The Crucial Link: How Energy Burden and Engagement Impact Customer Satisfaction
Welcome back to the Blast Point Deep Dive, everybody.
We explore the power of data and AI-driven
solutions here. And would you believe it? It's
our very first episode of 2025 already. Time
flies when you're having fun with data. It really
does. And we're kicking off the year with something
pretty interesting, I think. We're going to
be looking at how this thing called energy
burden is impacting customer satisfaction. I'm
Tom, by the way. And I'm Anna. So just sit
back, relax. And let's discover together how
energy burden and engagement, they actually
impact customer satisfaction. Welcome to the
Booth. Plus point B.
The better we lose Lost won't keep
Okay, but before we jump into the nitty-gritty,
I think it's important to get everyone on the
same page first. What exactly are we talking
about when we say energy burden? Well, you
can think of it this way. Energy burden is basically
like the percentage of a household's income
that goes straight to energy costs. We're talking
like the electricity bill, the heating bill,
the cooling bill, all those things that are
kind of essential for keeping our homes running.
Yeah, exactly. All that stuff. So, you know,
for somebody who's living paycheck to paycheck,
a high energy burden. that could mean they have
to make some really tough choices, like do
I pay to keep the lights on or do I buy groceries
this week? Absolutely. And that's where the
human side of all this data, it really hits
home. Because it's not just some number on
a spreadsheet. You know what I mean? It's actual
real struggles for a lot of people, especially
those in lower income households. Yeah, for
sure. Now here's where I think it starts to
get really interesting. Blast point. They did
this analysis for a utility company. And they
found this totally unexpected connection between
high energy burden and how engaged the customers
are. Yeah, it's surprising. You might think
that the households, the ones with the highest
energy burden, you might think they'd be less
engaged. Right. You'd think they'd be frustrated,
maybe even avoiding contact altogether. Yeah,
yeah, you'd think they'd be upset or disengaged.
But actually, what BlastPoint found is that
these are the folks who are calling the call
center more. They're the ones who are like,
way more active on the utilities website. They're
really trying to find solutions, you know, trying
to get support. So it's almost like they're
setting up a flare, like help, we need a lifeline
here. It is, it is. They need some help to,
you know, navigate these really tough situations.
And Blast Point, they call this segment, the
Relief Seekers, which I think is a really fitting
name. Spot on, absolutely seeking relief. And
when we take a closer look at this segment,
we see some really interesting, details, it
really highlights how unique their situation
is. Yeah, for example, BlastPoint's analysis
found that less than 1% of these relief seekers
are using automatic payments for their utility
bills. Yeah, that's crazy when you compare to
the average. Across all the customer segments,
the average is 16.48% using autopay. So that
difference, that really suggests a lot of these
folks are dealing with financial instability.
You know? Yeah, it makes you wonder if automatic
payments are even an option for somebody who's
having trouble keeping up with all their bills.
They might need more wiggle room in how they
handle their money each month. Right. It challenges
what we think, huh? We always think of auto
pay as the easy way, the convenient option,
but it might not actually work for everybody.
Right, exactly. And this low rate of people
using auto pay, it kind of connects back to
the fact that they're contacting the utility
company more. You know what I mean? They're
actively trying to... keep their bills managed
and make ends meet. Yeah, definitely. And there's
actually another layer to this. We found out
that a lot of these high energy burden households,
they're often clustered in specific zip codes.
And guess what? Those zip codes are the same
ones with the highest number of calls to the
utilities call center. So it's not just individual
households struggling. It's like entire communities
facing this energy burden thing. It's something
to think about. Especially if you're involved
in community development, social services, things
like that. Yeah. Definitely. Now, I know it
might seem like we're painting a pretty bleak
picture here, but there's actually a silver
lining. Really? Okay, I'm all ears. Okay, so
think about it this way. These relief seekers,
even though they're going through some tough
stuff, they're actually really engaged. They're
basically saying, hey, we need help. And that
actually creates a really unique opportunity
for the utility companies. So instead of just
seeing this as a problem they had to deal with,
They can see it as a chance to step up and make
things better for their customers. Exactly.
It's a chance to build stronger relationships,
increase loyalty by being proactive and offering
support. OK, I like where this is going. But
how do they actually do that? What are some
concrete steps they can take? Well, blast point,
they've got some smart recommendations based
on their analysis. Like, the first thing is
to really tailor your messaging. Instead of
just blasting out generic marketing stuff, you
got to speak directly to what these high burden
customers are worried about, you know? So instead
of just saying save energy, it's more like,
hey, we get it, you're struggling, here's how
we can help you lower your bills and stress
less. Exactly, exactly. Highlight the programs
that are out there, the assistance programs,
the flexible payment options, even energy saving
tips. Make it super clear that you understand
what they're going through and that you're there
to help. Gotcha. And what about all those calls
to the call center? Seems like encouraging people
to do things online could be a big help, right?
