One-stop shopping experiences July 9, 2010

Walmart used to be just a great place to get bargains on stuff you need around your home. Have you been to Walmart lately? Many have Starbucks, McDonalds, beauty salons, one-hour photo processing, gas stations, and even optometrists. And don’t forget the full-service grocery stores! Sam Walton’s successors are smart cookies. They know that North Americans value one-stop shopping experiences. We don’t want to drive all over town to get our Saturday errands done. By the way, most of our Saturday to-do lists don’t include “Stop at Starbucks for a latte.” While the latte is a great way to treat ourselves, chances are it’s an impulse purchase simply because Starbucks was there!

What does the Walmart experience have to do with utilities? Or energy efficiency?

Customers don’t have the time or inclination to go through multiple, seemingly unrelated steps to improve their household energy efficiency. A lot of utilities struggle with their energy efficiency programs as they work on how to break through homeowners’ and building or business owners’ inertia. Even utilities that provide hefty incentives complain to me that people aren’t taking advantage of these programs. Some utilities have gone so far as to show small business owners, for example, that with their huge incentives (some up to 80%!!) and on-bill financing, there is virtually no cash outlay. Unfortunately, these business and homeowners have so many other “everyday life” things competing for their time and interest. Just like most people who go to Walmart to buy a new garden hose probably don’t have time to get their photos processed. But since they’re going to be there anyway, what a great time to finally get those prints made for the scrapbook!

So, when it comes time to buy a new washing machine, for example, one-stop shopping is still the goal. That’s why Sears offers customers the opportunity to actually see prices from other retailers without leaving the store. That’s why Sears and other retailers also offer delivery, installation and removal of the old washing machine. No one wants to seek out three different service providers just to get a new washing machine.

In the same vein, what are the chances that someone who is in the market for a new washing machine is going to go to your utility website for information about energy efficiency, rebates, etc.? I haven’t done the quantitative research, but I’m thinking chances are slim. This is why it’s so important for utilities to educate retailers and contractors about utility programs and incentives. It’s the retailers and contractors that have face time with your customers at the time the purchasing decision is made. You need to make sure retailers and contractors are well-versed in your rebates (arm them with your forms!), costs vs. benefits of higher efficiency models, and real dollar figures for potential savings with various models.

Home energy audits need to provide the same type of one-stop shopping experience. For the average consumer, there are simply too many steps involved in finding the best products, vendors and installers for each improvement suggested in the audit. Getting additional insulation, caulking around windows and doors, having a door jamb repaired, getting the HVAC serviced, and wrapping the water heater require a wide variety of different products and at least four different installers for the non-do-it-yourselfer.

Utilities need to provide multi-component programs that begin with the information/education (efficiency tips, audits, etc.) but continue through the process with lists of approved contractors, financial incentives and help in securing low-cost financing in a one-stop shop format to address the “cost of information in time and effort” or “inertia” barrier. Even better than a list of approved contractors are utility programs that arrange for the needed work to be completed. Make the appointment for the customer! Do whatever it takes.