Home Retrofit

Marketing tip: Use market segmentation to reach your best prospects


To generate high-quality leads at a low cost, customize your messages and marketing channels to reach consumers most likely to buy your product or service. Don’t rely on generic, one-size-fits-all marketing.

Who are your best potential customers? In the 2013 Giving U.S. Energy Efficiency a Jolt article, global management consulting and research firm McKinsey & Company identified five consumer segments based on concern for saving energy:

  • Green advocates care about saving energy “as a goal in its own right,” are motivated by “perceived environmental benefits” from using energy more efficiently and are interested in new technologies.
  • Traditionalist cost-focused energy savers are motivated entirely by saving money.
  • Home-focused selective energy savers are interested primarily in home improvement, as well as technological and cost-saving benefits.
  • Non-green selective energy savers are happy to save energy with “set and forget” actions, but don’t want to have to think about it.
  • Disengaged wasters don’t care about saving energy or money, protecting the environment or using new technologies.

With these segments as a starting point, apply what you’ve learned about the demographics, priorities, characteristics and purchasing behavior of your existing customers to identify market segments that make the most sense for your business. Then develop a marketing strategy to target each segment you have identified.

For example, messaging focused on environmental benefits of energy-saving improvements will engage “green advocates,” but it’s likely to fall flat with other segments. “Home-focused” consumers may respond most to messages about comfort benefits or increased home value, while “cost-focused” consumers care about how much money they’ll save with a home improvement investment.

In addition to generating more qualified leads, targeted marketing uses your budget more efficiently. You avoid wasting money marketing to consumers who are unlikely to respond, and you generate warmer leads by offering relevant solutions and appealing directly to customer needs.

As an Energy Trust Existing Homes trade ally, you may be eligible to receive business development funds that can help offset the costs of marketing efforts. For more information, refer to business development fund materials section of the Forms & Resources page or contact the Existing Homes trade ally team.