Riterate
Immersion:
Following the Ontario government's deregulation of the natural gas market in 1992, many of the natural gas marketers began employing aggressive sales tactics, unleashing swarms of commissioned door-to-door sales agents and telemarketers in an effort to quickly sign up as many customers as possible. It was a free-for-all of misinformation and deceit that left thousands of homeowners confused, angry and locked into lengthy contracts.
This is the story of a small business that dared to be different - that dared to be the very first online natural gas marketer. By choosing to do business solely online, Canadian RiteRate Energy Corporation could keep traditional business costs down and pass the savings on to its customers through lower natural gas rates.
But this is not a pricing story. Canadian RiteRate Energy Corporation launched in August 2004 with zero brand awareness and zero customers. Ontario homeowners had no idea who they were or where to find them. As such, Canadian RiteRate Energy Corporation is truly a brand and a business built from scratch.
Insight:
Natural gas is a grudge purchase for homeowners. They simply want it to be there when they need it. But aggressive door-to-door sales tactics leave most homeowners wary and confused. Trust, in addition to cost is a very important purchase factor.
The creative strategy was developed based on the primary insight that when it comes to natural gas, people are not simply purchasing a tangible good but are investing in peace of mind. We had to ensure that RiteRate own the low price advantage while instilling consumer confidence. The message needed to be simple, transparent and actionable.
Ideas:
We started by changing the company name - turning Canadian RiteRate Corporation into RiteRate.ca. In addition to identifying them as an on-line entity, it purposefully underscored their Canadian identity as a means of gaining trust and confidence.
Then we created a friendly and inviting brand personality. Our message was simple - "Those who get it, save." They save money, time, risk, hassle and stress.
Information provided in an easy-to-understand manner was integrated across a range of communications. Following a test-learn-apply approach, the message was optimized over several campaigns and has included radio, newspaper and small-budget television. E-mail is the primary communication vehicle used as part of a customer retention strategy. All communications drive traffic to the fully-transactional website with a simple 5 step process for sign up.
As well, we launched a unique RiteRate-sponsored website www.ihatedoorknocking.com in an effort to tap into the collaborative power of Web 2.0. The site is designed to serve as a tongue-in-cheek outlet for all those who share a disdain for natural gas doorknocking. We obviously struck a chord as over 10, 000 visits were recorded in the year the site launched and hundreds submitted doorknocker sightings to warn fellow neighbours.
Impact:
The brand launch was a resounding success. We achieved a 30-month customer acquisition objective in just 22 months. An average of 97% of sign-ups occurred online, and current acquisition costs have steadily decreased and are now below the set objective. The icing on the cake was winning a Cassies award for advertising effectiveness.
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