Yahoo Finance AGL ad slammed as Aussies crushed by energy price rises: 'Tone deaf'
Energy providers risk being “dropped like a hot potato” by clued-in Aussies who aren’t buying thinly veiled attempts to be on their side.
An advertising campaign by AGL has been criticised for offering “tone deaf” tips to Australians as the soaring price of energy bills adds to an already-crushing cost-of-living toll.
A billboard in Melbourne included a ‘saver tip’ for consumers to “sun or air-dry clothes on a clothing rack to save energy” instead of using a dryer.
“Jack up prices and then have the audacity to think we aren’t smart enough to figure this thing out ourselves,” a Melbourne man said.
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“This just lets them pay lip service to ‘helping reduce energy bills’,” another Aussie said.
Using a dryer instead of air drying costs the average person about $231 a year, according to research from ING in August.
This research came before the July 1 energy price hikes started to trickle down, with Aussies receiving their bill from the last quarter reporting differences of up to $800 for the worst hit.
Another consumer pointed out how hard it was for many Australians to even get their clothes out in the sun given the current housing crisis, with more “crammed” into smaller quarters or without backyards.
“They know nobody in Australia is using a clothes dryer by choice. They know that we’re all crammed into apartments with no space to air dry our clothes,” they said.
Some argued pushing a message to use less was a distraction for fed-up customers who may go seeking a better deal.
Marketing expert and professor of consumer psychology Jana Bowden agreed this was a harsh reality for providers now contending with “stressed” Aussies in the middle of a cost-of-living crisis who were increasingly “cynical” and generally didn’t feel utility providers were on their side.
“Consumers are smart, they're switched on and they have highly honed bullshit detectors when it comes to knowing whether a brand is genuinely trying to help them or just faking it,” Bowden told Yahoo Finance.
“Feigning support just doesn't cut it in a world where consumers are clued-up and can see straight through the narrative.”
Providers risk being hung out to dry: Find the best value
Consumers weren’t looking for a “two-way relationship” with brands they were interacting with on a personal, financial level - like energy providers, telcos and banks - and instead expected them to get the job done “at a fair price”, the Macquarie University academic said.
“Consumers’ tolerance of this sort of messaging is low. Consumers don't see energy providers as 'partners' there to help them. In fact, it’s almost the opposite. They often view them through the lens of disdain,” she said.
This leaves brands “walking a tightrope” with advertising and the prospect of being dropped “like a hot potato” if thinly veiled attempts to appear on a consumer’s side are identified.
“You don't get to apologise and regain the consumer in these sectors,” Bowden said.
“If there aren't any contracts trapping the consumer and if the price is better elsewhere, then boom, they're out the door, and they're telling everybody about their bad brand experience to boot.
“That's how consumer psychology operates in these sectors. There's zero tolerance.”
Remember, you can always check if your energy plan is the best value on this government comparison website for people in New South Wales, Queensland, South Australia, Tasmania and the ACT, while Victorians can check their plans here.
AGL described the dryer as “one of the biggest home energy drainers” and said running one twice a week for two hours would use about 688kWh/yr.
A spokesperson told Yahoo Finance the company was “acutely aware” of the impact Australians were feeling from cost-of-living pressures and had committed at least $70 million over the next two years to help support customers.
“AGL is committed to supporting customers who are finding it difficult to pay their energy bills,” the spokesperson said.
“We encourage customers to seek help early to discuss the different payment and support options we offer. That can include looking at whether they are on the right plan to suit their circumstances, [or] whether they would benefit from altering the size and frequency of their bill.”
Air drying clothing is just one of a number of energy-saving tips the company lists on its website and in other marketing material.
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