Consumer and Demographic Data Archives - Page 4 of 8

How Transactional Spend Data transforms business operations

Posted on: 7 June 2023

Background

When one of the UK’s largest supermarket chains needed to understand consumer shopping behaviours at a local level to enhance their relevance within existing and new stores, they quickly realised the impact that leveraging customer-centric data could have on achieving these goals.

CACI was selected as their partner to supply them with the consultancy and consumer behaviour data that they felt had been missing from their current data sources. The potential to gain a granular and cohesive perspective of customers with actionable insights to drive change was what encouraged the business to trust CACI to help reach their strategic objectives and better understand and cater to customers.

Challenge

While the business was equipped with some customer-oriented data to begin with, particularly comprehensive loyalty card data and competitor locations, they lacked the granular detail of industry datasets that CACI could supply. These datasets would bolster their understanding of customers beyond the organisation and would facilitate a new, optimal customer experience journey.
The external data about customer behaviour outside their organisation which they could access was generally based on small sample surveys and was not robust enough to support their enhanced customer understanding initiatives.
Other data sources were overly aggregated, challenging the business’ ability to determine what the result of a major market change in a market might be, such as a store closing or a new store opening, or a major local marketing campaign. This also made understanding how consumer behaviours changed as a result more difficult.

Solution

CACI’s data was game-changing for this business as it was based on actual spend data, and what consumers were actually doing versus what they were saying they were doing. The huge and granular sample size in comparison was also tremendously beneficial for the business, as it was available at brand level, ultimately unlocking major potential for them.

Results

CACI’s consultancy and data was able to significantly enhance the current capabilities of the team and allow them to add a significant new dimension to a number of different projects and use cases.

Potential partner analysis

The ‘race for space’ in the early to mid 2000s, combined with the emergence of multi-channel trading and stronger discounter competition, meant that many supermarket operators have been left with stores that are too big for their catchments and, therefore, were not as efficient or profitable as they once were. As a result, many supermarkets had to find ways to fill parts of their stores or car parks with partner retailers that would generate rental income, fill ‘baggy’ space, create a more comprehensive customer offers and help generate sales for the business by bringing in a different type of customer.

CACI’s data helped this business strategically plan for which partners to approach with a data-driven strategy to help those potential partners understand why a particular store or catchment would be suited to their brand.

Understanding competitor performance

Through CACI’s data, they could begin to understand and benchmark performance between their brand and others in a granular way for the first time, rather than using data based on a small sample survey (Kantar) or that aggregated to market rather than retailer (IGD).

Transactional Spend Data helped this business understand competitor performance in detail at local level by analysing trends in market share, transaction numbers and Average Transaction Values.

For example, before a new store opening, the performance of competing brands and what types of customers were shopping with them could be analysed in a way that has never been previously available. They could also understand what happened once the new store opened – which brands won and lost in the market and which types of customers changed their behaviour. This understanding was key to influencing future new store opening decisions that the team could into future forecasting estimates and set expectations accordingly through data-backed evidence.

Defining missed sales opportunities

CACI’s data helped this business understand where customers were cross-shopping with their competitors on the same day as shopping with them.

One example was by analysing customers driving out of the business’ store and past their petrol station but filling up their car at an alternative fuel station on the same day. The business lost trade because the customer drove past the front of the petrol station and chose to buy petrol elsewhere. While it did not necessarily answer ‘why’ a customer did not shop with the business, it did help generate questions and what to look out for in customers’ preferred shopping experiences so they could assess a particular store, determine which competitors were in the vicinity and what the business could do to compete– adjust the price, revisit the convenience of the store’s location and so on to drive improvements backed by data.

Another example was assessing the performance of one store in close proximity to a direct competitor’s smaller store. The business knew that they had been losing trade to this competitor for years, but they did not have the data to prove this loss.

CACI’s data was the solution— it quantified the number of shoppers visiting the business and its competitor on the same day and their respective transaction values.

This insight helped the business formulate strategies for marketing campaigns that would encourage shoppers to return to their store versus to their neighbouring competitor.

