Opower

Opower built its platform for utility companies seeking to reduce energy consumption through behavioral insights. The founders assumed utilities would eagerly adopt software that leveraged social comparison and peer feedback to drive customer engagement and conservation. This targeting proved largely correct—utilities represented a massive, regulated industry with strong incentives to meet efficiency mandates and reduce peak demand. However, Opower discovered their actual buyers weren't always the sustainability-minded executives they initially pitched. Instead, they found success with utility operators facing regulatory pressure and those managing customer acquisition costs. The company's early expansion relied heavily on direct sales to mid-sized and large utilities across North America and Europe. The main challenge emerged in implementation rather than targeting. Utilities proved slower to integrate the platform than expected, and some customers struggled to demonstrate clear ROI to their boards. Despite these friction points, Opower's fundamental assumption held—utilities needed behavioral engagement solutions. The company's 2016 acquisition by Oracle for $532 million validated that the market and customer base were real, even if adoption timelines required patience.