SME Billing Booklet

Autumn/Winter 2012

here’s how

we can help your business‌

Give your business the edge

Protect

How to safeguard your intellectual assets

Save Easy ways to increase energy efficiency

Profit Digital marketing secrets to help increase sales 1

Welcome

As the nights draw in and we prepare to celebrate the festive season and approaching new year, now’s a great time to give your business the edge.

What’s inside

Protect If your business produces anything unique, safeguarding your intellectual property is important.

However, knowing how best to go about this can be challenging, so read our guide on page 6.

Save As we enter the season of larger fuel bills, implementing some simple efficiency measures can help you reduce your business energy costs. Find out where to start on page 8.

Energy market view

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npower news

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Business movers: Support when relocating

5

Hot topic: Protect your intellectual property

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Energy efficiency: Cut costs this winter

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Green spotlight: The EV revolution

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How to: Make the most of digital marketing

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Profit Internet-based marketing can provide smaller businesses with low-cost opportunities to better target customers. A digital marketing expert offers some tips on page 12.

Elsewhere in this issue, you can read about the latest news from npower (page 4), find out why electric vehicles could become a more common feature on our roads (page 10).

Wishing you the best of the season, Rachel Barrass Customer Service Manager

Editorial content provided by Susannah Lawson & Associates (www.slcommunications.co.uk). npower is a registered trademark and a trading name of Npower Direct Limited (registered in England and Wales No.3782443) and associated companies.

Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB.

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Energy Energy Market marketView view

Getting the balance right Expect a heated debate from politicians as the UK decides how best to meet our future energy needs, and watch out for incentives for businesses that can help to reduce fuel bills. Janet Wood reports.

The prime minister’s cabinet reshuffle in September brought a new face in to the energy sector: John Hayes, who took over as Energy Minister.

Hayes, and his boss Ed Davey, the Secretary of State for Energy and Climate Change, have to shepherd a new Energy Bill through the legislative process at top speed, if the government is to meet its aim to have it in place by early 2013.

Janet Wood is editor of Utility Week.

Getting the mix right In terms of how best to meet future demand, the broad consensus is that with fossil fuel costs increasing, we will be best – and most economically – placed if we have a mix of sources. That will include gas and nuclear, plus some renewables.

But because so much investment in new generating infrastructure is required, it’s crucial to get the market framework right. The tension is around the right mix – can we drive forward our renewables investment faster, or should we invest more in gas? But in any version of the portfolio we will have both.

The other side of the generation coin is consumption – and already, consumers are being offered incentives to reduce energy demand. The forthcoming Green Deal will enable you to offset the cost of improving energy efficiency against future savings, so negating the need for capital outlay. And investing in renewable energy such as solar photovoltaic panels or a biomass boiler can also pay dividends via the Feed in Tariff and Renewables Heat Incentive.

Rewards for flexibility In future, further options to reduce bills are likely via payments for ‘demand-side response’. The idea is to harness the flexibility that energy users have, to help run the system better. For example refrigeration units, which cycle on and off anyway, can be timed so they aren’t drawing power at peak times.

npower, in fact, demonstrates the change.

The company announced in September that it will shut down its old coal and gas plants in Oxfordshire (Didcot) and Southampton (Fawley), and it has started up a new gas-fired power station at Pembroke. It has also brought on line wind farms and converted an old coal-fired station in Kent to burn biomass instead. This all results in cleaner power generation, and the mix of sources allows the most efficient use of each.

It’s not clear yet exactly how this would work – but it’s certainly worth watching the Energy Bill to see how those proposals develop.

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npower news

Taking a break to raise £90k for Macmillan

Your views make a difference A new customer survey is gathering input to help npower identify areas for improvement. Businesses calling for help are being asked to participate in a post-call automated survey.

npower employees across the country joined thousands of other businesses and groups taking part in the World’s Biggest Coffee Morning at the end of September. “Staff from nearly all our sites took a break to come together for coffee and cake, raising £90,000 for our corporate charity Macmillan,” explains Ruth Worton, Charity & Volunteering Delivery Manager at npower.

“We also held a Great RWE npower Bake Off event to uncover some hidden baking talent – and get some great cakes to enjoy. This helped to boost the money we raised and provide further funds for such a worthwhile charity, which offers such fantastic support to those living with cancer.”