Format development

The business assessed quirks in catchments and emerging trends among competitors to conclude whether certain initiatives, such as creating a café space within a store, would be a success with their customers.

CACI’s data helped them define the demand for distinct types of café space initiatives by understanding the likely demand for the various types of Food-to-Go offers in the catchments of the stores.

Ultimately, it provided the business with a different approach to the café format and its offers for customers.

Customer profiles

For this business, customer loyalty cards were paramount to building customer profiles of their own customers. However, understanding the profile of competitors’ customers and how they were behaving was out of reach. This data helped the business understand the profiles of other brands’ customers and how similar or dissimilar they were to their own customers. Most importantly, they gained insight into what their spending patterns and behaviours were and how they changed over time.

To learn more about how CACI can help you leverage data to enhance your business operations, contact us today.

How InSite enabled Amtico to excel in the luxury flooring market

Posted on: 12 May 2023

Background

Since 1964 Amtico have been one of the worlds leading designers and manufacturers in luxury flooring, and flooring solutions amongst both the residential and commercial flooring market. Amtico currently have a presence in over 600 independent stores in the UK.

The challenge

Identifying the most viable locations for retailer recruitment, taking into account the demographic profiles that each retailer serves
Having a rich insight into the overall market potential of each Amtico retailer
Understanding and being able to map their target consumers across the UK

The Solution

Investing in InSite enables Amtico to prioritise retailer acquisitions based on the greatest headroom potential whilst leveraging demographic data
InSite enables Amtico to quantify their market potential based on the demographics of their consumers
An actionable and strategic tool that Amtico are able to share with multiple stakeholders across the business

Read the full customer story here. For more information on how our data and solutions can support your business growth please get in touch with us.

Tackling the staffing shortage in elderly care with local population data

Posted on: 28 April 2023

Pay is only one factor that influences the number and quality of candidates for your roles, and their loyalty.

It’s no secret that staffing is an ongoing challenge for most providers of elderly care. Market competition doesn’t only come from other care settings. Potential staff may be looking for local work in a range of sectors locally, where hourly pay is higher and the responsibilities seem less demanding. How can you compete to attract and retain quality staff for your elderly care services?

Take a targeted approach to recruitment and retention by applying marketing principles

Traditionally, elderly care providers have used their instincts to decide on good locations for their residential or in-home care operations. In recent years, some have made good use of market data to investigate and understand their potential customer base. By looking at the age and affluence of potential care clients in their catchment area, savvy operators can anticipate the level of need, design the right services and price them competitively. Today, we’re advocating the same approach, to understand staffing supply and demand.

In our work with a few forward-thinking, large-scale elderly care providers, we’ve helped them to factor in staffing availability when looking for new sites or deciding whether expand operations in an existing location. There’s a great opportunity for mid-sized operators to take advantage of the same approach.

Using local market insight and benchmarking to identify potential staff

Using demographic and location data, we can:

Profile the demographic characteristics of ideal candidates for elderly care roles
Contrast them to the Acorn profiles of typical users of the elderly care services
Flag high-risk locations likely to face the biggest staffing challenges
Highlight areas of demographic overlap, with a strong potential customer base and staffing base
Identify the best catchment areas to recruit suitable candidates
Analyse the likely needs and priorities of available candidates in the area

Contextual dynamics in practice: understanding local recruitment landscapes

Our current work with elderly care providers is commercially sensitive. So, we’re using an example from a different care sector with a very similar recruitment and retention challenge – children’s nurseries.

Our client told us that recruitment challenges are hampering business performance – they had had to close some sites because of a lack of staff. They needed to factor the potential to recruit into acquisition decisions. We profiled 11,000 staff members in 400 nurseries in the UK to discover their Acorn groups and identifies primary and secondary target staffing groups. We mapped nurseries in their locations, showing where the customer base and the staff base overlapped. This helped our client tailor recruitment messaging to available local staff priorities. They could plan to expand their service provision in locations where they knew they could recruit to meet demand.

