Smart Grid Marketing

8/2/2019 Smart Grid Marketing

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SMART Grid Pilot Marketing, Education and

OutreachPlan10/25/10


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TableofContents1. Introduction. Page32. EducationandOutreachPlanScope.. Page43. CustomerTouchpointsandDetailedPlanMethods..Page5

3.1TheCustomerTouchpointEcosystem3.2CommunicationsModelforNotificationofObligationsandRestrictions3.3IndividualCampaignEngagement,Outreach&AdoptionMethods

4. Metrics/Measurement.. Page164.1MASMARTGridEvaluationCollaborativeWorkingGroup4.2CompanyCustomerSatisfactionSurveys4.3SixSigmaMethodology

5. Segmentation Page186. Budget Page257. Summary.. Page26Appendixi:CostsAssociatedtoallInitiativesAppendixii:TheCustomerEcoSystemandRelationshiptoCampaignInitiativesAppendixiii:TimelineandMessagingStrategyforInitiativesAppendixiv: SampleCustomerExperienceAppendixv:SampleScreenshotfromVendorWebInterface

2 |P a g e National Grid Smart Grid Pilot Marketing, Education and Outreach Plan


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1. IntroductionMassachusettsElectricCompanyandNantucketElectricCompanyd/b/aNationalGrid(NationalGridorCompany)hasproposedtoconductaSmartGridPilot(Pilot). OnApril1,2009,theCompanysubmitteditsproposedPilottotheMassachusettsDepartmentofPublicUtilities(DPU)forapprovalpursuanttoSection85oftheMassachusettsGreenCommunitiesAct(Chapter169oftheActsof2008)(Act). OnJuly27,2010,theDPUissuedanorderontheCompanysPilotwiththefollowingdirectives:

(1) Fileafinalversionofitsmarketingplanwithin90daysofthedateoftheOrder(D.P.U.0932,atpage66,)whichshouldinclude:

(1) a description of each of its proposed communitybased marketing activities,includingthebenefitstheCompanyascribestoeachactivity(pages516);

(2) the manner in which it intends to evaluate the effectiveness of the differentmarketingchannels(Page16 18)

(3) a description ofoptions considered by the Company that would reduce costswithout diminishing the benefits of its proposed comprehensive marketingapproach,includingtheuseofsocialmediatechnologies(pages2526);and

(4) a description of the manner in which it intends to notify customers about,among other things, the obligations and restrictions associated with theirparticipation inthesmartgridpilotprogram, includingtheCompanysplantonotifyLevel3participantsabouttheCompanysabilitytoactivelycontroltheirenergyusagethroughadvancedmeters(page7).

ThismarketingplanaddressestheDPUsdirectivesbyreducingtheoriginalmarketingbudgetby$1.753mmtoarevisedbudgetof$2.546mmandprovidingacomprehensivereviewofindividualeducation,outreachandadoptioninitiatives. Thereductionin costsresultsfromtheeliminationofsome

budget

items

and

revised

cost

estimates

for

other

budget

items.

Inaddition,theCompanywillprovideanoverviewofthefollowingmethodologieswhichwillbeusedtomeasuretheeffectivenessofthisadoptioncampaign:1)alignmentwiththestatewideevaluationframework,2)customeradoptionsurveysand3)SixSigmaexperimentsandanalysis.



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Finally,thissubmissionwillprovideafurtheroverviewoftheCompanyscustomersegmentationstrategy.ThroughtheuseofexperimentaldesignmethodstomeasurePilotimpactsacrossawidecrosssectionofcustomertypesanddemographics,theCompanywillbeabletogainanunderstandingnotonlyofcustomerperceptionswithinthepilotmarket,butalsowillberepresentativeoftheCompanyscustomersoverall.AkeygoalfortheactionsdescribedinthisdocumentistheeducationofcustomersonwaystoadoptSmartGridand,throughpersonalactions,reduceenergyusageby5%(atanaggregatelevel)acrossall15,000customersinthepilotarea.TheCompanyandtheCommissionwilllearnwhichoutreachandeducationalapproacheswillpromotegreatercustomeradoptionandaction.2. EducationandOutreachPlanScopeTheCompanyconductedresearchandconsultationstodesignamarketingplanthatwilleffectivelycommunicatetheopportunitiesaffordedbySmartGrid.EightfocusgroupswereconductedwithresidentialandbusinesscustomersthroughouttheCompanysserviceterritory.Customers:1)felttheylackedcontrolovertheirenergyuse;2)believedthathavinginformationavailabletothemabouttheirusagewouldbethefirststepincontrollingtheirenergyconsumption; 3)acknowledgedthattheyneededadditionalinformationandmotivationtosaveenergy;and4)highlightedthatindividualcustomersegmentsrespondedtointerfacesandtoolsbasedupontheircircumstancesandpreferences.Also,theCompanydiscussedoutreachandeducationwithotherutilitiesdevelopingsimilarefforts(SanDiegoGasandsElectric,CommonwealthEdison,DukeEnergy);feedbackfromindustryexperts(ElizabethVandenbergofVandenbergConsultingGroup,CapGeminiAmericaLLC,TheStructureGroup);andconsultationwitheducationalinstitutionsandorganizationswithspecialization/experienceintheSMARTGridarena(ClarkUniversity,WorcesterPolytechnicInstitute,theInstituteforEnergyandSustainability,KelliherSametsVolk).Discussionwithutilitiesindicatedcommunitybased,outreachandeducationeffortsweremosteffectiveformeetingcampaignobjectives.AdditionalSmartGridbenchmarkingprovidednumerouscompaniesthatfailedtoprovidelocalcommunityoutreachandeducationwhilefailingtomeettheirengagementandadoptiongoals.

Basedon

the

above,

the

Company

plans

to

test

acommunity

based

marketing

approach

in

order

to

learnhowsuchanapproachmayaffectcustomerchoices. Thiscommunity/neighborhoodapproach(whichtheDepartmentendorsedinitsJuly27orderatpage66)isonethatprovidesindividualsandbusinesseswith:1)achoiceoversourceoftheirelectricity;2)controloverhowandwhentheyuseenergy;and3)aredefinedrelationshipwiththeCompany,wheretheycanparticipateinadialoguewiththeCompanyandeachotherregardingtheirenergyusage,andcontributetoasustainablefuture.



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Byimplementingmarketinginitiativesthatfocusspecificallyonadoptionthrougheducationandcommunityoutreach,theCompanyhopestoexceedthelegislativegoalofa5%reductioninenergyusage(atanaggregatelevel)acrossall15,000customersinthepilot.Baswellassocialmedia,TheCompanyisprovidingthecommunityanopportunitytopersonallyengagewiththeCompanyonmultiplelevels.Communityoutreach&educationrepresentatives,localvolunteers,livedemonstrations,communityevents,andsocialmediawillhopefullyengageandretaincustomerinteresttosaveenergy.Referredtoasexperientialmarketing,thesehandsonapproachesconnectaudienceswiththeauthenticnatureofabrandthroughparticipationinpersonallyrelevant,credibleandmemorableencounters.(Source:ToddAustin,adventresults.com) Simplyput,thismeansthattheCompanywilluseactualcustomerexperiencetotellcustomersandstakeholdershoweffectivetheprogramcanbe.Engagementandoutreachtechniquessuchasthesehandsonapproachescanleadtoabetterchanceofadoption*:

73%ofconsumersknowmoreaboutabrandafterengaginginanevent; 89%ofcustomerswanttotrysomethingbeforetheybuyit;and 91%ofconsumerssayanexperientialcampaignwouldencouragethemtobuyaproductthey

wouldnotnormallypurchase.*Source:IDMedia,2010AsstatedinitsJuly27thorder,theDepartmentsupportstheobjectivesoftheCompanysmarketing,educationandoutreachplanto:(1)createawarenessamongcustomersaboutthepilotprogram;(2)educatecustomersaboutthebenefitsassociatedwithsmartgrid;(3)encouragecustomerstotakeadvantageoftheinformationandcapabilitiesofferedbysmartgrid;(4)motivatecustomerstopermanentlychangetheirenergyusagebehavior;and(5)inspirethemtobecomeadvocatesofmodifiedenergyusage(p.6566).TheDepartmenthasrequestedadditionalmarketingplaninformationpertainingtoindividualinitiativesandbudget,aswellasthemeasurementframework. Thefollowingsectionsprovidedetailedinformationoneachofthesetopics.

