Mail in the utilities sector

Utilities companies spent £11.9 million on direct mail in 2010 as they battled to keep customers from switching to competitors.  It remains a tough market for gas and electricity suppliers. Energy prices are rising but household incomes continue to be squeezed by the recession.

Using data from Ebiquity, Mintel, Nielsen Ad Dynamix and TGI, this 2011 report offers a snapshot of the energy sector. It includes an analysis of media spend and consumer responses to direct mail from utility companies, highlighting opportunities to target switchers and younger audiences.

Key insights include:

-Eon Energy was the UK’s biggest spender on direct mail in the utilities sector in 2010 with a total spend of £3.7m, followed by British Gas, Edf Energy and Scottish & Southern Energy.

-Consumers who have changed utility supplier in the past 12 months are most likely to be  the highest responders to direct mail.

-Most utilities mailings (73%) were sent to people aged over 45. People aged 16 to 34 received only 9% of all mailings.