WEBVTT

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So if people are very concerned about where and how can we better explain things to customers,

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that's a big flag that they're asking the wrong questions.

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Because if that's the question you're preoccupied by,

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that means that you really haven't understood what is actually salient,

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what's actually important to customers.

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The energy transition is happening,

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but is it fair?

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Is it working for people like you and me,

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or just for big market players?

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Welcome to Energetic.

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I am Mayim Cornelis,

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an expert in energy and climate policies,

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and I bring you the voices shaping our energy future.

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Activists,

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scientists,

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policymakers,

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the real people making real change,

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often against the odds.

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Here,

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we do not settle for surface-level takes.

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We dig into the challenges,

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the solutions,

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and the lessons.

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that do not always make the headlines.

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And in doing so,

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we rediscover something vital,

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our ability to trust in institutions,

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to believe in change,

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and to reclaim our power to act.

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Because if we want just resilience,

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if we want just transition,

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we need to understand what it takes to make it happen.

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And more importantly,

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we need to believe that we can.

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Let's get into it.

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So today on Energy Hitch,

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we explore a question that keeps resurfacing in all the conversations I hear across the energy industry,

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no matter the trend or the technology.

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Why is it so hard to build solutions people actually want to use?

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My guest,

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Sean Lilliel,

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has spent his entire career trying to answer that question.

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14 years in the Silicon Valley,

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work across five continents,

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roles at Opower,

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EnergyNog,

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and now as managing partner at Dalbeck Insight,

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where he supports some of the world's largest energy and tech companies on their most complex digital challenges.

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Sean works at the intersection of product management,

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behavioral science,

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and data-intensive digital solutions.

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He helps teams break out their assumption,

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rethink how users make decisions,

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and design products that match real human motivations rather than imagined ones.

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In this conversation,

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we look at what the energy sector still misunderstands about people,

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why customer adoption remains a broken promise,

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and how good product culture can become a lever for a fairer and faster energy transition.

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So we will start with Sharon's own journey,

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shaped by early work in demand-side management and behavioral nudges,

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and then broaden out to the structural challenges facing energy companies.

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As electrification,

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flexibility and distributed resources deployment accelerates.

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Sean,

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welcome to the show.

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Thanks a lot for having me.

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Thanks for the invitation.

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So you spent

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14 years in the Silicon Valley before moving into the European energy transition.

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When you look back,

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what kind of mindset from that period still guides the way you think about product culture today?

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Yeah,

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I think so.

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I have lots of very fond memories from that time.

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I met my spouse in California,

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still have lots of friends and some family in California.

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But I think there are really two things that have stayed with me that are very,

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very different from a lot of other markets.

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One is velocity.

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And the other one is customer centricity.

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The speed at which things move in California in particular,

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but in the U.S.

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as a whole,

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is really quite different from anywhere else.

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I think there's a few reasons for that.

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There's some cultural reasons,

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which,

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you know,

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there's a lot of debate as to,

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you know,

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whether the pendulum swings a little bit too far towards velocity in the U.S.

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where people...

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The work-life balance in the U.S.

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is not the same as the work-life balance that we enjoy in Europe.

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So it's not to say that it's a magical,

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perfect paradigm.

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But certainly for tech companies,

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for energy companies as well,

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things do move very,

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very quickly.

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I go back to the San Francisco area every year for about five or six weeks.

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and

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And I'm reminded of this,

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you know,

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and it can be very silly little things like the fact that everyone will respond to you in less than 48 hours.

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So if you email.

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you know,

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almost anybody about anything,

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you're going to get an answer back,

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you know,

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either within a day,

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day and a half.

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And so even just those little human interactions,

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you know,

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things are iterating faster,

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things are progressing faster,

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decisions are being made,

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you know,

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all the way to,

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you know,

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bigger topics like just risk,

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appetite for risk and risk tolerance.

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I think there's a uh

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a higher tolerance for failing and potentially failing,

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you know,

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in a pretty visible,

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pretty dramatic manner.

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And I'm talking about,

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so it could be at the scale of a team.

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So failing very visibly in front of your team or failing very visibly in front of the market,

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both of those are okay and so

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I think

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That's something that I try to bring to certainly our team,

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to our projects,

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to our clients,

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to help them move a little bit faster and be a little bit more comfortable taking risks.

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And again,

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it could be just as much at the personal level in front of your team.

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Don't be afraid to make mistakes,

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to fail,

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to make bad decisions.

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Yeah,

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to try.

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Yeah,

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exactly.

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At the end of the day,

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that's what it comes down to is being comfortable to try something because nobody has a crystal ball.

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Obviously,

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you make educated decisions,

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you calculate risk,

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but no one has a crystal ball.

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So you have to try something and you have to be ready that maybe it's not going to work exactly the way you planned.

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Yeah,

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it's very much a scientific method,

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right?

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You try and you see if the conclusion arrives to what you were expecting or if not.

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It's really interesting what you were sharing,

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because indeed,

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this kind of this capacity to try.

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And at the end of the day,

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it also shows this kind of vulnerability.

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Like we try,

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we fail.

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It's part of life.

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We are human.

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And at the same time,

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well,

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the Silicon Valley is known to be one of the,

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let's say,

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tech-centric,

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most tech-centric place.

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It's like it feels almost inhuman,

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not inhumane.

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but inhuman given the pace of it,

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like from an external eye.

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So it's really interesting what you are saying,

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that at the end of the day,

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it's probably one of the most profoundly human place to be because people dare to be human and dare to fail and dare to try again.

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And yeah,

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they made a mistake and it didn't work.

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They didn't take the right decision,

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but that's okay.

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Tomorrow will be another day.

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Right.

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It's whereas it's true that,

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yeah,

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in Europe,

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sometimes it feels that,

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OK,

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you take a bad turn,

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a bad decision,

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and then it haunts you for the rest of your life or something.

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Yeah.

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Yeah.

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I think there's a,

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you know,

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I'm not an anthropologist,

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but it would be fascinating to have an anthropologist perspective on,

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you know,

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how the how the cultures have shaped these these mentalities.

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And again,

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we're talking in generalities.

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Of course,

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there are people in Europe that...

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that take tons of risk.

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And there are amazing entrepreneurs in Europe who move very quickly.

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And conversely,

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there are a lot of people in the US who are very risk averse,

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especially in the energy sector.

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But speaking in generalities,

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I think in the US,

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I remember when,

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because obviously I've made lots of mistakes along the way,

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I've made bad decisions and have experienced projects that didn't go the way we hoped.

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And there's a real focus on lessons learned.

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So,

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you know,

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people really invite discussion and feedback around,

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you know,

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okay,

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this thing happened.

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Let's break down why it happened.

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And let's build on that.

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Let's understand.

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Let's learn.

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As opposed to,

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you know,

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I feel like in some of the work environments in Europe,

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there's a little bit more hesitation because...

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Perhaps there's going to be some judgment about,

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well,

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you know,

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why did you,

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you know,

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why did you make that decision?

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You know,

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what mistakes in judgment did you make that led you to have this problem or this difficulty?

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And it's not,

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you know,

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it comes,

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it seems like it comes more at a kind of a nitpicking perspective as opposed to,

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you know,

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okay,

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this was an experience.

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Let's figure out what we can learn from that experience.

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And that's very interesting because that circles back to customer service.

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Like trying to,

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what do we learn from this bad experience the consumer had instead of trying to find the culprit and,

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you know,

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blame all the chain of command for a mistake.

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And then leading to immobility,

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of course,

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and leading to,

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yeah,

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perhaps a fear of negative feedback.

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Yeah.

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Yeah,

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I think the second thing that

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I think the U.S.

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and,

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you know,

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I don't want to be too focused on the U.S.

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because I do see that there are certain markets like the U.K.

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or in some

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Scandinavian countries where,

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you know,

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this is done very well.

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But there's a big focus.

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I think the U.K.

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actually does this really well.

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There's a big culture around.

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Customer centricity,

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focusing on the customer,

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what customer wants,

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you know,

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speaking to them in their language.

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And I think the way that companies acquire this reflex over time is by digging into those lessons learned.

