Social media has penetrated many utility companies in the past few years, bringing a new level of customer engagement through Facebook, Twitter, YouTube, and company blogs. However, since not all utilities have embraced social media in the same fashion, the landscape is somewhat chaotic. Some utility managers remain fearful of the potential risk involved as the business connects with customers in open dialogues where control of the message is in doubt. Despite these concerns, empowered customers are not about to give up on social media, and utilities will need to incorporate these tools as part of their broader customer engagement programs.

Pike Research believes that smart utilities will seize the opportunity to increase customer satisfaction when these social engagements arise by properly staffing listening channels and preparing valuable content to be shared. Utilities who have successfully embraced social media are finding that best practices also include knowing their customers’ social media preferences or profiles, defining clear objectives for social media engagement programs, selecting and deploying the appropriate technologies for their individual strategies, and integrating social media with existing communication channels. Pike Research estimates that approximately 57 million customers worldwide will use social media to engage utilities in 2011, and the firm expects that number to rise to 624 million customers by the end of 2017.

This Pike Research report highlights the key drivers and barriers that are defining the development of social media in the utility industry and offers case studies from utility companies that have found success in social channels. The report also offers strategies and best practices for utilities seeking to avoid mistakes and minimize their risks. Company profiles are provided for key industry players and market forecasts are included through 2017 for utility spending on social media tools as well as the number of customers using social media to engage with utilities.

Key Questions Addressed:

• What are best practices a utility should use when embracing social media?
• How many customers are expected to use social media to engage their utilities over the next five years?
• How much will utilities spend on social media over the next five years?
• Who are the key players in the social media ecosystem that utilities need to understand?
• What lessons can be learned from case studies of utilities that have used social channels?

Who needs this report?

• Utility managers
• Marketers
• Corporate communicators
• Social media experts
• Public relations professionals

Table of Contents

1.     Executive Summary

1.1  Social Media Penetrates Utilities, Bringing Engagement and Fears

1.1.1    Key Drivers

1.1.2    Key Inhibitors

1.1.3    Takeaways

1.1.4    Best Practices

1.2  Forecast

2.     Market Issues

2.1  Introduction

2.1.1    Definitions and Categories

2.1.2    Categories

2.2  The Business Case for Social Media Deployment

2.2.1    The Dynamic Social Media Constellation

2.3  What Brought Us to This?

2.4  Why Social Media?

2.4.1    Drivers of Social Media Adoption

2.4.2    Inhibitors of Social Media Use by Utilities

2.5  Market Reality 2011

2.5.1    Demand for Integrating Social Tools with Electricity Management Programs

2.6  How Social Media Can Help with Customer Satisfaction and PR

2.7  Deployment Considerations of Social Media

2.8  Costs Involved with Social Media

2.9  ROI – Is There One, and How Does It Get Measured?

2.9.1    Debating Social Media’s Value

2.9.2    Economics Remain Elusive

2.10  Hidden Audiences – It’s Not Just “Customers” Following You

2.10.1  Public Utility Commission

2.10.2  News Media

2.11   Social Media Use by Non-U.S. Utilities

2.12   The Mobile-Social Audience

3.     Technology Issues

3.1  Introduction

3.1.1    Training Staff in Social Media

3.1.2    Providing the Needed Equipment

3.2  The Major Social Platforms

3.2.1    The Big Four Social Networks

3.3  Listening Tools

3.3.1    Radian6

3.3.2    Jive Software

3.3.3    HootSuite

3.3.4    Lithium

3.3.5    Visible Measures

3.3.6    Viralheat

3.3.7    PeopleBrowsr

3.4  Deploying an App

3.5  Social Business Index

4.     Case Studies

4.1  Introduction to Case Studies

4.2  Duke Energy

4.3  Avista

4.4  Southern California Edison

4.5  Pepco

4.6  Puget Sound Energy

4.7  Pacific Gas & Electric

4.8  Salt River Project

4.9  Ameren

4.10 Green Mountain Power

4.11 Sacramento Municipal Utility District

4.12 Public Service Company of New Hampshire

4.13 Dominion

4.14 Social Engagement by the Numbers, United States

 

