Abstract
Overview
Introduction
Different energy market structures, dynamics and player strategies across
geographies leads to widely differing approaches to customer segmentation and
value extraction. This brief provides an analysis of segmentation practice
across four key liberalised markets and provides insight into best practice
for exploiting customer value elsewhere.
Scope
- An overview of current segmentation and value extraction practices in the
UK, Italy, Spain and Ontario energy markets.
- Analysis of channel usage in each market and the relative merits of each
option.
- Understand how the ability to segment acquisition and retention activity
appropriately can be a value generator.
- Insight into best practice and alternative approaches to exploiting
customer value.
Report Highlights
There is a void waiting to be filled in terms of the domestic energy internet
comparison site market outside the UK.
In all of the countries studied, with the exception of Canada (Ontario); being
able to identify a customer' s propensity to purchase multiple products from a
retailer was seen as a significant source of value as it offers a higher
margin per customer with little difference in acquisition cost or cost-to-serve
Only the UK hides the costs of distributing products from its consumers
(although this practice was originally put in place for regulatory rather than
market driven reasons). The ability to segment acquisition and retention
activity by size of household will be a significant value generator.
Reasons to Purchase
- Gain insight into segmentation practices in liberalised markets.
- Understand how current segmentation practices can be improved.
- Improve the potential to gain greater value from customers.
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