Modelling the recruitment potential for new and existing locations

The approach is not only relevant for new elderly care locations and investment. By understanding the local employment landscape, you can recruit in a more targeted and effective way and find out what matters to the people you’d like to employ, so you can shape working practices and promote aspects of the role that will be most appealing.

Location and mobile app data can you help you focus recruitment in areas where there are candidates who can easily access your sites and domestic clients. Your potential staff don’t necessarily live on the doorstep but there may be nearby areas that have good transport links, where workers already tend to travel from.

Offering roles that local employees want to take

Of course, pay is a very important factor when it comes to attracting competent and committed staff. Premium elderly care operators may be able to pay staff more and offer a more luxurious workplace. But these are not the only things that influence employees. You can provide other, affordable benefits and mould your working environment and employee programmes to match what workers really value. Profiling target candidates in your local area can help you understand their priorities – from family-friendly working hours to free lunches and incentive programmes.

Beyond pay and benefits – understanding the appeal of elderly care roles

Working in elderly care is a socially responsible job. For some candidates, recognition of the value of their work can be a strong motivator. Creating better career paths and more tangible pathways for carers can make a big difference to your recruitment. Some larger elderly care operators are trying to emulate nursing pathways: clear role definition and progression can help to retain committed staff. If you understand more about the potential candidates in your area and your existing staff, you can decide whether this approach could support recruitment and retention for one or more locations.

CACI’s specialist elderly care and senior living team works with clients in the UK to help them improve operational and financial performance with access to vital insights into their customers, employees and locations. To find out more, contact us.

How CACI supports the wealth management customer journey

Posted on: 26 April 2023

It is now crucial for wealth managers and financial service firms to better their consumer understanding. They can do so by ensuring they are well-versed in the entire consumer lifecycle and journey, understand optimal communication techniques required for effective customer marketing, collect enriching customer-centric data to tailor marketing and distribution effectively, and establish innovative ways of measuring these areas to remain compliant.

Access to insightful demographics on the lifestyles, attitudes and behaviours of investors within the market can help drive improved distribution performance, revenue growth and increased client engagement. This crucial investment market knowledge can be provided by CACI.

How does CACI support a firm’s wealth management customer journey?

Through a detailed understanding of current investor behaviour needs and growth opportunities, CACI can support businesses by quantifying acquisition opportunities across regions to inform effective growth and investor engagement strategies.

Once businesses have been equipped with the appropriate datasets to target high net worth individuals (HNWI), CACI can support the optimisation of marketing performance across channels and help businesses improve their distribution performance through digital, direct and intermediated channels to drive improved marketing return on investment, increased customer acquisition and better investment retention performance.

CACI offer a range of support for wealth managers and firms to meet customers’ needs while ensuring compliancy, including:

Support in better understanding existing investors.
Understanding the market and identifying opportunities, particularly in identifying how and where to acquire HNWI.
Determining where potential and current customers are located, as well as their value.
Receiving demographic data and behavioural insights on investors to better understand the customer landscape.
Demonstrating compliance with Consumer Duty, with meeting customers’ needs remaining at the heart of what CACI do.

How CACI use data science & analytics to support the wealth management customer journey

CACI’s data science & analytics services have three primary capacities to support the enhancement of the customer journey:

Using pre-existing information on younger investors in wealth managers and firms’ portfolios to build bespoke datasets. CACI’s multi-sector knowledge and access to unique lifestyle datasets enables the building of this bespoke consumer data insight, providing wealth managers and firms with a detailed picture of the opinions, preferences and spending potential of HNWI.
Modelling prospects for HNWI based on demographics.
Assessing firms’ historic data to determine how HNWI already in their portfolio achieved this position by tracking their movements and identifying signals and triggers, to enable modelling of future investors.

