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Green Grid Analytics and Strategy Group, LLC.

Exploring American’s Commitment to Home

Efficiency and Sustainable Behaviors

Learn More About Green Grid Analytics and Strategy Group

http://www.greengridgroup.com
Steven.silverman@greengridgroup.com
425.296.1971

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Our approach to this project

 Where to Play
 Identify a meaningful, actionable and sizable market
 Focus on those people who are ready to purchase
 Segment based on their values, beliefs, behaviors, and preferences

 How to win
 Create a differentiated and sustainable Value Proposition
 Position the product for the market
 Communicate at the right places, in the right ways

 This document focuses on the first objective

 We present one approach to finding the target market
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Our POV: Focus where the market is ready

Adoption is not uniform across the Only some people are ready at any
market given time
 Change flows through the market  In-Market consumers are mentally ready to
 Home Efficiency and Sustainability adopt
purchases are “a change “  Encourage their desire to change
 Focus on those who are ready for change

Disinterested Skeptical Interested Almost Ready In-Market

Target Market Is
Here

Market moves over time

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Method and Sample

 Method
 Online survey conducted during February 2010
 Survey designed by Green Grid Analytics and Strategy Group LLC
 Survey Fielded by PeopleMetrics, Inc.

People Characteristics Home Characteristics

 412 home owners in the USA  Median Home Value $200k
 65% have income of $80k or less  66% 2000 ft2 or less
 58% college or more  38% have lived in their home < 5 years,
 48% female 44% > 10 years
 75% married  47% expect to be in their home >10 more
 Median age 48 years old years
 6% Live in Green Certified home

All group differences in this project are tested with 95% confidence limits (i.e., p<.05).
We incite Margins of Error for percentage estimates are approximately ±5%.
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People Who Are Ready to Invest in Home Efficiency 5

Improvement

7-point scale
N=412,
Not Investing or Neutral Investing

 58% select the top three boxes on the

scale
 Only 17% select the bottom 3 boxes and
25% are “on the fence”
 Look for the differences between the
groups
 Target those who are more likely to
invest in the next year
 Appeal to Investors in ways that are
meaningful to them 17% 25%
58%
Chart Percentages Rounded
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Proportion of those Investing varies by region

 Those Investing outweigh Not Investing in all regions

 Between group difference is largest in the Northeast, followed by the West, South
and Midwest

70%
65%
65%
59%
58% 60%
56%
US Average 55% 52%
50% 48%
44%
45%
41%
40%
35%
35%

30%

25%

20%
Not Investing Not Investing Not Investing Not Investing
Investing Investing Investing Investing
We incite
insight Northeast Midwest South West
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Demographics do not differentiate these groups

 NO DIFFERENCES between those Investing and Not Investing:

 Gender  Home size
 Age  Home value
 Education  Time in home
 Marital status  Expected time in home

 This is not surprising since there is no a priori reason to expect that any of
these dimensions alone is the reason why people do or do not invest in
improving their home’s efficiency
 Also, no differences on these dimensions within each region
 Our research shows that there are, however, other meaningful differences
between these groups
 Values, beliefs and behaviors related to home efficiency and sustainability are
differentiators
 Details on these results are not contained in this document – contact us if you would like
We incite to learn more – steven.silverman@greengridgroup.com
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Investors will increase spending over time and spend more 8

than Non-Investors (National Averages)

Q: Please describe your SPENDING TO IMPROVE YOUR HOME'S ENERGY EFFICIENCY:
Percentage of each group expects to invest that amount of money in that period

Average

Average

Average
Average
Not Investing All
differences
33% 34% Investing 34% are
significant

26% 26%

20% 21%
19% 19%
16% 16%
14% 14%
12% 11% 12%
11%
9% 8% 9%
8% 7% 8%
4% 5%
3% 3%
0%

$0 Under $100 100-499 500-999 1000-4999 5000-9999 over $0 Under 100-499 500-999 1000-4999 5000-9999 over
$10,000 $100 $10,000
In the NEXT 6 MONTHS I expect to spend BETWEEN 6 MONTHS AND 1 YEAR from now I expect to spend

 Investing indicate they will invest larger amounts in the next 6 months and in the next year
 Not Investing indicate they will only invest small amounts
 More investment will be made in the future relative to the near term for both groups
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Regional spending projections follow the national pattern
(Regional Averages)
Q: Please describe your SPENDING TO IMPROVE YOUR HOME'S ENERGY EFFICIENCY:
All differences are significant

Average amount of each group expects to invest

$500 - 999

$100 - 499

Under $100

Not Investing Not Investing Not Investing Not Investing

Next 6 Months
Investing Investing Investing Investing
6 – 12 Months Northeast Midwest South West

 Regional differences are relatively minor and follow the same pattern as the national results
 Investors will increase spending over time and spend more than those Not Investing

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Summary

 In our analysis, 58% of people are planning to invest in

home efficiency improvement this year
 There are regional differences

 Demographics do not distinguish Investors from Non-

Investors
 Most Investors indicate they will spend $100-$499 this

year
 Non-Investors indicate they will spend under $100

 To learn more contact

steven.silverman@greengridgroup.com
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