Synopsis: Heat Pumps — Growth Strategy Development
The Electric Power Research Institute (EPRI), was charged with the challenge of developing marketing programs to help utilities more effectively support the growth of heat pumps in their markets. EPRI reached out to QDI Strategies to conduct research with customers, channels and manufacturers and them to develop program strategies for utilities to use to grow and defend market share in the heat pump market.
QDI’s customer research showed that heat pump penetration was growing rapidly, but also that only one-third of heat pump owners were delighted, while two-thirds had satisfaction levels below eight on a scale of ten. This research also showed that 52% of customers would definitely repurchased a heat pump, 27% would probably repurchase and the balance or 21% were either unsure or thought they would not repurchase.
To turn this repurchase scenario around, QDI had to learn why customers were unsatisfied with heat pumps. Poor installation by the contractor was the primary driver for dissatisfaction with heat pumps. Thus, one of the key program outcomes was to develop utility training and certification program to increase contractor installation quality.
QDI market research also looked to identify the performance benefits of heat pumps among consumers who had used both heat pumps and gas heat. This phase of the research focused on capturing how the customer described comfort and then learning form them how heat pumps compared to gas heat on the dimensions that were important to them. Some of the comfort dimensions that rated highest in importance and where heat pumps were perceived as superior were:
- No dry throat and stuffy nose
- No pollutants or dust
- Unaware of feeling cold
- Even flow of cool air instead of a rush
These comfort benefits clearly differentiated heat pumps from gas heat systems. In addition to the comfort benefits, QID was able to quantify the economic benefits of using heat pumps and produced a model for utilities to use in comparing heat pump and gas cost in each major climate region of the US.
The final outcome of the project was the development of marketing strategies for utilities to use based on the penetration of heat pumps in their area and the need to defend or grow market share.
This research report was published by EPRI: EPRI TR-109188; 4953-07/