A customer in Victoria, looking to sign up with an electricity retail company for their utilities, can be quite challenging. Thanks to the marketing team efforts, who are constantly alluring customers like us about what benefits they can offer and why they are different to their competitors. If you thought they were the mobs who supplies electricity, then you need to go back to your drawing board and rethink again.

Electricity retailers are mediators who is just customer facing helping customers to bill for what you use. They are business who has negotiated buying electricity on your behalf to resell them back to you. In Victoria, there are a total of 21 electricity retailer suppliers fighting the battle of being the top most retailer, within a population of approximately 2.7 Million consumers among Residential, Small business and large business. [Energy Retailers Comparative Performance Report – Customer Service 2014-15]

The main objective among these retailers is to gain consumer volume to remain profitable. Operating in a very competitive and non-customer facing, service market, the marketing team in this sector has a direct influence on the strategies adopted to generate consumer leads. There is considerable investment undertaken by these retailers to promote their business to influence consumer behaviour’s decision to choose them as a preferred service retailer.

Some of the key marketing activities undertaken by these energy retailers are media advertisement, website traffic measurement, internet marketing activities – SEO, social events and promotions, sponsorship programs and campaigns.

It is important for the marketing team to monitor their effectiveness of their marketing strategy as it leads to an understanding of how business is performing. Table 1.1 shows possible marketing measures that can be used by energy retail companies

Table 1.1

These measures have a direct influence on how the energy sector performs in terms of revenue generated, market share increase, pricing strategy determines profitability, as the financial performance is based on how Marketing efforts drives consumers to choose their retail company.

Financial measures such as Gross profits and Earnings before income and taxes (EBIT) are based around increase in customer volume and how much was billed during the reporting period, which is a measure of customer value.

Table 1.2

These metrics indicate a direct relation between how Marketing plays an important role in the energy retail industry. These statistics gives an indication to Managers on how well their marketing mix design has helped business to grow and be profitable and what changes they need to make in their design to correct and improve.


Sharp, B. (2013) Marketing Metrics Marketing: Theory, Evidence, Practice. Oxford University Press, Melbourne, Australia.

Mintz, O, Currim, IS (2013). What drives managerial use of marketing and financial metrics and does metric use affect performance of marketing mix activities? <  Journal of Marketing, 77 (2), 17-40.

Davis, J 2013, , Measuring Marketing : 100+Key Metrics Every Marketer Needs, John Wiley & Sons, 2nd Edition, Singapore.






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