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The Tactics Green Mountain's most Prosperous tactic to date has Turned into a 1999 regional direct mail campaign, targeting nine California communities: Arcata, Eureka, Humbolt, Monterey, Santa Cruz, Salinas, Santa Barbara, San Luis Obispo, and Santa Maria. In reality, surveys had revealed that citizens of those communities put a high value on quality of life, community, and the environment.
The Cullinan Group, which is located in Minneapolis, designed the Direct mail package that was delivered to 1 million households. It was a colorful, classic, 6 inches by 9 inches format. The front of the envelope - using a visual of a wind turbine - lured consumers with the label:"Pick cleaner power and pay less than you're paying today." The back of the envelope had a customized community message: In Arcata,"Switch to Green Mountain Energy and we'll contribute $25 to Redwood Alliance," that is a grassroots organization dedicated to saving California's redwood trees. In Santa Cruz, where the message was,"Save Our Shores," a community-based company was the affinity partner, and a personalized letter from Green Mountain was enclosed.
In addition, the nine-community bundle included the following: A lift note with provide; and a four-color booklet with easy-to-understand information about"clean" energy. The brochure describes the types of environmentally-friendly energy Green Mountain provides, including wind and solar energy.
Although direct mail might not seem to be the very Environmentally-friendly advertising strategy - all of that paper, those acres of downed trees - Green Mountain made an effort to make their direct mail as eco-friendly as possible. The entire marketing package was published on recycled, chlorine-free, unbleached paper (100 percent post-consumer waste), utilizing soy-based inks.
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The direct mail campaign was complemented by radio and newspaper advertising. A combination of full- and - half-page, black-and-white ads were placed in community newspapers in April, May, and June of 1999 in concert with the mailing. The ad urged consumers to:"Stop supporting nuclear power and begin paying less for electricity." The subhead reiterated among the messages in the direct mail effort:"Sign up now and we'll donate $25 to Redwood Alliance." Radio advertisements also conducted at precisely the exact same time in service of their direct mail and print advertisements.
The Payoff This direct mail campaign resulted in 20,000 new Clients, swelling the Green Mountain Energy rankings to over 100,000. Client phone surveys found that over 80 percent of the organization's customers say they're"proud to be a part of Green Mountain's mission" Another 80 percent state that they trust the corporation. Band awareness has also enhanced. Green Mountain has become associated with"clean energy" by a factor of 4-to-1 over existing utilities or other electricity providers. "The [direct mail] campaigns were successful because of one basic factor - integrated communications," explains Savage. "Each outbound advertising initiative consisted a consistent message using a constant look and feel"
What The Critics Say Margo DeBoer, an Internet utility analyst With The Yankee Group, believes that Green Mountain's powerful branding effort is unusual among smaller utilities, also has served them well in local markets. However, she thinks it will be a challenge for the company to carry that success into an increasingly competitive national market. "They have a vision to be a national energy supplier, and also to include not only the people who identify themselves as green, but also those who wish to switch providers," says DeBoer. Though the"brand name" will help Green Mountain, they'll be contested when competing with other regional suppliers, as deregulation continues. Therefore, DeBoer considers direct mail is a great choice, because not only will green households be targeted in a campaign, but so will other consumers that want to find an energy substitute.
Sean Barry, director of PricewaterhouseCooper's Assurance and Business Advisory Services, says that although Green Mountain seems to have hit a good strategy in present energy market conditions, which could change since the wholesale cost of electricity continues to rise. This usually means that the extra expense of buying green electricity may become less attractive to consumers, if the trend continues. What's the cost that customers will willingly pay to"do the right thing" for the surroundings? "Time will tell," he states.
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And to get a small utility Which Has a compost bin at office Kitchens, recycles, and installs sensors to automatically switch off the lights When a room is vacant, time might be on its side.