The evidence is clear, Covid-19 accelerated the pace of consumers’ changing behaviours.
Our analysis on consumer attitudes towards returning to branches highlighted a 32% reduction in bank branch visits post-covid, with even the most resistant to channel shift turning to apps and websites to manage their finances.
This is against a backdrop of other changes in the UK’s financial services sector that are impacting marketer’s abilities to connect with customers and prospects.
Retaining your savvy savers
Rising interest rates mean that people are becoming incentivised to both start saving again, and to switch savings accounts again, with savvy savers searching for the best deals.
Our recent consumer insights have found that the younger demographic are still expecting to save in the next 12 months. And it is to be expected that your competitors will increase their efforts to attract your savers to their products. You need to be ready to retain them!
Buoyant lending with a shift to the suburbs
Across the UK we saw a shift from the cities to the suburbs, driven by the opportunity to work from home more regularly. A reduced commute and a chance for more space was an opportunity many felt could not be missed.
Coupled with the government provocation of the housing policy, using changes to the stamp duty tax threshold, there has been an incredibly active homebuyer market.
However, recent economic factors have driven up the interest rates available on new mortgages and to those coming to the end of their fixed deals. Consumers are therefore incentivised more than ever to find the best available deal. This becomes a potential flash point for marketers who need to develop trust with customers so that the retention battle can be won.
Insurers need to rethink incentives
New legislation from the FCA means that insurers must be willing to offer the same incentive to new and renewing customers. Past use of aggressive incentives to win new customers’ needs to adapt to regulatory challenges.
Like the other macro conditions, this requires marketers to engage in longer-term marketing journeys with potential consumers, to win them and retain them with value driven propositions.
The need to communicate with the individual
Whichever way you cut it, there’s a lot of change to contend with for the financial services marketer.
From CACI’s perspective, we see there being winners and losers in the market across banking, lending and insurance.
The winners will be those who utilise data and technology to serve customers as individuals. To maintain engaged relationships based on trust and demonstrate how the brand is taking care of the financial interests of the individual.
Throughout our new blog series for the financial service industry (starting with this blog), we will break down the opportunities for marketers to address these challenges through central decisioning engines, marketing attribution models, data modelling, machine learning and AI-driven recommendations. Continue reading at the links below:
For insights on consumer attitudes towards their financial services provider’s marketing and communications, download this report, created by Braze in partnership with CACI. With input from over 200 financial services brands, 1,500 marketing leaders in the financial services industry and 5,000 financial services consumers, the report uncovers a surprising disconnect between what banks think and how customers feel. It also provides guidance for brands in the financial services industry to better understand and meet shifting customer expectations.
First launched on 10March 1801, the UK census is a decennial questionnaire undertaken by the Office for National Statistics (ONS), National Records of Scotland (NRS) and Northern Ireland Statistics and Research Agency (NISRA) that asks a variety of demographic questions on age, sex, marital status, health, education, and housing.
The primary purpose of the UK census is to build a detailed snapshot of society at that current point in time. Helping national, regional, and local governments understand the people and households in their constituencies. This allows these government agencies to develop current policies or create new ones, as well as plan and fund services, including education, medical facilities such as doctor’s surgeries and hospitals, and transport infrastructures such as roads and new train routes.
The census is also used for other purposes, helping organisations and companies understand the society they interact with. This includes:
Voluntary organisations using census data as evidence to support any applications they make for funding.
Academics and Education Institutions use census statistics to support research that they are working on.
Businesses using census information to help them understand their customers more effectively, i.e., a retail chain might use census population data to help decide where to open a new store.
How often is the UK Census, and when is the data released?
The census is run every ten years and typically collects information from the public in the first quarter of the calendar year of the decade. ONS for England and Wales, and NISRA for Northern Ireland had a Census Day on 21 March 2021. However, on 17 Jul 2020, NRS recommended to Scottish ministers that the 2021 Scottish Census be moved to 20 March 2022 due to the COVID-19 pandemic.
