digital marketing, it’s a digital relationship.

Importantly, Netflix doesn’t just contact customers when a payment is due at the end of the month. Netflix doesn’t wait to reach out when its rates are going up or to provide restoration updates about streaming outages. Netflix connects with customers all the time, sometimes every day, to make sure customers are enjoying its service.

Does this strategy work? Well, Netflix has built a pretty successful business around its 200 million subscribers. Being part of customers’ daily lives, through continuous digital engagement, is a big part of that success. If you are a Netflix customer, you will be regularly reminded that great entertainment is only a click away.

How energy utilities can build an effective digital customer relationship

Energy utilities can borrow a page from the streaming service’s engagement playbook. Like Netflix, energy providers are a big part of customers’ daily lives, offering a service that’s increasingly valued in today’s connected world. But unlike Netflix, utilities too often fail to build meaningful digital relationships with their customers, instead relying on transactional outreach like monthly bills, outage alerts and generic program promotions.

The good news is, energy utilities can build strong customer relationships. It just takes a commitment to move beyond these typical one-way tactics to embrace the relevant messaging that customers now expect. Here are three key steps to building and maintaining digital customer relationships:

Effective digital engagement starts on day one

Companies that succeed at customer engagement don’t wait to get started. The last time you signed up for an online subscription or created a new account with an ecommerce company, how much time elapsed before you received the first welcome email? Minutes — or seconds? These messages make a great first impression and immediately start building a strong digital relationship.

Likewise, energy utilities can use welcome series emails to start their relationship with new customers (or restart a relationship with customers moving within a service territory). These welcome messages are an opportunity to introduce your utility, show customers how to make the most of their service, and get them started on paperless billing, outage alerts, eNewsletters and other digital touchpoints. And it works! Customers who receive welcome series open future emails from their utility at 30% higher rates than other customers.

Stay top-of-mind with regular touchpoints

Consistency is important in any relationship. Customers want to know that you’re there to support them on their schedule, not just when you’re trying to sell them something.

A monthly email newsletter is one way to maintain engagement on a regular cadence, delivering interesting content and helpful resources on a schedule that’s distinct from other transactional messages. This consistency pays dividends: Questline Digital performance metrics show that eNewsletter readers are much more likely to open other emails from their utility customers, clicking on program promotions at a 16% higher rate than other customers.

Speak to customer needs with relevant messages

Customers don’t just prefer to receive personalized messages — it’s a basic expectation, thanks to companies like Netflix that have set the standard for digital engagement. To meet these expectations, your utility needs to identify and deliver relevant messages, and avoid wasting customers’ time with communications they aren’t interested in.

Customer interests can be identified in a variety of ways: content consumption on your website or eNewsletters, program participation, marketplace purchases or customer personas built using all of these characteristics and more. With this information, you can deliver relevant content and promotional messages that speak to their interests and address their motivations. In one example from Questline Digital performance metrics, an energy utility that segmented its business newsletter by industry saw content engagement increase by 84% for some segments!

Consistent outreach builds strong relationships

A digital customer relationship is much more than digital marketing or one-way communication. To be effective, your energy utility should use two-way channels to listen to customers and consistently provide relevant, personalized messages that speak to their interests. The result will be stronger relationships and long-lasting satisfaction to rival companies that truly excel at digital engagement.

Learn how Questline Digital’s approach to digital engagement builds long-term customer relationships for energy utilities.

Many people use the terms “marketing” and “advertising” interchangeably when, in fact, they are quite different. To put it simply, marketing promotes a business and its products or services, while identifying customer needs and how best to meet them. Advertising, however, is the act of calling attention to products or services, specifically through paid methods. You can market without advertising, but your energy utility shouldn’t advertise without marketing.

As digital engagement technology continues to evolve, it’s important for your energy utility to understand these differences in order to know which strategies are best to reach customers and achieve program goals. Read on to learn about the specific differences between marketing and advertising and how to use both to your energy utility’s advantage.