3. CustomerTouchpointsandDetailedApproachesTheCompanysubmitstheattachedCampaignMethodsMatrix(seeattachment,methodsmatrix.xls),whichcontains:



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1) AdetaileddescriptionofeachoftheCompanysproposedengagement,outreach&adoptionactivities;

2) Detailedcostsassociatedwitheachactivity;3) ThebenefitstheCompanyascribestoeachactivity;4) ThemannerinwhichtheCompanyintendstoevaluatetheeffectivenessofeachactivity;and5) Informationregardingtheexplorationoflowercostalternativesforeachactivity.Thisplanispredicatedaroundaholisticapproachtocustomerandstakeholdercommunications,wherebyactivitiesconnecttoeachotheracrossavarietyofcustomertouchpoints. Customersreacttospecifictouchpoints,orpersonalconnectionstowhattheyarepresupposedtoappreciate,and/ordetailedmethodstopromotechangeindaytodaybehavior.Together,thesemethodsoractivitiescanbuildtowardsaconsistentpiloteducationandoutreachmodel,acrossthetimelineoftheeffort. Wecallthisapproachthecustomertouchpointecosystem.

3.1 TheCustomerTouchpointEco-SystemThefivecustomertouchpointsareasfollows.CustomerTouchpoint#1:HomeAnumberofsegmentedengagement,outreachandadoptionactivitiesfocusdirectlyonservingcustomersatthecriticalHometouchpoint,meaningwithinhomesandresidences,wherecustomersaremostdirectlyinvolvedwithenergymanagementandparticipationintheSmartGridpilot.CustomerTouchpoint#2:InformalCommunityCertainpilotinitiativeswillfocusontheInformalCommunityaspectofthecustomerecosystem. Inordertodriveprogramadoption,thesemethodswillleveragerelationshipsthatcustomershavewiththeirlocalneighborhoodorphysicalgeographyoutsideoftheirhome,butalsodistinctfromschools,communityboards,rotaryclubs,serviceandreligiousorganizations,etc.CustomerTouchpoint#3:FormalCommunityOthermethodswithintheprogramwilldriveadoptionandengagementbyleveragingcustomerrelationshipswithlocalorganizationswhetheritbethebusinesseswheretheywork(orfrequenttomakepurchases),communityboards,localreligiousgroups,schools&colleges,rotaryorcivicorganizations,etc.CustomerTouchpoint#4:GeneralEnvironmentOutreachandeducationinitiativesthataddresstheGeneralCommunity,whilelimitedintheirtargeting,mayservetoreachaudiencesthatarenotkeentoengageinmorelocalizedefforts.GeneralCommunityincludespublicdisplaychannels/masscommunication.



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CustomerTouchpoint#5:SuperUserPilotTestersInadditiontothecustomerecosystem,theengagement,outreachandadoptionplanusestheexperienceofsuperusers:Thosecustomerswhotestthebaselinetechnology. Thecommunicationsframeworkwillhelprecruitmentandretentionofthesetestingcustomers..

CommunicationsModelforNotificationofObligationsandRestrictionsAcrossthesetoftouchpointsdetailedabove,eachcommunicationthatcustomersreceivewillincludespecificinformationregardingthetermsofservicefortheirparticipationintheSmartGridpilot. Thesetermsofservice,fullydetailedintheCompanysrevisedtarifflanguageasfiledintheAugust10thcompliancefilingforthisproceeding,willalsobeontheCompanyswebsiteandcampaignmaterials.Inaddition,customerswillchoosetoreceiveinhometechnologythroughacollaborative,voluntaryprocess. Specifically,thisprocesswilluseawebbasedrecruitmentportal,whereallrightsandobligationsofeachpartywillbedetailedincludingbutnotlimitedtotherightsofcustomerstooptoutoftheprogramatanytime. Themethodsandinitiativesdetailedbelowwillserveascommunicationsvehiclesfornotifyingcustomersoftheserightsandobligations.

3.2 IndividualCampaignEngagement,Outreach&AdoptionMethodsTheinitiativesandmethodsdetailedbelowwillbestaggeredthroughouttheprogramviathetimelinemodelofferedbytheCompanyintheinitialSmartGridproposal(Seed/Share/Succeedphases).Forfurtherinformationonhoweachmethodwillbeexecutedwithintheprogramtimeline,refertoAppendix3,whichdetailswhenprepilot,launch,andongoingactivitiesareimplementedwithintheoperationalframeworkofthecampaign.InitiativesdeliveredacrossAllCustomerTouchpoints(Home,InformalCommunity,FormalCommunity,GeneralCommunity):

InFieldDemonstrationUnitsUtilizedatalllocalevents(indoor+out),eachunitincludes2laptopstoviewSMARTpilotwebsites,aswellasanLCDunittodisplayscreenshotswhichwilloffercustomershandsonuseandtraininginuseofwebsites.Benefit:Infielddemonstrationunitswillserveasacrucialcomponentforsharinginformationwithcustomersonpilotgoalsandprogress,trainingintheuseofthewebsiteandotherpilottools. TheseunitswillserveasakeyfoundationalelementforcommunityengagementandcustomereducationregardingthebenefitsofSMARTGrid.COERTeam(CommunityOutreach&EducationRepresentatives)



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CommunityOutreachandEducationRepresentatives,(COERpronouncedCOER),managedaytodayfieldactivitiesacrossalltouchpointstomeetcustomeroutreach,awareness,education,andadoptionobjectives.Thisteamof5fulltimeNationalGridemployeessharesinformationwithcustomersonprogramgoals,trainingintheuseofthewebsiteandotherpilottools,aswellassharingofcampaignobjectivesandprogress.Benefit:TheCOERteamiscriticallyimportanttoprovidecustomerswithtraining,communication,andprogrammanagementtodeliverallothereducationalmethodsandbenefitstocustomers.LocalVolunteersLocalvolunteerswillsupportspecific,targetedcampaignmethodsandprovideassistanceinmeetingcustomerneedsatlocalevents. ThesevolunteerswillberecruitedfromthelocalWorcestercommunity,undergotraining,andsupportlogisticalfunctionsatcampaignevents.Benefit:Volunteersstaffcustomereventswithinalowcostlogistical/projectmanagementframework,andincreasethewaysthatcustomerscanunderstandandengagewiththepilot.SMARTMobileDesigns(wrappingonexistingvehicle)Threesetsofpublicdisplaydesigns(precampaign,postmeterinstallation,postsharephase)willbecreatedandappliedtoanexistingCompanyvehicle,Benefit:SMARTMobilewrappingdesignprovidescustomerswithaphysicalreminderofSmartGridatcommunityevents,fielddemonstrations,andcontests. Itdrawscustomerattentiontotheprogramwhereitisnotreadilyavailable,orforthosecustomerswhomaynotbealreadyawarethroughotherchannelssuchasprintorwebcommunication.

SMARTCardMaterials,ContestsSMARTCardmaterialswillinclude20,000laminatedcardstobeputinthewelcomekitandtobedistributedthroughoutthePilotcommunityandatevents. Thesecardswillprovidecustomerswithanabilitytoparticipateinanumberofcampaigneffortsbyshowingtheircardsasproofofengagement.Abusinessspecificwindowstickerwillalsobeproduced.Benefit:ByprovidinganopportunityforcustomersandlocalbusinessestoutilizeSMARTCardsandwindowstickersinpublic/socialcontests,ameasurablelevelofengagement,andadoption,canbeachieved.SocialMediaComponents:Twitter/Youtube/Facebook/SMARTBlogSocialmediaprovidetheCompanyanoutlettoincreasecollaborationbyprovidingcustomerswithmessagingoncontests,events,andhowtheireffortsarehelpingtodrivedownenergyusage. Italsoallowscustomersusingthepilotwebsitetosharecampaigntips,createusefulpilotmaterialsontheirown,enterintocontestsandfacilitatecommunityparticipation.



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Benefit:Socialmediaallowcustomerswithinthecommunitytoengagewitheachother,aswellasengagewiththeCompanythroughanewcommunicationschannel. Thesewebsitescanhelpachievekeyengagementmetricssuchasefficiencyawareness,therebyfacilitatingcustomeradoptionandretentionthroughoutthepilot.

