02
Feb
10

The branding of electricity

nbs_ctElectricity is a commodity. And therefore, it sells on price alone.

But in 1998, local electric cooperatives from around the country, all of which operate independently, got together to distinguish the electricity they serve from that served by investor-owned utilities.

A brand was born.

The catalyst: energy deregulation. Since the late 1990s, many states have rewritten the rules in order to increase competition among energy providers. Facing the prospect of competing head-to-head with large, well-financed utilities, electric co-ops decided to unite their individual brands under one banner.

Touchstone Energy” became the national brand identity for participating electric cooperatives.

Because members own the co-ops which serve them, cooperatives have a unique advantage in a competitive environment. Market research conducted during the development of the brand identified the following differentiating attributes:

  • Co-ops are active members of the local communities they serve.
  • Co-ops are directly accountable to their member-owner-customers (not to investors).
  • Co-op members have a voice in how things are run.
  • Co-ops are perceived as more people-focused.

After developing the Touchstone Energy name and identity, participating co-ops adopted the tagline, “The power of human connections,” and launched a national branding campaign (See current campaigns here.).

Correctly, the co-ops didn’t try to brand electricity. Instead they branded the co-op experience, based upon intangibles including integrity, accountability, and commitment to community.

Today, the Touchstone Energy brand represents an alliance of nearly 700 cooperatives in 46 states. Touchstone Energy co-ops collectively deliver power to more than 30 million members every day. They distribute power for 75 percent of the U.S. land mass over 2.4 million miles of power lines.

And the brand lives up to its promise. Industry research indicates electric co-ops rank well ahead of their industry counterparts when it comes to customer satisfaction. Data from the American Customer Satisfaction Index (ACSI), one the nation’s most recognized measures of customer satisfaction, gives Touchstone Energy cooperatives an average score of 81 out of a possible 100, outclassing the utility industry satisfaction score of 74.

Co-op electricity — it’s a powerful brand.



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