“We are looking to gauge customer satisfaction, find out how well queries are resolved and hear any ideas for improving our service,” explains Chris Watson, Contact Centre Manager for SME Customer Service.

“Each month we analyse the data and are delighted to find that so far, 89% of callers rate the behaviour and skills of the advisers they speak to highly.” Satisfaction in npower overall has been rated at 79%. “We are particularly keen to learn how we can improve on this,” says Chris.

To find our more about fundraising for Macmillan, visit macmillan.org.uk 4

npower news

Support when moving premises Relocating your business can be a big job. But when it comes to sorting out your business gas and electricity – finalising bills and ensuring supply in your new premises.

“To save time, it’s a good idea to assemble all the information you need in advance of calling our team,” suggests Diane Buttle of the Business Movers Team. “That way, it only takes one call and then we can handle the rest.”

As a guide, Diane recommends gathering together the following information before your moving day: • C ustomer account number (this will be on any npower bill) • F orwarding address for your final bill – or refund if you are in credit • C ontact details for your landlord or letting agent, if applicable • New occupier’s details, if known

New blog to benefit your business

Then on the day you move, call the Business Movers team on 0845 166 3360 with this information, plus a final meter(s) reading. Taking a closing meter reading is easy, but if you’d like to arrange for an npower representative to do this, then you’ll need to call a week ahead to arrange.

A new online service has launched to provide business customers with access to helpful information and advice that could save you money. “The new npower blog will cover all things energy-related – from how you can benefit from Green Deal funding to accessing tax breaks for energy-efficient business equipment,” explains Emily Stagg, a member of npower’s online team.

“It’s useful to remember that if you don’t let us know you’re moving out, you’ll continue to be liable for all charges.” advises Diane. “When you close your account, you can also arrange to set up a new one and ensure supply at your new premises – just have the details ready when you call.”

“We’ll also be featuring customer case studies, sharing information on how businesses can cut their energy bills, and exploring new technologies such as cloud computing.” In addition, customers can propose topics they’d like to see. “Our aim is to create an interactive service that provides businesses with valuable information they want to read about,” says Emily.

To contact the Business Movers Team, call

0845 166 3360 Or visit

npower.com/businessmovers

Visit npower.com/blog to find out more.

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Hot topic

How safe is your intellectual property?

The recent high-profile court case between Apple and Samsung, which saw the former awarded some $1bn in damages, reminded businesses great and small of the importance of intellectual property. But what is it and how do you protect it?

Patents and copyright As the IPO website explains, patents protect new inventions and cover “how things work, what they do, how they do it, what they are made of and how they are made”. It gives the owner the right to prevent others from making, using, importing or selling the invention without permission.

Patents must be registered and protection can last for up to 20 years. You can only patent an invention that hasn’t already been patented. Patents must be registered on a country-by-country basis and UK patents are granted by the IPO, or by the European Patent Office when patent applications are filed under the European Patent Convention.

Rosa Wilkinson, IPO Director of Innovation

According to a survey by the Intellectual Property Office (IPO), the government body responsible for intellectual property rights in the UK, a staggering 96% of SMEs don’t know the value of their intellectual property (IP).

Copyright protects written, theatrical, musical and artistic works as well as film, photographs, book layouts, sound recordings and broadcasts.

Copyright is an automatic right, which means you don’t have to apply for it, but you must prove creation date in cases of infringement.

“Every business should have an IP strategy, which identifies what they own and whether they wish to protect it,” advises Rosa Wilkinson, IPO Director of Innovation.

Trade marks and design rights “A trade mark is a sign which can distinguish your goods and services from those of your competitors,” Wilkinson explains. “It can be words – brand names, usually – logos or a combination of the two. You register your trade mark by applying to the IPO. Trade marks must be registered in each country, although you can obtain a Community Trade Mark to cover Europe.”

“All successful businesses are underpinned by a portfolio of IP rights – trade marks, designs, patents and copyright. With the right strategy – and the right protections in place – an IP-aware business can exploit these rights to generate the income needed for growth.”

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Hot topic If you are responsible for the way an object looks, you will automatically have design right protection, but if the design is infringed and you want to take legal action, you must prove your design was copied. “That’s why it can be wise to register your design, which will protect it for 25 years and enable you to sue in cases of infringement,” Wilkinson says.