What is marketing?

Marketing is the practice of expanding your business by identifying how to best align a product or service to your customers’ needs. Effective marketing helps you understand how best to reach a target audience while increasing revenue at the same time.

In business-to-consumer (B2C) marketing, a business is reaching customers directly, such as what your energy utility does to reach your residential or business customers. In business-to-business (B2B) marketing, efforts are directed to reach other businesses. Often, a marketing strategy is broken down into four phases called the four Ps:

  • Product: A company’s offerings (products or services) that meet customer demands.
  • Price: A pricing strategy could be built around profit margins, perceived value or opportunity costs.
  • Place: How and where your products are distributed, such as a physical stores or ecommerce websites.
  • Promotion: This can include advertising, public relations, content marketing and sales efforts.

Types of marketing

Marketing is not one-size-fits-all. There are several types of marketing available, including:

  • Content Marketing: A strategic approach based on creating and delivering valuable information, such as blog posts or infographics, to educate your target audience about your business.
  • Inbound Marketing: A focus on attracting customers to your website. Instead of pushing sales messages on customers who may not be interested, inbound marketing offers solutions that customers are looking for — inspiring them to seek out your business. Tactics often include a combination of content marketing, social media marketing and search engine optimization.
  • Social Media Marketing: The use of social media channels (LinkedIn, Facebook, Twitter, etc.) to maintain a conversation with your audience.
  • Digital Marketing: A “catch-all” for online marketing, leveraging search engines, emails, websites or blogs on both desktop and mobile devices. Digital marketing includes digital advertising as well, such as search engine marketing or paid social promotions.
  • Traditional Marketing: The opposite of digital marketing, using offline sources, such as print, radio, mail or billboards.
  • Relationship Marketing: A strategy that relies on both traditional and digital tactics. This strategy focuses on customer retention and satisfaction instead of new sales.
  • Brand Management: Uses techniques to increase the perceived value of a brand over time. This is achieved through initiatives that manage brand equity, consistent brand messaging and new product pushes that effectively showcases the brand and increases customer loyalty.
  • Product Development: Filling a gap in the business for a product or service to meet customer needs.

What is advertising?

Advertising is the process of making products or services known to customers, mostly through paid channels. An advertising campaign must be creative, timely and strategic. When executed well, advertising can educate customers, convince them a product or service is superior, improve brand perception, publicize new products, attract new customers and upsell existing customers.

A successful advertising campaign can use a mixture of traditional and digital media to deliver its message and align with the wants or needs of the customer. Advertising is just one component of a marketing strategy; while marketing helps you develop and position products based on customer needs, advertising communicates those products’ existence and influences customers to make a purchase.

Types of advertising

As with marketing, there are numerous types of advertising available. The most successful advertising campaigns uses a mix of these methods:

  • Digital Advertising: This includes ads paid for on social media, online publications, apps, sponsored content, search engine marketing and programmatic display ads.
  • Traditional Advertising: This includes advertisements in traditional media, such as newspapers or magazines, billboards or bus stops, direct mail, TV commercials or radio spots. 
  • Retail Advertising: Featured point-of-purchase advertising within stores, such as product placement on displays or carts.
  • Product Placement: Paid advertisement to have a product emphasized in a TV show or movie.

Marketing or advertising: What should your energy utility focus on?

The short answer to this question is both. You need marketing and advertising efforts aligned to create a well-rounded strategy and connect with your energy utility’s customers. Marketing needs to be the core of what you do — researching customers, understanding their needs, segmenting target audiences to address those needs — but advertising needs to be an aspect of your marketing strategy to fully promote your programs and solutions.

Begin by creating a marketing plan that encompasses your energy utility’s goals. This should be an overarching strategic plan detailing which products, programs or services you want to focus on. In this marketing plan, think about plans for market research, public relations, product development, segmentation, customer support and pricing. Once these items are figured out, add advertising to the mix. While this is often a large part of a budget, it’s necessary to extend your brand’s reach.