CACI’s wealth management customer journey support: real-time examples

How CACI’s Fresco solution supported one business’ customer acquisition & marketing strategy

CACI’s Fresco solution was employed at one business to establish a granular understanding of existing investors. This allowed for the development of a targeting propensity score, which enabled the pinpointing of potential investors that would be most likely to join the business. CACI then identified and mapped opportunities across the UK, considering regional differences and high value areas to target. Detailed insight into prospects supported the development of a consistent marketing targeting strategy within the business, which was also rolled out across traditional and social media.

Results:

Development of a targeted audience strategy focusing on high propensity and high value audiences.
Reduction in digital marketing spend.
Increase in digital marketing ROI (return on investment).

How investor segmentation, personas & geographic data application transformed a business

CACI developed investor segmentation, detailed personas and geographic counts to support a market sizing initiative requested by one client.

The resulting data uncovered hundreds of variables at an individual level and provided rich insight into a range of traits and characteristics. This not only supported the business’ understanding of its current customers, but of the wider UK investment market. CACI developed personas to help the business gauge an in-depth view into consumer behaviour, insight into the market and the potential reach for key segments. Finally, geographic mapping helped the business understand acquisition and growth potential across catchments and regions, and cross-sell models were developed to support the immediate activation of distribution and marketing activity.

Results:

The business experienced steady and sustainable growth in its acquisition, retention and reactivation.
Increased investment values were received from both new and existing investors.
The business was equipped with actionable insights to help inform ongoing and future marketing and office location strategies.

Throughout this blog series for the wealth management industry, we break down the opportunities for businesses to attract and retain high-net-worth individuals. Continue reading at the links below:

Blog 1 – Four barriers wealth managers face when attracting & retaining customers

Blog 2 – How to identify, attract & retain high net worth individuals

Blog 3 – Three reasons why wealth & asset managers need young investors

Whitepaper – Acquiring new high net worth clients – What wealth managers need to know

To find out more about how CACI can support your wealth management customer journey, contact our team of data experts today.

How InSite helped Knight Frank navigate real estate & capital investment

Posted on: 21 April 2023

About Knight Frank

For over 20 years, Knight Frank has partnered with CACI to achieve a long-term vision of becoming the world’s leading independent property advisor. Knight Frank works with various industries and businesses on their property and location planning strategies. Accessibility to reliable and accurate information to successfully serve clients and the ability to build authority as a market leading commercial agent have remained at the business’ core throughout.

Despite Knight Frank’s wider recognition for its work within residential property, the business is evenly split between residential and commercial real estate. In recent years, the general climate surrounding realty has become increasingly challenging, with macroeconomic conditions weighing heavily on this industry globally, particularly in terms of capital market investments. To manoeuvre these challenges, Knight Frank has been using CACI’s GIS software, InSite, along with various CACI datasets such as Acorn, the UK’s leading geodemographic segmentation tool.

The Challenge

Knight Frank’s primary challenges have been twofold:
• Determine how to navigate ongoing global uncertainty in the real estate industry.
• Handle volatility in capital investment markets.

Stephen Springham, Head of Retail Research at Knight Frank, elaborated on the impact that these challenges have had on the business.

Stephen explained:

Capital market investment is key to real estate markets and obviously that is probably at the sharpest end of economic sentiment. Investor sentiment isn’t sky high at the moment, so that is probably the biggest barrier we have to overcome, although we’re probably not radically different from most global companies in that regard.

The Solution

CACI’s InSite software has significantly supported Knight Frank’s business endeavours through both the nationwide insight from Acorn, as well as the shopper understanding from the machine-learning
catchment model, Retail Footprint. “It’s a window to the world of data. A lot of those datasets are bespoke and unique to CACI,” Stephen explained.

Additionally, CACI’s business consultancy solutions and thought leadership have been supporting Knight Frank in improving their overall business functions by supplying the business with the necessary tools to effectively advise retailers and support due diligence regarding buying and selling within the capital market.

The Results

According to Stephen, there has been a noticeable uptake across the business in data usage, with several transactions on shopping centres Knight Frank completed over the course of last year that were achieved
thanks to the support of CACI’s data and InSite tool.

