Segmenting household electricity customers with quantitative and qualitative approaches. (April 2022)

• Record Type: Journal Article
• Authors: Barjak, F.; Lindeque, J.; Koch, J.; Soland, M.
• Is Part Of: Renewable & sustainable energy reviews. Volume 157(2022)
• Publication Date: 2022-04
• Subjects: Electricity customer -- Customer segmentation -- Customer centric strategy -- Energy sector -- Sustainability transition -- Mixed-methods -- Survey -- Cluster analysis -- Business model innovation; Renewable energy sources -- Periodicals; Power resources -- Periodicals; Énergies renouvelables -- Périodiques; Ressources énergétiques -- Périodiques; 333.794
• DOI: 10.1016/j.rser.2021.112014
• Languages: English
• ISSNs: 1364-0321

Abstract

Abstract: Understanding private electric utility customers is essential given their central role in the sustainability transition of the electricity system. Socio-economic attributes, environmental attitude, and electricity consumption are not enough to take the new technological, economic and regulatory bases of the residential electricity markets in many industrialized countries into account. Further attributes can help to obtain a more holistic understanding of the private electricity customer. We conduct three studies and find a good correspondence of the customer segments resulting from a survey of the literature, an expert workshop, and a survey of Swiss electricity customers. Five key customer segments are distinguished: 1) affluent and quality-oriented, 2) ecologically aware, 3) technophile, 4) regionally rooted, and 5) stable and uninterested. Due to their unique energy preferences, these customer segments represent critical boundary conditions for technology adoption driven sustainability transitions. Assessment of the strengths and weaknesses of the segmentation methods suggest that with sufficient resources a combination can produce reliable and valid segments. Highlights: Segmentations of electricity customers can be enriched through attitudinal constructs. Utilities have to deal with more diverse customers preferences and needs. Mixed-methods research can generate more holistic customer segments and raise their relevance. Understanding electricity customers well contributes to the sustainability transition of electricity systems.