Much is said about the differences between generations. Many a blog or post or newsletter draws lines about what characteristics define one generation over another. Even though these defining lines often blur, understanding the broader trends that shape the behavior within a demographic can be useful. For utilities, this can be especially useful when building a relationship with your next generation of consumers.
Much is also said about the rapid changes over the last quarter century in how we interact with the world, gain information, communicate, work, and share our lives. Gen Z, born between 1997 and 2012, is now in early adulthood and the rapid changes that defined their formative years also defines how they make choices and structure their lives. Gen Z is also not a small generation, ranking in size second only to Millennials. Understanding this generation’s unique needs and influences is key to building their trust as energy customers and helping them manage their electricity usage.
So, what are some of the broad characteristics that define Gen Z? According to a survey conducted by Deloitte, some key factors include:
- Learning and development is a priority approach to life and work
- Embracing and depending on technology is second nature
- Financial insecurity and questions about affordability help drive decision making
- Consumer behavior is influenced by anxiety about environmental concerns
- Balancing money, meaning and well-being are foundational to happiness
In their white paper, “Building Awareness and Trust with Gen Z,” the Smart Energy Consumer Collaborative (SECC) took a deep dive into how these factors play out in Gen Z’s attitudes, priorities, and management of their energy consumption as well as their perceptions of electricity providers. It is this type of insight that makes NTC proud to be a member of SECC and allows us to apply these insights into how we approach our education outreach materials, campaigns, and programming. Below are a few ways these insights can be used to help utilities use education to build trust with their Gen Z consumers.
Household Make Up
Where we live greatly influences how we consume energy. Not only the location, climate and construction of our dwellings, but also the make-up of our households. Members of Gen Z are more likely to be renters than homeowners, more likely to live in multi-family dwellings or inter-generational homes, or with roommates. These circumstances influence their energy consumption and their decision making power over that consumption. Designing educational materials and campaigns that target Gen Z need to specifically address ways they can have agency in their energy decisions.
Tech Natives
Gen Z has never known a world without the internet, cell phones, or smart devices. Adopting new technology and depending on it is how they navigate the world. They are more likely than any other generation to spend money on smart devices, yet they are not using them at this same rate of adoption to regulate their electricity usage. This gap creates an opportunity for utilities to build a stronger relationship with their Gen Z customers. Utilities can leverage the wider usage of smart devices by this generation by educating them on how to use those devices to manage their energy consumption. Gen Z uses technology to make their lives easier. Show them how to do that in regard to their energy usage.
An Energy Efficiency Disconnect
Just as there is a gap between Gen Z’s use of smart technology and the use of that technology for managing their energy usage, there is also a gap between what they understand about the importance of energy efficiency and their understanding of what actions to take to be energy efficient. Educating this generation about managing their energy consumption is less about convincing them that it is important and more about empowering them with specific actions. In other words, they are on board with why they should do it, but don’t know how to make it a part of their decisions and routines. Addressing this disconnect with education and mentoring offers utilities a beneficial opportunity to connect with these new customers and save on kWh.
A Problem with Trust
Another clear line between Gen Z and other generations is their lower satisfaction with their electricity providers. When compared to other generations Gen Z gives their providers the lowest trust and reliability ratings. This problem, though, can be addressed through a better understanding of this generation’s needs and the factors contributing to those needs. The unique characteristics of this generation, outlined earlier, also show how education can be a key component in overcoming this trust problem.
Positive Corporate Responsibility is Noticed
Gen Z, more so than previous generations, takes notice of a company’s reputation and actions. Utilities can use educational materials and awareness campaigns to connect the dots for these customers on investments in renewable energy and impacts on environmental sustainability. This connection can improve Gen Z’s satisfaction with their providers and raise trust.
Overall, there are educational opportunities that are unique to Gen Z that utilities can leverage to foster more awareness and trust with this next generation of energy consumers. NTC can help you take advantage of these opportunities with customized educational materials, campaigns, and programs. Reach out and we can discuss how we can support your education outreach initiatives.
You can also take your own deep dive into SECC’s white paper.