The responsibility for running the UK censuses is split between ONS, NRS and NIRSA based on their geographic region. The Office for National Statistics hass overall responsibility for publishing census records and statistics for the whole of the UK.
The data from the census is typically released in phases. For instance, in the first phase for England & Wales, local authority level population and household estimates were released, in June 2022. The three census offices each have their own timetable, with outputs staggered across a period of one to two years.
Because Scotland’s censustook place a year after the rest of the UK, reference dates will differ. This will impact the comparability of UK census data, for this version.
Due to this, the three census offices are working closely to develop UK-wide census records, which involves consideration of how best to meet the challenges around comparability, coherence, timeliness, and accessibility of the information.
Below is an approximate timeline of the different subject releases based on the various census offices.
KEY
LA POP – Local Authority Population Data
HH – Household Estimates
OA – Output Area
CACI and the UK Census
CACI has been processing, analysing, and modelling Census data since 1976, when we became the first Census Agency in the country.
The data from the UK census is used as input for many of CACI’s products, including Acorn, Address Spine, Ocean and Fresco. A wealth of companies uses these products, public sector bodies, charities, and not-for-profit organisations to help them understand their current customers, constituents, or beneficiaries more effectively, as well as market their products and services to like-minded individuals that fit the same demographic profile of their existing customers, saving them both expenditure and resource.
We also use the census as the baseline for CACI’s annual Up-to-Date Demographicsrelease, which providesthe latest estimates of key census variables (e.g. age, housing tenure, presence of children). These are modelled forward using various, more frequently updated data sources. As the census is carried out only once every ten years, this provides an increasingly more reliable view of the population than the census data itself. Up–to–Date Demographics is available at census output area level. Consistent with this and for even more complex use cases, our annual Population and Household Estimates and Projectionsprovide counts down to individual postcode levelsandproject forward for future years.
The first results of Census2021 were published on Tuesday, 28 June 2022. These provided estimates of the number of people and households in England and Wales at local authority level. From this data, CACI was able to provide insight into the data to help:
The Ageing Population – The ageing population shown by this census follows our own predictions very closely, so it comes as no surprise. It does however throw up two significant questions. Firstly, what does this mean for pensions? With proportionately fewer working people to retired people, will there be a greater emphasis on private pensions to cover the state shortfall? And secondly, what does this mean for senior living facilities? We’ve recently been pushing the message that senior living needs to be looked at more rigorously in terms of its role within the wider housing stock and that all types need to be taken seriously. The 2021 census only serves to vindicate that, and we would encourage local authorities and senior living developers or providers to engage with the data now to understand what their existing and future residents need, to ensure we have a fit-for-purpose housing mix for an ageing population.
Regional Growth and ‘Levelling Up’ – It is great to see regions other than London taking the top spots in terms of population growth. It finds itself behind the East of England and South West, and in joint third place with the East Midlands, in terms of percentage increase. More noticeable for their omission from the top of the charts are those regions further from London. Wales, the North East, and Yorkshire and The Humber are lagging behind quite significantly in terms of population growth, suggesting that the pull of living within reasonable commuting distance of London is still strong. Salaries of course have a big role to play – the closer you are to London the higher both salary and disposable income tend to be. The growth we’re seeing in the census is more or less restricted to the southern part of England, so there is clearly a lot of work to be done with the ‘levelling up’ agenda, to entice people further away from the capital.
New release
On Wednesday, 2 November 2022, ONS also released their Demography and Migration Datafor England and Wales, their second release of Census 2021 data as part of their topic summaries.
This includes an update to population and household estimates for England and Wales, which now includes unrounded data by sex and single year of age, providing even more detail on individuals who were previously in age bands. This meant that on Census Day, the size of the usual resident population in England and Wales was 59,597,542, which was the largest population ever recorded through a census in England and Wales. This meant that the population grew by more than 3.5 million (6.3%) since the last census in 2011 when it was 56,075,912.
It also contains information on household and resident characteristics, including household size, composition, deprivation status, and people’s marital and civil partnership status. Providing detailed insight into the makeup of the 24.8 million households across England and Wales. Such as although the number of households has increased to 24.8 million (up 6.1% from 23.4 million in 2011), the average household size in England and Wales in 2021 was 2.4 people per household, which is the same as in 2011.
