Continued from p. 6 extremely likely to convert have even higher expectations. Of course, given the current outlook for oil prices and the true cost of conversion, their expectations are even more unrealistic. Perceived efficiency parity Generally, oil consumers believe that modern oilheat equipment and can be as efficient as any other equipment in the marketplace, even though we know there is an efficiency gap with the highest gas units. That’s a big deal. Those planning to convert expect that half of the savings will come from improved efficiency. Those efficiency savings could come from a new oil unit, and that hill is not as steep to climb. Oil companies are trusted significantly more than utilities According to the study, when presented with conflicting messages, consumers overwhelmingly place greater trust in their local oil company than they do in their utility company. This gives oil companies a tremendous advantage when taking our pro-oil story to the public. Bioheat® is a potential game-changer to those thinking of converting Consumers are looking for an emotional reason to continue using oil and to feel good about it. Bioheat provides that, especially to those who are most likely to convert. Of that group, 64% say that it would make them feel better about using oil, and more than 54% say that the presence of Bioheat makes them less likely to convert. That’s a really big deal. The problem is that less than 12% of oil customers know what Bioheat is. Implications As an industry, we have relatively little money to fight this battle. We need to play smart. We need to focus our efforts where they will do the most good; we need to come up with messages and tactics that will move the needle based on this data. In our industry, diffusion often trumps focus. This happens in part because of the nature of decision making in associations responsible for administering advertising funds. It is much easier to stuff more angles into an ad or diversify the message to suit important members with different ideas than it is to be disciplined. Until now, we haven’t had good data on what moves our needle. Now that we do, it will be important to avoid trying to cram our promotions with messages Likely to convert to... that make us feel good, but that miss the target—hit the outer ring, but miss the bullseye. We simply don’t have enough money or resources. What really matters People rarely make decisions based on just one factor. When we look at reasons people give for wanting to convert, we can combine primary drivers and all secondary considerations so that a fuller picture emerges. • Lower Fuel bills: Dollars are driving this train. Ninety-four percent of those thinking of converting cite lower fuel bills as a primary or secondary reason. Thirty-eight percent cite better long term price expectation, a related pocketbook issue. • Energy Efficiency: Improving energy efficiency comes in second, with 14% citing it as the primary driver and 44% citing it as secondary one. Potential converters need to see oil as an efficient option to win their vote. • Relevant, but not driving the train: After the money issues, all other factors drop off significantly as primary drivers, though several provide strong secondary support. About 25% of customers who plan to convert cite the desire for “a more environmentally friendly fuel” or “cleaner burning fuel” as a secondary influence. A similar number want to “reduce dependence on foreign oil.” These answers help explain why Bioheat connects in a big way, even though it is not a pocketbook issue. • Bioheat: To customers who are not planning to convert, Bioheat seems to be a nice thing, but not a big deal. To those who are thinking of converting, it is a very big deal, and one of the few factors within our control that can slow down conversions. It Likely to convert to... Continued on p. 26 Continued on p. 26 8 ICM/Sept/Oct 2015
ICM September-October 2015
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