Research Will Help Co-ops Develop Compelling Messages That "Hit the Mark"

Younger members value different aspects of the cooperative business model than do their older counterparts, but all age groups prefer to be called "members" rather than customers. That's just one of the findings of a Touchstone Energy research study designed to provide insight into the key themes that are most compelling to specific segments of the membership and to help cooperatives deliver targeted messages to those audiences in a cost-efficient manner.

"It's all about building loyalty. Which parts of our cooperative business model hit the mark with the members we serve? This research has identified the keys to this puzzle and will lead to better communications that will be heard by all consumers," explains Touchstone Energy's Chief Operating Officer Jim Bausell.

The in-depth telephone surveys of close to 3,000 members of all age groups were conducted among five Touchstone Energy cooperatives in geographically diverse areas nationwide. These include Blue Ridge EMC in North Carolina, United Power in Colorado, Consumers Energy in Iowa, Northeastern REMC in Indiana and United Cooperative Services in Texas.

Major findings of "The Cooperative Difference" study reveal that:

* Cooperative members value the relationship with their electric cooperative and provide exemplary ratings for overall customer satisfaction, loyalty and retention. Older, low-income households rate their electric cooperative higher than younger and wealthier members.

* Reliability and the perception that the member is receiving a good value for the money are key drivers of satisfaction and loyalty across all ages. Younger members who believe that the cooperative is ethical and uses state-of-the-art systems are also more satisfied and loyal.

* The perception of value is greatly impacted by the awareness that members get money back from their cooperative when revenues exceed costs. This is the dominant attribute contributing to the sense of getting good value for the money regardless of age.

* Customers who recognize that they are members of a co-op have even higher ratings on satisfaction, loyalty and retention. One of the key drivers of perception of membership is the recognition that cooperatives give money back when revenues exceed costs.

* The top five attributes of importance for all age groups are reliability, quality service, providing good value for the money, having competent and knowledgeable employees, and operating under ethical business practices.

* Older members appear also to respond to commitment to community when they evaluate the value they receive from their cooperative. They are also impacted by the perception that the cooperative is their advocate.

* Members report high readership levels for both bill inserts and the cooperative's newsletter. Even young members appear to be reachable using these media.  

* Cable and satellite viewership is comparable to network TV, especially with young audiences.  Local papers are read more often than regional or national newspapers.

A Web conference will be conducted in the near future to drill deeper into the research findings. A comprehensive report will be provided to all Touchstone Energy cooperatives.

Member Investment Structure to Remain Unchanged in 2005

The Touchstone Energy Cooperatives board of directors voted at its last meeting to maintain the current investment structure for member cooperatives in 2005. The distribution co-op tier structure is based on the number of meters served. Annual fees are:

1 to 4,999 meters	$2,000
5,000 to 9,999	$5,000
10,000 to 14,999	$10,000
15,000 to 19,999	$15,000
20,000 to 49,999	$20,000
50,000 or more	$25,000

Co-ops are asked to make a two-for-one match at the local level to communicate the cooperative advantage.

Connect 2005 Set for May 16-18 in the Big Easy

Get jazzed about communications, branding and marketing efforts by attending Connect 2005 May 16-18 in New Orleans. Discover new strategies and tactics for communicating the cooperative advantage and providing products and services that build loyalty with younger members. The Marketing Expo will help attendees plug into the latest products and services to make members' lives easier and co-ops more successful. Get charged by the groundbreaking campaigns of cooperative professionals receiving the Spotlight on Excellence Awards--and borrow their ideas!

Hosted by Touchstone Energy Cooperatives and NRECA, Connect 2005 also offers a venue for co-op employees to connect with their peers from co-ops nationwide. The fee structure is being finalized, but one thing is certain: co-ops that send three or more employees will receive a discount off of registration fees. Stay tuned for more information.

Distinguished Service Award Nominations Deadline Dec. 15

Nominations for the Touchstone Energy Cooperatives Distinguished Service Award must be submitted to Mary McLaury, Touchstone Energy director of communications and member services, by Dec. 15, 2004. The award, Touchstone Energy's highest honor, recognizes an individual's outstanding contributions to the development, growth, and/or success of the Touchstone Energy brand at the national level. Up to two awards are presented each year at the Touchstone Energy Annual Meeting.

Previous award recipients include:
* Dawn Sweeney, former vice president of market development with NRECA
* Bob Miller, former vice president of communications and governmental affairs at East Kentucky Power Cooperative in Winchester, Ky.
* Dennis Criswell, vice president of marketing and strategic ventures at Sierra Southwest Cooperative Services, Inc., Benson, Ariz.
* Mickey Miller, president and CEO of Nolin Rural Electric Cooperative Corp. in Elizabethtown, Ky.
* Tom Upshaw, CEO of Palmetto Electric Cooperative in Hilton Head, S.C.

