Many sectors faced unprecedented challenges in 2020, but on the whole, the energy sector remained resilient. While some smaller-scale energy companies struggled to fight off competition from larger providers, this year saw a strong overall performance from the industry.
There are changes afoot which will prompt new developments in 2021 and beyond. Opportunities are most prominent within renewable and sustainable energy, with the UK’s push to achieve net zero carbon emissions by 2050 and the Prime Minister’s 10 point plan for a green industrial revolution acting as catalysts for sustainable practices.
However, with increased opportunity comes increased competition, and we expect to see new entrants throughout every level of the renewables sector over the coming year. A wider choice of services and suppliers will see businesses working harder to convince potential customers that theirs is the best solution. A concerted effort will be required to remain visible and memorable in the face of stiff competition.
Energy Outlook | Challenge #1: Greater Choice
New government initiatives, businesses’ drive to improve their green credentials and an increase in direct consumers’ awareness of sustainable issues will all lead to a greater demand for sustainable energy solutions in 2021.
Innovations in products and services will offer more choice to customers. Recently, for example, the government announced its goal to improve energy efficiency within public and private buildings by installing 600,000 heat pumps every year by 2028. This presents a huge opportunity for those who know the field, but will also see a wave of willing suppliers ready to throw their hat into the ring.
Increased choice will make it harder for individual businesses to stand out or to be discovered by their prospective customers.
Opportunity: Content Marketing Strategy
One way energy businesses can stand out from the competition is to invest in a hardworking content marketing strategy. Writing high quality, insightful content on topics related to your customers’ online search terms will help your business to be amongst the first results they encounter.
In order for this approach to be effective, you’ll need to ensure that your content plan is truly strategic. Consider what actions you’d like your customers to take after they’ve read your content; you’ll want to make the most of the opportunity, so that customers don’t simply visit your website once and move on.
Energy Outlook | Challenge #2: Explaining Complex Ideas
As the need for businesses to adopt sustainable practices increases, we’ll see more B2B customers trying to get to grips with complex ideas surrounding energy products and services.
Energy businesses will not only need to demonstrate the strengths of their products; they will also need to get better at explaining energy regulations and how businesses benefit from adopting green practices.
Retaining the prospective customers’ attention as more complex ideas are presented to them will be a challenge, but those who succeed stand to cement their relationships with new business customers.
Opportunity: Simple Messaging and Smarketing
There is an opportunity to improve the messaging surrounding energy products and services going into 2021. Simplified but persuasive language will help you to attract new customers, so long as you can convey what makes your offering the best solution.
While direct mail and personalised emails will help you to get your foot in the door, we’re also predicting a rise in the adoption of ‘Smarketing’ principles. Sales and marketing teams will be better integrated so that they can work together to share their insights, set goals, identify potential customers and understand how to best target them, making the customer acquisition process more efficient.
Energy Outlook | Challenge #3: Credibility
More renewable energy sector entrants will see a rise in so-called energy ‘experts’ in 2021. Customers and stakeholders will want to sort the wheat from the chaff, presenting an opportunity to demonstrate your experience and insight into issues facing the industry.
Proving your credibility will distinguish you from your competition and make your business a more attractive prospect, particularly for higher-profile and larger-scale customers.
Opportunity: Thought Leadership
Publishing thought leadership articles in national news outlets, trade titles and across your own channels such as your website and LinkedIn will give you the opportunity to demonstrate your genuine expertise and raise your profile within the renewable energy sector.
You’ll be able to get buy-in from those who need persuading, and you’ll cement your reputation as a true expert in your field.
Word to the wise: don’t squander opportunities to promote yourself; everything published in your name should link back to the core messages you want to convey about yourself and your business. Make it topical and seize on updates and news stories surrounding sustainable energy issues.
Energy Outlook | Challenge #4: Loyalty
It’s a buyer’s market when it comes to energy and utilities, and it will be no different in 2021. We’ll continue to see companies vying for the top spots by offering competitive prices and greater incentives to work with them.
Over the next year, energy businesses will need to do more to secure their customers’ loyalty. It won’t necessarily be about offering the cheapest solution, but it will be important to demonstrate why your product or service meets the customer’s needs more effectively than your competitors’.
Competitor analysis will be an important practice to adopt and refine going into the new year. Consider widening the definition of what constitutes competition to include companies whose offering is different to yours, but whose products and services could just as easily resolve your customers’ challenges.
Opportunity: Customer Convenience
Customer-centricity is the first rule of marketing, but one that can easily be overlooked. To enhance customer loyalty, find ways to make the customer experience more positive in 2021. Energy businesses should assess their processes and customer interactions, identifying areas to improve.
Smooth online interfaces make it easier for customers to use your service, whilst a responsive customer advice team can help to make them feel valued. Again, aligning your sales and marketing departments will help to achieve a more streamlined customer service, making it less appealing for them to jump ship.
Ready for 2021?
In 2021, it will be more important than ever to quickly react to continuing changes within the sector. Having the right marketing infrastructure in place will make this possible. Bringing in marketing specialists to support or stand in for your in-house team will help to improve your energy business’ performance.
Moment specialises in sustainable energy marketing. Our experience and understanding of the sector helps us to create tailored strategies for our energy clients across the UK and internationally.
If you’d like to discuss marketing your sustainable energy business in 2021 and beyond, contact us.
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