InitiativesdeliveredacrossCustomersHOMETouchpoint:WebInterfaceDevelopment/MaintenanceOneofthekeyelementsofthecustomerexperience,theSMARTpilotmicrosite,servesasanintegratedwaytoshareprofile,usage,communityandcontestmaterialsforthepilot. Thewebsitewillalsobefullyintegratedtosupportallsocialmediaelements.Benefit:AsacriticalelementofthecustomerexperiencethroughouttheSMARTpilot,thewebsiteprovidesacentralframeworkandcommunicationschanneltomeetcustomerengagement,participation,andadoptionneeds.MobileInterfaceDevelopment/MaintenanceThemobileinterfaceanddisplayofmaterialsviacellphoneswillserveasupportivefunctioninmeetingcustomercommunicationneedscertainprograminformationandparticipation/adoptiondrivingcommunicationssentviaprint,web,andotherchannelswillbereplicatedviamobileandtext. Forexample,customersmayreceivetextsviamobilephonesregardingpeakpricingevents.Benefit:Bysupportingmobilephones,weensurethatcustomersareabletoviewrelevantcampaignmaterialsthroughcrosschannelcommunications,therebyfurtherdrivingengagementandawarenessneeds.ENewsletterCirculatedviamultiplechannels(email,mobile,webarchive),theENewsletterwillbedistributed34x/month(2biweekly,1eventorcontestbased).Contentwillincludepilotinformation,tips,contestdetails,localeventinfo,socialmediacalloutsofthemostengagedcustomers,andmore.Benefit:TheENewsletterprovidesakeyoutletforprovidingcustomerswithtargetedcampaigncommunicationsonanongoingbasis.Thisintegrativecommunicationschannelprovidesawaytoincreasecustomerengagementandparticipation,therebydrivingprogramadoption/retentioninatargeted,lowcostfashion.OngoingPrintNewslettersThenewsletterwillbeabimonthlyprintreportdeliveredtoatargetedsetofcustomers.Additionally,aquarterlynewsletterwillalsobesenttolocalcommunityleaders.Newsletters

willprovidecustomersandcommunityleaderswith(aggregate)participationandengagementresults,featuredarticles,energytips+tricks,contestinfo,events,andwaystogetinvolved.



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Benefit:Printnewslettersprovideanongoingwaytoservecustomerswhomaynothavewebaccess,ormissoutonotherchannelsofcommunication,offeringausefulconnectiontobothengagedandunderengagedcustomers.Also,inprovidinglocalcommunityleaderswithinformationandupdatesonthecampaign,thenewsletterservesasupplementaryfunctioninmeetingtheirneedsforawarenessandinformationontheSMARTGrideffort.DirectMailIntroductionThedirectmailintroductionwillbeafullcolor,2sidedpostcarddeliveredto15,000customersand500communityleaders.Intendedtoprovideinformationpriortothepilotlaunch,itwillbetargetedwithuniquemessagingfordifferentconstituents(individual,business,community),anddeliveredin2waves. Tooptimizeawarenessofpilotlaunch,thereleasewillbetimedtoalignwithpilotmediaandPressKitefforts.Benefit:Thedirectmailintroductioncreatesanimmediatejumpstartforgeneratingtargetedawarenesswithinthelocalcommunity,especiallywhencombinedwithothermedia/PRandlocaloutreacheffortspriortostartofcampaign.DirectMailBillStufferThebillstufferwillbeinsertedintoeverymonthsbillforatargetedcustomerset(45differentversionstobemailedeachmonth,inlinewiththeCompanyssegmentationstrategy).Customerswillreceive12keymessageseachmonth,aswellasinfoonotherprogrammaterialsonthecalendar(contests,localevents,orhowtogetinvolved).Benefit:Inadditiontoitsownaudiencereach,thebillstuffersupplementsotherongoingandconcurrentengagement,outreachandadoptionefforts.SMARTMeterInstallationNotificationAnoutboundphonecallwillbemadepriortothestartofthepilottoall15,000customers,providingthemwithpendingSMARTmeterinstallationinformation(toincludedateandadvancenotificationofawelcomekit).Asupplementarycallwillalsobeplacedto500communityleaders,providingthemwithdetailsonthepilotlaunch,keygoals,andhowtheCompanywillmeetlocalcommunityneeds. Atollfreenumberwillbeprovidedforcustomerstocallwithquestionsandanyconcerns.Benefit:TheSMARTMeterinstallationnotificationswillprovideanopportunitytogenerateanupfrontawarenessofthepilot,offeringasenseofapersonalizedlevelofcustomerservice. Bygeneratinginterestandawarenessupfront,thesecallswillfurtherincreaseparticipation,andthereforeadoption,onceprogrambegins.WelcomeKit:offline,onlineversionsThewelcomekitwillincludeasetofintroductorymaterialsdistributedtoall15,000customersalongsideeachmeterinstallation.Thiskitwillprovidecustomerswithallofthefollowing:aprintbrochure/bookletdetailingSMARTefforts,goalsinenergyreductionforthecampaignand



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motivationalmaterials(howwecanalldoourparttohelpout),atodochecklistforhomeenergysavings(prepopulatednotebook+checklistwithenergyefficiencyinfo),aSMARTCard,contestandeventsinformation,andabrief35minvideodetailingtheSMARTequipment+website,andhowtheycanhelpsaveonenergyusage). Communityleaders/influencerswillalsoreceiveaspecializedwelcomekit,withdetailsoneffortsforthepilot,theconsumerexperience,programgoalsandobjectives,contests,andevents,andhowtheycangetinvolved. Thetimingofthedeliveryofwelcomekitstocustomerswillalignwithmediaandpresseffortstogeneratefurtherawareness.Benefit:Inprovidingaspecialized,targetedwelcomeexperience,theCompanywillmeetinitialcustomerawarenessneeds,whileprovidingasimple,intuitive,anddirectedwaytojumpstartbothengagementandadoptionwithintheprogram.WebContestsWebcontestswillbemessagedtocustomersthroughtheprimarywebportal,socialmedia,enewsletters,aswellasatlocalcommunityevents.Thebaselineforthesecontestswillbetoprovidecustomerswitha$50giveawayeachmonth,tothethreeindividualswhodisplaythemostreductioninenergyusagethatmonth. Inaddition,toensurecontinuedparticipation(evenforthosewhowinprizes),allwebuserswhodemonstrateenergyreductionoverthecourseofthepilotwillbeenteredtowinagrandprizeofhybridvehicleattheendofthecampaign(succeedphase). Winnersofbothmonthlyprizesandthegrandprizecontestswillbefeaturedincampaigncommunicationsandsocialmedia. Forcustomersthatareuncomfortablewithusingthewebormaynothaveaccess,thecampaignwillincludeamechanismforprovidingmailorphoneregistration(andthenthosecustomersenergyreductionwillbetrackedoffline).Benefit:Webcontestswillservetoensurecustomerparticipationthroughregistrationanduseofthewebsite,aswellasadoptionthroughreductioninenergyusage,allatalowcost.Webcontestswillalsofosterpositivecompetitionamongcustomers,aswellasincreasedcommunityengagementandrecognitionofthemostengagedcustomers.CallathonCustomerOutreachSegmentedcustomeroutreachviaphonewillbeprovidedtoindividualsandbusinesses,inordertomotivatelaggingorunderperformingcustomerswhomaynotbeengagedtofullestdegree.Thetargetnumberforthisoutreacheffortiscurrentlysetat2750customers. AlltargetedconsumerswillreceivepersonalcontactsfromtheCOERteamorFieldManager,toprovideinformationontheprogram,detailtheirusageincomparisontoothers,andtoexplainthebenefitsofincreasedparticipationBenefit:TheCallathonwillprovidecustomerswithapersonalizedlevelofcommunication,drivingbothengagementandadoptionatalowprogramcost. Thesecallsmayalsohelptoovercomebarrierstoparticipationforthosecustomerswhomayneedmoreassistanceorfeeldisconnectedfromthepilot.



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NotificationofCriticalEventsInadditiontothecommunicationsofferedbySmartdevices,notificationsofcriticalpeakpricingeventswillbeprovidedtoallcustomers.Thiseffortwillincludeanautomatedphonecallandtextmessagetocustomers.Benefit:TheCompanywillofferadayahead,realtimemethodtoprovidecustomerswithcriticalpricinginformationandmeasurablydemonstratingtheimpactofsuchcommunicationsonparticipationandadoption.

