The Net Zero transition is reshaping the energy industry, and the role of smart data in informing new propositions has never been more crucial.
The Need for Radical Change
The energy sector is at a pivotal juncture, with the demand for low carbon alternatives like heat pump installations and battery storage skyrocketing. By 2040, the demand-side response opportunity could reach a staggering 12GW, signalling a need for a dramatic scale-up in every sector.
Retailers at the Forefront
Energy retailers face a dual challenge: supporting and driving this transformative change. The future belongs to those who offer innovative, consumer-centric propositions. Understanding customers through smart data becomes a linchpin in developing these compelling offerings.
Decoding Smart Data
Smart data, often used interchangeably in the energy sector, refers to data that can be formatted and shared to inform downstream analytics and insights. It’s not just the acquisition of this data that’s vital, but its strategic application in evolving consumer propositions.
Building Consumer Trust
Amidst a backdrop of low consumer trust, exacerbated by the cost of living crisis, energy suppliers must work harder to impress and exceed expectations. The introduction of time-of-use and low carbon bundle propositions could be the key to rebuilding this trust.
The Evolution of Energy Retail
Net Zero is an opportunity to reinvent energy retail, offering more sophisticated and tailored services. Retailers must develop a clear corporate direction and proposition strategy, understand the role of smart data, and continually test and trial new customer offerings.
The journey towards a smarter, more consumer-focused energy sector is rapidly progressing. Retailers who align their propositions with evolving consumer expectations, leveraging the power of smart data, will be the frontrunners in this transformation. Get in touch to find out how Engage Consulting can help you embrace smart data.