5.     Strategies and Best Practices

5.1  Introduction

5.2  Strategy: Asking Key Questions

5.2.1    Take Time to Listen and Understand

5.2.2    Answer These Strategic Questions

5.3  Best Practices

5.3.1    Embrace Social Media

5.3.2    Know Your Customers’ Social Media Preferences or Profiles

5.3.3    Finalize Your Social Media Objectives

5.3.4    Establish a Strategy for Your Social Media Efforts

5.3.5    Select and Deploy the Appropriate Technologies

5.3.6    Integrate Social Media with Existing Channels

5.3.7    Commit to Using Social Media for the Long Term

5.3.8    Measure Social Media Customer Engagements

5.3.9    Stay Flexible and Creative

6.     Key Industry Players

6.1  Introduction

6.2  Consumers

6.3  Social Networks

6.3.1    Facebook

6.3.2    Twitter

6.3.3    YouTube/Google+

6.3.4    LinkedIn

6.4  Utility Companies

6.4.1    Avista

6.4.2    Pepco

6.4.3    Duke Energy

6.4.4    Dominion

6.4.5    Pacific Gas & Electric

6.4.6    Salt River Project

6.4.7    Southern California Edison

6.4.8    Public Service of New Hampshire

6.4.9    Ameren

6.5  Regulators

7.     Market Forecasts

7.1  Introduction

7.2  North America Leads in Number of Utilities

7.3  Social Media Deployments Will Grow Steadily

7.4  Spending on Social Media

7.5  Number of Social Media Users Will Grow, but Penetration Will Remain Weak

7.6  Future of Social and Utilities

8.     Company Directory
9.     Acronym and Abbreviation List
10.   Table of Contents
11.   Table of Charts and Figures
12.   Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• Customers Using Social Media to Engage Utilities by Region, World Markets: 2010-2017
• Social Networking Site Use (“ever”), United States: 2005-2011
• Social Networking Site Use (“yesterday”), United States: 2005-2011
• The Dynamic Social Media Constellation
• Screenshot of Endesa’s twenergy Social Website
• Screenshot of Radian6 Console
• Screenshot of Jive Engage Platform
• Screenshot of HootSuite Dashboard
• Screenshot of PG&E’s Ranking on Social Business Index
• Screenshot of Duke Energy’s Social Media Connections
• Screenshot of Twitter Engagement Between a Customer and Avista
• Screenshot of Southern California Edison’s Carl and Eddy YouTube Video
• Screenshot of Pepco’s Twitter Response in Anticipation of Hurricane Irene
• Screenshot of PSE’s Video Clips on Vimeo
• Screenshot of PG&E’s Facebook Page after San Bruno Explosion: 2010
• Screenshot of Salt River Project’s Sweepstakes Landing Page on Facebook
• Screenshot of Ameren’s YouTube Video Highlighting New Energy Options
• Screenshots of Green Mountain Power’s iOS Mobile Application
• Screenshot of Sacramento Municipal Utility District’s Facebook Page
• Screenshot of PSNH’s Twitter Page
• Screenshot of Dominion VA Power’s Twitter Page in Aftermath of Hurricane Irene

List of Tables

• Use of Social Networking Sites, United States: 2005-2011
• Number of Followers and Likes for Selected Utilities, United States: 2011
• Strategic Question Checklist for Utilities Using Social Media
• Best Practices for Utilities Using Social Media Tools
• Number of Electric Utilities by Region, World Markets: 2011
• Electric Utilities Deploying Social Media Tools by Region, World Markets: 2010-2017
• Spending by Utilities on Social Media by Region, World Markets: 2010-2017
• Customers Using Social Media to Engage Utilities by Region, World Markets: 2010-2017