278
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This is by focusing on the problems,

279
00:10:56.124 --> 00:10:57.843
focusing on stuff that hasn't worked,

280
00:10:58.593 --> 00:10:59.171
understanding,

281
00:10:59.202 --> 00:11:02.124
having a deep understanding of why it didn't work.

282
00:11:02.827 --> 00:11:04.593
and then getting those insights,

283
00:11:04.921 --> 00:11:06.640
the customer insights to understand,

284
00:11:06.656 --> 00:11:06.874
okay,

285
00:11:06.890 --> 00:11:07.015
well,

286
00:11:07.077 --> 00:11:07.718
this is what people...

287
00:11:08.608 --> 00:11:27.169
misinterpreted or this is the assumptions we made about the value people were looking for and those were you know the wrong assumptions um and so we have to shift the value proposition etc yeah that's uh extremely interesting and that uh also uh like

288
00:11:27.200 --> 00:11:33.513
circles back with uh the work i've been doing with ombudsmen so the bodies who are in charge of uh

289
00:11:33.684 --> 00:11:39.190
Handling the disputes between energy consumers and the suppliers or the energy businesses.

290
00:11:39.229 --> 00:11:41.331
And the culture of,

291
00:11:41.553 --> 00:11:41.909
let's say,

292
00:11:42.471 --> 00:11:48.159
redress in the UK is way stronger than it is in other countries.

293
00:11:48.518 --> 00:11:49.362
Where I live in Italy,

294
00:11:49.377 --> 00:11:51.807
you have quite a strong culture of litigation.

295
00:11:52.401 --> 00:11:55.245
You have a strong culture of complaining,

296
00:11:56.323 --> 00:11:58.651
but it's not as structured.

297
00:11:58.885 --> 00:12:03.010
and the way you will use the lessons from...

298
00:12:03.372 --> 00:12:07.256
The mistake is way less structured than the one you find in the UK.

299
00:12:07.574 --> 00:12:13.480
And those are only two examples because I've worked also with ombudsmen in Belgium,

300
00:12:13.504 --> 00:12:16.684
in France and in many different EU countries,

301
00:12:16.723 --> 00:12:16.965
actually.

302
00:12:17.426 --> 00:12:19.191
So that's very interesting and very,

303
00:12:19.246 --> 00:12:20.270
very true what you said.

304
00:12:20.332 --> 00:12:21.082
But yeah,

305
00:12:21.363 --> 00:12:24.535
I would like to circle back to your earlier work.

306
00:12:25.379 --> 00:12:27.035
You worked with Opower and

307
00:12:27.613 --> 00:12:31.754
Enernoc. So this job puts you right inside the first generation of...

308
00:12:32.028 --> 00:12:34.410
Behavioral Digital Tools for Energy.

309
00:12:35.371 --> 00:12:35.551
Yeah.

310
00:12:36.274 --> 00:12:42.899
So what did those years teach you about how people respond to energy information?

311
00:12:43.141 --> 00:12:45.578
What has stayed surprisingly constant?

312
00:12:46.539 --> 00:12:46.703
Yeah,

313
00:12:46.805 --> 00:12:51.242
so those experiences were really foundational for me.

314
00:12:51.992 --> 00:12:53.727
So in chronological order,

315
00:12:54.867 --> 00:12:58.774
I was at Enernoc over 15 years ago,

316
00:12:58.852 --> 00:12:59.461
I think now.

317
00:13:00.088 --> 00:13:01.289
And they were,

318
00:13:01.309 --> 00:13:02.211
as far as I know,

319
00:13:02.470 --> 00:13:17.502
they were the first company to have a software as a service solution to find energy efficiency improvements in commercial buildings using the building management software.

320
00:13:17.799 --> 00:13:23.627
So there's a thing called a BMS that manages all the lights,

321
00:13:23.628 --> 00:13:24.111
the heating,

322
00:13:24.236 --> 00:13:24.736
cooling,

323
00:13:25.314 --> 00:13:26.408
all kinds of different equipment,

324
00:13:26.658 --> 00:13:26.892
you know,

325
00:13:26.955 --> 00:13:28.955
typically in larger buildings.

326
00:13:29.692 --> 00:13:32.996
increasingly that's done more and more by a piece of software.

327
00:13:33.035 --> 00:13:40.619
And Internoctr is one of the first companies to figure out that you can build software to run on top of that data,

328
00:13:41.822 --> 00:13:48.088
run algorithms on the thousands of data points that you get from all the equipment in the building,

329
00:13:48.384 --> 00:13:52.353
and that the algorithms could find energy efficiency opportunities.

330
00:13:53.056 --> 00:13:55.416
So it worked quite well,

331
00:13:56.541 --> 00:13:57.666
that product.

332
00:13:57.988 --> 00:14:00.231
still exists in the market today.

333
00:14:00.350 --> 00:14:02.211
It's under a company called Measurable.

334
00:14:03.293 --> 00:14:04.254
Silicon Valley goes,

335
00:14:04.274 --> 00:14:06.575
there's lots of mergers and acquisitions,

336
00:14:07.481 --> 00:14:08.856
but that product is still out there.

337
00:14:09.598 --> 00:14:21.114
And what really was a game changer for me was when we started to deploy the first few projects and we were finding energy efficiency opportunities,

338
00:14:21.129 --> 00:14:25.739
but we kept getting these mystery consumption and

339
00:14:26.428 --> 00:14:32.855
waste or these mystery consumption excesses that we couldn't explain in the data.

340
00:14:33.234 --> 00:14:35.457
And as we talked to the building engineers,

341
00:14:35.816 --> 00:14:36.816
the building operators,

342
00:14:36.840 --> 00:14:37.519
the staff,

343
00:14:38.363 --> 00:14:41.386
we started to find all these anecdotes of

344
00:14:41.907 --> 00:14:42.207
you know,

345
00:14:43.669 --> 00:14:44.649
a chess club.

346
00:14:45.511 --> 00:14:46.770
This was with a school.

347
00:14:47.012 --> 00:14:49.536
There's a chess club that came on Wednesday evenings.

348
00:14:49.716 --> 00:14:50.016
And,

349
00:14:50.595 --> 00:14:50.837
you know,

350
00:14:50.852 --> 00:14:56.360
the building schedule would shut down the heating after school was over.

351
00:14:57.462 --> 00:15:00.032
And so this chess club would play chess,

352
00:15:00.501 --> 00:15:00.751
you know,

353
00:15:01.188 --> 00:15:01.610
cold.

354
00:15:02.204 --> 00:15:06.516
And so they made friends with one of the janitors who had figured out that,

355
00:15:06.532 --> 00:15:06.751
you know,

356
00:15:06.766 --> 00:15:07.095
if he

357
00:15:07.999 --> 00:15:14.607
There was a manual override that he could hit with a broomstick and it would bring the heat back on.

358
00:15:15.408 --> 00:15:24.411
And then there's another anecdote about an executive who was staying late and so the lights were put on for that person.

359
00:15:24.521 --> 00:15:28.833
But then that override was never brought back to the usual schedule.

360
00:15:28.834 --> 00:15:31.521
And so now you had a building with the lights on 24-7,

361
00:15:32.146 --> 00:15:32.287
etc.,

362
00:15:32.521 --> 00:15:32.646
etc.

363
00:15:33.146 --> 00:15:34.802
And as we were finding these things,

364
00:15:34.818 --> 00:15:35.990
I started to realize.

365
00:15:37.331 --> 00:15:43.036
This was the first game changer for me is that we can't engineer ourselves out of the problem.

366
00:15:44.157 --> 00:15:50.383
We will have to take into account the human dynamics in the problem,

367
00:15:50.548 --> 00:15:51.907
all the human factors,

368
00:15:51.923 --> 00:15:52.883
the human element,

369
00:15:53.587 --> 00:16:01.649
all these little illogical factors that that has to be taken into account somehow.

370
00:16:01.696 --> 00:16:02.009
Wow.

371
00:16:02.180 --> 00:16:05.899
So that was the first moment of clarity where I realized that

372
00:16:07.055 --> 00:16:11.981
software by itself or equipment by itself was not going to do the trick.

