PERC’s Priority: Enhancing Propane In National Energy Conversation

Meeting in Minneapolis in early July 2018, the 21-member Propane Education & Research Council gathered to approve some remaining 2018 budget items as well as finalize plans for the 2019 budget. Throughout the two-day meeting, council members and staff presented plans for implementing changes in various areas ranging from accounting practices to how PERC can best convey the benefits of propane to thought leaders and potential users in a variety of business segments. The discussion of these plans focused on the advantages of new information technology tools as part of the solution to attain the desired results.

In remarks during his president’s report, PERC president and CEO Tucker Perkins described the changes in approach to marketing propane that are forthcoming following a process of communication with retail propane marketers that began last year when he assumed the top staff position at PERC.

“The process of listening to retail propane marketers never ended. It will be a continual process,” Perkins said. “Getting out and talking to people opened up communications, even among people not involved in their state association.” Councilors were reminded of three tenets he follows:

• PERC serves the retail propane marketer (and producers and suppliers);

• PERC spends other people’s money; and

• PERC can’t do it alone. It must have active collaboration.

Perkins stressed the need for improved digital platforms for providing information that can be used by the more than 3500 retail propane marketers in the U.S. to educate and sell to U.S. consumers. “Quality training of propane employees will continue to be provided in the form of computer-based training, market training, safety training, and a lot of valuable marketing training will be provided to retail marketers at the Can-Do Conference in Chicago,” Perkins added. “Regarding tenet number three, PERC’s active collaborations have increased to many organizations with common goals.” He mentioned the National Propane Gas Association (NPGA), GPA Midstream Association, National Truck Equipment Association (NTEA), and Green Building Council among others that PERC must collaborate with on an ongoing basis.

In addition to the many strategic partners Perkins cited, environmental conferences will be another activity where PERC will participate. “We need to elevate thought leadership and convince many that our fossil fuel can serve you while being environmentally conscious.”

When councilor Randy Doyle asked Perkins’ thoughts on offsetting bad publicity, he replied that PERC needs to arm everyone with the facts and talk to any negative friends one-on-one.

Much of the first day’s meeting was devoted to discussion and approval of dockets for projects through the end of 2018. The following dockets were all presented to the Council and approved: Docket 21634: 2018 Corporate Communications, $950,000; Docket 21631: 2018 Website Consolidation and Re-design, $475,000; Docket 21633: 2018 Integrated Marketing Communications, $3.1 million (approved pending public comment period ending Aug. 24); Docket 21638: 2018 Marketer Sales Training Program Development, $450,000; Docket 21740: 2018 Workforce Recruitment, $250,000; and Docket 21344: 2018 Material Handling Outreach and Marketing, $300,000.

Individual dockets were presented and discussed, starting with the Corporate Communications funding request that is designed to elevate propane’s place in the national energy conversation. With a goal of positioning PERC and the propane industry as leaders with a forward-thinking, efficient, and socially responsible energy, the Corporate Communications plan budget includes thought leadership, marketer outreach, safety communication, winter preparedness, marketer resources, and agency communication and oversight.

The Website Consolidation and Re-design plan was presented by Ingrid Bechard, director of market communications. Goals include websites that are simplified, integrated, accessible, and sharable.

Gregg Walker, director of external communications, and Bechard offered an extensive overview of the largest docket, $3.1 million, for 2018 Integrated Marketing Communications. Of this, $2,125,000 is for a media buy while other line items consist of $500,000 for creative; $300,000 for marketer support through a help desk; and $175,000 for research, reporting, and tracking. The principal contractor for the docket is Swanson Russell, a public relations firm that has worked closely with PERC for several years. The homeowner outreach program, covered in this docket, will include a digitally dominated media buy that will reflect regional and seasonal differences in propane markets. It will include a full complement of print, radio, out-of-home, and video materials.

The Marketer Sales Training Program Development docket, presented by Bridget Kidd, senior vice president, follows research and evaluation of previous programs including focus group results regarding what will work best going forward. A key addition to the training is more in-depth job-specific, task-based modular training, available via computer, designed to help marketers be successful. The goal is to provide them the tools to succeed in markets where PERC is active. Modules to be offered include “Basics of Residential/Commercial Propane Uses,” “Basics of Off-Road Vehicle Propane Uses,” “Basics of Autogas Uses,” “Basics of Agricultural Propane Uses,” and “Basics of Material Handling Propane Uses.”

Sales and customer service modules will include “Intro to Sales Methodology,” “Expand Sales through Customer Service,” and “Identify Customer Problems Series.” Key OEM and manufacturers training modules include “‘Trusted Advisor’ Relationships with Customers,” “Creating a Strategic Network,” and “Developing High-Value Business Partnerships.” There will be further development of programs regarding building credibility to grow gallons in areas of defining business strategy, connecting with the right people (in the right way), and problem-solving. Full-day, multi-market training in-person sales summits will also be held to bring together industry members with PERC market leads, OEMs, dealers, and distributors.

The Workforce Recruitment docket is designed to begin the initial step toward creating content and programs for marketers and state entities to use in workforce recruitment activities. The message will focus on improving the image of the propane industry as desirable, career-minded, and sustainable for those new to the workforce or transitioning into a new career.

A committee chaired by councilor Joe Rose, a former president and CEO of the Propane Gas Association of New England, presented a plan to phase out the Partnership with States program. However, an effort was made to ensure that programs already committed by states would not be jeopardized. The $1 million budgeted for the partnership in 2018 represents a decrease of $500,000. It was recommended that $500,000 be allocated toward workforce development in 2019. In 2020, the Partnership with States program will be eliminated completely, with no funding allotted. Eligible 2019 Partnership with States programs will include equipment and appliance rebates and marketing in conjunction with the “Propane Can Do That” messaging campaign. Going forward, the PERC Market Development and Outreach Working Group will continue to discuss new ideas for sharing funding projects with state entities for 2019 and beyond.

On the second day, the discussion turned to the 2019 proposed budget. It will be released for a public comment period, following the Council’s input, prior to a vote for approval at the next Council meeting in November. In a high-level overview, the budget changes little from the 2018 budget with no changes in assessments, rebates, and investment income and small changes in administrative and program funding. The draft budget presented at the meeting proposes changes in allocation based on the target audience with the propane industry moving from 18% in 2018 to 23% in 2019; the consumer market going from 36% in 2018 to 27% in 2019; and the business market from 46% in 2018 to 48% in 2019. A presidential discretionary amount of about 2% is also proposed.

While the budget looks similar, details of strategies and tactics continue to shift significantly from traditional marketing approaches to more digitally dominated, regional approaches with more specific messages going to more specific audiences. Targeted influencers and decision makers will continue to be a major focus. Following an overview of the budget by Michael Eason, senior vice president, administration and finance, Cinch Munson, senior vice president, business development, discussed the process of business development and how PERC plays a role in helping marketers grow their businesses. He explained the evolving process of influencer outreach. Tactics will continue to include participation in trade shows of other industries and sending industry-specific newsletters. Training of industry members to better target these audiences and increase market share will be enhanced. “We knock on a lot of doors in the business development process,” Munson said. “Opening these doors can lead to a lot of new business opportunities for retail marketers.”

The Council seeks public comment on the 2019 budget via its website, www.propanecouncil.org. —Pat Thornton