Migration data is also included in this release providing further information on country of birth, passports held and year of arrival, helping us to understand internal and international population changes. For instance, of the 3.5 million (6.3%) increase in population from 2011 to 2021, 57.5% is positive net migration (the difference between those who immigrated into and emigrated out of England and Wales).
Objective basis for strategy and resource allocation
About Northumberland County Council
Northumberland County Council looks after a population of over 320,000, in England’s most northerly county. Northumberland is one of England’s five largest counties, with widely distributed towns and communities of varying types and populations.
The Challenge: Understanding the needs of different neighbourhoods
Senior Economic Analyst Julie Dowson provides data to departments across the council, from housing and planning to public health and regeneration. She says:
“Our communities have such wide differences – it’s really important to look at them at a granular level and compare them. That’s where the Paycheck data comes in. We need current, household level information to understand exactly where people are experiencing challenges, so the council can target plans and funds to address them”.
The Solution: Household-level Paycheck data reveals areas of need and opportunity
Northumberland County Council also uses Paycheck insight to feed into its annual Economic Performance Assessment and five-year economic strategy. Julie says, “You can’t plan based on subjective assumptions – the Paycheck data provides objective evidence to support our policies, priorities and programmes. That means everyone in the Council as well as our partners and customers can see and understand why we’re focusing our resources in particular areas.”
The Benefits: Targeted help and support for towns and communities
Northumberland County Council used Paycheck data to inform its Local Plan. The outputs influence Strategic Housing Market Assessments and Land Assessments, which identify potential locations for additional housing and indicate what land may be released for future housing development. This helps Northumberland County Council to plan enough affordable homes to meet residents’ needs in different housing developments across the county.
Accessible, visual information for a wide audience
About Dumfries and Galloway Council
Dumfries and Galloway Council is responsible for the delivery of all local authority services to nearly 149,000 people living in both urban and rural areas in the southwest of Scotland.
The challenge: Understanding the needs of different neighbourhoods
Gregor Docherty is Dumfries and Galloway Council’s Economic Development Officer. He explains: “Although we have some data of our own, we don’t have the range and breadth of it to provide the information the council needs today. I was given the challenge of improving our data insight, to give us a clearer view of the areas the Council looks after and the needs of the people who live there.
The solution: CACI’s data provide valuable insights
Dumfries and Galloway Council has access to Paycheck income data for two years. Recently, Gregor decided to add the Household and Wellbeing Acorn datasets to the subscription.
The addition of Household and Wellbeing insight provides a granular picture of lifestyle, income and risk factors at a local level, so we can really examine areas of need and deliver value and impact from the council’s services and programmes.
The benefits: Clear, trusted and detailed insight into household income change
Dumfries and Galloway Council successfully applied for Borderland Inclusive Growth Deal funding, using information modelled from CACI’s data. Gregor created a Dumfries and Galloway datazone profile, bringing together all the available information to rank the towns in the Council’s area for funding priority. The analysis revealed the four priority towns for funding, which was approved.
As with every industry Grocery Retail has had to adapt to a seismic shift in consumer attitudes and behaviour.
And those attitudes and behaviours continue to shift in response to local, national and even global events. The consumer has weathered the pandemic but is now staring down the challenges borne out of a cost of living crisis.
So, you need to make important decisions, and quickly. Flexibility is key. Having the data and tools at your disposal to make anything from adjustments that impact fine margins, right up to transformational change, is essential.
An innate understanding of your customer – their attitudes and behaviour – gives you the insight you need to attract new customers and retain existing ones. It’s also the foundation to building strong brand loyalty, even in challenging times.
CACI know more about your customers than anyone else. We combine a market leading demographic classification system with highly detailed footfall and spend data to provide you with everything you need to know about the way customers interact with your brand, your locations, and your competition.