373
00:16:12.763 --> 00:16:13.723
Coincidentally,

374
00:16:13.782 --> 00:16:14.841
around that time,

375
00:16:15.161 --> 00:16:15.841
around the early

376
00:16:16.583 --> 00:16:17.067
2010s, I think,

377
00:16:17.083 --> 00:16:19.169
is when Opower was founded.

378
00:16:20.067 --> 00:16:22.794
They made a lot of noise very quickly in California.

379
00:16:22.872 --> 00:16:27.372
So I knew about them even back when I was at Interac.

380
00:16:28.231 --> 00:16:34.669
And they were really the first company to do behavioral science applied at mass market scale.

381
00:16:35.291 --> 00:16:40.936
And weren't the ones who were saying people think about their energy the way they think about their toilet paper,

382
00:16:41.499 --> 00:16:43.323
about nine minutes per year or something?

383
00:16:43.737 --> 00:16:45.245
Yeah,

384
00:16:45.284 --> 00:16:46.143
so originally,

385
00:16:46.760 --> 00:16:49.487
so that number originally,

386
00:16:49.768 --> 00:16:51.651
to give credit where credit is due,

387
00:16:51.995 --> 00:16:55.198
that number originally came from an Accenture survey.

388
00:16:55.963 --> 00:16:56.839
So Accenture,

389
00:16:56.854 --> 00:16:58.057
I don't know if they still do it today,

390
00:16:58.089 --> 00:17:02.963
but Accenture used to do this annual energy consumer survey and report.

391
00:17:03.839 --> 00:17:04.745
And so they had...

392
00:17:05.455 --> 00:17:07.678
identified this one data point and Opower,

393
00:17:07.979 --> 00:17:08.217
you know,

394
00:17:08.258 --> 00:17:09.518
kind of took it and ran with it.

395
00:17:10.561 --> 00:17:10.920
But yes,

396
00:17:10.940 --> 00:17:12.943
the broader point they had was that,

397
00:17:13.104 --> 00:17:13.342
you know,

398
00:17:13.443 --> 00:17:18.350
energy is not top of mind for people outside of the energy sector.

399
00:17:18.568 --> 00:17:19.506
That's just the reality.

400
00:17:19.811 --> 00:17:20.811
Even post,

401
00:17:21.514 --> 00:17:21.733
you know,

402
00:17:21.734 --> 00:17:24.248
2022 energy crisis,

403
00:17:24.779 --> 00:17:25.014
you know,

404
00:17:25.201 --> 00:17:25.483
yes,

405
00:17:25.748 --> 00:17:27.389
it's a priority for households,

406
00:17:27.451 --> 00:17:31.014
but it's not the number one thing that people think about all the time.

407
00:17:32.160 --> 00:17:42.973
So Opower was able to figure out that there's a whole body of academic research that understands how people make decisions and what drives human behavior.

408
00:17:43.934 --> 00:17:47.441
And so they had a crazy idea to say,

409
00:17:47.520 --> 00:17:47.660
well,

410
00:17:47.661 --> 00:17:52.801
if we have all of these well-codified principles,

411
00:17:53.645 --> 00:17:57.441
why don't we use that and use that to design the software,

412
00:17:57.582 --> 00:17:58.567
use that to design the...

413
00:17:58.987 --> 00:18:19.771
the interventions and to motivate people's behavior specifically on energy and you know leverage software to be able to do that across millions and millions of customers and so that that was the the product itself was a pretty pretty huge success they ended up being acquired by oracle in 2016 i believe and so now the the

414
00:18:19.786 --> 00:18:27.568
product again you know still exists but it exists under an oracle banner now no that's that's really really interesting because that's

415
00:18:28.223 --> 00:18:28.523
Later,

416
00:18:28.644 --> 00:18:31.888
something that you brought back to Europe,

417
00:18:31.987 --> 00:18:32.208
right?

418
00:18:32.306 --> 00:18:33.087
Back to France.

419
00:18:33.688 --> 00:18:33.810
Yeah,

420
00:18:33.888 --> 00:18:35.149
just for the listeners,

421
00:18:35.552 --> 00:18:36.935
you are French and American.

422
00:18:36.989 --> 00:18:38.255
You have your own citizenship.

423
00:18:38.310 --> 00:18:41.278
So that's why you also have a very French surname,

424
00:18:41.778 --> 00:18:43.802
but a wonderful

425
00:18:44.192 --> 00:18:45.442
American accent as well.

426
00:18:45.661 --> 00:18:45.802
Yeah,

427
00:18:47.067 --> 00:18:48.099
I'm undercover.

428
00:18:48.927 --> 00:18:51.021
I'm pretty undercover as a French guy.

429
00:18:51.364 --> 00:18:51.911
My wife,

430
00:18:53.786 --> 00:18:54.552
she feels like she...

431
00:18:55.635 --> 00:19:00.180
She really got the short end of the stick because she got a French guy who sounds like a Californian.

432
00:19:02.242 --> 00:19:02.363
Yeah,

433
00:19:02.641 --> 00:19:03.942
yeah.

434
00:19:03.943 --> 00:19:04.160
Okay,

435
00:19:04.324 --> 00:19:12.246
so you've been back to Europe and you founded a first business and now you have merged as Balbeck Insight.

436
00:19:12.856 --> 00:19:13.949
And in your work,

437
00:19:14.090 --> 00:19:21.434
you have noticed that the energy sector remains kind of stuck in a tech first reflex.

438
00:19:21.559 --> 00:19:23.309
So does he agree with you?

439
00:19:24.359 --> 00:19:25.181
That's really,

440
00:19:25.460 --> 00:19:28.864
really kind of maddening to see how little,

441
00:19:29.204 --> 00:19:29.602
let's say,

442
00:19:29.985 --> 00:19:36.368
people experience is taken into consideration when building something and putting it out there.

443
00:19:37.048 --> 00:19:37.774
And yeah,

444
00:19:37.954 --> 00:19:39.610
that's why I really wanted you on the show,

445
00:19:39.696 --> 00:19:41.813
because I really want to pick your brain on it.

446
00:19:42.470 --> 00:19:46.641
So let's start first with the science.

447
00:19:46.876 --> 00:19:52.360
How do you identify when a team is designing around its own ascension?

448
00:19:52.664 --> 00:19:54.161
rather than its users.

449
00:19:55.052 --> 00:19:55.432
Yeah,

450
00:19:55.553 --> 00:19:55.893
so it's,

451
00:19:56.433 --> 00:19:56.673
you know,

452
00:19:56.874 --> 00:19:57.656
there are a few things.

453
00:19:57.835 --> 00:20:03.199
I think one thing I would say before answering your question directly is,

454
00:20:03.660 --> 00:20:03.902
you know,

455
00:20:04.003 --> 00:20:08.605
I have a lot of empathy for the energy sector as a whole,

456
00:20:09.269 --> 00:20:10.527
because historically,

457
00:20:11.566 --> 00:20:13.269
long planning cycles,

458
00:20:13.706 --> 00:20:14.910
risk management,

459
00:20:15.269 --> 00:20:15.847
safety,

460
00:20:16.706 --> 00:20:17.675
all of those things,

461
00:20:17.753 --> 00:20:21.660
especially when energy companies were still vertically integrated,

462
00:20:22.644 --> 00:20:23.441
which is still largely.

463
00:20:24.020 --> 00:20:24.902
the case in the U.S.,

464
00:20:25.462 --> 00:20:26.402
not the case in Europe.

465
00:20:27.023 --> 00:20:32.027
But it was fundamental to take time,

466
00:20:32.206 --> 00:20:32.988
be safe,

467
00:20:33.112 --> 00:20:34.027
control risk,

468
00:20:34.167 --> 00:20:34.667
et cetera.

469
00:20:35.433 --> 00:20:36.691
And so in the early

470
00:20:37.495 --> 00:20:39.714
2000s, I think it was still,

471
00:20:41.191 --> 00:20:49.988
I had lots and lots of empathy for this tech-first reflex and the kind of infrastructure or hardware-first reflex.

472
00:20:51.331 --> 00:20:51.753
as we get...

473
00:20:51.932 --> 00:20:52.993
further along into the

474
00:20:53.854 --> 00:20:54.995
2000s, I feel like,

475
00:20:55.395 --> 00:20:55.676
you know,

476
00:20:56.075 --> 00:20:59.219
it's time to start to accelerate that change.