InitiativesdeliveredacrossCustomersINFORMALCOMMUNITYTouchpoint:IndividualCustomerContestsPromotionalcontestswillbeprovidedtocustomersatlocalcommunityevents.ThesecontestswillincluderafflesandgiveawaysforthosecustomerswhodisplaySMARTCardsordemonstrateknowledgeofenergyreductionpractices. Prizesforthesecontestswillinclude$500rebatestowardsenergyefficientappliances,ticketstolocalconcertsorlocalgiftcertificates.Benefit:Byprovidingcustomerswithamotivetoattendandgetinvolvedatlocalcommunityevents,thesecontestswillserveasawaytodriveandtrackindividualparticipationandengagementwithinthepilot.'WhereistheNationalGridSMARTMobile'ContestMaterialsandPrizesWhentheSMARTMobileisparked(atlocal/communityeventsorinfield)ordrivingaroundthelocalcommunity,customerscancontacttheCompanyviasocialmedia,phone,oremailandletNationalGridknowtheyveseentheSMARTMobileatalocation.Uponcontactandconfirmationofregistrationintheprogram,customerswillbeenteredintothecontest. Twocontestswillbeoffered,bothongoing(over18months). Onewillprovidelimitedweeklyprizestocustomers5winnersperweekwillreceivea$50giftcertificateorrebate(TBD). AnadditionalcontestwillencouragecustomerswhoseethevehicletotakephotosorvideoanduploadittotheSMARTYoutubepage. Thesecustomerswillbeenteredintoabiannualgiveaway,withanapproximateprizevalueof$1000(prizeTBD).Benefit:AcontestassociatedwiththeSMARTMobilewillprovideawayforcustomerstointeractwiththepilotoutsideoftheirhome. Thesecontestsmayalsoservetodrawattentiontotheprogramwhereitisnotreadilyavailableinthegeneralcommunity(anawarenessgeneratoroutsideofnormativeprint/mail/phone/emailchannels).Outdoor'GETSMART'EventsFiveneighborhoodeventswillbeheldforcustomers,localbusinesses,andcommunityleadersoverthecourseoftheSMARTpilot.Theseeventswillprovidecustomerswithanopportunitytoviewthecampaigninaction(throughtheinfielddemonstrationunits),learnmoreaboutenergysavingswiththehelpoftheCOERteamandviewtheshowcasedPHEVSMARTMobile. These



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eventswillalsoleveragelocalrestaurantsascaterers,providinganadditionalopportunityforbusinessesthatarealreadyparticipantsorhavewindowstickerstogetfurtherinvolved.Benefit: Theseeventswillserveasakeymethodforgeneratingawarenesswithcustomerswhomwemaynotbereachingwithothermoreformalchannels.Theseeventsalsocreateanadditionalincentiveforsmallfoodservicebusinessestoparticipate(andbycatering,earnincome,therebyfurthersupportingthelocaleconomy).HomeSMARTDemonstrationsFiveinhome,localcommunitydemonstrationswillbeheldinpartnershipwithourmostproactivecustomers,inboththeSucceedandSharephasesofpilot(tentotalevents). Customerswhodemonstratetheyarethemostcommitted(meaningthosewhoarethemostengagedadopters,highestenergyreducers,ormostactivesocialmedia/eventparticipants)willberecruiteddirectlybytheCOERteamtohosttheseevents. CustomerswhovolunteertohostwillreceiveafreeiPodTouch.EacheventwilldemonstrateSMARTGridcapabilitiesinaction,throughtheinfielddemonstrationunits,andalsobyprovidingcustomerstheabilitytosharetheirSMARTstoryintheirownwords. Inordertogeneratecommunityawareness,theseeventswillalsoincludethedriveway/streetpresentationoftheSMARTMobile. Theseeventswillalsoleveragelocalrestaurantsascaterers,providinganadditionalopportunityforbusinessesthatarealreadyparticipantsorhavewindowstickerstogetfurtherinvolved.Benefit:ByprovidingourcustomersanopportunitytoshareSMARTtipsinalocalized,informalenvironment,theCompanywilldrivetowardsgeneratinganawarenessmodelthateffectivelytargetslocalrelationships. Theseeventsalsocreateanadditionalincentiveforsmallfoodservicebusinessestoparticipate.

InitiativesdeliveredacrossCustomersFORMALCOMMUNITYTouchpoint:SmallBusinessContestsHeldtwiceoverthecourseofpilot,andsimilartowebcontestsforindividuals,smallbusinesscontestswillprovideamethodtorewardreductioninenergyusagewithinlocalbusinesses. Thesmallbusinesscontestswillbecommunicatedtobusinesscustomersthroughtheprimarywebportal,socialmedia,enewsletters,aswellasatlocalcommunityevents. Thebaselineforthesecontestswillbetoprovidebusinesscustomerswitha$5000giveawayduringeachcontest(prizeTBD,assumeenergyefficientappliancesorrebates).Businessesthatdemonstratethemostenergyreductionusageoverthecourseofthecontestwillbeenteredintoaraffleordrawingfortheprize.Winnersofbothcontestswillbefeaturedincampaigncommunicationsandsocialmedia. Forbusinesscustomersthatareuncomfortablewithusingthewebormaynothaveaccess,thecampaignwillincludeamechanismforprovidingmailorphoneregistration(andthenthosecustomersenergyreductionwillbetrackedoffline).Benefit:Smallbusinesscontestswillservetoensurecustomerparticipationthroughregistrationanduseofthewebsite,aswellasadoptionthroughreductioninenergyusage,allatalowcost.



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TheCompanywilltestifthesecontestswillalsofosterpositivecompetitionamongcustomers,aswellasincreasedcommunityengagementandrecognitionforthemostengagedamongthem.LargeCommercialContestsHeldoverthecourseofthepilot,largecommercialcustomerswhoreduceenergyusagewillbeeligibleforagrandprizecontest. Thewinnerofthecontestwillbeawardedaprizewithanapproximatevalue$25,000(prizeTBD),withasecondprizeawardedof$5,000(prizeTBD). Thiscontestwillrewardapresetmeasureofenergyreductionamonglargebusinesscustomers(TBD,mappedtoscaleofbusinessesthatenter). Thelargecommercialcontestwillbecommunicatedtobusinesscustomersthroughtheprimarywebportal,socialmedia,enewsletters,aswellasatlocalcommunityevents. Winnersofthiscontestwillbefeaturedincampaigncommunicationsandsocialmedia.Benefit:Largecommercialcontestswillservetoensureparticipationthroughregistrationanduseofthewebsite,aswellasadoptionthroughreductioninenergyusage,allatalowcost.Thesecontestswillalsofosterpositivecompetitionamongcustomers,aswellasincreased

communityengagementandrecognitionforthemostengagedamongthem.TheCompanywilltestifthesecontestswillalsofosterpositivecompetitionamongcustomers,aswellasincreasedcommunityengagementandrecognitionforthemostengagedamongthem.

SchoolandCollegeEvents,ContestsTheSMARTpilotwillfacilitatelocalcommunitycollaborationwithvariousK12schools,aswellasClark,WPI,HolyCross,communitycolleges,etc.(involvingeducationalinstitutionsbothinsideandoutsidepilot)throughthehostingofSMARTeventsandcontestsforstudents. Ineachquarter,throughoutthecourseofthepilot,theCompanyanticipatesholdingtwoeventsforK12andtwoeventsatlocalcolleges. Allschooleventswilluseinfielddemonstrationunits,encouragestudentparticipationthroughcontests,andfocusonthefollowingmessages:1)explainingtheSMARTpilot,2)whyitmatters,3)goalsfortheeffortand4)tipstoreduceenergyusageathome. Ancillarycontest/rafflematerialswillfacilitateparticipationamongparticipantsattheseevents(bothyoungerstudentsandcollege),drivingawarenessthroughgiveawaysandtakeways(e.g.,studentsmaybeaskedtoprovide1demonstrationofhowtheyhavereducedenergyusageathome,getinvolvedintheYoutubeorindividualcontests,etc.)Benefit:Collegeeventswillprovideanopportunityforstudentstogetinvolvedandvolunteertoengageinfuturecampaignefforts.SchoolandCollegeeventswillfosterastronglevelofmeasurableparticipationwithinthelocaleducationalcommunity(aCOERfocalarea),bothatafacultyandatastudentlevel.Theseeventswillalsoserveasupplementarygoalinprovidingattendeeswithanopportunitytogetengagedasvolunteers,furtherpromotingcommunityawarenessandparticipation.



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BreakfastSeriesEventsAseriesoflocal,cateredbreakfastsessionswillbeheldwithlocalcommunityorganizations(e.g.RotaryClub,ChamberofCommerce),aswellasbusinessesandcommunityleaders,electedofficials,schoolprincipals,etc. InadditiontoCompanyhostedevents,localcommunityorganizationscanapplyforandreceivesponsorshiptoholdtheirowneventswithsupportfromtheCompany. Theseeventswillfocusonservingthelocalcommunityinaninformalandcollaborativemanner,explainingtheSMARTGridpilot,rationalebehindtheprogram,goalsandexpectations,chartingprogress,andhowattendeescangetinvolvedintheefforttoreduceenergyusage. TheseeventswillbeorganizedandmanagedbyCompanyteamleaders(EnergyEfficiencyleadership,localcommunitydevelopment,theSMARTteam,etc.). Thecompanyanticipates12totaleventsoverthecourseofthepilot,withafrontloadedfocus(SixeventsinSeedphaseseeappendixforprogramtimelines)Benefit:BreakfasteventsprovideanopportunityforthelocalcommunitytolearnmoreabouttheSMARTpilotinaninformalsettingwithsupportfromNationalGrid,therebygeneratingtheawarenessandsupportneededtoensuresuccessfulprogramparticipation.Theseeventsalsoreinforcethepilotprogramsfocusoncommunityinvolvement.

