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BlastPoint Deep Dive Podcast explores the intersection of data, AI, and customer insights. Each episode dives into how AI-driven solutions help businesses understand and engage their customers, improve satisfaction, and reduce churn. Join us for expert insights, real-world examples, and practical tips on leveraging AI to transform the customer experience.
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[00:00:00] Welcome to the Deep Dive. Today we're tackling a really interesting challenge, how utilities are sifting through mountains of customer data. Mm-hmm. Our mission is to look at research showing how they're turning that data overload into well. Really precise customer profiles. Foundational profiles. Yeah.
And it's about moving from just guesswork, sort of throwing things at the wall to a real precision strategy. Exactly. And it feels incredibly timely, doesn't it? Oh, absolutely. I mean, utilities are facing this perfect storm right now. You've got the affordability crisis hitting households hard, right? Then customer expectations are just soaring.
People want instant, personalized everything. And on top of that, there's this huge. Urgent push for decarbonization, which is expensive and complex hugely. And the old ways of looking at customers, you know, just basic demographics, age, zip, code, it. They just don't cut it anymore. Yeah. They can't handle these big overlapping problems and no way.
Which brings us right to the core idea We're exploring. Mm. [00:01:00] Customer person.
S we're talking about personas as a kind of operational shortcut, right? And this precisely, think of it as a shared language. Mm-hmm. A way for customer care, the program teams, operations, everyone to be on the same page so they can actually align resources properly. Exactly. It means you stop budgeting for some generic save energy campaign and start knowing, okay.
These households in this neighborhood need this specific support or program? It's surgical. Okay. And the research, we looked at centers on a case study. A big US utility. Yeah, a talk utility. They realized their teams were just working in silos. Marketing had its goals. Customer service had theirs. The efficiency programs were off doing their own thing.
[00:02:00] Complete disconnect. Total disconnect. So they needed one single source. Of truth and their approach. They brought in ai, machine learning, okay, to analyze all this data, usage patterns, financial info, how people interact. And out of that came six, uh, foundational customer personas. Six core groups, six core groups, and these now basically anchor their entire customer strategy.
Okay, let's unpack that. This shared foundation, six distinct ways customers actually interact with their utility. Yeah. And you're saying this isn't just interesting data. It's the key to breaking down those silos, getting everyone making decisions together. It has to be the key, and we really need to dig into these segments because Wow, the landscape is really uneven.
Uneven how? Well, what's fascinating is just the range and size. You've got one segment that's like. The vast majority of people, okay. And then sitting right next to them are these tiny but really critical niche groups. Understanding both ends of that spectrum is just essential if you wanna allocate resources [00:03:00] smartly.
Makes sense? Yeah. So let's start where the need seems highest. The segments defined by, uh, financial struggles combined with high energy use, right? The most burdened groups and leading the pack here. And this number is kind of staggering, is the busy balancers. 55% of the customer base. 55%. Wow. That's, yeah, that's the majority right there.
It's the giant in the room. These are typically larger households, but with significantly limited income. We're talking about $24,000 income per household member versus the audience average of about $31,000. Okay, so a real income gap. A real gap. And crucially, they often have low digital access. They're not necessarily online not using apps, but their energy usage is high 764 kilowatt hours compared to the average seven and four, so 55% the highest need.
Potentially desperate for savings, but also the hardest to reach through the usual digital channels. That's a huge challenge. It's the central tension. [00:04:00] Exactly. They're incredibly cost sensitive, but your standard low cost digital solution, like an app notification or an email blast, it just won't reach them.
So what does work? What were the recommendations? It all boils down to accessibility and simplicity. You absolutely have to meet them where they are. Meaning? Meaning, SM, s, texts, physical mail, maybe even in-person community outreach. And the guidance itself has to be super simple, non-technical, no jargon.
No jargon. Yeah. And bundle it with messaging that really hits home for families. You know, safety, comfort, actual savings for their household budget. Okay. Now let's contrast that huge group with a much smaller, but you said equally acute high need segment, the resilience drivers. Yeah. Only 4%. Just 4%. But yeah, equally acute in a different way.