477
00:20:59.258 --> 00:21:01.204
And so to answer your question,

478
00:21:01.438 --> 00:21:01.680
you know,

479
00:21:02.383 --> 00:21:04.383
there are a few things that we could see right away,

480
00:21:05.407 --> 00:21:09.196
which are a bit of a flag for us when we come into a project.

481
00:21:09.743 --> 00:21:10.946
The first thing is,

482
00:21:12.040 --> 00:21:20.696
when we see that the team is really concerned about how can we find ways or find

483
00:21:21.064 --> 00:21:23.345
places in the product,

484
00:21:23.945 --> 00:21:25.265
in the customer journey,

485
00:21:25.906 --> 00:21:26.824
in the emails,

486
00:21:26.886 --> 00:21:27.566
whatever it is,

487
00:21:28.484 --> 00:21:30.843
to explain things better to customers.

488
00:21:31.507 --> 00:21:38.109
So if people are very concerned about where and how can we better explain things to customers,

489
00:21:39.343 --> 00:21:42.750
that's a big flag that they're asking the wrong questions.

490
00:21:43.390 --> 00:21:46.328
Because if that's the question you're...

491
00:21:47.136 --> 00:21:48.157
preoccupied by,

492
00:21:48.277 --> 00:21:53.276
that means that you really haven't understood what is actually salient,

493
00:21:53.397 --> 00:21:55.815
what's actually important to customers.

494
00:21:56.635 --> 00:22:04.627
And you're focused on getting them to understand what is important to you as an energy company,

495
00:22:05.065 --> 00:22:06.080
as a software company.

496
00:22:06.658 --> 00:22:12.127
So that's really one of the first flags that we see pretty consistently when companies will ask us,

497
00:22:12.205 --> 00:22:12.408
well,

498
00:22:12.674 --> 00:22:13.049
we want...

499
00:22:13.824 --> 00:22:27.417
to launch a flexibility or demand response service or a feature inside an app or a new customer journey to encourage people to participate in demand response events.

500
00:22:28.417 --> 00:22:30.237
And so we're trying to figure out,

501
00:22:30.362 --> 00:22:33.878
can you help us with behavioral science to explain demand response?

502
00:22:34.487 --> 00:22:34.800
Yeah,

503
00:22:35.081 --> 00:22:35.831
yeah,

504
00:22:36.050 --> 00:22:36.159
yeah.

505
00:22:36.160 --> 00:22:37.050
It's the wrong question.

506
00:22:37.143 --> 00:22:37.784
Fundamentally,

507
00:22:37.846 --> 00:22:38.722
that's the wrong question.

508
00:22:38.956 --> 00:22:39.487
There isn't.

509
00:22:40.668 --> 00:22:45.994
some behavioral science magic that we can sprinkle that all of a sudden will make demand response.

510
00:22:45.995 --> 00:22:50.955
The usual answer that is taken is being taken by the marketing team.

511
00:22:51.142 --> 00:22:52.017
We will be saying,

512
00:22:52.658 --> 00:22:54.400
we will do a communication campaign,

513
00:22:54.963 --> 00:22:58.330
but very often this communication campaign is not targeted.

514
00:22:58.408 --> 00:23:01.783
It's not like not starting an assumption and not going anywhere.

515
00:23:02.174 --> 00:23:05.049
So what would be the right question to ask then.

516
00:23:06.096 --> 00:23:06.252
Yeah,

517
00:23:06.314 --> 00:23:08.892
so I think there's one...

518
00:23:09.564 --> 00:23:18.409
behavioral principle that's very very useful to be aware of this was something that was i think cataloged for the first time back in the

519
00:23:19.112 --> 00:23:19.230
70s

520
00:23:20.253 --> 00:23:36.995
1970s so it's you know it's we're not talking about something that was you know discovered last year um but it's so this was i think out of stanford in the 70s and it's it's called a false consensus bias and the idea basically is that

521
00:23:37.720 --> 00:23:39.181
What we think is normal,

522
00:23:40.283 --> 00:23:44.107
we assume everybody also thinks that that's normal.

523
00:23:44.146 --> 00:23:46.810
So what we think is intuitive or even just what

524
00:23:47.169 --> 00:23:48.654
I think is intuitive,

525
00:23:49.248 --> 00:23:50.552
what I think is pretty,

526
00:23:51.216 --> 00:23:52.716
what I think is easy,

527
00:23:53.716 --> 00:23:57.435
I'm going to make assumptions and design customer journeys,

528
00:23:57.482 --> 00:23:58.357
design products,

529
00:23:58.919 --> 00:23:59.498
offerings,

530
00:23:59.544 --> 00:24:00.122
whatever it is,

531
00:24:01.248 --> 00:24:04.232
based on those assumptions of what I think is logical.

532
00:24:04.952 --> 00:24:06.093
and intuitive,

533
00:24:06.094 --> 00:24:06.654
et cetera.

534
00:24:06.794 --> 00:24:07.534
But the thing is,

535
00:24:08.175 --> 00:24:08.878
for Marine,

536
00:24:09.495 --> 00:24:10.499
that's very different,

537
00:24:10.800 --> 00:24:11.398
most likely.

538
00:24:12.402 --> 00:24:14.480
For a customer in Denmark,

539
00:24:14.566 --> 00:24:15.644
that's very different,

540
00:24:15.683 --> 00:24:16.925
et cetera,

541
00:24:16.926 --> 00:24:17.308
et cetera.

542
00:24:17.425 --> 00:24:29.097
So one of the first things that we always try to work with our clients on is to brief them on their own limitations.

543
00:24:29.160 --> 00:24:29.269
Yeah,

544
00:24:29.331 --> 00:24:34.160
their own biases of how the these mental shortcuts that are going to

545
00:24:34.464 --> 00:24:38.326
work against them and try to help them break away.

546
00:24:38.506 --> 00:24:44.412
And that usually is a pretty significant quick win because it helps them think about it.

547
00:24:44.413 --> 00:24:49.897
It helps them see how they're being very company centric,

548
00:24:50.858 --> 00:24:52.858
even if they have like,

549
00:24:53.420 --> 00:24:53.670
you know,

550
00:24:53.686 --> 00:24:54.748
a communication that

551
00:24:55.246 --> 00:24:56.728
makes good use of humor,

552
00:24:57.668 --> 00:24:59.432
communication that's very clear,

553
00:25:00.072 --> 00:25:01.412
that's very concise.

554
00:25:01.631 --> 00:25:02.635
Maybe on paper,

555
00:25:03.135 --> 00:25:03.650
everything,

556
00:25:03.854 --> 00:25:05.135
the marketing campaign,

557
00:25:05.197 --> 00:25:05.854
whatever it is,

558
00:25:07.518 --> 00:25:08.939
it's using all the best practices,

559
00:25:08.978 --> 00:25:09.822
it looks very good,

560
00:25:10.478 --> 00:25:12.525
but the engagement results are disappointing.

561
00:25:12.760 --> 00:25:17.291
And usually a lot of times that's because they're using all the right practices,

562
00:25:17.354 --> 00:25:19.088
but they're talking about the wrong thing.

563
00:25:19.713 --> 00:25:19.854
Yeah.

564
00:25:20.228 --> 00:25:23.416
So where we try to help reorient is to...

565
00:25:23.602 --> 00:25:25.885
to try to figure out what is really salient.

566
00:25:26.725 --> 00:25:33.449
And that's another behavioral notion of what do people perceive as being important for them.

567
00:25:33.894 --> 00:25:36.293
So understanding what's going to be salient to them,

568
00:25:37.035 --> 00:25:42.113
which usually has nothing to do with the energy company or the tech company.

569
00:25:43.348 --> 00:25:47.004
And then focusing on that for the UX,

570
00:25:47.160 --> 00:25:48.894
for the customer journey,

571
00:25:48.926 --> 00:25:49.488
the offering,

572
00:25:49.863 --> 00:25:50.394
whatever it is.

573
00:25:51.826 --> 00:25:51.986
Yeah,

574
00:25:52.247 --> 00:25:58.311
so it's really this kind of subtle choices that you call salient points.