InitiativesdeliveredacrossCustomersGENERALCOMMUNITYTouchpoint:PressKitMaterials,OngoingPR/MediaPitchEffortsTosupplementmorelocalizedcustomerneeds,thepilotprogramwillalsoentailthecreationofapresskit,anduseofPRpartnersacrossthecampaigntoinvolveandinformlocalmediaonanongoingbasis. ThismethodwillprovidemediapartnerswithinformationontheSMARTpilot,includingtrackingtoprogramadoptionandenergyreductiongoals,localcustomerengagement,andopportunitiesformediaplacementandsupporttoreachthebroadestparticipantcustomer(andcommunity)base. Asasupplementaryeffort,themedia/PReffortwillidentifyandtargetlocalcommunityleadersorcelebrities,whoagreetovoluntarilytracktheirusageandreportbackonprogressviamediaoutlets.Benefit:Aclear,simplepresskitandongoingfollowupthroughlocalmediawillbecrucialtojumpstartingupfrontcommunityawarenessatthestartofthepilot,ensuringthattheeffortstartsoffwithagooddegreeofunderstanding. Duringthepilot,ongoingmediastoriesandsupportwilldrivecustomerunderstandingofthepilot,andhelpleverageengagementwiththosecustomerswhomaynotbeleveragingmoretargetedcampaignmaterials. Asatestandlearncomponent,PRmaybeaclearleveragepointavoidinglaunchissuesseeninthemarketforSMARTpilotsrunbyotherutilities(manyofwhichdidnotutilizeanybroadmediacampaigns).

AdditionalMethodsSuperUserpilottesterssupport:SuperUserSupport/Contest



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250superusercustomerswillbegivenincentivestoserveasthetechnologytestersoftheSMARTGridpilot. Asdetailedintheevaluationplan,theCompanyhasnowmodifieditsproposalastothescopeofsuperuserinvolvement. Specifically,theCompanywillrelyonitsexistingemployeebaseinthepilotareatotestinhometechnology,reducingtheemphasisoncustomerinstallation. Thesetesterswillberecruitedthroughlowcostchannels(Craigslist,community+commercialoutreach,jobboards,socialmedia,communityevents,billstuffers,etc.),andwillbeeligibletoenteraspecialsuperusercontest. Thegrandprizegiveawayforthiscontestwilloccurattheendofthesucceedphase,awardingaprizewithanapproximatevalueof$1000(prizeTBD).Oneinterimprizewillalsobeawardedattheendofsharephase(approxvalue$500).Benefit:Byrecruitingthesesuperusers,theCompanywillmeetCOERprogramtechnologytestingneedsinacostfacilitativemanner.

4. Metrics/MeasurementAstheoverallgoalforthepilotistodriveSMARTadoption,resultingina5%reductioninenergyusageacrossallactivepilotparticipants,itisessentialthatametricsmodeliscreatedtoidentifyandthenmeasurekeyperformanceindicators,gaugingtheeffectivenessofengagementandoutreachinitiatives.MethodologiesNationalgridwillusetomeasuretheeffectivenessofitseducationandoutreacheffortsthatarefullyalignedwiththeMASMARTGridEvaluationCollaborativeWorkingGroup. WewillalsousethemeasurementmodelsofadditionalcustomeradoptionsurveyingandSixSigmaexperiments&analysis.

4.1 MASMARTGridEvaluationCollaborativeWorkingGroupThroughtheCollaborative,customerfeedbackwillbeobtainedprimarilythroughsurveysofasampleofparticipantsatvariousstagesofPilotprogramimplementation.AspartoftheCollaborativeprocess,minimumspecificsurveyquestionswillbedevelopedforeachofthefollowing:

ParticipantSurveys OptOut&DropOutSurveys QualitativeAnalysisofSurveys QuantitativeAnalysisofSurveys QuantitativeAnalysisofIntervalData

Throughthiscommonmodelofsurveying,allCollaborativeparticipantswillbeabletoconsistentlymeasureengagementandadoption.



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Formoreinformationonhowthemarketingplanwilltieintothesurveyslistedabove,pleaserefertotheCompanysdetailedevaluationplanfiledinconjunctionwiththisdocument.

4.2 CompanyCustomerSatisfactionSurveysInadditiontoCollaborativesurveyingefforts,theCompanywillalsoconductanumberofsupplementarysurveys,providingfurthermeasurableinsightintomarketingprograminitiativesandtheirimpactonadoption. Conductedbyanindependentthirdpartyresearcher,thesesurveyswillmeasureoverallsatisfactionwiththeCompany,aswellascustomerbehaviorandmotivationforengagementasassociatedtospecificcampaignactivities.Resultswillbeusedtoidentifyhowthepilotcanmeetcustomerandstakeholderneeds,andalsoadjustcommunicationanddeliverystrategiesforthevariousmarketing,education,andoutreacheffortsoverthecourseoftheprogram.

4.3 SixSigmaMethodologyOnedesiredoutcomeoftheMAWorcesterSMARTGridpilotistogaintheabilitytooptimizetheeffectivenessandcostefficiencyofvariousmarketingmethodsbasedupontheirimpactonengagement. ThroughtheuseoftheSixSigmaDesignofExperimentsframework,theCompanywillstrivetomeasurewhichmixofmethodsismorestronglycorrelatedwithadoption,andadjustmarketingeffortsaccordingly.

Table1: DesignofExperimentMethodExample Inputs (Factors) Outputs (Responses)

Experimental Process:

A controlled blending

of inputs which

generates corresponding

measurable outputs

E-Newsletter

Ongoing Print Newsletters

Direct Mail Introduction

Direct Mail Bill Stuffer

Welcome Kit: Offline or Online

Call-a-thon Customer Outreach

Adoption (5% reduction in energyusage across all 15,000 customers)

Multipleregression

will

be

used

to

quantify

the

impact

marketing

method(s)

have

on

the

overall

adoptionoftheprogram(asmeasuredinusagereduction). Thisisdonebyassessingthecorrelationeachfactor(ormethod)hasonthedesiredoutput(adoptionoftheprogram).



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Byidentifyingthemarketingmethodsthathavethelargestimpactonthereductionofenergyusage,theCompanywillbeabletoshiftpilotresourcesfromlesseffectivemethodstothemoreeffectiveonesoverthecourseoftheprogramandlearnforanysubsequentdeployments.Sampleinformationtobegatheredformeasurementincludesthefollowing:

Pre/postawarenessresearchtomeasureimpactofprogramandcustomersatisfactionamongresidentsandbusinesses

Standardwebmetrics:Numberofhitstomicrosite(includinguniqueandreturnvisitorstorolloutplanoptions),Numberofwebregistrants,numberofreferralsfromofflineURLs,socialmediatracking(numberoftweets,youtube/facebookvisits,conversationmonitors,etc)

Numberofcustomersparticipatingintheprogramandthecontests Mobiletrackingreports Numberofattendeesatlocalevents Numberofmediastoriesaroundprogram,events,orcontests RetentionofcustomersonCPPrates Totalenergyreductiontally

5. CustomerSegmentationTheCompanyaimstoconducttheSMARTGridPilotinamannerwhichallowsforthegreatestinsightintoitsoverallcustomerbaseasispractical.ThustheevaluationwilluseexperimentaldesignmethodstoconsiderPilotimpactsacrossawidecrosssectionofcustomertypesanddemographics. ThiswillenableNationalGridtoisolatetheimpacts,andgainanunderstandingofcustomerperceptionsacrossasamplewhichishighlyindicativeoftheCompanysoverallcustomerbase.AsfullydescribedintheCompanysEvaluationPlan,thepilotwillcollectsurveydatafromcustomersonincome,householdsize,typeofhousehold,appliancesandotherrelevantfactorsasdescribedintheStatewideEvaluationPlan.Thedataallowssegmentationofparticipantcustomersinmanyways.TheCompanyanticipatessegmentationaccordingtothefollowingcategories:

1.Age2.HouseholdincomeasagreedintheStatewideEvaluationplan;3.Typeofhousing(apartment,singlefamily,numberofbedrooms,etc.);4.Usagelevels;5.Customersonthelowincomerate;6.Whethercustomersareathomeduringtheday;



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7.Customervaluesandattitudesregardingenergyandprotectingtheenvironment;and8.Combinationsoftheabovecategories.

