I’ve recently come across several videos where British advertising executive, Rory Sutherland explores a range of topics that blend behavioural science, marketing, and creative advertising strategies. A major focus of his content has been the application of behavioural economics in business and public policy, which he discusses in various formats like podcasts, TikTok, and interviews. He often emphasises the power of irrational thinking, drawing from his book Alchemy: The Surprising Power of Ideas That Don’t Make Sense. His talks and interviews tend to highlight how unconventional ideas can lead to surprising successes in areas like transport, branding, and consumer behaviour.
Rory Sutherland’s Alchemy highlights the importance of behavioural economics, psychology, and the irrational drivers behind human decision-making. He advocates for focusing on emotional, symbolic, and psychological triggers rather than relying solely on rational arguments like cost savings.
On 3 October, the Department for Economy NI’s (DfE) published its consultation on smart electricity meters design plan; and at the same time the Utility Regulator published its Smart Metering Consumer Impact Study. With these, I wondered how we could develop a plan for encouraging consumers in Northern Ireland to adopt more advanced meters that tap into both the logical and irrational aspects of human behaviour. Below are some thoughts, let me know what you think could work and what should be avoided at all costs, and why:
1: Storytelling: Paint a Vision of a Better Future
Alchemy Insight: People connect with stories more than facts. They need to see themselves in a larger narrative.
Plan: Develop a campaign that tells the story of Northern Ireland transitioning to a greener, more sustainable energy system. Use local heroes, community leaders, or even celebrities to tell this story of progress, where advanced meters are part of a movement that everyone can contribute to.
Message: “Join Northern Ireland’s Energy Future – Your Advanced Meter Is a Key Part of the Change.”
Challenge:
Legal and Regulatory Basis: Any narrative-driven campaign needs to avoid making promises that the current metering infrastructure or grid capabilities in Northern Ireland cannot deliver on, to prevent misleading advertising.
Practical: Northern Ireland’s grid infrastructure might require significant updates to fully integrate advanced meters, and over-promising the timeline for these updates could lead to consumer disappointment.
2. Reframe the Narrative: Make Advanced Meters a Status Symbol
Alchemy Insight: People are drawn to products that signify status, identity, and belonging.
Plan: Instead of positioning advanced meters solely as a practical tool for monitoring electricity usage, reframe them as a badge of modernity and sustainability. This can be done by highlighting how advanced meters make users part of a forward-thinking, eco-conscious community. Emphasise that using an advanced meter is a mark of someone who is “in the know” about energy efficiency and environmental responsibility.
Message: “Join the Advanced Energy Revolution: Be a Pioneer for a Sustainable Future in Northern Ireland.”
Challenge:
Legal and Regulatory Basis: NI consumers are legally entitled to choose metering options, and positioning meters as a status symbol could raise concerns about fairness or elitism.
Practical: Engaging all demographics in Northern Ireland, including rural areas with older infrastructure, may pose a technical challenge.
3. The Power of Freebies and Immediate Gratification
Alchemy Insight: People are more motivated by short-term rewards than by long-term promises, even if the long-term benefits are much greater.
Plan: Offer an immediate incentive to consumers who install advanced meters. This could be in the form of things like vouchers for popular local shops, discounts on future energy bills, or even entries into a prize draw for more substantial rewards.
Message: “Install an Advanced Meter and Get a £20 Voucher for Your Local Store – Saving Energy Has Never Been So Rewarding!”
Challenge:
Legal and Regulatory Basis: Offering vouchers or other incentives must comply with NI regulations on consumer benefits and competition rules, as well as any financial and tax regulations. There may also be tax implications for incentives that need to be considered.
Practical: There could be a lot of administration for this activity, and there is a question as to who would fund and administer it, Engineering teams must ensure that large-scale installations can keep pace with demand if incentives lead to a sudden surge in installations.
4. Simplify and Add Emotional Certainty
Alchemy Insight: People dislike complexity and uncertainty, especially when it comes to new technologies. They prefer emotional certainty and clarity.
Plan: Address the confusion or fear that comes with new technology by simplifying the benefits of advanced meters. Focus on three key emotional appeals:
- Control: “Advanced meters give you control over your energy use.”
- Convenience: “No more estimated bills. Pay only for what you use.”
- Peace of Mind: “See your energy usage in real time – no surprises.”
Message: “Get Control, Convenience, and Peace of Mind with an Advanced Meter. It’s Simple, Easy, and Hassle-Free.”
