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Save Money Now, Tell Your Friends Later

Save Money Now, Tell Your Friends Later

Seth Godin

Word of Mouth Marketing Works!

When I got my haircut the other day, I was overwhelmed by options.

I’m not particularly fussy but hey, no one likes the embarrassment of getting a sub-par trim so I thought I’d do some research.

So where would I start?

I asked people.

If you’re anything like me this is probably also how you found out about your current hairdresser or barber. We tend to ask people for referrals.

This goes for any service industry. Whether you are looking for a cleaner, lawyer or accountant we rely heavily on word of mouth referrals to find good and reliable services.

Word of Mouth Marketing

So word of mouth marketing works, and it’s cheap. All you have to do is meet expectations, honour them and surpass them. Then customers will market your service for you, through word of mouth. Simple right?

It’s more of an art form than it may appear. It’s not as simple as offering something a cheaper price or adding a discount for next time. It comes down to adding value.

In this post I’m going to share a company based in New Zealand that uses empathy, honesty, and integrity to provide a superior service and I’m going to share some lessons that will apply to your own business or venture.

But first who are 0800 Save Energy?

Case study: 0800 Save Energy

0800 Save Energy are a New Zealand based firm that offers service that saves their clients money on their running electricity costs. As we all know money spent on electricity is not money you’ll get back in the future so it is in everyone’s interest to become more energy efficient. Not just for the environmental benefits, but primarily for the financial rewards.

Find out about their values and their commitment to their clients in this video.

Ok so it seems like a normal value proposition right? Save people energy, and they’ll save money beyond what you charge for the service. Only, they also have a secret sauce which steams from their approach to serving clients.

Let’s have a look at the problem they solve, who they solve it for, how they provide value and finally look at what makes their value proposition unique in order to differentiate themselves in the market place.

What Problem are They Solving and for Who?

Customer Problem: Money spent electricity consumption is a large running cost for many businesses and because electricity consumption is a large component of many businesses variable expenses, this then affects net profitability.

Who do they solve this problem for?

  • Commercial Clients
  • Retail
  • Industrial Clients
  • Office and Education
  • Public Sector
  • Exterior and Carpark

How do 0800 Energy Provide Value?

Two core quantitative value drivers: Energy Efficient Lighting and Energy Management.

Energy Efficient Lighting Solutions

0800 Save Energy has been serving clients for 20 years and has completing over 100 unique projects. It is fair to say that they have perfected a process that produces results.

Process: Audit → Design/Analysis → Supply and Installation → Monitoring and Verification

They have two key technologies which drive the value of their Energy Efficient Lighting Solutions that their service provides.

The first is LED Technology: 0800 Save Energy are at the fore-front of lighting technology and implement the highest quality solutions for their clients. ‘Not all LED’s are created equal’, so they have done all the research to determine which LED technologies are best to use in different situations. This way they can meet the clients needs by offering superior knowledge on the topic. You can read more about LED technology and how they use it, here.

And secondly Smart Controls Systems: A primary component of energy management is using centralised control systems to maximise the efficiency of all energy use. Analysis of 0800 Save Energy’s recent projects shows that lighting control strategies can generally deliver between 25% and 50% of the total savings captured through upgrade initiatives. This leads is huge difference for clients and a big difference for clients bottom lines. You can read more about how they use Smart Control Systems, here.

Energy Management

Much of the qualitative value that 0800 Save Energy provider’s clients is comes down to the implementation of unique energy management programs. Energy management programs look at the human components of energy use and seeks to improve energy use by motivating energy efficient behaviours. Trying to get people to turn off the lights when they leave the room is a simple example. Much of this can be automated but there are still many areas where clients can make further savings by engaging in energy efficient behaviours. You can read more about their energy management strategies, here.

What Makes 0800 Save Energy so Unique?

It may appear that 0800 Save Energy run a straight forward business. Primarily, they have a benefit driven service that offers value to a wide range of clients. However, they have a secret tool which is not so obvious.

They don’t just provide a blanket service for all of their clients. They could. I mean many clients could save energy through some of their offerings. But they differentiate themselves by providing superior value and exceeding client expectations.

Exceeding Expectations

They don’t just meet their expectations as far as meeting their promised energy and cost saving targets for each project. They also go far and beyond to customise their services to improve how clients use their building spaces. Adding a design and architectural benefit beyond the purely engineering perspective.