Inaddition,thesesegmentswillbesubdividedbasedupontheleveloftechnologyreceivedbythecustomers.Inanyinitialstudy,wheretherearefewpreviousresultstobuildupon,acommonchallengeexistsindevisinganinitialsegmentationofthepopulationthatwillallowmeaningfulresultstobederived.Thisisthefirstrelativelylargescalepilottoutilizeoptoutratesandfourtechnologylevelsacrosssuchawidedistributionofcustomers,muchattentionhasbeenpaidtotheappropriateinitialsegmentationofthecustomerbase,andtoobtaincomparableresultsacrossallutilitiesengagedinthePilot.

Tomeetthisexpectation,theCompanywillutilizeamultistagedsegmentationapproachinvolvinganinitialsegmentationbasedonitssociodemographicsegmentsandapostpilotanalysisthatanalyzesresultsbothwiththesesociodemographicsegmentsandtraditionaldemographiconlyvariables.Overtheyears,theCompanyNationalGridhasdedicatedasignificantamountofresourcestodevelop,implement,andevaluateprogramsthathaveledtoabetterunderstandingofitscustomers.TheCompanyfirmlybelievesthatbeingabletounderstanditscustomerbaseiscriticaltoitssuccessinmeetingtheirneeds. Thisunderstandingbecomesespeciallyimportantineffectivelycommunicatingnewproductsandservicestocustomergroupswithdifferentvaluesandmotivations.Throughthisexperience,theCompanyhasdeterminedthatallcustomersandprospectsmaybeuniqueeveniftheyarethesameage,earnasimilarincome,orhaveothersimilardemographicvariables.TheCompanyhasseenthatcustomerbehaviorisdrivennotonlybytraditionaldemographicsegments,butalsobycustomerattitudesandvalues.Tobetterunderstandwhateffectscustomerbehavior,theCompanychosetosegmentitscustomersontheirattitudestowardenergy,energyefficiency,andotherfactorsinadditiontothebasicdemographicsegmentation.Toaccomplishthis,NationalGridundertookasegmentationanalysisdesignedtorevealcustomermotivationsandemotionsaroundfourtopics;conservation,theenvironment,energyefficiencyandnaturalgasconversion. Insightsgarneredfromthosesegmentationstudiesareusedtoprovideafactbasedapproachforcustomertargeting,improvedcustomercommunications,andultimatelybetteralignmentofproductsandserviceswithcustomerswantsandneeds.In

the

Companys

experience,

this

more

advanced

socio

demographicsegmentation

method

has

proven

tobeamoreappropriateandreliableindicatorofcustomerbehavior.Thus,NationalGridwillutilizethesociodemographicsegmentslistedbelowwillbeusedinthedeploymentofitsSmartGridPilot.Becausethisisthefirststudyofitskind,andbecausetheSmartGrid,dynamicpricingandtechnologyavailablemayinfluencecustomersdifferentlythanpreviousprogramsNationalGridhasstudied,upon



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collectingimpactdataonenergyusage,NationalGridwillevaluateresultsnotonlybytheseprespecifiedsociodemographiccustomersegments,butalsobyminingtherawdemographicvariablesagreeduponbythestatewidecollaborativeandlistedintheEvaluationPlan.Asaresult,theCompanywillreportresultsbythesesegmentsandbytraditionaldemographiconlysegments.

Table2: ParticipantSegmentationDistribution1

Segment Web Only Level 1 Level 2 Level 3

Reside

ntial

Group 1 566 401 89 89

Group 2 783 701 89 89

Group 3 627 507 89 89

Group 4 433 233 89 89

Group 5 1,346 1,331 89 89Low Income - Low Usage 234 226 110 110

Low Income - High Usage 237 226 110 110

Other (Unsegmented Customers) 3,465 577 89 89

PTR Customers Total and Distribution will vary (see Evaluation Plan)

Commercial Shiftable Load Profile 36 36 35 35

Relatively High Consumption 33 32 32 32

Flexible Operational Profile 35 35 35 35

Direct Decision Maker 54 54 53 53

Property Managers Owners 315 157 89 89

PTR Customers Total and Distribution will vary (See Evaluation Plan)

Totals 8,164 4,516 998 998 14,676

% of Total 56% 31% 7% 7% 100%

1Source:NationalGridEvaluationPlansubmittedinconjunctionwiththisdocument20 |P a g e

National Grid Smart Grid Pilot Marketing, Education and Outreach Plan


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NationalGridResidentialSocio-DemographicSegments

TheCompanywillutilizethefollowing5distinctsociodemographicsegmentsonvalueandattitudetocharacterizeparticipantsinthestudy.Customerswillbeplacedineachcategorybasedupontheirresponsestosurveyquestions.

Group1: Highlycostsensitive,mostunwillingtopaypremiums Averageconcernfortheenvironment;lowincidenceofproenvironmentbehaviors Lowengagement,littleemotionalinterestinhomeimprovements

Group2: Notconcernedabouttheenvironment Mostunwillingtomakelifestylechangesinordertobenefittheenvironmentvalues

comfort Moreadviceseekingthanselfdirected

Group3:Themostenvironmentallyaware,concernedandengagedgroup Theyarewillingtomakelifestylechangesinordertobenefittheenvironment Generallywellinformed,selfdirected,andcomfortablewithtechnology

Group4:Interestedindoingmorewiththeirhomes,butconstrainedbycostsandsocioeconomicprofile

Mostinclinedtoexpressthemselvesthroughwhattheybuy Moreadviceseekingthanselfdirected Limitedparticipationinecofriendlyactivities,programs;valuescomfort

Group5:Awareofandconcernedaboutenvironmentalchallenges,butlimitedengagement Somewhatmoreinvolvedinconservationactivitiesthanenergyefficientpurchases Moreselfdirectedthanadviceseeking Notfinanciallychallenged,butoftenaversetopayingpremiums

LowIncome:Lowincomecustomerswillbeanalyzedintwogeneralcategories.ThefirstcategoryisthecustomersservedontheCompanyslowincomerate(R2). Second,someparticipating



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customersontheR1ratemaymeettherequirementsforserviceontheR2rate.ThroughthePilot,theCompanywilltrytounderstandtheirreasonsfornotrequestingserviceontheR2rate.Additionally,R2customerswillbesegmentedfurtherbyelectricusage. Thesesegmentsare:

customerswithanaverageconsumptionoflessthanorequalto500kWhpermonth; andcustomerswithanaverageconsumptionofgreaterthan500kWhpermonth.

Proportionally,thesampledesignhassomesociodemographic/technologysegmentsthatcontainmorelowincomecustomersthancustomersfromothersociodemographicsegments.Agreaternumberoflowincomecustomerswillbestudiedinthepilotasithasbeenobservedthatlowincomecustomerschangeresidencesmorefrequently.Byoversamplingthesesegments,theCompanyhopestoensurethatarobustsampleoflowincomeparticipantsisavailableforanalysisevenwhensomelowincomecustomersmoveordropoutofthepilot.OtherResidential: Allresidentialcustomersnotcategorizedintooneoftheaboveresidentialsegments

NationalGridCommercialSocio-DemographicSegmentsCommercial&IndustrialFlexibleLoadProfileSomebusinesseshaveflexibleenduseconsumptionpeakswhichmaybeabletosignificantlycontributetoDemandResponse. Targetingcriteriainclude:

Load

profile

that

contains

regular,

significant

peaks

and

valleys

during

most

of

the

year;

Loadprofilethatcontainspeaksandvalleysatleastduringthesummerpeakingseason.

Thepeakswouldindicatestart/stopofanendusethatmaybeshiftedtoanotherperiod.Commercial&IndustrialHighConsumption(kWh)Targetingcriteriainclude:

Annualtotalconsumptionquantitiesinthetoptenpercentile. Onpeakconsumptionquantitiesinthetoptenpercentile.



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Commercial&IndustrialFlexibleBusinessOperationalProfileBusinessesthathaveflexibleoperations.Targetingcriteriainclude:

Nonconsumerfacingbusinesses,likemanufacturing,storageorcommercialnurseries,whereloadshiftingdoesnotadverselyimpactthecustomerexperienceofthebusiness

Businesseswherethemajorityofconsumptionisfunctionalandnottiedtoconsumeroremployeecomfort,suchasalaundromatoraflorist,asopposedtoanairconditioneddepartmentstore.