One of the business’ recent and most notable acquisitions came in 2021, with Knight Frank acting for Redical in the purchase of the Victoria Gate/Victoria Quarter Shopping Centre in Leeds. This £120-million deal was executed in part through a deep dive of data provided by CACI’s InSite tool.

The Future

While Knight Frank continues to have an open dialogue with CACI on any new developments or datasets that could continue to support the business’ initiatives, CACI’s InSite and data have created a notable foundation.

Read the full customer story here. For more information on how our data and solutions can support your business growth please get in touch with us.

Three reasons why wealth & asset managers need young investors

Posted on: 14 April 2023

While wealth and asset managers may have developed a sophisticated and loyal base of investors, it is no secret that their client base is ageing and shifting. There have been noticeable changes in both the types of customers and their behaviours, whereby moving away from traditional investment styles and seeking out alternative areas of wealth to gain market share have become commonplace.

So, why would wealth and asset management firms benefit from having younger investors in their client base?

Their trajectory to wealth has high earning potential for wealth management businesses

Reaching the broader and untapped market of high-earning young investors has become critical for wealth and asset managers to continue to be successful. Supporting potential investors who are en route to wealth inheritance, who may find themselves in a position to sell off a thriving business in the near or distant future, or whose career path suggests high earning potential, are all inviting factors to drive wealth and asset management firms to acquire younger clients.

According to the Financial Conduct Authority (FCA), a High Net Worth Individual (HNWI) is someone who either earns more than £300,000 per annum or has net assets of more than £3,000,000. Firms with a client base that is more likely to pass down their wealth generationally are left to wonder the amount that might one day be re-invested into the firm, while young investors are more likely to distribute their wealth differently as a result of their current life stage and emerging alternatives, such as Crypto currencies. While the average new and younger potential investor may, for example, only bring ~£100k in assets to the table, potential exists for this investor to be on the trajectory towards becoming a high-net-worth individual.

Their financial industry knowledge is superior

Young investors building or inheriting their own wealth are often more knowledgeable (and environmentally conscious) about their financial options than previous generations.

With 80% of 18-24-year-olds having reportedly invested in ESG (Environmental, Social and Governance) stocks according to the Saltus Wealth Index 2022, their expectations on the importance of sustainable or green investments may likely differ, and they may be inclined to ensure that ESG factors such as how the businesses they invest in respond to climate change, water management, health and safety policies are likely to be considered. These investors may also be more likely to consider whether investments meet global standards for sustainability reporting (GRI) in transparency and accountability.

They are not afraid to take their services digital

The investor arena has increasingly filled with entry-level investors who have lofty expectations for customer service, especially with digital services. They are aware of the capabilities of self-sufficient online investing; therefore, they expect the same level of speed and ease of use in all their financial affairs.

How can wealth management businesses identify and secure young investors?

Without a comprehensive understanding of the behaviours and traits of potential younger investors, firms may struggle to target the right investors through their own initiatives, or target young investors at scale through digital channels. CACI is equipped with robust data that can provide valuable insight into potential investors at scale across the UK, garnering information on who the potential clients are, what they like, and what they do. CACI can also track existing clients’ signals and triggers to model with future investors in mind.

Blog 1 – Four barriers wealth managers face when attracting & retaining customers

Blog 2 – How to identify, attract & retain high net worth individuals

Blog 4 – How CACI supports the wealth management customer journey

Whitepaper – Acquiring new high net worth clients – What wealth managers need to know

Is your firm looking to attract younger investors? Get in touch with us by clicking the link below to find out how you can achieve this.

Brand Dimensions

How to identify, attract & retain high net worth individuals

Posted on: 23 March 2023

The distinction between attracting and retaining high-net-worth individuals (HNWI) within the existing investment landscape can feel like a blurred line for many wealth and asset management firms.

With new rules released by the Financial Conduct Authority (FCA) in 2022, which demanded increased consumer protection for financial services consumers, it is now more important than ever for firms to leverage data to improve customer experiences and outcomes.