It start’s with customer understanding, treating clients with empathy and using this understanding to better serve them by adding unique and catered value. A quick look through any of their past projects show that they improved not only the clients bottom line they also improve the usability and functionality of their building spaces.

This is an essential component of creating a valuable service. Providing value through what is promised and then using the firm’s unique capabilities to provide additional value to the client. In many of their projects 0800 Save Energy have leveraged their design and architectural capabilities to improve the client experience in their building and saving them a load of money on their bills!

Their Clients are your Clients

They go beyond thinking of their clients, they think of their clients’ clients needs and wants as well. This is key in business to business services as a deep understanding of the end user helps you to become more creative when providing a service.

An example of this is a Library project which 0800 Save Energy completed where they not only meet the projected savings and energy efficiency targets they also used their superior knowledge of lighting to make the space more attractive for the end user, in the case members of the public. This attention to detail that 0800 Save Energy have used, is something that you too can use to create a highly valuable service that will become increasing difficult to copy by competitors. The more you understand your clients, the better the service you can ultimately provide.

Don’t be a Commodity, Be Different

This is key as services can become commoditised in industries where implementation of external technologies is at the core of the value proposition. There is nothing to stop a new company offering the services that 0800 Save Energy offer. However, not everyone can create a unique offering to each client. The way that 0800 Save Energy has used empathy and customer understanding creates project solutions that make a difference, far beyond energy and cost savings. Improving the way clients use their building space creates value beyond their expectations and makes the work that 0800 Save Energy do; remarkable.

Being Different is to be Remarkable

Remarkable thing’s spread. When you exceed the expectations of clients they tell people. The net effect of the service that meets expectations and surpasses them is that the client receives addition qualitative value from the offering. By understanding their clients through empathy they are able to added significant amount of additional value to the original expectations of the client. Unique projects for unique clients and thus providing a unique service for each individual client.

“A happy customer is the greatest lead generation tool available.” JOHN JANTSCH, from Duct Tape Marketing

Now when 0800 Save Energy complete a project they gain even more business. They are growing because they offer a remarkable and differentiated service. The more projects they complete the more they learn about how to serve their customers and they can offer even more value in the future. The more value they offer above and beyond what was originally expected the more likely their clients are going to share their message for them, and refer new business. It is an upward cycle that any service business can adopt.

WOM Diagram

Plans for the Future?

“As a leader in energy-efficient lighting in New Zealand, we are committed to our customers in reducing their energy waste and environmental impact by using innovative technologies in a smart and sustainable way.

  • We hold ourselves accountable to our customers by focussing on their needs, providing long lasting solutions and striving for the highest quality.

  • We are passionate about creating smart, energy efficient lighting solutions that reduce operating costs and lower the environmental impact.

  • We value integrity, honesty, constructive self-criticism, continuous self-improvement, mutual respect and are dedicated to achieve more as team.”

From their mission statement and their value driven approach to business it is reasonable to expect big things in the future for 0800 Save Energy. The problem they solve is growing as electricity prices are likely to grow in the coming years so more clients will be looking for solutions to their problem and 0800 Save Energy will be their to help serve them, with an honest approach that offers superior value.

How Does This Help You?

I have created a quick list of take aways to summarise what you can learn from 0800 Save Energy. This will be especially relevant if you are in the business of providing services.

  • Use empathy to gain a understanding of your clients and their specific needs
  • Use that understanding of your client to provide additional value in creative ways
  • Exceed promised expectations and your clients will become advocators for your service and share your message through WOM marketing.

Empathy, Honesty and Integrity

The underlying principle is that empathy, honesty, and integrity are values that work in business. Empathy to understand, honesty to meet expectations, and integrity to go above and beyond what is expected. If you help your client provide more value to their clients, then you will have a superior business to business (B2B) service and you can expect to please your clients.

Happy customers will talk, and over time you will not need to search far to find new business as referrals will come from existing and previous customers. Talk is cheap, and it’s even cheaper when your amazing work causes others to talk for you!

If you wish to learn more about 0800 Save Energy you should visit their website, here.

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Image Source: Retrieved July 7, 2014, from http://www.sproutreach.com/blog/images/wom_diagram.gif

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