Lynn Jurich
Yeah, I think thats a great question, and something were going to work through. And theres probably a different strategy for different
segments and different geos. I mean, if you kind of add up the opportunities that we have, you know, that we see available to us, I mean, we sort of see, you know, as we mentioned, our operating improvement can generate 2,000 of NPV per customer,
you know, grid services could generate another 2,000, you know, per customer.
The synergy number, you know, that feel confident in with Vivint at
90 million is another, you know, almost dollar a wattor, excuse me, a thousand dollars per customer. So, all those opportunities are available to us, and then well beyou know, and then we have the battery hardware cost
improvements, you know, and other, you know, improvements on the costs, on the materials costs side. So theres a good, solid bucket of value to be distributed to, you know, the customers in order to grow share. And you know, thatagain,
when we look at the potential market size ofyou know, and we see that three percent of US homes have adopted, you know, growth is really delivering good value to our customers and growth is really the priority for us.
Colin Rusch
Great. And you know, could you give
us an update on trends and sales conversion, you know, from leads into actual sales? Especially as folks are spending more time in their home and looking at home improvement projects throughout COVID.
Lynn Jurich
Yeah. Its an
excitingits really an exciting development. You know, if we look at what weve seen, you know, 50% uptake in productivity per sales rep, and thats reallyyou know, its simple, but its attributed to the fact
that the majority of them say theyve saved 10 hours per week driving.
And so, you know, you seetheres puts and takes through the whole
sales process. So one, our sales people are able50% more effective in getting, you know, reach, converting customers per week. And you see a little bit of a lower conversion from the, you know, virtual sale versus the in-home sale, but you make up for it really in terms of how many of those customers are actually really being fulfilled all the way through to install. So, you know, again, the initial indications are, this could
size to about a thousand dollars of, you know, savings per customer in these productivity improvements, and were really encouraged that theyre sticking.
Colin Rusch
Got it. Thanks so much.
Operator
Thank you. Our next question today is
coming from Jeffrey Campbell from Tuohy Brothers. Your line is now live.
Jeffrey Campbell
Good afternoon. Offering a benefit to an existing customer to participate in a VPP is easy to understand, but Id like to better understand how this aids
in new customer acquisition. Does this essentially mean that Run will devote any of its margin that it receives from the VPP to lower the new customer cost and gain that market share, or is it something else?
Lynn Jurich
Yeah, our plan certainly is to, you
know, pass on a portion of the savings to the customer. We think that, you know, theresyou know, when you, again, look at the combined benefit of the lower acquisition costs plus the grid services revenue, it definitely makes sense to,
you know, pass them through to the customer and generate more, you know, assets on that virtual power plant.
And as I said, sort of, it has a flywheel
effect because the more that you can contribute, the bigger your VVP, the more, you know, opportunities there are to open up some of these markets and to really, you know, change some of the regulations and the way these things are compensated to
really get fair value for all the services that the batteries provide. So, thats just theyou know, its a calculation that were going to make, you know, sort of program by program.
And just to give a really tangible example, you know, with these CCAs in California. So the programs are, the utilities will spend on marketing for us.
Theyll spend on, you know, emailing their customer bases, saying theres this opportunity available. Well give customers a discount, but its more than offset by just the efficiencies gained by the lower acquisition costs and
then the increased grid services revenue.
So there isnt a specific formula, its very much going to be market by market value proposition
driven. But you know, again, our ambition is, you know, we need to electrify the country, and we need to be on all roofs and have batteries in every single home. And so, were driving hard on, you know, lowering that cost to make that, you
know, not a barrier, to make us more competitive in more geographies. Thatsyou know, thats strategy number one.
Jeffrey Campbell
And just to quickly follow up on what you just said, which was very helpful, when youre talking about catalysts of regulatory change, that
loops back to what you were talking about. earlier, where you may not be getting paid for power that youre putting into the grid, and you want to get credit for that. Is that the kind of thing were talking about?