Utility Week

UTILITY WEEK | 7TH - 13TH JUNE 2019 | 23 Operations & Assets Operations & Assets Major changes to the local land- scape since the original substation was built also present their own set of problems. A century ago, most of the housing around the substation did not exist. Today the site is surrounded by domestic properties on three sides, with a canal and railway on the other – these were vital transport links for George Cadbury's chocolate empire. Cadbury relies on several 11kV sup- plies into its factory for its chocolate production, and WPD will liaise with the company to ensure that manufac- turing is not disrupted during the sub- station upgrade. If you have an asset or project you would like to see featured in this slot, please send pictures and details to: paulnewton@fav-house.com Market view Unlock direct mail's potential Paul Sumner explains how utility companies can use personalised direct mail in a multi-channel marketing strategy. B randing has never been more important for utili- ties. They have to remain competitive in a world where it is easy to switch. Building a relationship with existing customers requires a marketing strategy that encompasses pro- active and effective communication. However, recent research from Ofgem shows that only 4 per cent of con- sumers had been contacted by their current energy pro- vider, suggesting that these brands are missing a trick. Until recently, there has been a debate pitting direct mail against direct email. However, Go Inspire Group's randomised control trials (RCT) aimed to uncover which strategy achieves the highest scaling of net revenue: direct mail on its own, email as a standalone strategy or both combined. The message, whether electronic or not, will also have to grab the recipient's attention enough to generate at least one sale. In 2017, 43 per cent of utilities reportedly said they did basic or no channel personalisation, yet a reported 84 per cent consumers would be more likely to open a piece of mail if it is personalised. So it is critical that utilities providers look at how direct mail can be optimised with personal customisation. Today, almost every detail of direct mail can be per- sonalised at a cost per print that is not far removed from traditional mass printing techniques. Traditional fea- tures such as individual name insertions and variable imagery and messaging can now be complemented by personalised barcodes or QR codes that trigger tailored offers, personalised offer periods based on loyalty pro- file, and even segmented event invitations that gather people of similar profile. In the second Go Inspire RCT, the use of personalised creative imagery produced a 128 per cent upli™ that var- ied between product categories from 72 to 197 per cent. Go Inspire also found that increased design "vibrancy" of direct mail can generate a 20 per cent incremental revenue. The results of the RCT show that even though response rates were not critically affected by person- alised direct mail, it was the resulting behaviours that targeted direct mail achieved that stood out, as greater incremental spending was noticed across the board. For utility marketers, it is clear that a smart strategy of combining personalised direct emails with targeted direct mail will help to foster customer loyalty in an industry where "easy switching" is the norm. Paul Sumner, communications director, Go Inspire Group

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