Oh, for sure. Remember, these relief seekers
are calling four times more than everyone else.
So, promote that online portal. Mobile apps?
Anything that gives them the power to find
answers and manage their accounts without having
to call every time. That makes sense. Not only
would it reduce their stress, but it would also
free up the call center staff to handle the
more complicated issues. Sort of a win-win.
Exactly. And, you know, we can't forget about
that low number of people using automatic payments.
There's a real opportunity there, too. Right,
so maybe promote signing up for AutoPay, make
it super easy, and explain the benefits really
clearly. Maybe even offer some kind of incentive
to get people to try it out. Exactly. And the
online experience is important too. These customers
are already spending time online, so you have
to make sure the website and apps are easy to
use. Packed with features they need, bill tracking,
usage monitoring, easy access to those assistance
programs we were talking about. It's all about
meeting them where they are and giving them
the tools to succeed. And I really like this
next recommendation. Using that zip code analysis
we talked about, remember to tailor those assistance
programs even more. Yeah. If you know which
areas have a lot of high burden households,
you can target those communities specifically.
So be proactive, not reactive. Meet the needs
before people even have to ask. I like that.
It's a powerful concept. Now you might be thinking,
OK, that all sounds good in theory, but does
it actually work in the real world? And the
answer is yes. BlastPoint has helped a bunch
of utilities get some pretty impressive results.
Give us an example. I always love a good success
story. It's inspiring, you know? Sure. There
was this electric utility over in Western Pennsylvania.
They used BlastPoint's platform to get the
word out about their energy efficiency programs.
So they were able to reach more people who
could really benefit from those programs. Exactly.
And the results were great. They saw a 16%
higher enrollment rate in their energy efficiency
programs, which is way above the industry average.
That's a big jump. What about engagement, though?
Were people actually using those programs?
Oh, yeah. Engagement rates for those programs
went through the roof, over 300%. People weren't
just signing up. They were actively participating
and using those resources. That's amazing.
Any other success stories you can share? Yeah,
let's talk about American Electric Power, AEP.
Big utility serves a huge chunk of the Midwest
and the South. They launched a new digital
assistant on their website to help customers
manage their accounts, find information easier.
So they're trying to make it easier for folks
to do business with them online, which is probably
super helpful for those high burden customers,
since they're already online a lot. Yeah, exactly.
And with BlastPoint's help, they got those click-through
rates 30% higher than the industry standard
and in less than two months. That means more
people were finding what they needed and using
the online tools. It really seems like these
data-driven solutions can have a real, tangible
impact. It's not just about collecting a bunch
of data. It's about using it in a smart way
to understand what your customers need and then
taking action to meet those needs. Totally
agree. It's about going beyond simply delivering
energy. It's about partnering with your customers,
helping them manage their energy journey, especially
the folks who are struggling. Absolutely. Now
let's switch gears a bit and talk about the
emotional toll that high energy burden can
take. I mean, on individuals, on families. It's
really easy to get lost in the numbers, I think.
But we can't forget that this is about real
people. dealing with real challenges in their
lives. We need to try and see things from their
perspective. Right, imagine the stress of constantly
worrying, can I keep the lights on? Or having
to choose between paying for energy or buying
food for your family. It's got constant source
of anxiety. It can make people feel helpless,
even hopeless. It can really affect your mental
and emotional well-being. And for families
with kids, it can be even harder. Imagine having
to tell your children, Sorry, we can't afford
to run the AC today, even though it's scorching
hot. Or you have to take shorter showers to
save water. Oh, man. These are really tough
situations. Nobody should have to go through
that. It's more than just money problems. It's
the emotional burden of constantly worrying
about basic necessities. Exactly. And it's not
just the immediate impact, right? High energy
burden can have long-term consequences, too.
You're right. Kids who live in homes with high
energy burden They might have more health problems
because their home isn't heated or cooled properly.
They could be more likely to catch cold, develop
allergies, or even get heat stroke in really
hot weather. They might even struggle in school
if they don't have a good place to study, you
know, somewhere comfortable and well lit. It's
hard to focus when you're freezing or sweating
or if you're worried about your family's money
problems. Yeah. And for senior citizens, you
know, the ones living on fixed incomes, high
energy costs, that can make it really hard
to afford medicine or health care. It's like
this vicious cycle that traps families in poverty
and limits their opportunities. High energy
burden can really affect every part of a person's
life. It creates a ripple effect. It really
does. It's a powerful reminder that energy
isn't just something we buy and sell. It's a
basic human need that impacts our health, our
well-being, our overall quality of life. But
here's the good news. It doesn't have to be
this way. Utilities have the power to break
this cycle. and make things better for their
customers. They do. I think they have a responsibility
to step up and find solutions that work for
everybody, not just their bottom line. Absolutely.
