March 2004

Energy, although regulated, is subject to a plethora of messages not unlike other sectors of the economy. As utilities become increasingly more sophisticated about marketing, as they adopt methods pioneered by fast moving consumer goods, and as marketing professionals compete for the consumer dollar, it is no wonder that the utility customer continues to be bombarded with messages. Sophisticated segmentation, the ability to track individual usage, the intimate knowledge of the customer's usage pattern as well as bill payment characteristics all have combined in the hands of the adept marketer to provide information about customers. This has created opportunities to further sell customers on services beyond basic energy usage. The Enron scandal and the thousands of news stories in its wake further bias witness to the increasing sophistication of the energy marketers.

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