575
00:25:58.831 --> 00:26:00.237
They can be linked to wording,

576
00:26:00.456 --> 00:26:01.034
timing,

577
00:26:01.417 --> 00:26:01.894
framing.

578
00:26:02.839 --> 00:26:04.081
They are probably way more.

579
00:26:04.417 --> 00:26:07.183
But can you share an example where,

580
00:26:07.581 --> 00:26:07.847
you know,

581
00:26:07.909 --> 00:26:15.175
a small design decision or when you helped a client and that transformed adoption or engagement?

582
00:26:15.987 --> 00:26:16.175
Yeah,

583
00:26:16.237 --> 00:26:16.550
sure.

584
00:26:16.894 --> 00:26:19.394
So there are a couple of...

585
00:26:19.826 --> 00:26:21.227
examples I can think of,

586
00:26:21.888 --> 00:26:27.776
one of the things that's really interesting is that it is really a case by case thing.

587
00:26:27.854 --> 00:26:31.081
So there isn't like a magical playbook where,

588
00:26:31.636 --> 00:26:31.901
you know,

589
00:26:31.940 --> 00:26:35.261
if you use this behavioral principle or that behavioral principle,

590
00:26:35.503 --> 00:26:36.362
all of a sudden,

591
00:26:36.862 --> 00:26:37.097
you know,

592
00:26:37.144 --> 00:26:39.487
you're going to double your engagement or whatever.

593
00:26:40.253 --> 00:26:48.737
It really is a matter of understanding what's going to be salient for customers in the specific context of that journey of that.

594
00:26:48.842 --> 00:27:06.220
product whatever it is there's a startup that we've been doing a lot of help um so we've been giving a lot of help to in france called niberté watts they're a demand response direct to consumer demand response uh app yeah they don't work through it through energy retailers and

595
00:27:07.032 --> 00:27:15.329
when we first started working with them you know just like every well-intentioned uh player in the energy sector and

596
00:27:16.090 --> 00:27:17.871
One of the first questions they asked us is,

597
00:27:17.892 --> 00:27:18.133
you know,

598
00:27:18.134 --> 00:27:18.573
we need to,

599
00:27:18.912 --> 00:27:25.797
there's a certain way that we have to monetize demand response with the TSO,

600
00:27:26.141 --> 00:27:28.360
with the transmission system operator.

601
00:27:28.446 --> 00:27:33.133
So in order to trade that demand response in the market,

602
00:27:33.774 --> 00:27:35.992
it needs to behave a certain way.

603
00:27:36.571 --> 00:27:38.274
So how do we explain that?

604
00:27:38.368 --> 00:27:40.477
Can you help us explain that to customers?

605
00:27:41.414 --> 00:27:42.071
And of course,

606
00:27:42.680 --> 00:27:42.914
you know.

607
00:27:43.490 --> 00:27:45.052
My answer is that you can't.

608
00:27:45.593 --> 00:27:49.095
There's no way that you will ever have the time,

609
00:27:49.716 --> 00:27:54.638
the attention span to be able to explain any of that to your users.

610
00:27:54.724 --> 00:27:58.482
And they had been pulling their hair out,

611
00:27:58.763 --> 00:27:59.005
you know,

612
00:27:59.083 --> 00:27:59.521
trying to,

613
00:28:00.005 --> 00:28:04.036
they had all these different versions and all these different approaches.

614
00:28:04.833 --> 00:28:05.396
And again,

615
00:28:05.397 --> 00:28:05.974
they were like,

616
00:28:06.474 --> 00:28:09.021
the design was very good.

617
00:28:09.052 --> 00:28:10.318
The language was funny.

618
00:28:10.739 --> 00:28:11.161
like I'm

619
00:28:12.082 --> 00:28:17.224
They were doing everything right in terms of the cosmetic aspects,

620
00:28:18.064 --> 00:28:19.361
but they were focused on the wrong thing.

621
00:28:19.384 --> 00:28:21.666
So what we did was,

622
00:28:21.822 --> 00:28:22.541
so Liberté Watt,

623
00:28:22.627 --> 00:28:23.127
and again,

624
00:28:23.128 --> 00:28:24.705
it has to be specific to the product.

625
00:28:24.706 --> 00:28:25.408
So Liberté Watt,

626
00:28:26.408 --> 00:28:32.431
they reward customers for participating in demand response events with points.

627
00:28:32.572 --> 00:28:33.353
And those points,

628
00:28:33.400 --> 00:28:35.447
they have a bunch of partnerships with retailers,

629
00:28:36.588 --> 00:28:40.384
like electronics or gyms or whatever.

630
00:28:40.416 --> 00:28:40.775
Sure.

631
00:28:41.138 --> 00:28:45.561
And those points will convert to gift cards for,

632
00:28:46.522 --> 00:28:46.663
yeah,

633
00:28:46.682 --> 00:28:47.745
to buy AirPods or,

634
00:28:47.784 --> 00:28:48.026
you know,

635
00:28:48.045 --> 00:28:48.307
whatever.

636
00:28:49.127 --> 00:28:56.877
So what they've done is they've really made it all about gamification to be able to win as many points as possible,

637
00:28:57.049 --> 00:28:58.268
to be able to convert,

638
00:28:58.409 --> 00:28:58.643
you know,

639
00:28:58.674 --> 00:28:59.143
these points.

640
00:28:59.721 --> 00:29:00.596
So what we said was,

641
00:29:00.659 --> 00:29:00.815
look,

642
00:29:01.862 --> 00:29:08.893
what is salient to someone who's coming and using your app is not the market mechanisms.

643
00:29:09.666 --> 00:29:11.107
to monetize demand response.

644
00:29:11.948 --> 00:29:13.509
It's not what's salient to them.

645
00:29:13.550 --> 00:29:18.978
What's salient to them is how do I win as many points as possible so that

646
00:29:19.337 --> 00:29:20.915
I can get a bunch of stuff,

647
00:29:21.399 --> 00:29:21.642
right?

648
00:29:22.360 --> 00:29:35.907
So we completely changed the way they were thinking about the customer journey and made it focused on getting customers to play as quickly as possible.

649
00:29:36.079 --> 00:29:37.532
So when you think about a video game,

650
00:29:38.314 --> 00:29:39.329
there's no like

651
00:29:40.178 --> 00:29:55.351
big explanation about all the universe around the video game and who all the characters are and all the different levels they just get you to play they get you to start playing and you learn as you start playing so

652
00:29:55.375 --> 00:29:57.570
that's really what we focused on is how can we

653
00:29:58.248 --> 00:30:07.237
pull people into the UX as quickly as possible and get them to start earning points and get them to start,

654
00:30:07.534 --> 00:30:07.776
you know,

655
00:30:08.019 --> 00:30:09.136
participating in events,

656
00:30:09.198 --> 00:30:11.464
getting feedback and get them engaged.

657
00:30:11.503 --> 00:30:11.620
So

658
00:30:13.542 --> 00:30:15.940
I think now they're just a couple of years old,

659
00:30:15.941 --> 00:30:17.253
but I think they passed like

660
00:30:18.175 --> 00:30:20.269
30,000 users or something like that.

661
00:30:20.284 --> 00:30:22.956
So they've had a really,

662
00:30:23.034 --> 00:30:25.940
really rapid growth as far as,

663
00:30:25.956 --> 00:30:26.222
you know.

664
00:30:27.084 --> 00:30:30.264
As far as demand response in France could,

665
00:30:30.784 --> 00:30:31.024
you know,

666
00:30:31.106 --> 00:30:32.106
could hope to grow.

667
00:30:32.665 --> 00:30:33.727
They've done really well,

668
00:30:33.766 --> 00:30:34.544
especially given that,

669
00:30:35.106 --> 00:30:35.348
you know,

670
00:30:35.349 --> 00:30:39.364
they're not tied to any particular energy retailer.

671
00:30:40.489 --> 00:30:40.630
Yeah,

672
00:30:40.669 --> 00:30:40.786
no,

673
00:30:40.887 --> 00:30:45.302
that's very interesting also because you can make comparisons with other sectors.

674
00:30:45.364 --> 00:30:45.661
Like,

675
00:30:46.161 --> 00:30:46.567
I don't know,

676
00:30:47.005 --> 00:30:52.395
I use Duolingo for languages and I don't usually play video games,

677
00:30:52.426 --> 00:30:54.083
but I'm very addicted to Duolingo.