As a result, firms may now be experiencing the impact of lacking the necessary customer-centric data to effectively and compliantly deliver positive experiences and outcomes. Understanding the steps that must be taken to ensure that wealth management firms are digitally safeguarded, while adopting customer-first practices and identifying the HNWI they would like to attract, will be critical.

How do wealth & asset management businesses know who to attract?

It is through enhancing customer data that is backed by demographic, lifestage, lifestyle and attitudinal insight that will enable wealth & asset management firms to better understand, reach, and serve customers. Without having the right data available, they will risk lacking an integral understanding of who to attract.

Wealth products were historically sold by independent advisors who knew the local area and could identify the ultra-wealthy with ease, including where they were likely to be, often by word-of-mouth. This is no longer the business model for many wealth management firms looking to identify potential business at scale and deliver direct sales to new investors who expect a different type of engagement.

What major challenges do wealth & asset management businesses face in attracting & retaining high net worth individuals?

Competition for investment

The everchanging investment landscape has caused wealth and asset management firms to re-evaluate existing investor experience approaches. To keep up with the changes in client demands, firms that lack integrated insight and digital engagement capabilities will find themselves at a disadvantage against competitors, and unable to provide the tailored experiences investors now expect.

Cost of living

With no definitive end in sight for the cost of living crisis, there is increased interest in targeting affluent individuals from across sectors, many of which are mature in their data and digital capabilities. Wealth Management firms will experience increased competition and pressure for those available assets. Firms are tasked with reassessing their customers’ journey end-to-end to determine how to effectively safeguard against these unpredictable times.

What techniques should wealth & asset management businesses use to retain investors?

Effectively identifying and catering for the right customers

No two customers are the same, and firms that may have opted for a traditional approach that meets the needs of all customers will quickly realise that personalised and customised experiences for each unique customer is the best way forward. It is integral for firms to understand what their clients want and where they are seeking out financial products that meet their unique needs, to help them access the right products. This approach will allow customers to gain the most use of their tailored solution and will encourage them to remain with the firm for future support in their financial endeavours.

Utilising consolidated data to retain customers

Firms that effectively utilise consolidated data will notice long-term growth and can leverage this to outcompete their competition. Firms have client data, but without an understanding of how to enrich it, decipher it and make use of it to improve their customers’ experiences, they will not determine how to retain customers effectively. Customising solutions for clients that are built on demographic, attitudinal and behavioural insight will be paramount for this.

Acting upon customers’ short and long-term needs

Firms need to better understand the current and future needs of investors to appeal to a wider investor audience. Those that acknowledge the need for enhanced client understanding can introduce insight into their business that will drive improved customer-first experiences and outcomes.

How can CACI help?

Consumer Duty is an authoritative intention that will guarantee trust between financial institutions and consumers. Firms must innately understand their customers to adapt their products and drive messaging that effectively engages them and improves results, whilst also ensuring compliance with the directive.

CACI is uniquely positioned to support businesses through agency, consultancy, data provider and system integration capabilities, all of which work in conjunction to drive value for your business. Our services and data products work in conjunction with our strategies and values to continue to connect firms with their customers.

Blog 1 – Four barriers wealth managers face when attracting & retaining customers

Blog 3 – Three reasons why wealth & asset managers need young investors

Blog 4 – How CACI supports the wealth management customer journey

Whitepaper – Acquiring new high net worth clients – What wealth managers need to know

To find out more about how CACI can support you, contact our team of data experts today.

Understanding whether a loyalty programme is right for you

Posted on: 14 March 2023

How do you decide when to create a loyalty programme?

All businesses will eventually face the existential question of whether they should implement a loyalty programme or not. Understanding the value in doing so is paramount— customer loyalty is a big question for a lot of brands, and few know where to begin to devise a promising loyalty scheme, with many brands lacking an understanding of the potential return on investment. It is also integral for brands to have a business case prepared prior to formulating the loyalty programme’s design, as this knowledge will sway the development entirely.