By using data-driven solutions, like the ones
BlastPoint offers, they can figure out who's
struggling and give them the support they need.
Whether it's connecting them with assistance
programs, offering flexible payment options,
or giving them tips and resources to save energy,
every little bit helps, right? Yeah. And when
utilities take the time to really understand
their customers' needs and struggles, they
can build stronger relationships and create
more trust. For sure. It's about being more
than just an energy provider. It's about being
a real partner in helping customers thrive.
It's about making the energy system fairer and
more just for everyone. Right. Now, I think
we should talk about another important part
of this, the foreignness of it all, you know,
the equity implications of energy burden. It's
really important to understand that energy
burden... doesn't affect everyone equally. Some
groups get hit harder than others. Right. You
know, we're talking about low-income households,
communities of color, and rural areas. They
often face a heavier energy burden due to a
whole bunch of factors. Exactly. Lower income
is a big one, of course. But there are other
things at play, too. Like, these communities
might live in older houses that aren't very
energy efficient, so they need to use more
energy to stay comfortable. And they may not
have good transportation options, which can
make it hard to get to work or access essential
services. which puts even more strain on their
budgets. Right, it all adds up. Yeah, and these
inequalities are deeply rooted in systemic
issues that need systemic solutions. It's not
enough to just offer temporary fixes. We've
got to tackle the root causes of these disparities.
Absolutely, we have to dig deeper. And utilities,
I think they have a responsibility to be part
of the solution. They need to think beyond
just offering assistance programs and actually
look for ways to address these inequalities
head on. For sure. It's about being part of
the change. For example, what if they invested
in making low-income housing more energy efficient?
Imagine if everyone had a well-insulated home
that kept them warm in the winter and cool in
the summer without costing a fortune. Yeah,
that would be great. And expanding access to
things like solar power could help level the
playing field too. Definitely. Solar panels,
they can help lower those energy bills. They
can also make energy more reliable, especially
for those who are vulnerable to those price
spikes. Right, and working with community groups
to teach people about saving energy, that can
be really powerful. When people understand how
to save energy, they can make a real difference,
not just in their own lives, but in their communities
too. Absolutely, knowledge is power. It's all
about building a more just and fair energy system
for everyone. A system where no matter your
income, your race, or where you live, you can
afford reliable, sustainable energy. A system
that works for everyone. Now, I want to bring
it back to customer satisfaction for a minute.
Okay. It might seem kind of strange, but addressing
energy burden can actually make customers happier.
Yeah, you know, it might sound counterintuitive,
but it really can. When utilities show they
genuinely care about their customers and are
trying to make energy more affordable. It builds
trust. Right, it shows they're not just about
making money, but about actually serving the
community and making a real difference. Exactly,
and when customers feel valued and supported,
they're way more likely to stick around, you
know, less likely to switch providers. It's
all about going that extra mile, right? Offering
support and solutions that actually fit each
customer's situation. Absolutely, personalized
attention, that's what makes a difference.
For example, imagine a utility company that's
using data. to figure out who's falling behind
on their bills. Okay, yeah. Instead of just
sending out a disconnect notice, they reach
out to the customer and say, hey, we see you're
having some trouble, here's some options for
payment assistance. Right, or they could even
connect them with energy efficiency programs
that would help lower those bills in the long
run. Exactly, that kind of personal touch can
make a huge difference. Totally, it shows the
customer that they're not just an account number,
you know, they're a real person. And that can
turn a bad experience into a good one. You
build trust, you build loyalty. By creating
that customer focused approach, utilities can
increase satisfaction, keep their customers,
and build those long term relationships. It's
a win-win for everybody. OK, let's shift gears
a little bit and talk about solutions. We've
talked about the problems and the opportunities,
but what can utilities actually do to tackle
energy burden? and make their customers happier.
All right, let's start with energy efficiency.
That's a biggie when it comes to lowering energy
use and those monthly bills. Right, if we can
help people use less energy, we can ease the
pressure on their wallets and make their homes
more comfy and healthy. Totally. There are tons
of ways to be more energy efficient. Some are
simple, like switching to LED light bulbs. Others
are bigger projects, like adding insulation
or weather stripping. And technology is playing
a big role too, right? Like with those smart
thermostats. Oh yeah, those are great. They
can learn your habits and adjust the temperature
automatically, which saves energy and money.
