Consumer Analytics

Bundling Home Energy Services is Basis for Competitive Differentiation

by David Mitchel | Feb. 5, 2018

A significant concern for retail energy providers is revenue diversification. For long-term growth, energy providers realize that they need to move beyond selling a commodity product experiencing eroding margins. Regulated utilities, through non-regulated sister companies, also seek to diversify revenue through new services.

In order to achieve revenue diversification, energy providers are examining a variety of home services to complement energy services to the home. Established services such as HVAC services, home warranty services, security services, and insurance offers represent the most compelling opportunities, as these industries are established. Bundling energy, energy monitoring, and energy management offerings with these established categories provides new value to the consumer and is a basis for competitive differentiation. Newer, less established markets, like solar PV also present an opportunity to diversify revenue.

Due to the fact that many of these adjacent service markets have relatively low penetration, they represent opportunities to create solutions to expand the market, rather than competing for share with established, more experienced rivals.

Appeal of Home Services Bundled with Energy (Q2/17)

David Mitchel

David Mitchel

Research Analyst

David Mitchel is part of the Parks Associates Consumer Analytics research team. He studies market and consumer trends in a number of areas, including Access & Entertainment, Connected CE, Energy Management, Connected Home Systems, Digital Media, Digital Health, and Mobile Devices.

Prior to working at Parks Associates, David spent 5 years working in a variety of marketing roles, gaining experience in a variety of industries. He earned a BA in Communication from the University of Arizona and an MBA from Thunderbird School of Global Management.

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