Why brands might be thinking of this now

There are several factors that may prompt the creation of a loyalty programme– increasing share of wallet, encouraging customers to buy directly from a brand versus through a third-party retailer, or enhancing direct customer relationships to drive repeat purchase behaviours. No matter what the driving forces, businesses have become increasingly aware of the impact that customer insight has on informing an effective loyalty programme and the potential cost and risk of not introducing one into your own business.

What risks are associated with creating a loyalty programme?

Improperly planned and executed loyalty programmes can result in hefty costs for businesses, plummeting bottom line profit figures and an inability for revenues to bounce back.

Additional elements you must consider when implementing a loyalty programme include:

Getting the value exchange right

If customers do not understand the point or see the value behind your business’ programme, it will not be successful. Getting the value exchange wrong can erode your brand’s impression on customers. If the programme appears worthless as opposed to rewarding, it will fail to increase customers’ sentiment or engagement with your brand.

Getting the level of innovation right

Loyalty programmes must be innovative and uniquely tailored to a diverse customer base. Your business must meet customers’ expectations in one cohesive programme versus through multiple solutions, which demonstrates the importance of value exchange– meeting the wants of customers without sacrificing your business’ value.

Getting the loyalty mechanic right

You must be mindful of what customers are looking for from a loyalty programme, but this understanding must be backed by a data-driven approach that allows you to understand the unique selling point for your customers. There are a few approaches you can take:

Tiered loyalty programme: This splits benefits into tiers or levels that customers spending certain amounts of money can achieve. The higher the tier a customer reaches, the greater the benefits will be.
Points-based loyalty programme: Customers are given points with every purchase they make, and when they reach a certain number of points, the points can be used towards a discount or reward.
Subscription-based loyalty programme: Customers that sign up for subscription-based loyalty programmes will pay for their subscription upfront or in monthly or yearly instalments to receive exclusive discounts or rewards.

A lack of access to customer-centric data and an understanding of your customers’ wishes, however, will hinder a loyalty programme’s capabilities.

What should you consider before creating a loyalty programme?

Is your business bought in, engaged and set up to support a loyalty programme? Do you have the right technology and CRM in place, an existing loyal customer base and the ability to continue to sign up new customers?
Is a loyalty programme worthwhile for your customers and for you? Have you listened to your customers’ value mindset in terms of the product or offering to conclude the best potential ROI from your loyalty programme?
Is your business clear on how to enter the market in a way that will demonstrate ROI? Does it have the necessary mechanics or programme in place to pilot in the market to provide a successful ROI? Are you aware of the potential opportunity it can bring?

If you can answer these three questions, you can conclude whether now is the time to create a loyalty programme.

What steps should your business take to implement a successful loyalty programme?

Ensure your business is equipped with the necessary data to determine a loyalty programme’s value and discern what a good outcome for your business would be. This can be done through data analysis, best practices and benchmarking that will help you effectively align internally to understand existing capabilities and how best to proceed.
Confirm that your customers want a loyalty programme. If they do, what does a valuable loyalty programme look like for them, and what is the opportunity for your business? Identifying the value to the customer as well as to your business through data enrichment and data science will be a key next step.
Determine the ROI that your loyalty programme can deliver and understand what type of mechanic should be used in the pilot market to achieve this. An assessment of the scenarios of mechanics should be carried out to determine this. Once the opportunity from a viable mechanic is understood, determining how to effectively enter that market in a way that will deliver ROI will be crucial.

How can CACI support you with implementing a loyalty programme?

CACI’s data science capabilities and Customer Engagement consulting team can determine the actual costs that your business will face in running a successful loyalty programme and support your business through an innate understanding of loyalty across enterprises.

We do this by using our own proprietary data, data science, and expertise to understand the headroom in the market and help determine KPIs, understand which of your customers want a loyalty programme and how they want it to look to inform what potential opportunity exists. Areas that we assess to inform this include demographic richness, compliance for use, permissions, and our own products to fill any gaps around customer segmentation to determine who customers are and ask the right questions.