And utilities are coming up with some creative
programs, too. Oh yeah, they're getting pretty
innovative. Some are offering rebates or discounts
for people who make energy-saving upgrades,
so it's not so expensive. Others are teaming
up with local businesses to offer deals on energy-efficient
appliances or home energy audits. And some
are even going a step further by providing on-bill
financing, which means people can pay for those
upgrades over time. right on their utility bill.
It's like spreading out the cost. Exactly.
It's about making energy efficiency doable and
affordable for everyone. Okay, now let's talk
about another exciting solution. Renewable energy.
Solar, wind, geothermal. These clean energy
sources are becoming more and more affordable.
And they can really help us move away from
fossil fuels and fight climate change. Absolutely.
But they can also lighten that energy burden.
especially for lower income communities. Yeah,
like with community solar programs, people
can basically subscribe to a shared solar farm
and get credits on their energy bills. That's
a great option for people who can't afford to
put solar panels on their own roofs. They still
get the benefits of solar without the upfront
cost. Exactly, and a lot of utilities are offering
green pricing programs too. Customers can choose
to buy some or all of their electricity from
renewable sources. That's a fantastic way to
support clean energy and reduce your impact
on the environment. And it might even save you
money. It's worth looking into. Now let's talk
about another crucial part of this, customer
assistance programs. Right, these are programs
that offer financial help and other types of
support to help low-income customers keep up
with their energy bills. They can really be
a lifeline for families who are struggling
to get by. They can prevent those utility shutoffs,
which can be devastating. There are programs
like LIHAPE, the Low Income Home Energy Assistance
Program. which provides grants to help with
heating and cooling costs. And a lot of utilities
have their own assistance programs too. They
offer discounts, payment plans, and other support
based on their customers' needs. But there's
a catch, right? Awareness and accessibility.
Yeah, unfortunately. A lot of people who qualify
for these programs don't even know they exist.
or they face roadblocks when trying to enroll.
They might not have internet access or transportation,
or maybe they're just not comfortable dealing
with all the paperwork. Yeah, it can be a hassle.
And that's where data and technology can really
help. Oh, for sure. Utilities can use data to
figure out which customers might qualify for
assistance and then reach out to them directly
with information and support. Exactly, and
they can streamline that enrollment process,
make it super easy for people to apply and
get the help they need. And using things like
text messages and email. can help them communicate
with customers quickly and effectively, meet
them where they are. Take it convenient. It's
about making sure that everyone who needs help
can get it no matter what. So we've talked
about energy efficiency, renewables, and customer
assistance programs. Are there any other cool,
innovative things utilities are trying? Oh,
definitely. Some utilities are experimenting
with new ways of pricing energy, trying to make
it fairer and more affordable for lower income
folks. Like, Some are using income-based rates,
so people pay a percentage of their income
for their energy bills instead of a fixed rate.
That sounds promising. It could help guarantee
that everyone can afford energy no matter how
much they make. Exactly. And other utilities
are trying out prepay options where people pay
for their energy in advance, kind of like a
cell phone plan. That could help people budget
better and avoid those unexpectedly high bills,
especially during those peak seasons. Yeah,
for sure. And some utilities are even taking
a community-based approach to make energy more
affordable. How so? Well, they're teaming up
with local organizations to offer workshops
on how to save energy, or providing financial
counseling to help people manage their energy
costs. That's a great idea. It's about tackling
energy affordability from all angles. It's about
recognizing that it's a complex issue, and
working together to find solutions that work
for everyone. Collaboration is key. Now before
we move on, let's talk about some success stories.
You know, real world examples of utilities
doing great things to tackle energy burden and
boost customer satisfaction. Love a good success
story. They're so inspiring. Me too. Gives me
hope. Okay. Well, one great example is the
Sacramento Municipal Utility District or SMUD
for short. Oh, I've heard of them. They're
really big on sustainability and customer service.
They are. They've got a really strong energy
efficiency program. They offer rebates, incentives,
and even that on-bill financing we were talking
about earlier. That's awesome. They're also
big on renewable energy. Their goal is to get
to 100% carbon-free electricity by 2030. That's
ambitious. It is. But they're making good progress.
And they're working with local organizations
to educate people in lower income communities
about energy and how to save money on their
bills. So they're empowering those communities
to take control. Exactly. And Thanks to all
these efforts, SMUD has actually seen a big
drop in energy burden among their customers.
