13Landor Associates
even more challenging, they will be competing
against some of the most powerful, stretchable
brands in the world.
The winner, however, becomes the gatekeeper to
all energy devices in consumers’ homes, and the
prize is massive: constant, free brand communica-
tion and reinforcement.
The burning question for 2011
Will energy companies be so consumed with the
massive undertaking of installing millions of smart
meters that they miss the opportunity to communi-
cate with residents?
The consumer energy business is facing a rare
challenge — and opportunity. In order to reduce
carbon output, a number of governments across
the globe are mandating the placement of smart
meters in all households. In the United Kingdom
alone, that amounts to about 20 million homes.
Smart meters, like the non-smart variety, measure
energy usage. But they are also capable of communi-
cating with an energy supplier and with other
household devices. The information is delivered in
real time and can be analyzed in a multitude of ways
that have been impossible until now: usage by day,
season, time, or appliance, making it easier to
diagnose problems within a house and much more.
The smart meter, with its ability to manage energy
remotely, brings us one step closer to making the
digital home a reality. Google and PayPal globally,
and Sky, O
2, and Tesco in the United Kingdom,
envision a residence with a single device or system
that controls heating, lighting, programming,
security, diagnosis, and entertainment. These brands
are competing to own the heart of this new home.
Therein lies the threat and opportunity for energy
companies: Smart meters have displays that sit on
kitchen countertops or in living rooms. They are the
means by which people will monitor and eventually
control the heating and lighting in their homes. As
a marketer, wouldn’t you love to have access to
a wireless, Internet-enabled, updatable touch screen
to communicate with your customers — and, better
yet, have it paid for by the government?
Right now, energy brands enjoy little equity or
loyalty from consumers. They are best liked when
they aren’t attracting attention. If they want to play
a larger role in the development of the digital home,
they will have to put significant effort into areas
familiar to marketers: relationship building, innova-
tion, customer service, delight and surprise, and
value adding. Not only is this new territory for most
energy brands to navigate, it will be desperately
difficult for them to succeed in wooing customers,
given the low base they start from. To make matters
Trends in the energy industry
by Ian Wood
Ian Wood is executive director in the
London office of Landor Associates. His
article “Don’t chicken out of innovation”
is available on landor.com.
O2 is making a bid to own the heart of
the home with its O
2 Joggler—you can
watch videos, check the weather, text
friends, and more.