Commercial&IndustrialDirectDecisionMakerTargetingcriteriamayinclude:

Businesseswithan ownerwhooverseesbillpaymentandoperationsclosely;or Businesseswithadedicatedfacilitymanagerwhowillinvesttimetoconsiderwaystoreduce

energycosts.Commercial&IndustrialPropertyManagers/OwnersBusinessesconductedonpropertiesthatarenotoccupiedbytheowner,butinsteadleasedtotenants.Thissegmentwillincludeownerswhopaytheutilitybillsaswellastenantswhopaytheutilitybills.

Bysegmentingpilotparticipantsanddeliveringprogramoutreachandeducationonatargetedbasis,theCompanywillstrivetogaugetheeffectivenessofindividualoutreachinitiativesincomparisonwitheachotherandagainstprogramgoalsofadoption.



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ServiceLevels

IndeploymentoftheSMARTGridPilot,everyparticipantwillbeoffered2 theopportunitytoreceiveoneoffourtechnologypackagesfortheirhomeorbusiness.Theyare:

WebonlyThebasetechnologylevel.Participantswillhaveaccesstoapersonalwebsitewhichwillprovidethemadvancedenergyinformationcustomizedtotheirenergyconsumption.Participantswillalsoreceiveenhancedconsumptioninformationontheirmonthlyutilitybills.3

Level1Participantswillreceivethesametechnologyasthe Webonlygroupaswellasaninhomedisplay(IHD)

Level2ParticipantswillreceivethesametechnologyastheLevel1participants,aswellastheopportunitytoreceiveacombinationofupto2thermostatsorpluglevelloadcontrolswitcheswhicharecapableofreceivingloadcontrolsignalsthroughtheSMARTGridandautomateloadreductionsduringcriticalevents.

Level3ParticipantswillreceivethesametechnologyastheLevel2participants,plus:o Ahomegatewaydevicewhichfacilitatesadvancedweband/ormobilecontrolofload

controldeviceso Targetedcommunicationsaboutenergyconsumptionandtipsonhowtoreduce

consumptiono Theabilitytointeractivelycontrolindividualloadsintheirhomesorbusinesseso Theabilitytoaddadditionalloadcontroldeviceso Theabilitytoestablishtimeofdayandofweekloadcontrolprofilesthatautomatically

controlloadsintheirhomesorbusinessestoreducetheirenergyconsumptioneverydayoftheyear,notjustonsystemcriticalpeakdays.

2Participantsmusthavebroadbandinternetintheirhomeorbusinessfortechnologylevels2&3.Whileeveryparticipantwillhavetheopportunitytoparticipateintechnologylevels1,2,&3,thetotalnumbersforeachlevelarelimitedandwillbefilledonafirstcomebasisaccordingtocustomersegment(discussedbelow)3Thisgroupwillincludesomecustomersthatdonothaveinternetaccessintheirhome. However,theymaystillbeabletoaccessinformationabouttheirenergyusageontheinternetpotentiallyfromwork,thepubliclibraryorwebenabledmobiledevice.Customerengagementandimpactresultswillbereportedseparatelyforwebonlycustomerswithandwithoutinternetaccess.



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6. BudgetTheCompanyhasbeenaskedbytheDepartmenttoconsideralloptionsthatwillreducecostswithoutdiminishingthebenefitsofitsproposedmarketingapproach.ExamplesprovidedbytheDepartmentinclude:

1. Considertheextenttowhichcertaincommunitybasedelementsshouldbedeployedinsomesectionsofthepilotprogramareabutnotothers.Thepurposeistoreducecostsandtogainaricherpictureoftheimpactofvaryingmarketing,education,andoutreachlevels

2. Fullyexploretheuseofsocialmediatechnologies.Thisincludessocialnetworkingorblogs,thatallowCompanyandpilotparticipantstoshareinformationregardingtheimplementationoftheSMARTGridpilotprogram,aswellastoaskquestionsandprovideanswersallcustomerswouldbeabletoaccess

ThefirstrequestisaccountedforthroughtheCompanysuseofatargetedsegmentationandmeasurementmodel,asdescribedinprevioussections.Thesecondrequestisaccountedforthroughtheexplorationanduseofanumberofsocialmediachannelsasprimaryaccountcommunicationmechanisms. AsdetailedintheMethodssectionabove,theseincludeTwitter,Facebook,Youtube,andblogs.Inadditiontothetworequestslistedabove,andaftercarefulconsiderationofallmarketinginitiativesoriginallypresentedtotheDepartment,theCompanyrevisedthefollowingfourengagementmethodstomeettheDepartmentscostreductionrequest:

Table3: KeyInitiativeswithCostReductionsMETHOD ORIGINALCOST REVISEDCOST

COERTEAMRecruitment+Support(previouslycalledSMARTSquad)

$870,000 $592,800

WebsiteOverlay $755,000 $597,500WelcomeKit $658,000 $225,000

SuperUserIncentives $650,000 $1,500



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Together,thesereductionseliminate$1.753millionfromtheproposedmarketingbudget,revisingtheprogramscostestimationfrom$4.3millionto$2.546million.Inlinewiththiseffort,theCompanyalsoconductedaninitialexaminationofthetestableeffectonadoptionoftheseandallothercostreductions. Basedonthisinitialanalysis,theCompanydoesnotanticipateasignificantnegativeimpacttoadoptionthroughthefourkeyreductionslistedabove,thoughtheconfirmationofthishypothesiscanonlybevalidatedthroughthepilotprogramsmeasurementframework.TheattachedCampaignMethodsMatrix(attachment,methodsmatrix.xls)providesadditionaldetailonthemarketing,outreachandeducationmethodslistedinthisdocumentandtheirimpactonplaneffectivenessbydocumentingtheoriginalcostframework,initialcostrevisionsandassumptions,alternativecostapproaches,proposedimpactofalternativeapproachestoadoption,andrecommendedpathforward.7. SummaryInresponsetothechangeswithintheenergyindustry,NationalGridhasundertakenanextensivestrategicanalysiseffortanddevelopedaSMARTGridVisionwhichaimsto1)deploySMARTGridtechnologyinordertooptimizetheflowofcleanenergyresources,2)enhancetheperformanceoftheelectricdistributiongridand3)providecustomerswiththeabilitytomakeinformeddecisionsabouthowtheyuseenergy.TheCompanyisconfidentthattheinformationcontainedinthiscompliancefilingaddressestheDepartmentsrequestforadditionalinformation(reductionofmarketingcostswithoutdiminishingthebenefitsofitsproposedmarketingapproach;anddeliveryofasufficientlydetaileddescriptionofeachengagement,outreachandadoptioninitiative),andwillenabletheCompanyandtheDepartmenttomoveforwardonthisexcitingprogramandcaptureitsbenefitsforcustomers.



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Appendixi:CostsAssociatedtoallInitiativesCategory FINALBUDGETESTInfrastructure&COERChannelComponentsWeb

Interface

development/tie

to

Campaign

$

397,500.00

Inhomeormobileinterfacedevelopment/tietoCampaign (rolledintoweb)WebInterfacemaintenanceacrosscampaign(contentandcode) $ 200,000.00SocialMediacomponent:Twitter (opensource)SocialMediacomponent:Facebook (opensource)SocialMediacomponent:Youtube $ 4,000.00SocialMediacomponent:SMARTBlog $ 10,000.00ENewsletter $ 51,500.00CommunityOutreachandEducationRepresentatives(5COER

FTE's):

campaign

execution

team

$

550,000.00

COERTraining $ 5,000.00COEROperationalMaterials+Expenses $ 37,800.00LocalVolunteers(includingTrainingMaterials+Expenses) $ 17,500.00PublicRelationsSupport:CreationofPressKITandOngoingPublicRelationsSupportacrosscourseofcampaign $ 108,000.00CustomerSegmentResearch/Identification (existingNGsegmentation)CampaignProductionMaterialsDirectMailIntroduction $ 76,500.00DirectMailOngoing(newsletter) $ 229,500.00WelcomeKit(DVD+Print+SMARTCards) $ 225,000.00WelcomeKit(onlinevideotransfer) $ 600.00SMARTCardandParticipantMaterials $ 7,500.00NotificationsofSMARTEquipmentMeterInstall(call) $ 45,000.00CriticalPeakEventNotifier

(assumesfreeuseofNGoutbounddialer)