Through thoughtful research and implementation, your energy utility’s combined marketing and advertising strategies will help your energy utility achieve its program goals and conversions.

Let Questline Digital’s experts help you craft a marketing and advertising strategy to connect with energy utility customers.

At the start of their energy service, business customers need the right tools to succeed. By connecting with this target audience from day one, your energy utility can welcome business customers, help them better manage their account and take control of their energy use.

A Welcome Series is a great way to connect with hard-to-reach business customers in your service area and show them your energy utility is a helpful resource and energy expert. As Questline Digital’s performance metrics show, establishing a digital relationship at the start of service is the foundation of long-lasting customer engagement and future program participation. Read on for what to include in your personalized Welcome Series to business customers.

Share resources for easy bill management

With endless tasks on their to-do list, business customers want to save time and embrace convenience. That’s why they need an easy way to manage their bill. In your Welcome Series, promote programs and services that can make business customers’ daily lives a little easier, including:

  • My Account: Emphasize the ability to access all of their account information in one place online, similar to an electronic filing cabinet.
  • Paperless billing: Business customers are always on the go. Focus on 24/7 bill access from their smartphone or tablet.
  • Auto pay: Promote the convenience of never forgetting a payment. Auto pay is a valuable service for busy business owners.
  • Mobile app: Highlight the benefits of your mobile app as a fast and easy way to access account information, which improves business customers’ energy experience.

Promote efficiency upgrades and DIY solutions

Energy efficiency has a profound impact on a business, both on its bottom line and reputation. A business with a focus on energy efficiency is viewed favorably by customers, employees and the public. However, many business customers may not realize how to become more energy efficient. Help local businesses make valuable efficiency upgrades by promoting:

  • Rebate programs and upgrades: Promote programs that make it easy for businesses to improve their carbon footprint and bottom line, whether through an in-person site assessment or an online energy tracking tool.
  • Demand response programs: Show business customers how they can reduce the risk of grid overload and help their utility meet clean energy goals while also improving their bottom line by participating in demand response programs.
  • Your energy utility’s marketplace: Promote the offerings in your energy marketplace, such as LED lighting and ENERGY STAR appliances, along with the benefits of choosing your marketplace over a major retailer.
  • Energy efficiency tips and advice: Business customers appreciate upgrades they can do themselves to improve energy efficiency. Share simple, no-cost tips to help them transform their facility.
  • Electric vehicle information: Provide information on EV rebate programs specific to businesses, such as electric warehouse equipment. Many businesses are also looking to electrify their fleets.

Prepare businesses with safety and reliability information

For business customers, reliability and keeping their business running smoothly is top of mind. However, power outages can happen at any time. An outage has the ability to negatively impact business operations, including reduced output, decreased employee productivity and lost revenue.

We recommend sharing outage information at the start of energy service, so they are prepared before an outage happens at their facility:

  • How to report an outage: Provide customers with all the ways they can report an outage, whether online, by phone or via social media channels.
  • Online outage map: Business customers want to know the details of an outage, such as the number of customers affected, estimated restoration time and cause of the outage. This is why sharing a link to your website’s outage map is helpful.
  • Outage alerts: Encourage customers to sign up for outage text or email alerts to receive real-time updates throughout an outage. This is the best way to keep business customers informed, while improving customer satisfaction scores.
  • Gas leak information: Share helpful safety tips your business customers need to know, including what to do and what number to call if they smell or hear a gas leak.

Welcome business customers on day one

Your business customers have distinct needs — that’s why your energy utility benefits from a Welcome Series personalized to this audience. From easy ways to manage their account to energy efficiency upgrades, business customers are looking for ways to save time, improve their carbon footprint and increase cost savings. By reaching businesses at the start of service, your energy utility can help them get closer to their goals while achieving long-term customer satisfaction.

Learn how a Welcome Series from Questline Digital will build an effective digital relationship with your business customers.