That's amazing. It shows that what they're
doing is really making a difference in people's
lives. It really is. Okay, another inspiring
example is Green Mountain Power, or GMP. They're
up in Vermont. Oh yeah, I've heard of them
too. They're known for being really innovative
with their energy services. They are. They're
all about putting the customer first. They really
focus on providing personalized support and
solutions. So how are they doing that? Well,
they've got this program that uses data to
find customers who are struggling to pay their
bills, and then they proactively reach out
to them, offer them assistance, connect them
with payment plans, energy efficiency programs,
things like that. That's a perfect example of
how data can be used to help people. Exactly.
And they've invested in battery storage technology
too, so customers can store solar energy and
use it during those peak times when energy is
more expensive. Smart move. It is. And they
even created this community energy marketplace
where people can buy and sell renewable energy
from each other. So they're building community
and promoting clean energy at the same time.
Yep, it's a win-win. And because of all these
innovations, GMP has some of the highest customer
satisfaction ratings in the industry. It really
shows that putting your customers first pays
off. It does. These success stories prove that
when utilities focus on energy efficiency,
renewables, and customer assistance, everybody
wins. Customers are happier, they stick around
longer, and communities become stronger. It's
all connected. So as we wrap up this part of
our deep dive, we want to leave you with a little
something to think about. OK, I like that.
What can you do personally to help solve this
energy burden challenge? It's a question we
should all be asking ourselves. Whether you
work for a utility company, you're a policymaker,
a community leader, or just some of peers about
this issue. We all have a role to play in creating
a more just and sustainable energy future. We
can support policies that encourage energy
efficiency and renewable energy. We can fight
for stronger consumer protections and push
for better access to those assistance programs.
We can educate ourselves and others about saving
energy. We can make choices in our own lives
that reduce our energy use. And we can support
those utilities that are leading the way, the
ones who are tackling energy burden head on.
and building a more equitable energy system.
Because every little bit helps. Even the smallest
actions can make a difference. We can do this.
Together, we can build a future where everyone
has access to affordable, reliable, and sustainable
energy. A future where energy is a right, not
a privilege. I like that. Now let's take a quick
break, and we'll be right back to finish up
our deep dive into energy burden and customer
satisfaction. We'll have some final thoughts
and key takeaways for you when we return. Welcome
back to the BlastPoint Deep Dive. We've been
really digging deep into this whole energy burden
thing, how it's impacting customer satisfaction,
all the different aspects of it. We've seen
the challenges, the opportunities, heard some
real human stories behind all that data. Yeah,
and we've learned about some pretty innovative
solutions too. Things that are already making
a difference in communities all over the place.
So now that we're wrapping up, let's kind of
boil it all down. What are the key takeaways
here? What should we be thinking about moving
forward? Okay, so first and foremost, energy
burden. It's a big deal. Millions of people
are affected by it. It's not just about the
numbers though. It's about the stress, the choices
people have to make, and how it affects their
health and well-being. It's families struggling
to pay their bills, senior citizens choosing
between heat and medicine, kids who can't focus
in school because they don't have a comfortable
place to study. Yeah, it's a real problem. But
the good news is, it's a solvable problem.
Exactly. We've seen how utilities are using
data and technology to really get a handle
on what their customers need and provide support
where it's needed most. We've talked about
all those innovative solutions, energy efficiency
programs, renewable energy, customer assistance,
all these things that are making energy more
affordable and accessible. And we've also seen
how important it is for utilities to really
focus on their customers. Right, treat them
like people, not just numbers. When utilities
go above and beyond to show they care and are
committed to serving their communities, it builds
trust. It makes everyone happier in the long
run. So what can we do as individuals to make
a difference? We can't just leave it to the
utilities, right? No, absolutely not. Everyone
has a role to play. It starts with educating
ourselves about energy burden, what's happening
in our own communities. Right. We can support
policies that promote those solutions we were
talking about. Energy efficiency, renewable
energy, customer assistance. We can push for
stronger consumer protections, too. Make sure
utilities are held accountable. And, you know,
we can start by making changes in our own lives.
Simple things to reduce our own energy use.
Yeah, every little bit counts. And we can support
businesses that are doing their part to be more
sustainable, too. Because in the end, it's
all connected. Absolutely. We all have a stake
in creating a more just and sustainable energy
future for everyone. And always remember, energy
isn't just some commodity. It's a fundamental
human right. Everyone deserves access to it.
That's a great point to end on. Thanks for
joining us for this deep dive into energy burden
and customer satisfaction. We hope you learned
something new and feel inspired to take action.
And if you enjoyed this episode, be sure to
subscribe to the Blast Point deep dive for more
insights on how data and AI are shaping our
world. We'll see you next time.