BillMaterials(BillStuffers) $ 191,250.00SMARTGridVehicleDesign(wrapping) $ 45,000.00ContestSpecificMaterialsWebContests(forindividual/retailcustomers) $ 43,100.00IndividualContests $ 9,000.00SmallBusinessContests $ 10,600.00LargeCommercialContests $ 31,500.00SchoolandCollegeContests $ 6,100.00SGVContestMaterialsandPrizes $ 23,500.00



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SMARTCardContests $ 11,500.00SuperUserContest $ 1,500.00Contestlegalnoticesanddisclaimers,contestmanagementfirm $ 20,000.00EventMaterialsEvent/InFieldDemoUnitMaterials $ 45,500.00SchoolandCollegePrograms $ 28,750.00Callathons'CustomerOutreach

(assumesCOERteamdialingratherthanthroughoutsidevendor)

BreakfastSeries $ 20,000.00Outdoor'GETSMART'events $ 85,000.00HomeSMARTevents(inhomedemos) $ 8,500.00TOTAL $ 2,546,200.00



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Appendixii:TheCustomerEcoSystemandRelationshiptoCampaignInitiatives

29 | P a g e National Grid Smart Grid Pilot Marketing, Education and Outreach Plan


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Appendixiii:TimelineandMessagingStrategyforInitiativesPilotphasedefinitions:Phase

1

=

Seed

=

Pre

pilot.Approximately

6

months.

Phase2=Share=Pilotstartupandinitialcampaign. Approximately812months.Phase3=Succeed=Pilotongoingadjustmentandevaluation. Approximated612months.

Phase 1: Seed Phase 2: Share Phase 3: SucceedApproval >> Implementation (6 mo) Implementation (8-12 mo) Evaluate + Adjust Implementation

(6-12 mo)

The way you

think about your

energy usage is

about to change

Information and

options you can

use to modify

your energy

usage

Incentives formodifications in

your energy

usage behavior

Encourage othersto modify their

energy usage

behavior

Optimize your

potential for

efficient energy

usage



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- -

Appendixiii:TimelineandMessagingStrategyforInitiatives

Create Program Framework:

Meet with electedofficials and communityleaders, engage highprofile participants viafirst-phase BreakfastSeries

Create COER web /mobile / social / e-newsletter / onlineversion of Welcome

Kit

SMART Grid Vehicledesigns/wrapping

Worcester Fleetdesigns/wrapping

Produce event/demomaterials

Hire + Train COERTeam

Recruit super users

Send direct mailintroduction to all pilotparticipants,notifications of SMARTMeter install

Recruit initial batch ofevent volunteers

Conduct customer

segmentation research

Phase 1: Seed Phase 2: Share Phase 3: SucceedApproval >> Implementation (6 mo) Implementation (8 12 mo) Evaluate + Adjust Implementation (6 12 mo)

Building PR story (PR kit materials,

Support COER Efforts:

Ongoing updates toweb-site, social mediain support of all othermethods

Initial Education:

Distribute WelcomeKit to participants andcommunity leaders

Introduce participantsto program through allchannels: SMARTMeter installation call,ongoing Bill Stuffers

Raise Awareness/

Engagement:

Launch and maintaine-newsletter, DirectMail newsletters (toboth participants andcommunitystakeholders)

Announce contestsassociated withSMART Cards

Continue super-userrecruitment throughcontest

Launch Where is theSMARTMobile?contests

Launch web andindividual contests

Raise Awareness and

Engagement (cont.):

Launch small businesscontests

Launch large commercialcontests

Launchstudent/school/collegecontests

Media pitch effort,continued PR coverageof High-profile campaignparticipants and pilotsuccess and continuedmedia stories

Contest Winnersawarded, on-going basis

Engage Community and

Leaders

Continue BreakfastSeries

Host sponsored events:college/school (connectto community, smallbusiness, and largecommercial efforts)

Target for Success:

Hold call-a-thon (endof share, start ofsucceed phase) forlagging/unengagedcustomers

Leveragesegmentation methodsto maximizeparticipation for laggingcustomers /stakeholders - executeon opportunities to

adjust/tweak programsfor maximumengagement

Continued (but moretargeted) execution ofall methods in Sharestage

Final contests, grandprize winners forsuper-users, individualcontests, web contests,small business + largecommercial contests

End-of-phase pilotevent, in-field party toannounce winners andshowcase results

Begin in-field demos,e.g. hold OutdoorCommunity Events, in-home demos

Customer Sat Surveys across all efforts

* Many campaign methods will be spread over

Share/Succeed phases, and tweaked in terms of

response/segmentation strategy full programmatic

timeline to be developed

31 | P a g e National Grid Smart Grid Pilot Marketing, Education and Outreach Plan


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Appendixiv:SampleCustomerExperienceGiventheecosystemnatureofthecustomertouchpoint(whereacustomercanexperiencepilotmessagingfromanumberoftouchpoints),therearemaywaysacustomercanbeengaged,eitherthroughasingletouchpoint(Home)ormultipletouchpoints(InformalCommunity,GeneralEnvironment).Thefollowingcustomertouchpointexampledemonstrates(asanindicativesample)howacustomercanengageacrossavarietyoftouchpoints,providinganunderstandingofhowmanyengagementandoutreachmethodscanworktogethertodriveadoption.

SeedPhase(Theme:Thewayyouthinkaboutyourenergyusageisabouttochange)JanereceivesanotificationofSMARTMeterinstallationnthroughanumberofdifferentcontacts:callsfromNationalGrid,anemailtohercustomeraccount,aswellasanintroductorymailing,explainingthedateandthedetailsoftheinstallation,andinformationontheprogramandenergyefficiency.Thesamedaythemeterisinstalled,JanereceivesaWelcomeKitwithfurtherdetailsonthepilot,goalsforthecampaign,howtoregisterforthewebsite,DVD(aswellasYoutubelinkandprintout)withinformationonthepilot,checklistforenergysavingsandenergyefficiencytips,aswellasherSMARTCardforlocalcontestsandrebates.SharePhase(Theme:InformationandoptionsyoucanusetomodifyyourenergyusageandIncentivesformodificationsinyourenergyusagebehavior)Withinthefirstcoupleofmonthsafterhermeterinstallation,Janelogsontothewebsiteandobtainsupdatesonhowothersareprogressingwiththepilot,andhowherownenergyusagecompares.Shealsobeginstoreceivebothemailandprintnewsletters,aswellasinsertsinherbill,andinformationoncontestswhereshecanbeenteredtowinsmallermonthlyprizes,aswellasagrandprize.Afewmonthslater,atherlocalrotaryclubbreakfast,JaneseestheinfielddemonstrationonhoweasySMARTcanbeshealsointroducesherselftoaCOERrepresentative,andtakessomepamphletinformationonvolunteering.SucceedPhase(Themes:OptimizeyourpotentialforefficientenergyusageandEncourageotherstomodifytheirenergyusagebehavior)Whileshehadntrecognizedlargeenergyusagesavingstothispoint,afterspeakingtoothersatthecommunityevent,Janerealizesthattheremaybeanumberofotherefficiencyopportunitiesandsavingstipsshehasnttakenadvantageof.



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Shedecidestologontoherwebsiteandcheckusageeveryday,andremembersthatastheCOERrepmentioned,shecanevenlogonfromwork!Soon,JaneisexchangingtipsandtrickswithotherparticipantsonTwitter,andreadingblogarticlesonhowshecanmaximizehersavingsshebeginstoadjustherhabitsathomeAroundthesametimethatJanebeginstotakeonamoreengagedrole,shereceivesadirectcallfromaCOERteamrepduringthecallathon,whonotesthatshehasntreallymaximizedhersavingsyet,andsharessomeadditionaltipswithJaneonhowshecancreateefficiencywithSMART.Janenowfindsitincrediblyeasytokeeptrackofherownenergyusage,hasmadesomegreatfriendsthroughheronlinecommunity,andevenfindstimetovolunteeratalocalSMARTdemonstration.Notonlythat,butsheisnowseeingherusagedroponherbillasherbehaviorchanges!AttheendoftheSMARTGridpilot,Janeattendstheclosingcommunityevent,meetshernewonlinefriendsinpersontosharesomefoodandmusic,andlearnsifshewonthegrandprize.



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Appendixv:SamplescreenshotfromTendrilVendorWebInterfaceNote:Thefollowingscreenshotisanindicativeorrepresentativeexample,utilizingTendrilscurrentfeatures,anddoesnotrepresentactuallook/feelorfeaturesoftheCompanyswebinterface.



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Smart Grid Marketing