RESIDENTIAL PROGRAMS DESIGNED TO INCREASE DIFFERENTIATION, SALES, MARGIN and RETENTION

As distributor of LED lighting we see the benefits of LEDs as an advantage for both commercial AND residential customers alike. To this, we did a redesign of our highly successful LED PLUS Energy Efficiency App to focus on residential customers as well.
What’s the difference between the residential and commercial applications?
Since residential customers consume much less energy than commercial customers, and they need slightly different styles (and colors) of LEDs for their homes, the methods for marketing to residential customers differ.
We are focused on these differences and thus created a few new programs and added some features to our LED Plus app to help.

The LED Plus “Churnbuster” Program

Problem

On average, the rate of churn in the residential retail energy space is about 4%/month. This loss of customer acquisition expenses causes retail energy providers to raise rates, which in turn increases churn in a classic vicious cycle.

Solution – LED Plus “Churnbuster” Loyalty Program

The program saves your customers money on their energy costs, with LEDs, PLUS a whole lot more. The concept is to limit churn by increasing customer loyalty with both immediate AND quarterly incentives that they will benefit from every day.

How does it work?

• REP will enroll the new (or existing) customer in the LED PLUS Loyalty Program and send a daily file containing the customers’ contact information and start date to LED PLUS.
• LED PLUS will fulfill the 4-pack of name brand LEDs after the start date.
• LED PLUS will then generate a unique coupon code for the customer in its system with a 180-day expiration date. In the “Welcome Letter” to the customers, the REP directs them to a Loyalty URL where customers may log in and retrieve their unique coupon codes every 90 days.
• Every 90 days LED PLUS will generate a new unique coupon code for each customer. Typically, the coupons will be worth $10.00.
• At the REP option LED Plus will inform the customers to log into the Loyalty URL to retrieve their new unique coupon codes.
• Customers will use their coupons to buy LEDs and other energy savings items on the LED PLUS website.
• LED PLUS will validate the respective coupons and fulfill all customer orders.
• LED PLUS will provide the REP with a monthly delivery report of all orders fulfilled and coupons used.
• REP will provide LED PLUS with a daily report of any customers that have dropped service so that LED Plus can de-activate their respective coupons. Thus, if the customer drops service with the REP at any time, his/her respective coupon will be de-activated. Therefore, only customers who are loyal and are still customers of the REP can benefit from the quarterly coupons. CHURN, BUSTED!
• Finally: 25% of all net profits generated from the website from customers of the REP will be shared with the REP. This income helps defray the cost of the program.

Retail Energy Providers can now increase:

• • DIFFERENTIATION,
  • SALES,
  • MARGIN and
  • CUSTOMER RETENTION
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RESIDENTIAL CUSTOMER ACQUISITION PROGRAM (RCAP)

Building on the success of our LED Plus energy efficiency app technology platform for REPs marketing to small commercial customers , we have created the same powerful solution for marketing to residential customers.

Problem

Major challenges facing the Retail Energy Industry:
Churn, margin degradation, no loyalty by the customers, lack of differentiation, stunted growth, low return on customer acquisition investment, fixed expenses increasing, overbearing regulatory oversight.

Solution – Acquiring and retaining customers by providing Energy Efficient LED Lighting

Program Summary: LED Plus Program for Retail Energy Providers
The LED PLUS Energy Efficiency Platform provides the sales technology to create the energy efficiency analyses for the customers, provides the LED Lighting, customer fulfillment, and finances all these activities so there is no upfront payment. Additionally, LED PLUS provides the upfront and ongoing sales training and support as well as sales incentives and warranty tracking. Our proprietary app may include the cost of LEDs in the new price per kWh.

How does it work?

Our proprietary app is able to produce an energy efficiency analysis that shows customers how much they can save in energy costs with LED lighting. Additionally, they can see how much they are helping the environment as well. Analysis can be easily shared with the customer via email. The contract for the LED Plus program can be signed on the spot or remotely. Our app will enable your sales people to accomplish the energy efficiency audit at the point of sale or from their office and communicate the results back to you. Our app will create an energy efficiency analysis for each of your customers with a 24-month fixed price for electricity in the respective customer’s state, utility, zone and service class. Customers will see their projected savings on supply, delivery as well as lighting maintenance and carbon footprint reduction.

• LED Plus helps train the trainers and turn energy sales people into “energy efficiency consultants” that use LED Plus proprietary technology (i.e. the “app”)
• The LED Plus App creates the free Energy Efficiency Analysis and shares the information with the customer.
• If the customer agrees, he will sign a two-year fixed price agreement that includes the cost of the LEDs in the new kWh rate.
• LED Plus delivers the LED lighting for the customer within a few weeks of the transaction.
• REPs acquire satisfied customers who use the LED bulbs to save money for ten years.

The technology may be used by door-to-door sales people, telesales, win-back and renewal call centers, and many other marketing channels.

 

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