Study: Too Late For New Marketers in Georgia?
Marketers considering whether to enter soon-to-be deregulated
electricity and gas markets should re-evaluate strategies in light
of the experience of gas marketers in Georgia. Late entry
strategies may be very risky, according to an analysis of Georgia's
gas deregulation process by Atlanta-based Energy Market Solutions.
The Energy Market Solutions' study explains why and how
deregulation occurred; how the Georgia deregulation process works;
strategies and tactics of marketers; profiles of marketers and
lessons learned. Gas marketers who didn't enter the deregulated
marketplace in Georgia early may have permanently shut themselves
out of the market. The latest example of this is the exit, after
less than two months, of KeySpan Energy (an affiliate of Brooklyn
Union Gas Co.). KeySpan's vice president and chief operating
officer said "I wish we had gotten there earlier."
"Clearly, using customer acquisition, profitability and
retention models and strategies developed through pilot
deregulation programs could be very misleading in markets that
follow the Georgia deregulation model," said Energy Market
Solutions Vice President Michael Mabey.
Customer retention was not an issue for marketers when
deregulation began because all customers had to choose a new
supplier. New market entrants will have to overcome retention
efforts and customer acquisition offers to acquire customers.
Energy Market Solutions is a utility-focused marketing strategy
and research firm that helps clients identify what customers value,
which customers to target for loyalty, retention and new
product/service programs, and how to acquire and/or keep targeted
customers. Call (770) 455-6994 for information about the study
"Natural Gas War! - Battling For Supremacy in the First Completely
Deregulated Natural Gas Market in the Country."
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.