Challenge:
Legal and Regulatory Basis: Misrepresentation or over-simplification of benefits may conflict with consumer protection laws that require transparent information.
Practical: Ensuring reliability of real-time data and making advanced meters function seamlessly across varying local grid conditions in Northern Ireland. What happens when the advanced functions of the meter do not work and the meter is no better than the (to be) legacy meters?
5. Create a Sense of Urgency Through Scarcity
Alchemy Insight: People are more likely to act when they feel that an opportunity is scarce or time limited.
Plan: Use the concerns over the limited time to save the planet as a motivator, along with some sort of recognition for early adopters. For example, offer installation priority to the first 1,000 customers who sign up in a specific area or region or recognition as eco-leaders.
Message: “Act now to reduce your carbon footprint! Join the first 1,000 customers to adopt advanced meters and join a select group of Green Champions. Time is running out to save the planet!”
Challenge:
Legal and Regulatory Basis: Ensuring that the offer of installation priority and recognition for early adopters does not unfairly disadvantage other customers. Otherwise, this could be seen as discriminatory.
Practical: Efficiently managing the installation process for the first 1,000 customers to meet the promised priority, especially in areas where infrastructure upgrades are needed. It could also create disappointment from customers who sign up after the initial 1,000 and a feeling of disenfranchisement if people see this as manipulative.
6. Social Proof: Leverage Community and Peer Influence
Alchemy Insight: Humans are strongly influenced by the behaviour of others, particularly those in their social circles or communities.
Plan: Highlight local success stories and testimonials. If people know their neighbours, friends, or community leaders have installed advanced meters, they will feel more comfortable doing the same. Use case studies from real households, particularly those that have seen clear benefits from their advanced meter. Encourage these early adopters to share their positive experiences and spread the word within their communities.
Message: “Your Neighbours Are Already Saving! See How Advanced Meters Are Helping Families Like Yours Reduce Energy Waste. Spread the word and join the movement!”
Challenge:
Legal and Regulatory Basis: Regulatory oversight may require careful handling of testimonials and endorsements to ensure they are factual and not misleading.
Practical: Securing enough early adopters to act as influencers, especially in rural or less technologically engaged regions of Northern Ireland, may be difficult.
7. Fun and Gamification
Alchemy Insight: People are more likely to adopt new behaviours when the process is engaging or gamified.
Plan: Introduce a gamified system where users can track and compare their energy usage with others in their community or across Northern Ireland. Provide badges, leaderboards, and milestones to reward consistent reductions in energy usage or improved efficiency. Make reducing energy consumption feel like an accomplishment.
Message: “Track Your Energy Usage in Real Time and Compete with Friends to See Who Saves the Most!”
Challenge:
Legal and Regulatory Basis: Introducing gamified systems must adhere to data privacy laws (e.g., UK GDPR) and ensure that personal energy usage data is not improperly shared or misused.
Practical: Creating an infrastructure capable of handling real-time comparisons and ensuring equitable access to the gamified system could pose technical challenges.
8. Address Emotional Concerns: Reassure and Provide Security
Alchemy Insight: People often resist change because they are emotionally attached to the familiar and worry about potential downsides.
Plan: Directly address common concerns, such as data privacy or potential technical issues with the advanced meter. Offer a no-risk trial period or the ability to revert to previous metering methods if they are unsatisfied.
Message: “Worried About Privacy or Technical Issues? With Our No-Risk Trial, You Can Always Switch Back If You Don’t Love It.”
Challenge:
Legal and Regulatory Basis: Addressing privacy concerns is crucial under NI and UK-wide GDPR regulations. There may be concerns around the collection, storage, and use of data by utility companies.
Practical: Providing a fallback to traditional meters may not always be technically feasible due to infrastructure, manufacturer and storage limitations, requiring careful planning.
Conclusion: The Power of Irrationality
Inspired by Rory Sutherland’s Alchemy, this approach focuses on psychological triggers like status, social proof, immediacy, and simplicity rather than just rational arguments. By tapping into emotions, identity, and behaviour, we can make people feel excited about adopting advanced meters, not just understand their benefits.
Of course, there are practical, legal, and regulatory challenges. Any plan would need to involve the Utility Regulator, Consumer Groups and Market Participants. But starting to explore strategies now can save time and avoid issues seen elsewhere.
What do you think about these approaches and challenges? Any alternatives come to mind? My colleague, Sarah Fuller and I will be at the Smart Energy Conference 2024 on Thursday, 24 October, at Belfast’s ICC. If you are attending, let us know – we’d love to chat more about this!