Fuel Oil News

Fuel Oil News July 2014

The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding

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have it. So you always have to remind your customer of the value you bring in." A lot of that value can be generated through expanded capabilities and smart home options. In addition to burglary detection, a system can incorporate fire detection, water detection, carbon mon- oxide detection, elderly or infirm health monitoring, temperature monitoring/ control — virtually any facet of home auto- mation. While burglary detection is critical when needed, hopefully that will be a rare occurrence. The "wow factor" can be expe- rienced far more frequently. "At my house we've had some pretty severe thunderstorms lately and they called me on my cell phone to tell me that I'd lost power in the house," said Larsen, who per- sonally uses the service. "They are that good at getting a hold of customers to let them knows what's happening in their homes. And every customer can set it up differ- ently. What do you want to do when the alarm goes off? Do you want us to call you or the police? I have them call me first in case I accidentally set it off, which has hap- pened in the past." One service MCS offers that has been well received, and that fits well with its customer base, is a life safety system. The homeowner wears a small pendant around the neck and can press a button and speak with a dispatcher if there is an emergency. Integrating the home comfort aspect is obviously a natural, if not the natural, integration. "If somebody is an oil customer and a security customer we tie the heating system into the security system so that if the heat ever goes off we know about it before the house gets cold," Cohen said. "We can get out there and fix it right away. We were aware that a customer might question the tie-in between an oil company and the security service but by offering that tie-in we made it a more rational in the consum- er's mind." While research suggests that middle and upper class customers are the most recep- tive, security needs cross all boundaries (though the scale and complexity of the system can vary significantly). Also, there are opportunities to market beyond the existing customer base. "One thing that surprised me is that we thought we were going to get all of our oil accounts to switch over, but in fact we had people come in who had other forms heat but they wanted our security service," said Roy Friedman, president of Standard Oil of Connecticut. "We have a reputation in the area that resonates with people, even those who are not our customers. In the security business people tend to have a choice between huge companies like ADT, or really small companies where you really don't know who they are. So, we sort of come in with the best of both worlds." 30 JULY 2014 | FUEL OIL NEWS | www.fueloilnews.com BUSINESS OPERATIONS

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