Four Areas of Focus for PGW Related to Its Parts & Labor Plan

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Philadelphia Gas Works (PGW) corporation’s Parts & Labor Plan provides its customers the support and protection of their appliances in case of malfunctioning and breaking. The paper aims to identify four areas of focus to improve customer acquisition by analyzing secondary data and using a literature review as a research methodology prepared earlier on the topic. PGW states that the affordability ($133) of the plan and the efficiency of their technicians in repairing any damage to gas-depending tools can protect the customers from time and money costs (PGW, 2021). This affects the customers using natural gas at their homes and offices as heaters, dryers, and split systems. The map below shows the gas potential in Philadelphia, where the high potential is marked with a darker color.

Figure 1. PECO natural gas availability map.

Indeed, over half of Pennsylvania houses use natural gas as the source for heating (U.S. Energy Information Administration, 2021). The Parts & Labor Plan is striking the existing customers and is a perfect example of a customer retention strategy.

However, to attract clients to the program, it is essential to investigate customers’ needs, satisfaction rates, and priorities; in other words, involve customer acquisition approaches. The latter is a deeper analysis of the clients’ decision-making processes which allows the firm to adapt and modernize its promotion and distribution networks. According to the media’s recent reports, the gas costs will have substantially raised in 2022 (Maykuth, 2022). Some of the customers might understand the global reasons and drivers for the elevation of energy costs; however, some individuals might consider PGW as a cost raiser with the purpose of self-profit. To reach sympathy and understanding from the clients, PDW can enhance the media as a communication method to explain the drivers of the up-to-date shifts in the costs.

Moreover, to reach customers’ satisfaction and loyalty, the Parts & Labor Plan can propose the free checking of the gas systems for their clients. Taking the costs of technicians’ transportation on themselves might help increase the demand for the program if clients receive free service showing caring about their safety and protection. In addition, the technician could advise the house members on some gas-saving strategies and the methods of upgrading the system of heating or air conditioning. Additional costs will be needed for the education of technicians, which will eventually profit by increasing the customers’ interests and purchases. In 2019, the state’s poverty rate was 24.3% which means the free additional service options might meet the attraction of the customers (Data USA, 2019). The median household income in 2019 was $47,474 (Data USA, 2019). Compared to the Parts & Labour Plan, the proposal is profitable, useful, and very affordable for the population of Philadelphia.

Ethnical diversity of the state should also be considered in case some of the customers have difficulties with English speaking and comprehension. The state has a 15,2% of Hispanic population, and a part of them speaks only Spanish (Data USA, 2019). If the members of the household are Spanish speakers, the company can provide them with a technician that knows Spanish and could explain all the specialties of gas utilities in their home. That makes the approach of the Parts & Labor Plan client-oriented and detailed.

Thus, this assignment proposed PGW’s Parts & Labor Plan areas to focus on based on an analysis of natural gas usage in Philadelphia and customers’ characteristics. From the economic point of view, the average income and poverty levels in the state highlight that adding free checking services to the program can elevate the interest of the customers. The technician can also analyze and advise the clients on some changes in gas equipment that can save costs or increase their safety. From the sociocultural side, developing communication methods that explain the recent elevation of energy costs in the world can save clients’ trust and create better understanding of PDW’s cost behavior. Providing a Spanish speaker to the customers having issues with explaining themselves in English improves the loyalty and trust in the company and its programs.