678
00:30:54.333 --> 00:30:54.926
and how...

679
00:30:55.272 --> 00:30:55.492
You know,

680
00:30:55.612 --> 00:30:57.373
I have this mini rewards,

681
00:30:58.035 --> 00:31:02.459
like points for absolutely nothing and just play with friends and so on.

682
00:31:02.460 --> 00:31:03.260
And yeah,

683
00:31:03.377 --> 00:31:03.697
indeed,

684
00:31:03.783 --> 00:31:05.299
it's like very easy,

685
00:31:05.658 --> 00:31:10.190
very annoying for the people in the room who are not playing with me on Duolingo.

686
00:31:10.588 --> 00:31:11.814
But that makes it,

687
00:31:12.627 --> 00:31:12.752
yeah,

688
00:31:12.846 --> 00:31:14.783
that makes it fun and entertaining.

689
00:31:14.893 --> 00:31:15.799
And at the end of the day,

690
00:31:16.518 --> 00:31:16.768
yeah,

691
00:31:16.769 --> 00:31:18.377
the method itself is efficient,

692
00:31:18.440 --> 00:31:22.518
but it's also like the universe that they put together that is efficient,

693
00:31:22.580 --> 00:31:22.752
right?

694
00:31:22.799 --> 00:31:24.424
So it's really working on...

695
00:31:25.204 --> 00:31:25.904
on both,

696
00:31:26.444 --> 00:31:26.784
let's say,

697
00:31:27.425 --> 00:31:28.405
both streams.

698
00:31:29.044 --> 00:31:29.286
But

699
00:31:29.806 --> 00:31:31.825
I guess that it's also to them,

700
00:31:33.044 --> 00:31:43.232
like to make a nice step back to understand that what they wanted at the end of the day was for people to come back to the app and not only like use it once,

701
00:31:43.310 --> 00:31:46.482
but come back to it and see where the saving points were.

702
00:31:47.122 --> 00:31:48.013
And yeah,

703
00:31:48.028 --> 00:31:49.122
I find it quite,

704
00:31:50.153 --> 00:31:50.263
yeah,

705
00:31:50.388 --> 00:31:51.450
indeed in Liberty Watts,

706
00:31:51.903 --> 00:31:52.825
I don't live in France,

707
00:31:52.826 --> 00:31:53.685
so I haven't used it.

708
00:31:53.747 --> 00:31:53.888
But.

709
00:31:54.232 --> 00:32:00.839
I've seen a little bit of the platform and it looks really cool compared to many other things I have seen elsewhere.

710
00:32:01.558 --> 00:32:01.878
I'm like,

711
00:32:02.421 --> 00:32:02.843
that's bad,

712
00:32:02.882 --> 00:32:03.163
guys.

713
00:32:04.601 --> 00:32:04.780
Yeah,

714
00:32:04.905 --> 00:32:05.023
yeah.

715
00:32:05.024 --> 00:32:05.140
And

716
00:32:06.546 --> 00:32:10.507
I like that example because it's demand response.

717
00:32:10.523 --> 00:32:10.710
I mean,

718
00:32:10.991 --> 00:32:13.554
even the name demand response,

719
00:32:13.585 --> 00:32:15.132
those two words together,

720
00:32:16.116 --> 00:32:16.913
I always thought,

721
00:32:17.554 --> 00:32:17.788
you know,

722
00:32:18.257 --> 00:32:19.194
it's a terrible name.

723
00:32:19.632 --> 00:32:19.913
It is.

724
00:32:20.210 --> 00:32:22.741
because yes,

725
00:32:22.976 --> 00:32:23.554
technically...

726
00:32:24.520 --> 00:32:26.142
It's the response of,

727
00:32:26.943 --> 00:32:27.183
you know,

728
00:32:27.302 --> 00:32:30.205
electric demand to the needs of the grid.

729
00:32:30.806 --> 00:32:31.388
But it's just,

730
00:32:31.588 --> 00:32:32.627
it's a terrible name.

731
00:32:32.666 --> 00:32:33.009
And,

732
00:32:33.267 --> 00:32:33.509
you know,

733
00:32:33.572 --> 00:32:36.611
it's not going to be natural or intuitive to anyone.

734
00:32:37.455 --> 00:32:40.056
And we can see a lot of retailers,

735
00:32:41.431 --> 00:32:42.134
especially since,

736
00:32:42.541 --> 00:32:43.181
so in Europe,

737
00:32:43.244 --> 00:32:46.259
specific to Europe since 2022,

738
00:32:46.306 --> 00:32:52.494
there definitely has been an inflection point on all things to do with flexibility and demand response in particular.

739
00:32:53.200 --> 00:32:56.224
And we do see a lot of companies struggling to figure out,

740
00:32:56.624 --> 00:32:56.903
you know,

741
00:32:57.282 --> 00:32:57.583
again,

742
00:32:57.645 --> 00:32:57.825
like,

743
00:32:57.845 --> 00:33:00.485
how do we explain demand response?

744
00:33:00.486 --> 00:33:04.329
But I fundamentally believe that's the wrong question.

745
00:33:04.595 --> 00:33:05.892
It's the wrong thing to focus on.

746
00:33:06.595 --> 00:33:06.790
Yeah,

747
00:33:06.791 --> 00:33:07.134
I know.

748
00:33:07.657 --> 00:33:10.978
I remember delivering a training in South Africa a few years ago,

749
00:33:11.712 --> 00:33:18.806
and I was explaining demand response by just putting on the screen a yoga figure where you really need to have your balance.

750
00:33:18.978 --> 00:33:19.243
Like,

751
00:33:19.352 --> 00:33:20.852
you have the electricity on the one hand,

752
00:33:20.884 --> 00:33:21.634
you have the house.

753
00:33:21.960 --> 00:33:37.846
in the one hand and you need to make them match and that's like a position of yoga if you stand on one foot you need to have a balance at the center and all the students were like we had heard about it but we never knew what it was and it's like yeah but it's

754
00:33:37.885 --> 00:33:49.018
not explaining to five years old but but almost yeah sometimes yeah but even you know the the difficulty in the digital world is that

755
00:33:49.708 --> 00:33:54.652
Even this small interaction that you had with those individuals,

756
00:33:55.914 --> 00:34:03.219
finding the space to be able to do that in a digital product or in a digital customer experience is really hard.

757
00:34:03.883 --> 00:34:08.734
Because people are not going to sit through a long tutorial.

758
00:34:09.047 --> 00:34:10.547
And when I say long tutorial,

759
00:34:11.516 --> 00:34:11.906
again,

760
00:34:11.953 --> 00:34:12.906
in the digital world,

761
00:34:12.953 --> 00:34:15.859
a long tutorial can be like two or three screens.

762
00:34:16.094 --> 00:34:18.250
That could already start to feel like...

763
00:34:18.536 --> 00:34:19.277
Like it's a lot.

764
00:34:20.178 --> 00:34:24.182
So that's really why efficiency of,

765
00:34:24.963 --> 00:34:25.201
you know,

766
00:34:25.322 --> 00:34:36.447
really understanding what's salient to people and just going as quickly as possible to and efficiently as possible to what's salient for people is that that's the key.

767
00:34:37.208 --> 00:34:37.528
Because,

768
00:34:37.529 --> 00:34:38.089
you know,

769
00:34:38.268 --> 00:34:41.331
especially when we're talking about energy and internet response,

770
00:34:41.370 --> 00:34:45.346
people are not naturally curious about this kind of stuff.

771
00:34:46.026 --> 00:34:46.151
No,

772
00:34:46.307 --> 00:34:46.471
but

773
00:34:47.112 --> 00:34:48.370
I've seen recently also

774
00:34:48.893 --> 00:34:52.932
Engie in France launching a campaign or a new tariff called

775
00:34:54.245 --> 00:34:55.198
Happy Hours.

776
00:34:55.636 --> 00:34:56.214
So basically,

777
00:34:56.292 --> 00:35:02.557
you have two hours where you have very cheap electricity price because you don't pay for the electricity just for the tax and everything.

