Homeowner Energy Source Preference Survey

Tampa Technology & Market Assessment Forum

February 24, 2011

A True Marketing Story…

Traditional Sources

Newspaper

Billboards

RadioNew Home Guides

Weekend Directionals

Flyers

EventsRealtor Deliveries/Programs

Hot Dogs

Non-Traditional…

Indy Racing League

Indy Racing League

As if we didn’t learn enough, we did it again …as a “secondary” sponsor

As if we didn’t learn enough, we did it again …as a “secondary” sponsor

A New Strategy…..

…..focus customers’ preferences, needs and feelings through an effective “Voice of the Customer” program.

Investing in customer research is actually investing in oneself.

.. i.e. ESC Customer Preference Survey…

Study Objectives:

Efficiently sample USA homeowners

Identify current energy sources

Identify preferred energy sources

Compare current energy to preferred sources

Gather customer comments/feedback

The Survey Process

Selected 13 Metropolitan Statistical Areas (MSA) - based upon sponsoring participants.

Identified a consistent 12 month closing period* of selected “new” homeowners.

Adjusted each MSA home price range to sample 66% of the MSA transactions - (75% nationally).

Mailed 26,940 surveys to the 13 MSA (625 – 3,500) on December 10, 2010.

Anticipated a response rate of 2-3%. Achieved a 2.6% response rate (700 responses).

Completed statistical studies February 10, 2011.

The Participating MSAs

St. Louis

IndianapolisSalisburyLas Vegas

Dover

Tampa

AustinPensacola/Panama

San Antonio

AtlantaEl Paso

Los Angeles

Phoenix

The Participating MSAs

St. Louis

IndianapolisSalisburyLas Vegas

Dover

Tampa

AustinPensacola/Panama

San Antonio

AtlantaEl Paso

Los Angeles

Phoenix

Insert disclaimer here………

Insert disclaimer here………

All observations and recommendations are presented without the benefit of significant knowledge of ESC Member operations. Therefore, these results are unencumbered by any internal prejudices within those operations.

National Study Results

National Current Energy Source

64%70%

57%

40%52%

36%42%

29%

60%

31%

0%

20%

40%

60%

80%

100%

Furn. H2O Cooking Drying Fireplace

Cu

rren

t P

erce

nta

ge

Current Gas Current Electric

ME = +/- 5%

National Current Energy Source

64%70%

57%

40%52%

36%42%

29%

60%

31%

0%

20%

40%

60%

80%

100%

Furn. H2O Cooking Drying Fireplace

Cu

rren

t P

erce

nta

ge

Current Gas Current Electric

ME = +/- 5%

National Preferred Energy Source

71% 72% 75%

53%

34%20%18%20%

0%

20%

40%

60%

80%

100%

Furn. H2O Cooking Drying

Pre

ferr

ed P

erce

ntag

e

Pref Gas Pref Electric

ME = +/- 5%

National Current Energy Source vs. Preferred

64% 70%57%

40%

71% 72% 75%

53%36% 42%

60%

29%20% 20%

34%18%

0%

20%

40%

60%

80%

100%

Furn. H2O Cooking Drying

Per

cen

tag

e

Current Gas Pref Gas Current Electric Pref Electric

ME = +/- 5%

“Experienced” user responses -

“Experienced” user responses -

National Current Energy Source Retention

85% 88% 85%

40% 42%35%

53%

85%

0%

20%

40%

60%

80%

100%

Furn. H2O Cooking DryingPec

enta

ge P

refe

rrin

g S

ame

Retain Gas Retain Elect

ME = +/- 5%

Total Gas vs. Total Electric Preference

National 1+ Gas Appliance vs. All Gas vs. All Electric

5%

24%

82%

45%

12%

74%

0%

20%

40%

60%

80%

100%

1+ Gas Appl All Gas All ElectricPerc

enta

ge o

f Res

pond

ents

ME = +/- 5%

Current Preferred All Gas All Gas

Current Preferred All Elect All Elect

Homes Preferred1+ Gas 1+ Gas

Energy Source Willingness to Refer to Family Friends

Willing to Refer

74%

7%19%

Gas Electric Other

National “Big Picture” Findings -

Natural gas is the predominate home heating source for furnace, water heater and cooking.

Electric is the predominate cooking energy. Natural gas is preferred more than currently utilized. Electric is less preferred than currently utilized. The preference for all-natural gas homes is 800% higher than

currently served (5% vs. 45%). Half the all-electric homeowners would prefer not to have an all-

electric home (24% vs. 12%). 57% of US homes have fireplaces and approximately half of

those are natural gas. There appear to be substantial opportunities in some markets to

increase specific gas appliances. Customer comments have significant marketing potential.

On the flipside of the electric cooking mirror…

On the flipside of the electric cooking mirror…

Survey reply comment sample….

Indy Gas:

Website Demo:

www.woodlandobrien.com

Charity Choices of 679 Respondents

Charity Choices of 679 Respondents

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Boys & GirlsClub  

WWF    Habitat    Treats forTroops   

Homeowner Energy Source Preference Survey

Tampa Technology & Market Assessment Forum

February 24, 2011