Propane retailers advised not to ignore marketing trends

The baby boomer generation, named after the booming post-World War II birth rate from 1946 to 1964, responded to a handful of standard marketing tactics for most of their adult lives.

Boomers living in propane country learned about propane through word of mouth, local newspapers and advertising flyers, local radio, Yellow Page advertising and occasional direct mail campaigns. Propane marketers used these marketing tactics sporadically, sometimes with an “after the horse has bolted” timing that failed to capitalize on new business opportunities or get out in front of customer-loss situations. Yet propane markets continued to grow, displacing heating oil, kerosene, coal, wood and electricity as the primary energy source for homes and businesses in rural areas.

Generation X’s (born from 1965 to 1980) characteristics include being more tech-savvy and embracing the emerging social media trends. Propane marketers, especially those in maturing family propane businesses, were turning over their businesses to Generation X family members.

We started to see propane business websites and the beginning of social media outreach to energy shoppers. Requirements by government regulation for the publishing of telephone books with accompanying Yellow Pages started to unravel, and Yellow Pages consumer interest was in retreat. Telephone books are no longer distributed directly to consumers and have disappeared in many parts of the country.

Advertising flyers can still have an impact on consumers, but daily or weekly physically printed newspapers are shrinking in distribution and are rarely used as advertising vehicles by propane marketers today. Locally owned and operated radio stations, especially AM stations, are being bought out by media conglomerates and have lost some of their local advertising appeal, though some propane marketers still include radio in their marketing plans.

Websites and accompanying social media communication have begun to take over and share advertising content that was once dominated by boomer-era marketing tactics. Newer-generation propane marketers are being nudged – and sometimes kicked and dragged – into considering that the marketing world is changing. Finding and keeping propane customers can involve using a completely different set of marketing tactics to reach younger-generation energy shoppers.

The millennial generation, born from 1981 to 1996, has become the most active first-time home buyer and a primary marketing target for the propane industry. Millennials are full-blown adopters of communication technology, including the internet; a wide array of social media platforms; and mobile access to all of the above. They are also the first generation to begin to recognize and respect data-driven decision-making that artificial intelligence brings to the table to enhance all marketing tactics. Millennials have the right combination of growing household income and marketing trend awareness to be a reachable target for energy conversations.

“Our typical propane marketer client now spends nearly 50 percent of their marketing budget on creating and managing a diverse online and social media platform, revolutionizing their interaction with customers and prospects,” says Ben Gutkin, vice president of marketing services for Warm Thoughts Communications.

Most propane marketers, especially in the middle of a busy winter, haven’t considered how different-looking the marketing funnel, sometimes referred to as the customer journey, is today compared to what it was for previous generations of energy consumers. Developing a marketing plan that successfully influences the customer’s journey will be critical in maintaining and growing your customer base. Ignore the evolution of marketing, and your customer base will probably suffer.

Developing and executing a modern-day marketing plan may no longer be a “wearing many hats” type of job at your company. Is it time to expand your marketing efforts internally or through partnering with a professional marketing firm? Ignoring the need could shrink your customer base.

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Tom Jaenicke is known as “the propane guy” and works as an adviser and strategist to the energy industry. Check out his work at www.ATomikSolutions.com. Tom is a propane industry veteran of several decades and can be reached at tom@atomikenergysolutions.com or 810-252-7855.

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