They also have high energy needs, but their financial constraints feel more immediate, more elevated. What makes them different? What's the key data point? It's really about their risk level. The analysis gave them a propensity to struggle to pay score of five compared to the [00:05:00] audience average of four.
Okay, wait, a score of five. On what sounds like maybe a one to 10 scale, that might not sound like a huge jump, but one point there could mean a lot, right? Oh, it means a massive jump in risk. Absolutely. Going from a four to a five often signifies moving from being highly vulnerable into territory, where frankly, immediate intervention is probably needed.
And you see that vulnerability in the other data too. Clearly look at this, 18% of this small groom, the resilience drivers have been on a payment arrangement just since 2023. The average across everyone else, only 7%. Wow. Almost three times as likely. And their energy usage is enormous. Over 460 kilowatt hours higher than the average customer.
Yeah. They're really in crisis mode. Yeah. That definitely signals a crisis. Yeah. But hang on. If they're only 4% of the base. How does the utility justify focusing resources here compared to the massive 55% who are busy balancers? Right. Is it just that the risk of them not paying at all is so high? The ROI on helping them is clear.
That's [00:06:00] precisely the kind of strategic insight these personas unlock. It's not just about size. The busy balancers that huge group, they need savings programs delivered at scale. Okay? The resilience drivers need something different. They need immediate, proactive financial stabilization. So the ROI isn't just about saving energy, kws.
It's about avoiding bad debt. Preventing shutoffs. Exactly. Minimizing bad debt, avoiding service disconnections, which are costly for the utility and damaging to their reputation. This small group needs really specific, dignity centered support, dignity centered. What does that look like in practice? It means early outreach for assistance programs before they fall too far behind.
It means using empathetic messaging to reduce any stigma around asking for help and prioritizing low cost, high impact upgrades for their homes, things that cut their bills right away, and ease that long-term burden that fascinates. So precision isn't always about the biggest number, it's about the intensity of the need.
Well put. Yes. Okay. Let's shift gears a bit [00:07:00] from financial constraints to well opportunity. Let's look at the segments, focus more on sustainability and investment. The customers may be leading the charge on the energy transition. Yeah. These are the groups who are often highly educated, highly motivated.
Let's take the progressive planners. They make up about 7% of the B. Okay? 7%. These folks are generally affluent, well educated, and definitely sustainability minded. Their income per household member, $83,000. Compare that to the $31,000 average we talked about. Huge difference. 83 k, massive. And education. 98% have higher education compared to just 43% for the average customer.
Okay? So if they're that affluent, that educated. What's the common mistake utilities make when trying to engage them? They probably expect more than just, you know, a pamphlet on changing light bulbs. They absolutely expect more. The big mistake is treating them like nouse. These customers are likely already researching heat pumps, looking into solar panels, maybe driving an ev.
They're ahead of the curve way ahead. [00:08:00] So the utilities approach needs to frame efficiency programs, not just as simple ways to save money, but as smart, future focused investments. Right. Messaging should highlight things like EV charging and electrification as frankly desirable premium lifestyle upgrades.
And they crave thought leadership. Thought leadership what? What? Exclusive webinars, maybe special newsletters. Things that position the utility as an innovative advisor, helping them stay ahead of that curve. Got it. And then even more cutting edge maybe. Are the green pioneers? A really small segment, just 3%, but sounds like they're key for trying new things.
They are absolutely key. These are your true eco-conscious early adopters. They're ready even eager to champion change and pilot new programs, take risks on new tech. What does the data show there? Nearly 60% of this group scores high on what's called green affinity. Only 25% of the general audience does.
Okay, green affinity. Uh, for listeners, what does that actually measure? Is it just wanting to be green or [00:09:00] actual action? It typically measures the stated desire to prioritize environmental outcomes, but also a willingness to act on those beliefs, and it often correlates strongly with behavior like. Being the first on the block to get solar panels or an ev.
They also tend to have high electric usage per person, 317 kilowatts versus the average of 199, which suggests they might already be electrifying things using more electricity, but they're highly motivated to make that consumption cleaner. So the data basically says you almost have to flip the script with them.
