Growing our Customer Numbers
Bundles are Key
As we seek to significantly grow customer numbers, we’re offering our multi-product bundle in the major cities, with early focus on Auckland.
Our strategic plan sets ambitious growth targets for the next three years. To achieve this growth, it will be essential to grow our total number of customers, the number of services each customer has, and our total margin.
A central focus this year has been repositioning ourselves from an electricity company that can offer phone and internet, to a true multi-product services provider — one that offers great value bundles of power, gas, phone and broadband, including UFB over fibre.
Moving to a multi-product offering enables us to increase the value of existing customers. For example, the rapid uptake of gas since its introduction in November 2013 has largely been from sales to existing power customers who are keen to benefit from the extra value.
However, to significantly grow customer numbers, we need to go where the people are. We need to enter heavily populated areas where we have not actively acquired new customers in recent years. Auckland, Wellington and Hamilton are a prime focus over the next 12 months.
In these new metropolitan markets, we need to appeal to customer segments that are in some cases different from our traditional customer base. In the past, a typical Trustpower customer has been more mature, and living in a provincial or semi-rural area. Whereas in the metro markets, there are far more younger families and pre-family couples and singles, who may well not engage with the ‘old’ Trustpower. Research shows that younger, urban segments have little interest in energy services, and low levels of engagement with their energy providers.
Broadband is however central to their lives. This applies both to families whose data demands are growing with their children, and for pre-family customers who live much of their lives online.
So, by offering a variety of data plans, including no data cap DSL and fibre plans, we can attract these customers with a competitively priced plan that meets their broadband needs. When we offer additional value by bundling broadband with power and gas, we can acquire multi-product customers, and achieve our growth and profitability targets.
In metro centres, our brand is not well known, so significant investment is needed to drive awareness, and support our growth targets. In April 2014, we launched a high profile advertising campaign in Auckland and the Waikato.
The campaign includes TV, radio, billboards, bus backs, press and online. The key message is that we are the only company to offer great value multi-product bundles. Using different media, we can tailor the message and services to target different groups with the bundle that will have maximum relevance and appeal.
Initial results from the Auckland campaign show the multi-product proposition is having strong appeal. A good number of our new metro customers have signed up for multiple services. We look forward to building on this start over the next three years.