Protective measures SnoozeShade® is a handy sleep and sun shade for prams and pushchairs designed to help babies sleep during the day and its inventor is Surrey-based Cara Sayer. “I was out walking my baby daughter in her pram when her naptime came,” she remembers, “but the sunlight kept her awake. I couldn’t find a solution in the shops or online, so I invented my own and started my business in 2010.”

Sources of further information Obviously, you also must make sure you don’t infringe other people’s IP – even unintentionally.

“Many businesses lack basic knowledge about IP and it’s not until something goes wrong that they feel the need to find out more,” Wilkinson says.

Sayer says you must make it difficult for others to exploit your hard work and creativity, but doesn’t necessarily see patents as the answer.

“They’re expensive and take a long time, while competitors can launch products that serve the same demand, but are different enough to not infringe on your patent.”

“Businesses can find a wide range of free information on our website ipo.gov.uk, which is a great place to start. However, nothing is better than tailored advice from an expert, and many patent lawyers, trade mark lawyers and IP specialists will offer initial advice for free, then you can decide what to do next,” she concludes.

Having a patent pending is cheaper, she says, while providing some protection and time to test your invention’s commercial potential without having to pay for the complete patent process.

Sayer says money can also be better spent establishing and trade-marking your brand.

“I’ve trade-marked the word SnoozeShade®, so no one can use it in relation to similar products in the USA, Canada, Australia, China and Europe.

I’d also recommend registering your designs, because it safeguards your product’s appearance.”

If you lack knowledge, Sayer recommends contacting the IPO or seeking advice from a “commercially aware legal adviser” with experience of businesses like yours. “Becoming the leading brand certainly helps, while trade-marking and design registration might be a much better, cheaper and quicker way to protect your products than patenting,” she concludes.

Cara Sayer, Inventor of SnoozeShade®

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Energy efficiency

Help to reduce your heating costs this winter Heating your workplace is essential during the colder months, but you could save on the cost by taking some simple steps to increase efficiency and eliminate unnecessary waste, and with some investment, you can save even more.

Five steps to a warmer workplace for less

1. If you have a centrally-controlled heating system, check that it’s set to come on and go off at appropriate times for the working day, and that these are amended once the clocks go forward or back. Also check that you are not heating your premises on days it’s unoccupied – for example at weekends.

A few no-cost and low-cost measures can make a big difference to both comfort and energy consumption:

2. Check temperature settings. The optimum setting for most workplaces is 19˚C. For labourintensive activities this can be reduced to 16˚C, and for sedentary work (ie office work), you may need to increase it to about 20˚C. Every 1˚C above the ideal temperature could mean you are using up to 8% more energy than necessary, so simply adjusting your thermostat could save you money.

3. Only heat occupied areas. A walk around your premises to switch off radiators or turn down room thermostats in areas that aren’t in common use – for example in storage areas or empty offices – can help to ensure you’re not wasting money on heating unnecessarily.

4. Fitting insulation or reflective strips behind radiators also saves on energy wastage, especially if they are fitted on external walls or next to unheated areas. This can save up to 90% of the energy that would otherwise be wasted through the wall.

5. Aim to ensure doors and windows are kept shut when space heating is in use, particularly between heated and unheated areas.

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Energy efficiency

Insulate to save up to 75%

Running at the right temperature

When you consider that up to 25% of heat lost from a building is through the roof, with a further 35% leaking out via walls and 15% escaping through gaps in draughty doors and windows, you can begin to see the business case for investing in insulation.

Roof insulation, cavity walls or dry-lining solid walls and sealing up gaps where heat can escape can produce significant savings on energy costs, as well as making your working environment warmer.

However you heat water for your business, overheating or storing it in poorly-insulated cylinders can mean it costs more and wastes energy. Check the temperature and adjust your water thermostat where possible – for every 1˚C reduction, your energy costs could drop by up to 15%. 60˚C is usually optimum unless you need hotter water for catering or specific commercial purposes.

As with your space heating controls, ensure your water heating timer is set to meet your requirements and not for times or days when hot water isn’t required.

