Different energy market structures, dynamics and player strategies across geographies leads to widely differing approaches to customer segmentation and value extraction. This brief provides an analysis of segmentation practice across four key liberalised markets and provides insight into best practice for exploiting customer value elsewhere.

Scope

An overview of current segmentation and value extraction practices in the UK, Italy, Spain and Ontario energy markets. Analysis of channel usage in each market and the relative merits of each option. Understand how the ability to segment acquisition and retention activity appropriately can be a value generator. Insight into best practice and alternative approaches to exploiting customer value.

Highlights

There is a void waiting to be filled in terms of the domestic energy internet comparison site market outside the UK. In all of the countries studied, with the exception of Canada (Ontario); being able to identify a customer's propensity to purchase multiple products from a retailer was seen as a significant source of value as it offers a higher margin per customer with little difference in acquisition cost or cost-to-serve Only the UK hides the costs of distributing products from its consumers (although this practice was originally put in place for regulatory rather than market driven reasons). The ability to segment acquisition and retention activity by size of household will be a significant value generator.

Reasons to Purchase

Gain insight into segmentation practices in liberalised markets. Understand how current segmentation practices can be improved. Improve the potential to gain greater value from customers.