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SMBs and the Energy Industry - Demystifying Small and Midsize Business Decision-Makers
E SOURCE, July 2004, Pages: 20
Small and midsize businesses (SMBs) have established themselves as hard-to-reach customers. This reputation has been enhanced by the difficulty that utilities have in identifying the appropriate decision-maker, who is often too distracted by other business concerns to pay adequate attention to energy issues.
This report examines the various decision-making structures common to SMBs and outlines the difficulties and opportunities presented by each one. For example, a business in which the owner also manages the facility presents an easy-to-reach decision-maker, albeit one that may not know much about energy. On the other hand, a business in which management, ownership, and tenancy are handled by three different entities presents a challenge in identifying who has both the interest and the motivation to invest in energy-related measures.
In addition to understanding SMB decision-making roles, its also worthwhile to examine what motivates these enterprises to put money into energy investments. These motivations can include a desire to remain competitive with other businesses, a need to enhance the selling price of a facility, or an altruistic desire to protect the environment. Understanding these distinct motivations enables a utility to more appropriately and effectively craft its marketing messages.
This report also examines the opportunities presented by working with various trade associations that serve a given SMB constituency. Organizations ranging from chambers of commerce to national advocacy groups can serve as powerful allies in reaching small and midsize businesses. In addition, we determine the market segments that are the best bets for a utility to target, based on a propensity to be concerned with operating costs given industry competition, ownership structures, and trade association membership.
We investigate SMB energy-related decision-making structures, the motivations SMB decision-makers have for making energy investments, and the channels utilities can use to market to these hard-to-reach businesses.
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