If the 2022-2023 RFP cycle taught us anything, it’s that utilities with Beyond the Meter and marketplace programs want to make significant upgrades because of lackluster performance. Several major utilities revamped their marketplaces during this period, and many more launched research or RFP projects to find new partners to update or entirely replace their ecommerce solutions. Why the reset?
Most legacy marketplaces started life in the utility industry to help with the proliferation of Energy Efficiency products like LED bulbs, smart plugs and learning thermostats to help customers learn about new technology to save electricity and on their energy bills. Those utility marketplaces quickly gained attention for their popular rebates and easy ordering of new technology. But, over the last decade as that technology became standard customers have multiple outlets for buying bulbs and studies suggest that intent to purchase may be waning as most customers who wanted a smart thermostat already purchased them, and new homes will come with the technology already installed. Utilities need to find new ways to engage with customers on their marketplace.
ESource’s Beyond the Meter working group recently shared data that illustrated that customers most likely to interact with utilities regarding energy-related products and services skews younger and more urban than ever before. In fact, most customers over 55 years of age, the demographic that historically would have contacted the utility or purchased these types of offers on a utility marketplace reported overwhelmingly no interaction with their utility before the purchase.
That data clearly shows customers for new products and services from the utility skew younger and more likely to engage with the utility via a digital marketplace than ever before. We’re likely on the cusp of a utility marketplace “golden age” but only for utilities that embrace the “Must Have” features of a modern digital experience.
So, what are the Top 5 Features of a Modern Utility Marketplace?
Mobile Optimization and Responsive Design: As users skew younger and more traffic to ecommerce starts on a smartphone, utility marketplaces will need to be designed with the smaller screen of a mobile device in mind. However, most of the current crop of utility marketplaces design for desktop, making for a very kludgy experience for modern ecommerce visitors and shoppers. Visit your own site from your smartphone and see if it meets your own standards for an easy to use and modern website.
“Our experience has been that more than 70% of traffic to our utility marketplace sites happens on a mobile device, and that mobile traffic grows every year. If your developers aren’t designing for a mobile CX, they aren’t designing for your customers.”
Matt Williams, Vice President, Utility Solutions Group, Ibex Digital
Seamless User Experience and Navigation: Clean, modern and intuitive user experience makes for table stakes in ecommerce today because utility marketplaces exist in the same ecosystem as every other ecommerce site your customers visit. Your marketplace must have fast loading times, each to find search bars, clear product categories and features like predictive search to make finding offers quick and easy for your customers.
Robust Security and Privacy Protection: Customers expect the same high level of consumer protection from a utility marketplace that they get from all of their most trusted brands, so ensuring your site is secure is non-negotiable. That means implementing SSL certificates for encryption and keeping them up to date, delivering secure payment gateways, and delivering transparent privacy policies to customers throughout the shopping and checkout experience. Make clear to customers that you value their privacy and protect their customer information to preserve their trust.
Personalization and Recommendation Engines: One size most definitely does not fit all in the world of ecommerce, so how you get customers to your marketplace, and the offers presented to your customers play a major role in customer engagement, satisfaction, and participation in the digital experience. Recommend offers based on past browsing history, prior purchases, preferences and other data volunteered by the customer. Create personalized bundles or special offers based on customer energy use, seasonality, and local programs that best fit their needs. Deliver 1:1 greetings, emails and offers tailored to customer preferences to increase traffic to your marketplace and create a more engaging shopping experience.
Exceptional Customer Service and Support: Customers have learned to expect comprehensive customer service options in their channel of choice, so it’s important to have multiple options and ongoing communication with customers to ensure their engagement and satisfaction. Customer service happens throughout the shopping and delivery experience. That same customer who purchased a smart thermostat benefits from content on the category page helping them compare different models. Helpful FAQs and product descriptions on the product page ensures customer have all the information for a well informed purchase. Clear delivery and contact information in the order confirmation reduces buyers remorse. And a helpful video emailed to customers that shows how to install a smart device helps avoid returns and increase customer satisfaction. Live chat, toll free numbers for operator assistance, a web form or email address, and even social media channels for customer service escalations now ensure customers can find help when and where they expect it from their utility marketplace. These capabilities ensure customers who purchase from your marketplace have great experiences and share them with their friends to build more trust and traffic in your platform.
Successful utility marketplaces in the future depend on engaging the upcoming generation of customers, so need to match those consumer expectations for a modern digital ecommerce experience. These top tips should help utilities evaluate their current status and identify any gaps in their CX in order to prioritize some corrective action. Customers from their 20’s to their 40’s are eager to connect with utilities for new products, services and programs to get more value, comfort and convenience from their home and want help with energy related solutions. The utility marketplace can be the exact right platform to engage and provide value to those customers if utilities can deliver the modern digital experience that customers expect. In the next post, we’ll share the top 5 products to engage customers on a utility marketplace, and check out CS Week in Fort Worth for new solutions to refresh your marketplace in 2024.