As the energy transition continues, engaging consumers and small businesses in smart energy programs and services will become increasingly essential in ensuring grid stability, achieving clean energy targets and advancing toward a smarter, more sustainable energy future for all.

To help its members better align programs and services with the needs and wants of today’s energy customers, the Smart Energy Consumer Collaborative (SECC) conducts primary consumer research to better understand current attitudes, actions and concerns.

The “State of the Consumer” report – published each year in the first quarter – summarizes the findings of the previous year’s consumer research agenda and synthesizes these findings into few key takeaways on the state of the utility-customer relationship.

Last year, SECC’s research agenda focused primarily on two landmark studies, “Modern Energy Messaging: Transactions to Relationships” and “Understanding the SMB Landscape: New Needs and Concerns”, as well as four Smart Energy Snapshot Surveys:

• “Computing Consumer Interest in AI”
• “Don't Leave Us in the Dark: Engaging Spanish-Speaking”
• “Electric Vehicles: Exploring Consumers' Cost Concerns”
• “Warming Up to Winter Demand Response”

In this month’s blog, we explore the three key takeaways on today’s utility-customer relationship that emerged from 2024’s research agenda:

1. Electricity providers have a solid foundation for building strong customer relationships.

Fortunately for electricity providers, most consumers see their providers as trusted sources of energy-related information. In the “Modern Energy Messaging” study, we found that 55 percent of consumers recall receiving energy-related messages from their providers, with 61 percent viewing them more favorably as a result. More than half (51 percent) prefer receiving energy insights from their electricity provider over any other source, a preference that grows among older consumers.

In addition, the Snapshot Survey on Spanish-speaking households found that these consumers show high trust and satisfaction levels, despite limited outreach. While 23 percent have never received marketing materials in Spanish, their trust (7.9) and satisfaction (7.6) ratings surpass the general population. Similarly, small and medium-sized businesses (SMBs) reported high satisfaction with their providers, averaging 8.2 out of 10, much higher than the general population.

2. While interest in programs is high, motivating consumers to act can be a complex endeavor.

Despite strong consumer trust in their electricity providers, motivating action remains a challenge, particularly due to concerns about cost, comfort and control. Our research has often found that financial barriers are significant, with many consumers perceiving energy-efficient investments as too expensive or being unsure about the long-term savings.

In addition, renters often feel that they are limited in making changes, and Spanish-speaking households struggle more with electricity costs, exacerbated by a lack of targeted communication as noted above. SMB customers share similar concerns, citing high upfront costs, lease restrictions and time constraints as obstacles to participation.

3. To deepen customer relationships, electricity providers should explore how to leverage AI.

As electricity providers look for ways to build stronger customer relationships, AI should be explored as one potential strategy. Consumers increasingly expect tailored experiences, yet many providers struggle to meet these expectations. AI can help bridge this gap by delivering personalized insights and driving participation in energy programs and services.

A significant advantage of AI is its ability to provide timely and immediate recommendations. From dynamic pricing alerts that help consumers shift their energy use to energy efficiency upgrades tailored to specific household needs, AI encourages proactive engagement from consumers.

This year’s “State of the Consumer” report found while most consumers are looking to their electricity providers as trusted energy experts, there’s still ample room to use this foundation to build stronger customer relationships. To drive participation, providers can offer clear, tailored insights on programs and potential savings, while also connecting them with relevant incentives. And AI is well-suited to be a key tool in offering consumers the information they desire.