Loyalty One

Using incentives to promote energy conservation awareness and participation 

Key Insights
• AIR MILES reward miles are an effective and cost-efficient incentive to increase awareness of the benefits of energy conservation as well as increase public participation in conservation initiatives.
• Specifically, Ontario Power Authority’s partnership with the AIR MILES Reward Program increased public participation in its Power Pledge campaign by 7 times versus the previous year where there was no incentive offer. As well, by working with AIR MILES the OPA was able to achieve these results for 1/3 of the previous year’s cost. 

Business Challenge
The Ontario Power Authority (OPA) is responsible for ensuring an adequate, long-term supply of electricity in Ontario. Its mandate is to provide a reliable and clean energy grid, and create awareness of the need for energy conservation among Ontarians. In 2009, the OPA launched an Ontario-wide energy conservation program, called the Power Pledge. The Power Pledge aims to educate Ontarians on the need to conserve electricity, as well as to get them to make a pledge to reduce their electricity use by following simple steps such as turning down the thermostat when not at home. The 2009 non-AIR MILES campaign employed mainly mass marketing vehicles to drive awareness and pledges, and response rates were lower than anticipated. This issue is not unique to OPA and Ontario - similar challenges are faced by governments across Canada who rely mainly on mass marketing to drive campaigns.