70% of Homeowners Want It; But Only 7% Buy it. Why?

When people consider green initiatives, it seems the conversation is heavy on the "green" and very light on intiative. At the recent Home Electronic Source (HES) show in Dallas, TX, Steve Castle shared some eye-opening statistics on home energy solutions.


According to Castle, 60% of consumers want "green" purchases, 72% say they want energy-efficient homes, and 70% are concerned about energy costs (and that number still seems low to me).


Yet, as few as 7% of homeowners actually invest in energy-efficient systems. Why?

It seems that nearly everyone wants to do something to help the environment, but changing talk into action is a real challenge. For an audience of electronics retailers and custom installers, the ability to sell sustainability is at the forefront of a shrinking market, as this industry continues to look for new ways to innovate for customers. Most understand the concept of "rethink, reuse, recycle", but how do we go from concept to action, balancing green solutions with top line revenue and bottom-line results?

From my vantage point, it seems that consumers and media alike focus on the "what" - what makes a home green - in countless communication outlets. What's missing is the "why" - Why do consumers need to buy in? And, I might add: the "how": How do you sell smart energy management to consumers? Stories like this one don't make it any easier:



With electric companies shooting themselves in the smart meter everyday, there is a real and troubling negative-perception issue at work in the market. The ROI is still a little too soft (more on that later) and typically the up-front costs are higher for more efficient solutions. The good news is, where there is desire, there is opportunity, and consumer awareness and initiative is growing every day. How can sales people be more effective at reaching this market?

Steven Castle is one of the drivers in the green initiative. He is Senior Editor of Electronic House Magazine and an expert on green initiatives. Click here to check out his blog, Green Tech Advocates or you can find it in my blog list over there on the right of your screen). So, over 2/3 of US homeowners are interested in an energy-efficient home. Why do only 7% actually do something about it?

First of all, there's a bit of a branding issue, even beyond the recent smart meter situation. According to Castle, "Green" has transformed in meaning, into another word for "compromising", "intrusive",and perhaps even "prissy". Green is uncomfortably cuddly for mainstream America, because of its connotations. No one wants to become slave to lifestyle choices that are perceived as limiting and restrictive - even if those choices are the right thing to do. Castle wisely advocates for the "energy efficiency" moniker, as a better reflection of what consumers want.

To my mind, there seems to be a deep disconnect in the sales channel, a problem of perception and initiative that Castle and others are trying to fight. Have you experienced it, when discussing "green" products?

It's Green and You Can't Stop It

Everyone understands that we must be sensitive to sustainability. But at what cost? Selling things today based on future events which may or may not come to pass can be a difficult sale (universal healthcare, anyone?) When similar solutions are presented at different price points, the key to closing the sale is proving the value proposition. Without a clearly identified need, there will be little or no action towards energy efficiency, and you will be left with that 7 per cent solution, Dr. Watson. How is 7% "sustainable", I wonder? Castle says we must make energy efficiency visible and easy, and he's doing his part. I believe in sustainability, and I support energy efficient solutions. However, without some clear strategic selling strategies around green initiatives, [positive] climate change in this market will still be elusive.