The 2005 Touchstone Energy annual meeting will be held in San Diego, Calif., in conjunction with the NRECA annual meeting. To obtain a nomination form and award criteria, contact Marty Haught at marty.haught@nreca.coop or 703.907.5986.

Brand Managers Tip of the Month: Touchstone Energy Challenge

Brand building is an important initiative at Corn Belt Power Co-op in Humboldt, Iowa. The G&T understands that employees who are engaged in the Touchstone Energy brand provide high-quality member service and maintain a sense of brand ownership. To drive home the importance of Touchstone Energy, and to get employees at the G&T's 10 distribution cooperatives revved up about branding, Corn Belt uses its Touchstone Energy Challenge. Originally called Power Olympics, the program promotes quality member service and success in cooperative marketing programs, which it has done since 1992.

Touchstone Energy Challenge includes points and awards for successful marketing efforts by member cooperatives. Activities measured include the installation of electric products, promotion of the cooperative to the public, electric safety demonstrations and community service projects. The co-ops score points and earn awards throughout the year based on participation and activity. All efforts support the four Touchstone Energy values of innovation, accountability, integrity and commitment to community.

New in 2004 is the Touchstone Energy Challenge "Question of the Month," an online question challenging co-op employees and directors to think about Touchstone Energy. Questions have included:

Cooperative difference: What would you say is the most important thing that makes an electric cooperative different from an investor-owned utility?

If you ran across a person on the street who asked, "What is this I hear about Touchstone Energy?" how would you answer?

Touchstone Energy Challenge accomplishes a number of objectives, including:
* Helping employees understand, demonstrate and promote the co-op difference
* Promoting electricity, products and safety
* Encouraging employee and director involvement in marketing
* Developing teamwork
* Promoting kilowatt-hour sales
* Recognizing economic development and key account activities

"The Touchstone Energy Challenge Question of the Month works to get all employees and directors engaged in communicating what the Touchstone Energy brand means to them," said Kathy Taylor, vice president of corporate relations at Corn Belt. "Participants enjoy receiving toy line trucks as incentives, but the most valuable result is their showing how living the brand is important for them personally. Their testimonials help reinforce the value of the brand to everyone who reads their responses."

In addition to points, awards and online activities, another essential part of Touchstone Energy Challenge has been training - to provide personnel with tools to be better in their jobs serving members and promoting the cooperative.

Responses to 2004 questions of the month can be found at
http://www.tsechallenge.com/asp/news/default.asp?NewsID=414 .

Web Sites That Wow

The Web Sites That Wow monthly feature is intended to demonstrate how a Touchstone Energy cooperative effectively uses its Web site in its brand-building efforts. This month's site belongs to Cuivre River Electric Cooperative in Troy, Mo. (http://www.cuivre.com/), which uses the Touchstone Energy brand images and color schemes on its site.

Get Charged! Educational Kits are Still Available For Local Schools

By distributing roughly 7,000 Get Charged! Electricity and You educational kits, nearly 400 Touchstone Energy co-ops have assisted schools in their areas with teaching about electricity and electric cooperatives. Launched in early 2003 through a partnership between Touchstone Energy Cooperatives and Discovery Channel School, participating co-ops have led a campaign to ensure that middle and junior high school students in their communities receive a high-quality education on electricity--from its beginnings to its importance in today's world.

For co-ops that have yet to participate--and for those that wish to distribute more kits to their local schools--plenty of Get Charged! kits are in stock. The kits make for an excellent example of how Touchstone Energy cooperatives are committed to the communities they serve and provide co-ops with a great tool to earn some notoriety with local press. Many cooperatives make a kit or two available to home schools in their communities.

The contents of the kit include:
* Poster for classroom use
* Two videos
* Interactive CD-ROM featuring electricity
* Lesson plan:  Get Power - The Cooperative Way
* 10 Student Activity Books
* Electricity Teachers Resource Guide
* Customizable letter to parents and schools explaining the educational program

Touchstone Energy cooperatives interested in distributing the Get Charged! kits to schools in their communities can place orders and obtain additional information at www.touchstoneenergy.coop. Click on the Discovery Channel School icon in the upper right-hand section of the Web page.

Illinois Co-ops Help Members With Health Care Costs

Two Illinois Touchstone Energy cooperatives are making a major difference with members in need of health care, but who do not have medical insurance to cover the high costs. Under a recently signed agreement between St. John's Hospital in Springfield, Ill., and Menard Electric Cooperative (MEC) and Rural Electric Convenience Cooperative (RECC), the co-ops' members who have no medical insurance and are not eligible for health care benefits such as Medicare or Medicaid are eligible to save on the cost of services from St. John's.