Zero-interest loans are available through the Carbon Trust, while the government’s new Green Deal initiative finances the cost of energy efficiency improvements, with the money recouped via the savings then made.

Finally, if hot water is stored in a cylinder, lagging this can reduce heat loss. And aim to get your boiler regularly serviced as this will help to increase efficiency. If it’s very old, it may be worth considering an upgrade as this is likely to dramatically cut running costs.

You can find out more at carbontrust.com or calling 0800 085 2005, and visiting decc.gov.uk and searching for the latest on the Green Deal. Your local Business Link will also have details of loans and grants available – visit businesslink.gov.uk to find out more.

For more money-saving tips visit

npower.com/SmartStart

Source for energy-saving figures: The Carbon Trust, September 2012

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Green spotlight

The EV revolution Advances in technology now mean electricity-powered vehicles offer many advantages – from being much cheaper to run and easier to charge, to providing impressive environmental benefits. npower – and its parent company RWE – has already installed more than 1900 charging points across Europe. “The vast majority of charging will be at home or in the office, but if you urgently need to recharge on a longer journey, there will also be places on the street,” says Jonathan. “The cost is also significantly less than filling up with petrol – for example, if you do 12,000 miles a year, a petrol engine might cost around £1500 whereas an electric car would cost about £150 to charge.”

Electric vehicles hit the news in late September when Nemesis, a modified Lotus sportscar, broke the EV land-speed record, reaching 151mph. It helped to dispel the often-held belief that electricpowered cars are slow, Noddy-style vehicles that are impractical for most drivers.

In fact, a report by Deloitte^ predicts that electric cars will make up one in every ten car sales by the end of the decade, with 30 models from the likes of BMW, Ford, Mercedes, Nissan, Renault and other leading manufacturers expected to come to market in the UK within the next two years.

“Range is the first concern most people raise about electric vehicles (EVs) – but the average distance travelled in the UK by car and van drivers is just 8.4 miles per trip – and some 98% of all journeys are less than 50 miles,” explains Jonathan Woodthorpe, Head of e-mobility at npower.

“Most EV models today also offer a typical range of around 90 miles between charges.”

Testing out the latest models In a recent test drive, npower employees tried out the electric Mercedes Vito E-Cell van, which was driven 352 carbon neutral miles from Swindon to Sunderland, powered by npower’s dedicated electric vehicle chargers en-route. Using the Juice-e tariff, the journey cost just £7.54 compared to £57.55 in an equivalent diesel-powered van, with zero tailpipe emissions compared to 310g CO2 per mile for a diesel equivalent vehicle.

The other frequently asked question is how – and where – can you charge an EV. “At npower, we’ve been developing charge points for EVs and are the first energy supplier to offer an EV tariff – Juice-e – which offers off-peak rates that can charge a vehicle for around £1.20 from home,” explains Jonathan.

^Deloitte Touche Tohmatsu Limited (DTTL)’s Global Manufacturing Industry group, Unplugged: Electric vehicle realities versus consumer expectations 2011.

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Green spotlight

EVs: the benefits for business Electric vehicles can offer significant environmental and cost benefits to you or your business: • No road tax • S ignificantly reduced running costs, costing around 1p per mile to run compared to approximately 14p per mile for an average standard fuel car* • B usinesses also benefit from no company car tax and showroom tax • No congestion charging costs • T he government currently offers up to £5,000 as a grant towards the purchase of your EV To find out whether an electric vehicle could reduce your fuel costs, why not visit

npower.com/ev and use the fuel calculator.

*Costs range and usage will vary and depend on factors such as model, number of passengers, driving style, battery age and road, battery, vehicle and weather conditions. (Source: npower.com/EV)

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How to…

Make the most of digital marketing Using the internet and online devices to promote your business provide a low-cost way to better engage with your audience and help increase sales, as digital marketing expert Peter Fealey explains. digital marketing is less intrusive and holds consumers’ attention for longer.”

“Digital marketing is the use of internet-enabled devices to engage with customers and promote your products and services,” explains Peter Fealey, founder of north Somerset-based digital marketing agency Feel Digital. “Your message can be delivered via the web, social media, email, mobile devices, ‘apps’ and even games consoles.”

Crucially, Fealey says, the success of digital marketing is usually built on a sound offline foundation.