Don't just push programs at them. Treat them like partners. Exactly. Invite them into pilot programs. Things like demand response, community, solar projects, offer specific, maybe higher value incentives for the clean tech. They want, like heat pumps and EVs, and be transparent. Transparency is huge for them.
Share their personalized carbon impact data. Let them see the direct measurable results of their choices. They thrive on that. Okay, that makes sense. Now, let's cover the last two segments. These seem more focused on [00:10:00] reliability, efficiency, maybe less on cutting edge tech or deep financial strain. That's a good way to put it.
Let's start with a fairly large, stable group. Yeah. The practical conservers, they're about 28% of the customer base, almost a third. Who are they generally financially stable, often high energy users, but their main motivation is comfort and efficiency. But here's the kicker. Their homes are often much older, much older.
The average home age for this group is 69 years. Compare that to the overall average of 49 years, and 90% are homeowners, 69 years old. Wow. That detail makes them feel really real. Mm-hmm. I think anyone who owns an older house knows that challenge. Beautiful maybe, but leaky and inefficient. Exactly. So their financial stability, plus this aging housing stock creates a specific set of efficiency challenges a.
But also opportunities. So the goal is to help them tackle that older infrastructure. That's right. Unlock the deep savings potential hiding in those older homes. Yeah. So the [00:11:00] recommendations are very infrastructure focused, right? Offering home energy audits, promoting big rebates for major upgrades, installation new windows, smart thermostats, high efficiency HVAC systems, the big ticket items, the big ticket items, and crucially give them the tools to track their progress detailed usage dashboard so they can actually see the savings and feel the improvements in comfort.
Right proof that the investment paid off. Hmm. Okay. And that leads one last group, the smallest one, the reserved traditionalists. Just 3%. Just 3%. These tend to be older or perhaps semi-retired customers often focus more on their gas service, their main values, peace of mind stability, and less digital.
Definitely limited digital engagement. But here's something interesting. 35% of them opened a new account in just the last 12 months. That's way higher than the average of 12%. Hmm, 35%. That suggests maybe they're moving. Downsizing, something that requires setting up. A new relationship with the utility could be high turnover, may be moving into retirement [00:12:00] communities, whatever the reason it means the utility needs to build trust quickly with this group.
So because they're often newer customers and they really value stability, the recommendations focus on making things easy and reassuring right from the start. Absolutely. That onboarding process is critical for them. Building long-term trust, encourage simple things like billing alerts, usage alerts, things that reduce uncertainty immediately.
Keep it predictable. Keep it predictable. Promote tools like my account or autopay, not as fancy tech, but as low effort. Ways to just manage their account simply and reliably. Give them that peace of mind. So if we kind of zoom out now and connect all these dots, defining these six personas as detailed as they are, that's really just step one, the analytical piece, right?
The description phase. Yeah. The real strategic impact. The thing that justifies the investment in this kind of analysis comes from turning these precise profiles into actual organizational change, how you deploy this knowledge. Okay, so let's talk about that. What does this mean [00:13:00] for how the utility actually operates day to day?
Going beyond just picking the right marketing channel, how does it change things on the ground? Well, it gets to the core question, doesn't it? How do you actually operationalize this kind of precision? Yeah. And the source material we looked at shows these personas becoming real strategic assets. They help achieve four, uh, really critical organizational outcomes, and fundamentally, they help smash those silos we talked about at the beginning.
Okay. Outcome number one. Breaking down silos. How does having six names actually do that? It sounds almost too simple, but it's incredibly effective. Silos thrive because different teams use different language, different metrics, different goals. Mm-hmm. By making every team, customer care, program managers, field operations, marketing use these same six foundational personas as their main reference point.
You create a unified framework. Shared language, so everyone knows what resilience driver means. Instantly when someone says, we need a plan for the [00:14:00] resilience drivers, everyone across the company immediately understands that high risk profile, the need for empathy, the right tone, it stops miscommunication, and those really jarring inconsistencies in messaging.
Okay, that makes sense. Unified language with the second outcome. Allocating resources with precision, and this is where the data gets spatial, gets geographic. Ah, okay. Layering location on top. Exactly. This is the crucial next step. You take the persona data knowing who the customer is, and you map it. You layer geographic context onto it so you know where they are concentrated precisely.