"This new agreement will mean a huge savings for a co-op member who needs treatment and goes to St. John's Hospital," said RECC President/CEO David Stuva.
 
A 30 percent discount is available to active co-op members and their spouses and dependents. It applies to inpatient and outpatient charges from St. John's Hospital, but not to physicians' charges or services from other companies.

"Today's medical procedures are often expensive, but this plan makes them more affordable for the consumers who may be most vulnerable to a financial hardship," added MEC Manager Lynn Frasco.

Register Today for NET2005

Register now for Touchstone Energy Cooperatives' sixth annual New and Emerging Technologies Conference (NET2005) Jan. 19-21, 2005, at the Saddlebrook Resort, Wesley Chapel (near Tampa), Fla. As in the past, the NET conference offers the latest on emerging technologies and trends important to electric co-ops and their business customers. Click here--Online registration--to access registration information.

Keynote speaker Hunter Ellis, host of the History Channel's Tactical to Practical, will explore the evolution of military innovations--night vision, GPS, robotics, remote-operated vehicles--into everyday life.  On the emerging technology front,  GM's fuel-cell prototype car, HydroGen3, will be on display at the conference.

The NET Conference has plenty to offer to a range of cooperative audiences, including CEOs/general managers, marketing personnel, business development officials, key accounts managers, and economic development professionals. A pre-conference workshop for co-op staff responsible for managing key accounts takes place at the resort Jan. 18.

For questions regarding the conference program, contact Kathryn Momot at Kathryn.Momot@nreca.coop or 703.907.5707.

Web Conference to Offer Insight on Serving Latino Members

As the Latino population continues to expand in many regions of the country, co-ops are learning that they must implement effective marketing tactics to provide a Latino-ready and Latino-friendly co-op experience. With more than 40 million Hispanics residing in America, no co-op can afford to overlook this exploding population.

Join The Latino Consumer: Member Services for Today & Mañana Web conference, Dec. 2 from 1 p.m. to 2:15 p.m., to learn cultural perspectives and values and how to tackle daily situations with Latino members. Co-sponsored by Touchstone Energy Cooperatives and NRECA, the Web conference offers an opportunity to gather insight and solutions to connect with the Latino community served by cooperatives.

This Web conference will help co-op staff:
* Understand why the Latino market is so critical to co-op growth
* Identify the four Latino mindsets and values
* Analyze cultural nuances and "Dos and Don'ts" for working and relating with Latino co-op members
* Review best practices to help develop a Latino-friendly staff
* Learn the most common mistakes made and how to avoid them

Click here to register. Web conference registration fee (per site) is $169. The registration deadline is Nov. 29.  For more information contact Johnna Blair at johnna.blair@nreca.coop or 703.907.5651.

Nominations Due for J.C. Brown CEO Communication Leadership Award

Touchstone Energy co-ops are encouraged to nominate their CEO for the J.C. Brown CEO Communication Leadership Award. This award recognizes an electric cooperative CEO/general manager who is committed to advancing communication at the cooperative and in the electric cooperative industry. The award was established in 2003 by the Certified Cooperative Communicator (CCC) Program in conjunction with the Council of Rural Electric Communicators (CREC). It falls under the umbrella of CREC's Spotlight on Excellence Awards program and is administered by the CCC Program Board, with support from NRECA certification and communication staff. The award will be presented Jan. 17, 2005, at the NRECA CEO Leadership Conference. Nominations for the award close on Friday, Nov. 19, 2004.

For more information, please contact Susan Johnson at NRECA: susan.johnson@nreca.coop or 703.907.5642; or Eleanor Miller at eleanor.miller@nreca.coop or 703.907.5721.

Quotable Quotes

"All of a sudden it dawned on them that they were part of a larger organization, and they were very proud of that."

Weldon Gray, Concho Valley Electric Co-op, San Angelo, Tex., relating a story of his line crews traveling to Oklahoma to repair storm damage with other Touchstone Energy co-ops from around the country.

Touchstone Energy Staff Contacts

Program Administration
Jim Bausell, Chief Operating Officer
703.907.5553,
james.bausell@nreca.coop

Nancy Runge
703.907.5587
nancy.runge@nreca.coop

Advertising and Graphic Standards
Cynthia Henthorn
703.907.5575
cynthia.henthorn@nreca.coop

Marie Jepson
703.907.5627
marie.jepson@nreca.coop

Communications and Media Relations
Mary McLaury
703.907.5557
mary.mclaury@nreca.coop

Marty Haught
703.907.5986
marty.haught@nreca.coop

Business Development
Charlie Gloeckner
703.907.5589
charlie.gloeckner@nreca.coop

Erin Keogh
703.907.5572
erin.keogh@nreca.coop

Editor, Marty Haught
marty.haught@nreca.coop
703-907-5986