Our teams of data scientists and consultants will scenario plan with your business to comprehend the mechanics and experiences that must served and managed to your customer groups to build the pilot. Once this business case is understood, and a feasible pilot market has been identified, we can design a sophisticated end-to-end offering to help you deploy a successful loyalty programme.

Could your business benefit from a loyalty programme? To learn more about how CACI can help you, contact us here.

Four barriers wealth managers face when attracting & retaining customers

Posted on: 10 March 2023

Navigating everchanging expectations from customers, as well as new rules from the Financial Conduct Authority (FCA) to ensure that increased consumer protection is in place, has led wealth managers to not only find new ways to better understand their existing clients, but innovate ways to identify and attract new high net worth individuals (HNWI). This has caused many wealth management firms to scramble to increase their digitisation and customer-first policies quickly and effectively.

The ability to define these HNWI and UHNWI can be cumbersome, especially when the HMRC, FCA and individual banks and wealth managers all use varying criteria to measure this. Wealth and asset management firms looking to grow their business through the acquisition of these individuals will have to consider the importance of overarching data and scalable transformation to do so.

While you may recognise the need to better understand your clients, legacy practices and technology can often hold you back. Currently, we have noticed four major barriers in attracting and retaining customers:

1. Sparse investor data to inform decision making

Building a high-net-worth portfolio of investors requires the right financial products. Financial and consumer data products that identify people with incomes above £100k are far and few. This makes differentiating between an investor earning £100k and an individual with a £500k annual salary complicated, and identifying and targeting high-net-worth groups a challenge.

You cannot rely on your clients’ intergenerational wealth either as, once it is passed down, it is often the case that inherited wealth will be spent or not reinvested. However, if it is reinvested, it is often done with other brands, as different investor groups have different needs. This can leave you questioning how much wealth will actually remain with your client.

2. Lack of understanding of current and future investors’ needs

Once you acquire a new HNWI investor, utilising your cross-sell and upsell capabilities to extract the most benefit from their available wealth will be crucial. The ability to understand your clients is paramount, including both present and future needs in order to establish a long-term relationship.

Consumer Duty has been introduced to make firms more accountable over the suitability of their products and services, to meet the needs of those they are sold to. You will need to review the entire investor lifecycle and journey, revisit how and what to include in your marketing strategies, and establish new ways to measure all these areas to remain compliant and trusted.

Outreach to younger target investors

Younger investors are not as likely to behave as their older counterparts. For example, they may not necessarily attend the same in-person industry events, and often need to be targeted and communicated with via digital channels or social media. They will also want to manage their assets via digital platforms to be more self-serving. This means you need to work harder to intrigue and engage with younger investor audiences.

3. Maintaining GDPR (General Data Protection Regulation) compliance

By attempting to reach your target investors via additional or new channels, you must consider data protection and GDPR. Substantial penalties can come with breaches; therefore, you must ensure that any data handling is done carefully and correctly. Plus, you need to provide clarity to your audience as to where you have sourced their data from and why you are legitimately contacting them.

4. Delayed response towards technology-first approaches

The last five to 10 years have seen a significant move towards digital transformation and customer-first policies, particularly with banks and building societies. While this ongoing transformation has been relatively steady for some sectors, the wealth and asset management sector has struggled to adapt.

To appeal to investors, brands must now adopt and embrace digital practices by implementing business models that will facilitate customer-led and technology-first transformation.

How can CACI help?

CACI is already a trusted partner to leading wealth and asset management firms, supporting investor acquisition and retention through predictive analytics and data solutions.

Throughout this blog series for the wealth management industry, we break down the opportunities for businesses to attract and retain high-net-worth individuals. Continue reading at the links below:

Blog 2 – How to identify, attract & retain high net worth individuals

Blog 3 – Three reasons why wealth & asset managers need young investors

Blog 4 – How CACI supports the wealth management customer journey

Whitepaper – Acquiring new high net worth clients – What wealth managers need to know

Or to learn more about how CACI can help your firm overcome barriers in this area, explore our services or get in touch.