“Your brand must be solid and you must know what messages you need to communicate – and to whom, of course,” he stresses.

Digital media may still be a relatively new concept to many businesses, but more and more small firms are embracing it to help boost sales.

“The rise of sites such as eBay means even the smallest enterprise can sell online at little or no cost,” says Peter. “Those who don’t have a solid web presence will lose out. For example, most consumers now turn to Google when they need something, so if you’re not ranking, you won’t get the business,” he warns.

Net returns Fealey says your website should be one of the most valuable tools in your arsenal. “Make it search engine friendly by keeping your content fresh and relevant, and ensure it looks good and is easy to navigate.

Add a blog, because it can help you engage customers more personally, while encouraging their participation.

And make the most of Google Analytics. The more you understand about your website visitors, the better placed you’ll be to meet their needs. Your website also needs to be optimised for search engines. Quite simply, the more frequently your site appears in search results, the more visitors you’ll get.”

Key benefits “Word of mouth has long been the friend of small businesses, but these days conversations are increasingly happening online,” Fealey continues.

“One of our clients – a café owner – increased her footfall by 25% in one month by running a simple competition, spreading word through Twitter and blog posts. It cost her nothing, except some time.”

What about pay-per-click (PPC) advertising?

“It’s the most targeted form of search marketing,” Fealey replies. “Research suggests that 95% of Google users view paid search results at the top of the search results page, while 31% view the ads on the right-hand side. Because you only pay for the ad if it’s clicked, PPC can provide excellent reach.”

As Fealey points out, digital marketing can not only be much cheaper than offline options, your success can be measured and analysed more quickly, conveniently and accurately. “Tracking response enables you to learn and get better. You can also target people most likely to buy from you, while

Other key digital marketing options include email marketing, which Fealey describes as a low-cost, effective way to reach a large audience. “I swear by

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How to…

“Social media provides an opportunity to constantly interact with your followers, so when you do let them know about an offer, they’re more likely to look at it.

Make sure you have a LinkedIn and Twitter account.

Add a company Facebook page if you’re selling B2C more than B2B. They are all free to setup and you can spend an hour a day on them.”

email services provider mailchimp.com.

Creating your own professional-looking email or email newsletter is simple; the interface is very intuitive and the software can hold your hand as much as you like.”

Social media Fealey views social media (including such sites as Facebook, Twitter and LinkedIn) as an inexpensive way to interact and build relationships with potential and current customers.

Does Fealey have any final words of advice about digital marketing for SMEs? “Keep it simple and user-friendly. Digital marketing enables you to reach out to your customers on a one-to-one basis – locally, nationally and internationally, 24/7. Make the most of it – the world really is at your fingertips,” he concludes.

“Keep things friendly and relaxed, don’t just post promotions and products all the time,” he advises.

“Social media provides an opportunity to constantly interact with your followers, so when you do let them know about an offer, they’re more likely to look at it.”

Peter Fealey, founder of digital marketing agency Feel Digital feeldigital.co.uk

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How to…

Rupert Youngman, MD of online women’s wear retailer Hush, explains how his business uses digital marketing “We’ve always marketed ourselves digitally, but it’s something we’ve given greater focus more recently because more customers are spending more time online.

Our catalogue still drives most of our sales, but as our offline marketing principally drives people online, it’s important to have a strong digital presence. Probably up to 40% of our sales result from digital marketing.

“We started our email newsletter in 2005, but because we don’t tend to offer discounts nor promote new products every week, we needed something else to talk about to our customers. That’s why our newsletter focuses on things we like and things we think our customers would be interested in, rather than Hush. Not only is our newsletter well received, but it also drives a lot of website traffic and sales.

“Our website also features a blog, which is almost exclusively about things to do in your downtime – book and film recommendations, music, recipes etc. I’m not sure whether it has any direct impact on sales, but it’s more about building a brand and enhancing customer loyalty.

We’ve also done pay-per-click marketing since 2006.

We have a social media presence and we’ll do more going forward, but we remain sceptical. We don’t want to do it for the sake of doing it.

“What final words of advice do I offer about digital marketing? Don’t expect miracles. Be realistic about what you hope to achieve; measure results against projections; and don’t be afraid to innovate. Marketing is essentially some basic psychology combined with common sense.” www.hush-uk.com

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