07 Energizing Retail Power with Consumer-Centric Innovation
VENTURE INCUBATION
THE COMPANY
Rhythm Energy - A Corporate Venture within a Major Global Investment Bank
THE CHALLENGE
Rhythm Energy, a corporate venture operating within a major global investment bank, embarked on a mission that challenged industry norms. They believed that while the retail energy industry held promise in terms of economics, there was a conspicuous absence of exciting companies to acquire. Their bold vision was to build an exceptional retail energy provider from the ground up. The core question guiding their journey was: What could be a compelling value proposition for a retail energy provider that not only attracted customers but also fostered genuine consumer engagement?
THE PROJECT
In an industry where many players resorted to misleading claims and fear tactics to compete, Rhythm Energy aimed to rewrite the narrative. They recognized the unhealthy relationship that had developed between energy providers and consumers and sought to revolutionize it.
Rather than adopting the conventional strategy of luring customers with rich incentives and penalizing them for leaving, we envisioned differentiation through an unparalleled customer experience and unwavering loyalty. This presented a unique challenge in an industry accustomed to traditional customer acquisition tactics, including introductory ("teaser") rates.
To win the hearts and minds of customers, Rhythm Energy recognized the need for a multifaceted approach, encompassing high-quality product development, branding, and user experience design.
The value proposition we crafted for Rhythm through deep qualitative research and human-centered design was nothing short of compelling:
- Fair and transparent pricing, demystifying an often convoluted cost structure.
- A commitment to renewable and locally sourced energy, aligning with environmental consciousness.
- An innovative points-based loyalty program, rewarding customers for their trust and loyalty.
- A penalty-free trial period, offering customers the freedom to explore the Rhythm experience risk-free.
- Accessible 24/7 customer service, ensuring that consumers felt heard and supported.
- Proactive tips and alerts to empower customers to monitor their energy usage and save money.
This ambitious endeavor required the leadership of a cross-functional team spanning research, graphic design, UX design, business strategy, risk management, and energy trading.
The journey unfolded in multiple phases, involving comprehensive market analysis, the prototyping of value propositions, and the meticulous design of the brand. Subsequently, the team embarked on the challenging task of building the business from the ground up.
My vision for Rhythm energy was for it to become the electricity provider that truly valued consumers, where loyalty was genuinely rewarded, and customers were treated with respect, honesty, and transparency at all times.
This distinctive position within the retail energy landscape set them apart.
In early 2021, Rhythm Energy launched its services in Texas, marking the beginning of its remarkable journey. The venture has rapidly gained traction and recognition as one of the most successful launches from our client's internal venture accelerator.