778
00:35:02.573 --> 00:35:04.995
But it's like framing it as happy hours.

779
00:35:05.010 --> 00:35:05.729
You don't pay.

780
00:35:06.364 --> 00:35:07.906
Electricity for a couple of hours,

781
00:35:08.165 --> 00:35:08.406
I mean,

782
00:35:08.747 --> 00:35:10.728
that's so straightforward.

783
00:35:10.869 --> 00:35:14.271
Like everybody kind of knows what a happy hour is.

784
00:35:15.833 --> 00:35:16.357
In French,

785
00:35:16.435 --> 00:35:16.818
of course,

786
00:35:16.833 --> 00:35:18.935
because you need to translate what it is.

787
00:35:18.974 --> 00:35:20.740
But that makes it very,

788
00:35:21.677 --> 00:35:22.021
really,

789
00:35:22.201 --> 00:35:28.927
really easy to understand because it's relatable to other concepts,

790
00:35:29.099 --> 00:35:30.583
other frameworks again.

791
00:35:31.630 --> 00:35:32.146
And yeah,

792
00:35:32.208 --> 00:35:35.255
I find it interesting that finally...

793
00:35:35.940 --> 00:35:49.557
The energy sector is starting to look at what is being done in other sectors to kind of attract and make sure that customers or people are really part of it and not only not an afterthought.

794
00:35:49.596 --> 00:35:52.541
And now we are not even talking about the different,

795
00:35:53.276 --> 00:35:53.682
let's say,

796
00:35:54.354 --> 00:35:58.026
categories of the population who cannot engage for a variety of reasons,

797
00:35:58.041 --> 00:36:00.479
who are not digitally confident either.

798
00:36:00.604 --> 00:36:03.151
So that's that would be another topic of conversation.

799
00:36:03.182 --> 00:36:04.307
But yeah,

800
00:36:04.308 --> 00:36:04.963
I think that's...

801
00:36:05.176 --> 00:36:22.920
really cool that people like you are able to you to bring this clarity when building this kind of tools yeah well i think one of the things that's that i'm it's fascinating to me now is you know as we accelerate into the the

802
00:36:22.998 --> 00:36:29.467
era of flexibility you know things like this so that you know this happy hour offer and everything around.

803
00:36:30.260 --> 00:36:32.142
different vehicle-to-grid offers,

804
00:36:32.203 --> 00:36:33.543
smart charging offers,

805
00:36:33.664 --> 00:36:34.285
all these things.

806
00:36:34.805 --> 00:36:41.730
The acceleration of flexibility is opening up a whole new array of potential offers.

807
00:36:41.754 --> 00:36:44.894
And I think that's super exciting because we,

808
00:36:45.293 --> 00:36:46.613
so at Budbeck,

809
00:36:46.660 --> 00:36:51.394
we have a practice area around digital solutions that we've talked a lot about.

810
00:36:51.395 --> 00:36:54.879
We also have a practice area in data science.

811
00:36:55.082 --> 00:36:57.832
So about two-thirds of the team have PhDs.

812
00:36:58.944 --> 00:36:59.705
Things like physics,

813
00:36:59.765 --> 00:37:00.405
mathematics,

814
00:37:00.645 --> 00:37:00.985
battery,

815
00:37:01.106 --> 00:37:01.567
chemistry,

816
00:37:01.786 --> 00:37:02.048
even.

817
00:37:02.926 --> 00:37:05.930
And so we do some pretty intense data science work.

818
00:37:06.911 --> 00:37:12.341
And what we're seeing is on the topic of optimization of flexibility,

819
00:37:13.036 --> 00:37:16.676
there's a really fascinating convergence of those two topics.

820
00:37:16.739 --> 00:37:20.645
Because on the data science side,

821
00:37:20.802 --> 00:37:21.192
obviously,

822
00:37:21.239 --> 00:37:24.536
there's a lot of work to do to optimize.

823
00:37:25.005 --> 00:37:26.645
if we're talking about residential,

824
00:37:27.192 --> 00:37:27.567
between...

825
00:37:28.704 --> 00:37:33.691
Either just aggregated demand response or for those customers,

826
00:37:33.710 --> 00:37:33.890
which,

827
00:37:34.148 --> 00:37:34.390
you know,

828
00:37:35.031 --> 00:37:35.933
it's not everybody,

829
00:37:36.011 --> 00:37:37.429
but those customers who have PV,

830
00:37:37.913 --> 00:37:38.156
you know,

831
00:37:38.351 --> 00:37:38.851
vehicles,

832
00:37:38.913 --> 00:37:39.413
storage,

833
00:37:39.913 --> 00:37:44.116
the optimization of that has a lot of technical complexity.

834
00:37:45.476 --> 00:37:47.710
We've worked at the grid scale as well.

835
00:37:47.742 --> 00:37:49.632
And so there's a ton of complexity there.

836
00:37:50.585 --> 00:37:52.132
But ultimately,

837
00:37:53.148 --> 00:37:57.913
there are customer experiences that have to be attached to that.

838
00:37:58.760 --> 00:37:59.621
And so the

839
00:38:00.661 --> 00:38:02.624
NG example you gave is a great example.

840
00:38:02.702 --> 00:38:03.367
So this is where,

841
00:38:03.765 --> 00:38:04.007
you know,

842
00:38:04.206 --> 00:38:05.245
they're doing that pretty well.

843
00:38:06.027 --> 00:38:09.007
But I think a lot of players are still very focused on,

844
00:38:09.874 --> 00:38:10.109
you know,

845
00:38:10.195 --> 00:38:14.038
look at all these ways that we can control your electric vehicle.

846
00:38:14.781 --> 00:38:15.202
And it's like,

847
00:38:15.234 --> 00:38:15.421
well,

848
00:38:16.078 --> 00:38:19.374
that's really cool for us that are inside the energy sector.

849
00:38:19.546 --> 00:38:21.984
But that's not necessarily what's going to be salient to people.

850
00:38:22.078 --> 00:38:22.343
You know,

851
00:38:22.718 --> 00:38:23.218
people is,

852
00:38:24.046 --> 00:38:24.281
you know,

853
00:38:24.390 --> 00:38:27.109
are you going to charge my car for free?

854
00:38:28.184 --> 00:38:28.424
You know,

855
00:38:28.805 --> 00:38:39.152
that's something I'm much more interested in and I'm much more willing to hear about your value proposition if you're telling me that if you give me access to your car,

856
00:38:39.214 --> 00:38:40.378
you can have free charging,

857
00:38:40.714 --> 00:38:40.956
you know,

858
00:38:41.097 --> 00:38:43.480
X number of days per year or whatever the case might be.

859
00:38:44.082 --> 00:38:47.425
Not even mentioning how daunting the word control can be.

860
00:38:48.238 --> 00:38:48.988
I mean,

861
00:38:48.989 --> 00:38:56.597
I worked on different cases where basically there was a proposal to install some devices to monitor.

862
00:38:56.785 --> 00:38:57.191
to control

863
00:38:57.388 --> 00:38:58.909
So that was presented as control,

864
00:39:00.108 --> 00:39:01.330
the consumption of the home.

865
00:39:01.428 --> 00:39:01.870
Of course,

866
00:39:01.889 --> 00:39:02.870
no one wanted that,

867
00:39:03.651 --> 00:39:06.088
but they were okay to get some monitoring,

868
00:39:06.151 --> 00:39:08.330
but control was absolutely off-limits.

869
00:39:08.791 --> 00:39:13.252
So it's also this kind of mindset that needs changing.

870
00:39:13.315 --> 00:39:14.190
And yeah,

871
00:39:14.346 --> 00:39:16.346
I think it's really interesting that,

872
00:39:16.596 --> 00:39:16.846
you know,

873
00:39:17.065 --> 00:39:22.034
you're able to blend all this data analysis,

874
00:39:22.221 --> 00:39:24.330
and it's not only about collecting more data,

875
00:39:24.440 --> 00:39:25.721
but collecting better data.

876
00:39:26.376 --> 00:39:28.940
with really implementation.

877
00:39:29.039 --> 00:39:33.303
And so what are the next steps with the Baalbek Insights now?

