Marketers considering whether to enter soon-to-be deregulatedelectricity and gas markets should re-evaluate strategies in lightof the experience of gas marketers in Georgia. Late entrystrategies may be very risky, according to an analysis of Georgia’sgas deregulation process by Atlanta-based Energy Market Solutions.
The Energy Market Solutions’ study explains why and howderegulation occurred; how the Georgia deregulation process works;strategies and tactics of marketers; profiles of marketers andlessons learned. Gas marketers who didn’t enter the deregulatedmarketplace in Georgia early may have permanently shut themselvesout of the market. The latest example of this is the exit, afterless than two months, of KeySpan Energy (an affiliate of BrooklynUnion Gas Co.). KeySpan’s vice president and chief operatingofficer said “I wish we had gotten there earlier.”
“Clearly, using customer acquisition, profitability andretention models and strategies developed through pilotderegulation programs could be very misleading in markets thatfollow the Georgia deregulation model,” said Energy MarketSolutions Vice President Michael Mabey.
Customer retention was not an issue for marketers whenderegulation began because all customers had to choose a newsupplier. New market entrants will have to overcome retentionefforts and customer acquisition offers to acquire customers.
Energy Market Solutions is a utility-focused marketing strategyand research firm that helps clients identify what customers value,which customers to target for loyalty, retention and newproduct/service programs, and how to acquire and/or keep targetedcustomers. Call (770) 455-6994 for information about the study”Natural Gas War! – Battling For Supremacy in the First CompletelyDeregulated Natural Gas Market in the Country.”
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