Energy Efficiency Economics & Markets

Development of a Predictive Model for Assigning Customers to Market Segments

Client: Australian Electricity Retailer

EnergyConsult staff?developed a predictive model for assigning customers to market segments that related to their probable future domestic heating appliance usage. As heating appliance usage was the major determinant of fuel and energy tariff usage, this project was expected to have major benefits in improving the effectiveness of future direct marketing programs. This project involved an extensive re-analysis of market research and customer energy usage data collected over the preceding five years, coupled with the use of sophisticated non-parametric statistical techniques.