878
00:39:34.467 --> 00:39:34.725
Well,

879
00:39:34.803 --> 00:39:34.928
so,

880
00:39:35.022 --> 00:39:35.264
you know,

881
00:39:35.303 --> 00:39:36.647
we basically...

882
00:39:37.836 --> 00:39:39.558
We have been we've been lucky.

883
00:39:39.998 --> 00:39:45.566
I wish we could say that we had the vision to go after this.

884
00:39:46.105 --> 00:39:46.824
But but actually,

885
00:39:46.902 --> 00:39:51.512
our clients brought us on to topics of flexibility about five,

886
00:39:51.566 --> 00:39:52.191
six years ago,

887
00:39:52.652 --> 00:39:52.894
you know,

888
00:39:52.910 --> 00:39:57.449
because they were more more forward thinking than us.

889
00:39:58.121 --> 00:39:59.590
But the result now is that,

890
00:39:59.621 --> 00:39:59.855
you know,

891
00:39:59.856 --> 00:40:00.543
we have five,

892
00:40:00.574 --> 00:40:02.402
six years of experience.

893
00:40:03.752 --> 00:40:06.234
doing a lot of things that companies are trying to figure out now.

894
00:40:06.356 --> 00:40:06.475
So,

895
00:40:06.695 --> 00:40:06.955
you know,

896
00:40:07.055 --> 00:40:12.719
optimizing flexibility in commercial buildings that have more vehicle charging,

897
00:40:12.781 --> 00:40:13.242
more PV,

898
00:40:13.461 --> 00:40:14.320
more storage,

899
00:40:14.680 --> 00:40:15.883
doing that for cities,

900
00:40:16.883 --> 00:40:20.141
and then obviously doing it on the residential front as well.

901
00:40:21.250 --> 00:40:27.172
Whether it's the customer experience or the algorithms behind all that optimization,

902
00:40:27.813 --> 00:40:28.063
you know,

903
00:40:28.064 --> 00:40:28.875
we already have five,

904
00:40:28.891 --> 00:40:32.266
six years of things that have been in market.

905
00:40:32.748 --> 00:40:33.508
that are working,

906
00:40:34.549 --> 00:40:38.389
that we've built for clients because fundamentally we're a consulting company,

907
00:40:38.510 --> 00:40:40.608
so we don't own the IP.

908
00:40:41.209 --> 00:40:42.350
Our clients own the IP.

909
00:40:43.490 --> 00:40:49.147
So that's really the current acceleration of flexibility is what we're super excited about because,

910
00:40:49.631 --> 00:40:49.912
again,

911
00:40:50.147 --> 00:40:53.616
there's that convergence of the technical complexity,

912
00:40:53.959 --> 00:40:58.569
but having to take that away from customers as much as possible.

913
00:40:58.912 --> 00:41:01.350
We can't put all this technical complexity on them.

914
00:41:01.896 --> 00:41:03.658
We're not going to be able to explain all this to them.

915
00:41:03.718 --> 00:41:06.961
So we have to figure out better customer experiences,

916
00:41:07.020 --> 00:41:13.188
better products to be able to get the most out of all the opportunities that are present with flexibility.

917
00:41:14.289 --> 00:41:14.625
So cool.

918
00:41:15.070 --> 00:41:15.867
Thank you so much,

919
00:41:16.070 --> 00:41:16.313
John.

920
00:41:16.828 --> 00:41:20.039
It's been such a pleasure to have you here in the pod.

921
00:41:20.742 --> 00:41:22.242
I feel that I've learned a lot.

922
00:41:22.555 --> 00:41:23.320
And yeah,

923
00:41:23.617 --> 00:41:30.180
I think it's a great way to start 2026 to see that it's possible to break frontiers.

924
00:41:30.360 --> 00:41:32.262
between the various disciplines.

925
00:41:32.943 --> 00:41:33.624
And yeah,

926
00:41:33.945 --> 00:41:36.066
there is science,

927
00:41:36.265 --> 00:41:44.214
there is very hard science with the part that you're extremely excited about.

928
00:41:44.714 --> 00:41:45.277
And yeah,

929
00:41:45.278 --> 00:41:45.714
on the show,

930
00:41:45.933 --> 00:41:52.581
you've also heard some people talk about social sciences and of course,

931
00:41:52.644 --> 00:41:53.425
even philosophy.

932
00:41:53.956 --> 00:41:55.581
So it all blends really,

933
00:41:56.222 --> 00:41:57.066
really well together.

934
00:41:57.191 --> 00:41:57.300
So...

935
00:41:57.800 --> 00:41:58.080
Thank you,

936
00:41:58.120 --> 00:41:58.280
Sean,

937
00:41:58.360 --> 00:42:02.040
for being the first guest of this new year of Energetic.

938
00:42:02.240 --> 00:42:05.923
And happy new year and all the best with the

939
00:42:06.603 --> 00:42:07.384
Baalbek Insights.

940
00:42:07.423 --> 00:42:08.618
So it's a new project.

941
00:42:09.400 --> 00:42:10.259
It's a continuity.

942
00:42:10.384 --> 00:42:11.126
But yeah,

943
00:42:11.243 --> 00:42:13.142
I'm looking forward to see how it unfolds.

944
00:42:15.282 --> 00:42:18.220
Thank you for tuning in to another episode of Energetic.

945
00:42:18.517 --> 00:42:26.345
It's been a pleasure diving deep into the world of sustainability and the just energy transition with some of the most forward thinking mouths out there.

946
00:42:27.016 --> 00:42:27.797
I'm Maureen Connelly,

947
00:42:28.017 --> 00:42:29.678
your host from Policy Consultancy,

948
00:42:29.739 --> 00:42:30.819
Next Energy Consumer,

949
00:42:31.202 --> 00:42:34.643
and it's been an incredible journey growing this podcast together with you,

950
00:42:35.045 --> 00:42:37.163
our knowledgeable and passionate listeners.

951
00:42:37.850 --> 00:42:39.108
Since 2021,

952
00:42:39.288 --> 00:42:40.772
we've shared countless stories,

953
00:42:40.928 --> 00:42:41.413
insights,

954
00:42:41.428 --> 00:42:44.577
and ideas over more than 40 episodes,

955
00:42:44.952 --> 00:42:48.139
and it's all thanks to your support and enthusiasm.

956
00:42:48.842 --> 00:42:53.124
If you've enjoyed our journey so far and want to help us keep the conversation going,

957
00:42:53.498 --> 00:42:55.124
why not support us on Patreon?

958
00:42:55.716 --> 00:42:58.1000
Every bit helps us bring more inspiring content your way.

959
00:42:59.500 --> 00:43:01.303
Check out the show notes for the link.

960
00:43:02.002 --> 00:43:02.424
And hey,

961
00:43:02.885 --> 00:43:08.545
if you're a part of an organization that shares our passion for a sustainable and inclusive energy future,

962
00:43:09.053 --> 00:43:11.935
we're excited to explore sponsorship opportunities with you.

963
00:43:12.388 --> 00:43:18.451
It's a fantastic way to connect with a dedicated audience and make an even bigger impact together.

964
00:43:19.420 --> 00:43:20.842
Shout out to the fantastic

965
00:43:21.217 --> 00:43:23.920
Igor Mikhailovich from Podcast Media Factory.

966
00:43:24.312 --> 00:43:26.693
for his incredible sound design work,

967
00:43:27.055 --> 00:43:29.498
making every episode a joy to listen to.

968
00:43:30.397 --> 00:43:31.420
If you haven't already,

969
00:43:31.678 --> 00:43:35.143
make sure to subscribe to Energetic on your favorite podcast platform.

970
00:43:35.604 --> 00:43:39.104
And if you think a friend or a colleague could benefit from our episode,

971
00:43:39.486 --> 00:43:41.096
we'd love for you to spread the word.

972
00:43:41.533 --> 00:43:45.768
It helps us grow and keep the energy transition conversation alive.

973
00:43:46.252 --> 00:43:47.549
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974
00:43:48.111 --> 00:43:53.268
Follow us on Twitter and LinkedIn to stay engaged and update on all things Energetic.

975
00:43:53.548 --> 00:43:55.448
Thanks once again for lending your ears.

976
00:43:55.589 --> 00:44:06.132
Until next time.

