Reactivation of door-to-door sales channel during covid-19 and exploration of long-term alternatives for this channel in the energy sector

Abstract

This research report provides Eneco Belgium with a solution for two challenges they are facing regarding its door-to-door sales channel; the sales channel with the largest acquisition rate of new customers in Belgium. First of all, due to the COVID-19 pandemic, d2d sales partners were legally not allowed to sell energy contracts for several months, since face-to-face interaction with prospects was out of the question due to fear of spreading the coronavirus. Secondly, the d2d activity itself is under pressure for several years already due to a bad perception of sales agents in general, a saturation of the d2d sales market and certain measures that EU members have been taking in order to restrict or even prohibit d2d selling. This report primarily focuses on the short-term challenge due to its urgency, by providing a d2d restart roadmap during COVID-19. Additionally, suggestions are made to replace d2d in the long term, with one alternative being discussed more in-depth and three alternatives being recommended as a higher priority. Therefore, the following research questions are constructed: 1. How can the door-to-door sales channel be reactivated with respect to the legislation, the consumers’ safety, and the perception in times of COVID-19? 2. What alternatives/set of initiatives would be suitable to add to or even replace the acquisition rate reached by door-to-door sales in the future? The short-term roadmap and various long-term alternatives are developed by using different methodologies. First, a general literature study and a 5C’ analysis is done to get a general understanding of d2d sales and its context. Second, interviews with key functions of Eneco, the sales team of Eneco and some sales representatives were conducted in order to gain a more thorough understanding of d2d sales and in order to get a basic view on the perception of consumers on d2d. Third, an interview with fifteen general energy consumers, a survey for general energy consumers and a survey for the d2d customers of Eneco were conducted to get a view on the perception of d2d sales in times of the pandemic. In the interviews and the surveys, the interest of consumers regarding potential short-term measures and long-term alternatives were being explored. The three most important findings are that firstly, people’s fear of getting contaminated with COVID-19 increases in general when a d2d sales agent shows up at their house, and certain safety measures are required in order to let people feel safer. Secondly, the safety measures perceived as most important by participants are proposed (1.5 meter distance – fabric face mask – hand gel – gloves – acrylic face mask). This finding is crucial to develop an adjusted d2d sales process during the pandemic. Third, the results on proposed longer-term alternatives are used in order to give recommendations for the future of d2d sales at Eneco. The majority is mainly interested in a package deal with energy and telecom, and the possibility to sign an energy contract via their employer. Based on the findings of the research mentioned above, two main recommendations are proposed. The first one covers a short-term d2d restart roadmap during COVID-19, providing all necessary safety measures to consider, and providing three additional concepts. When doors remain closed, a flyer out of sustainable paper is left behind, based on the finding that people like to receive information on paper. When doors open but people are reluctant to let a sales representative inside, a visit-call option is proposed, in which Eneco gets into contact with the prospect later. Moreover, a pilot project will be set up to sell energy contracts in a corona-proof minivan simultaneously with regular d2d sales. The roadmap is worked out in detail, providing a timeframe, locations, recommended collaborations, costs, and benefits. The second recommendation covers eleven alternatives for the d2d sales channel for the long-term. Four ideas are higher prioritized than the other seven, and are proposed to investigate more into detail: setting up an employer program, looking into a collaboration between energy and telecom, changing the current product mix and introducing influencer marketing. However, due to the limited project timing, only one alternative is worked out into detail: using sustainable Belgian influencers to boost online sales and brand awareness. At least four Belgian influencers are interested in a collaboration with Eneco. Lastly, a small recommendation to use nudging on the energy bill is provided, to reduce churn rates overall. Taken together, those recommendations allow Eneco to restart the d2d sales channel during and after COVID-19. They also give Eneco the opportunity to implement a new acquisition channel to partly complement the d2d sales channel today. It should be noted that this report offers our view and suggestions. There is not one right solution, but this is our advice on the subject matter.