Ever-changing consumer expectations will require utility marketers to communicate in innovative ways. Utilities must connect on a deeper level, utilizing customer data to tailor messages to each individual customer. It’s time to get personal — quite literally.
“It’s getting harder and harder for utility marketers to get noticed and stand out from all the noise,” says Jared Brandon, Director of Innovation at Harris Computers. “From TikTok to Instagram Reels, the world is moving toward bite-sized entertainment. Customers also expect marketing messages to be relevant to their needs and interests — or they will simply tune them out. Utilities need to be communicating in the same way.”
A powerful force for engagement
For marketers in any industry, the use of personalized videos is key to building stronger customer relationships. Consumers receive personalized content from a wide variety of brands, from streaming services to online retailers to mobile apps.
In today’s world of hyper-personalization, 73% of customers prefer companies that take the time to send them personalized communications. Recent research from Adobe finds that personalized videos get 16 times more click-throughs compared to non-personalized video. When video and personalization come together, the combination is a powerful force for utility customer engagement.
“Personalized video combines the entertainment value of video marketing with the data-driven targeting of other digital tactics,” says Brian Lindamood, VP of Marketing and Content Strategy at Questline Digital. “The ability of a video message to speak directly to each customer leverages the best aspects of digital engagement in a uniquely powerful way.”
Personalized videos are popping up virtually everywhere in marketing with the growing availability of customer data and AI technology. And customers are responding with considerable engagement. In fact, data shows that using personalized calls-to-actions (CTAs) result in 202% more conversions than those without.
T-Mobile recently took advantage of AI-powered personalized videos in email communications to encourage customers to sign up for other services. The videos were personalized with a customer’s name (in voiceover and text), services they use, phone plan details and distinct video content based on a target persona. The personalized videos were extremely successfully, increasing customer acquisitions by 400%.
Similarly, Carvana used personalized video to commemorate the anniversary of when customers received their vehicle. Each video featured unique attributes, such as the date, location, vehicle specifications and more. These digital experiences were both entertaining and memorable, helping to grow long-term customer satisfaction and stronger digital relationships.
A tool to educate utility customers
As personalization takes center stage, it’s no surprise that customers expect the same experience from their energy or water provider. In order for customers to see their utility as a trusted advisor, it’s vital that they use data to demonstrate their understanding of customers’ lifestyles and behaviors.
“Utilities have information that people care about,” says Matt Irving, Video Director at Questline Digital. “I think it's valuable for customers to know, for example, where they fall in terms of energy efficiency compared to their neighbors. Utilities have all this data at their disposal. Why not use it to make personalized videos to improve the customer experience?”
For example, utility marketers could share a personalized video to customers who use significantly more energy or water. The video would be customized with a customer’s usage data month-over-month and how it stacks up to their neighbors. It would conclude with a helpful efficiency tip to help them lower their bills.
Personalized videos are also a helpful tool to educate customers, especially for complex industry topics like time-of-use rate plans, smart meters and demand response programs. By using customer data, they can see firsthand how a utility program or service will benefit them.
“The reality is that customers don’t live and breathe the utility industry,” Brandon says. “Personalized video can simplify complex industry-specific topics to a layman’s audience, while also showing customers why a particular program is relevant to them.”
Just like T-Mobile did, utilities can take advantage of personalized video to drive customer behaviors. One example is promoting a budget billing program, which is commonly marketed to customers through generic emails, bill inserts and website landing pages.
Customers may get the gist of budget billing through these non-personalized promotions, but they won’t know if they are eligible for the program or what their average bill will be after signing up. With personalized videos, customers can see a month-by-month snapshot of their past bills, as well as what their average payment would be on a budget billing program.
“It’s one thing telling customers they will save money when they sign up for a particular program, but showing them how much they will save takes it to the next level,” Brandon explains. “It’s a totally different way of engaging and informing each individual customer about the resources and options available to them from their utility provider.”
Personalized videos can be a beneficial tool as utilities introduce alternative rate plans like time-of-use. According to the Smart Energy Consumer Collaborative (SECC), 70% of customers would be interesting in switching to a new rate plan if they knew they had options. By showing customers how much they could potentially save (based on their detailed energy usage), utilities can encourage greater TOU adoption.
“Energy technology, programs and rate options are getting more complex,” Lindamood says. “It’s critical for utilities to use a communications tool that can effectively educate customers about these topics and help them take control of their energy use.”
Telling a story around the data
According to Irving, personalized videos can be used for utility communications beyond program promotions. They also provide opportunities for positive touchpoints throughout the customer journey. For example, utilities could send customers a message that celebrates how they’ve reduced their energy usage compared to the same time last year.
“You could send them a positive message like, ‘Great job for reducing your energy usage! That’s comparable to a reduction of (insert number) gasoline-powered cars on the road,’” Irving says. “Positive feedback just makes customers feel good and encourages them to keep pushing forward to reduce their energy usage even more.”
Irving emphasizes the importance of storytelling in personalized videos. While it’s essential to present data, utilities must also create compelling and immersive digital experiences. “When you are constantly sharing valuable and relevant information, customers are going to pay more attention to your utility,” Irving says. “It starts with telling a story around the data.”
Personalization is very different than segmentation, which has become a go-to marketing tactic for utilities. According to Brandon, utilities must realize that segmentation alone is no longer enough to keep customers engaged. While segmentation plays a huge role in reaching the right utility customers, personalization helps customers understand, “Why is this message relevant to me?”
"Segmentation helps ensure messages are delivered to the audience who would benefit most, but the next step is personalization,” Brandon says. "If you want customers to stay engaged to receive the full message, and actually take meaningful actions from it, communications have to be personalized. Greeting customers by name, showing them their usage, and how a program specifically impacts them helps to build trust and deliver value.”
As customer expectations continue to change, utilities must be proactive in creating personalized videos that connect on a deeper level. Utility marketers already have the customer data available — they simply need to put it to use and embrace the future of digital engagement.
