Consumers are becoming more interested in buying energy,communications and other services in one-stop package deals, arecent national survey has found. However, customers expect any”bundled” products and services to be offered at a discount of atleast 5%, according to the survey. In fact, interest in specificpackages increases in direct proportion to the depth of thediscount. Overall, customers assume that combining products andservices in a package over a single brand will add value and createeconomies of scale

Some of the customers most interested in new product and servicebundles are least satisfied with their current energy provider.Conversely, customers most satisfied with their energy and longdistance providers are much less interested in combined productsand services.

The survey was conducted by RKS Research &amp Consulting ofNorth Salem, NY. The RKS sample consisted of 804 residential and406 small business customers across the United States.

“From this rigorous process, we surfaced significant interest inconsumer-generated bundles of energy and telecommunicationsproducts and services from a single source,” said Charleen Heidt,vice president in charge of RKS residential research. “These arenot mass markets, but clearly niche segments that will requirehighly tailored promotional strategies. And where customersatisfaction is low, a substantial investment will be required toestablish and improve relationships in advance of any product orservice offering.”

The survey found residentials are receptive to packagedenergy-related offerings consisting of heating and air conditioningrepair and maintenance, home appliance repair and electrician’sservices under the brand umbrella of their local energy supplier.Small business customers showed interest in power qualityconsulting and energy audits. And both groups are disposed to turnfirst to their local energy provider for these additional services.

Both groups also are open to packages oftelecommunications-related products and services from their energyprovider. Residential customers would consider local and longdistance telephone service, cable or satellite television servicein a bundle with electricity. Small business customers are equallyreceptive, except that they would include Internet access insteadof television in their preferred package.

“These findings demonstrate the equity value of the local energysupplier’s image and reputation,” said Heidt. “Based on theresponses of the customers we sampled, a combination of a respectedenergy provider, linked up with a credible national brand to offerdiscounted telecommunications services, would be a potent entrantin these emerging markets.”

RKS found customers link other products and services intopossible packages. These include “smart” thermostats, homeautomation, surge protection and security systems; carbon monoxideand smoke detectors, air filtration systems; Internet access,long-distance, and advanced television/data systems; heating, airconditioning, equipment installation and repair and duct cleaning;distributed and backup generation, fuel cells, photovoltaics, UPSsystems; and energy/air quality audits, plus air filter repair andreplacement. “Each of these potential packages appeals to adifferent segment of our small business and residential customersample,” Heidt said.

“Some of these products and services come together logically,while others seem more convenient and efficient to customers ifthey were offered through a single source. The challenge for energyproviders is to determine which of these segments warrants anincreased investment in marketing – then start the process ofeducating these customers about the value and benefits of thebroader portfolio of products and services.”

Joe Fisher, Houston

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