You know, where these different groups tend to live and you understand the local context of those areas. Gimme a concrete example. We talk about practical conservators in those 69-year-old houses. Mm-hmm. How does knowing where they live. Change where the utility puts its resources, say insulation, rebates versus EV charger marketing.
It changes everything about deployment. You wouldn't blanket neighborhoods dominated by practical conservers, those older, denser areas. Mm-hmm. With expensive EV charger marketing, it's just not the right fit. Waste of money, total waste. That [00:15:00] money is far better spent targeting those specific areas with info about home energy audits, maybe targeted mailers about high value installation, rebates, physical interventions.
Okay. The flip side. The flip side, you see the progressive planners are heavily clustered in, say, affluent suburban areas. Mm-hmm. Often with newer homes, that's where you concentrate the resources for EV education, advanced electrification programs, maybe community solar signups. It becomes an immediate data-driven way to optimize where your physical resources and marketing dollars go.
That really is the shift from just having abstract profiles to having genuinely place-based strategies. That's the term, place-based, and this connects directly to the third outcome, Uhhuh personalizing engagement beyond just the message itself. How so? Because knowing the where allows you to adept the, how you can tailor the communication channels based on regional realities.
Yeah. Are you in a community with low broadband access then you lean into mail or SMS for those busy balancers? Right. Does a [00:16:00] particular area rely heavily on natural gas, then your messaging needs to reflect that fuel mix reality. When you talk efficiency with the reserved traditionalists there, it's about local relevance, and I imagine that local relevance, being strategic of a deployment inherently builds local trust.
That sounds like the fourth outcome. It absolutely does. It moves the utility beyond just sending personalized emails, which can feel a bit generic and into genuine community engagement. Mm-hmm. By understanding these geographic clusters, the utility can show up differently. They can engage through place-based initiatives, partner with local community groups, actually meet customers in their daily lives with support that feels relevant to their neighborhood.
So it feels less like a big faceless corporation. Exactly. And that commitment being both. Customer centric in understanding the persona and community specific in how you act on it. That's how the utility in the case study delivered real measurable improvements, better customer satisfaction scores, and critically higher participation rates in their programs.
[00:17:00] It really is striking how mapping those six groups just completely reshaped their whole operational model. Oh, okay. Let's quickly recap the core knowledge nuggets here. Yeah, let's crystallize it. These personas, they really move utilities beyond those outdated demographic buckets. They help tackle these massive crises, affordability, decarbonization, head on, and they reveal things you wouldn't see otherwise.
Correct. Critical conflicts like the busy balancers having both high usage and serious financial strain, that's a tough nut to crack. But also huge opportunities, right? Yeah. Like those highly educated green pioneers who aren't just customers, they can be partners in developing new clean tech solutions.
Absolutely. And I think the final, maybe overarching takeaway is organizational. Yeah. Making that shift, getting away from siloed teams and vague targeting, moving towards this unified persona based approach. That's the engine. That's what actually strengthens customer trust. Yes. Because customers feel like the utility A, actually understands them, sees their specific situation, and that leads directly to better program [00:18:00] adoption because the solutions feel tailored, not generic.
Okay. So that leaves us with a final, provocative thought for you, our listeners, to mull over. Hmm. The energy transition is happening fast. It won't wait. And that affordability crisis, it seems to only be deepening. So what happens to the utilities that don't make this shift? What happens to those still relying on siloed teams and outdated strategies in this era of really rapid disruptive change?
Yeah. Are they risking being left behind entirely in this necessary move towards truly precise customer centric and community specific engagement? Something to think about. Thank you for diving deep with us today. And of course, if you enjoyed this deep dive into data and ai, make sure to subscribe to the Blast Point Deep Dive podcast for more amazing stories from the cutting edge of technology.
We'll be back soon with another episode exploring how data and AI are shaping the world around us. Until then, keep exploring, keep learning, and keep pushing the boundaries of what's possible. We'll be here to guide you [00:19:00] every step of the way. Thanks for joining us.