For confident decision making, for greater market share, for sustainable and accelerated business growth – make your strategic location intelligence partner CACI
Strategic decisions need strategic insight
CACI offer unrivalled insight into the fundamental relationship between people and place. Understanding this relationship speeds up decision-making and minimises risk from Cap Ex investment.
We are supporting grocery retailers with insight on:
How customers engage with your brand in a physical and digital environment
The demographic profile of the catchment of each of your stores
The spend potential of the catchment in any location
The shifts in footfall and spend across times of day
The profiles of customers engaging with your competitors
Other locations similar to your best performing sites
Data driven network expansion driving the most ROI
Creating the right formats for the right locations to serve the local communities
At the end of this work, we had a growth plan to refer to, which meant we could prioritise and focus incoming opportunities. With tangible, data-led evidence and a well-defined process and criteria, we could make decisions more quickly
MidCounties Co-operative
Unprecedented insight into the grocery retail market
Understanding the way customers interact with your brand, and how potential customers engage with your competition, is the first step to increasing your market share.
And with a complete view of the competitive landscape both nationally and locally, you will have the tools you need to develop strategies for success.
At a customer level you can:
Discover the demographics that are drawn to your brand
Discover those that aren’t and why
Find out when they spend, how much they spend and what they spend their money on
Drive customer loyalty and win larger share of wallet
Identify highest spending customer groups and locate more of them
At a location level you can:
Find out where your current and potential locations rank in terms of spend
Benchmark locations against a national average across a range of criteria
Model catchment areas and market share catchments
Forecast how a particular location will change over time factoring demographic shift
Understand your local market share and competitor spend
Identify key growth opportunities in your store estate
Inform partnership strategy to generate greater footfall
Measure impact of your and competitor activity, e.g. marketing, store refurbs, etc
The CACI Consumer Spend Data has been instrumental in Sainsbury’s breaking new ground in our understanding of the evolution of multi-channel grocery. With it we can now observe changes in consumer spending and preference across channels at both national and local level and can see market dynamics play out in near real-time
Sainsbury’s
The analysis to understand the digital / physical dynamic
The relationship between physical and digital has evolved, and demographics more inclined to visit a store are now comfortable online.
How has this affected your store network?
And how does online halo impact your performance across your physical store network?
Different demographics behave differently and will even favour different brands for different channels.
CACI can make sense of this and measure the success of each of your locations well beyond just what goes through the tills. Your best performing site might not be so obvious!
Optimising your store network with this analysis in your hands allows you to make the right decisions without negatively impacting on your multi-channel revenue lines. Future proof the business by effectively forecasting online as well as in store grocery demand.
Get in touch with us to show you how we do amazing things with data.
New plans from the Financial Conduct Authority (FCA) for increased consumer protection for financial services users, through a “fundamental shift in industry mindset” are to be confirmed by the end of July 2022.
The proposals include a new Consumer Principle that “a firm must act to deliver good outcomes for the retail consumers of its products”.
The regulator’s Consumer Duty directive is the latest in a series of measures tackling consumer needs in the financial services and wealth management sectors.
But how do the latest rules impact wealth and asset management firms? And how can a more effective use of data help firms increase customer knowledge and drive business growth, while ensuring compliance with the Consumer Duty?
How does the Consumer Duty impact wealth management firms?
Banks and building societies have moved steadily towards digitisation and customer-first policies over the past decade, but the wealth and asset management sector hasn’t moved as quickly.
While some firms have already adopted a business model that enables customer-led and technology-enabled strategy, it is only in the past 18 months that the importance of a data-led approach to wealth management has become prominent – and many firms are still playing catch-up. The Consumer Duty may well act as a catalyst for many to speed that change along.
The FCA is worried that, currently, financial services do not always work well for consumers, who are buying products and services that are not always fit for purpose, and not continuously receiving the best customer support.
Consumer Duty creates a shift towards making firms more proactive about the suitability of their products and services, to directly meet the needs of those they are sold to.
Wealth managers, along with other financial services firms, will need to improve consumer understanding, review the entire consumer lifecycle and journey, revisit how and what to include in customer marketing, and establish new ways to measure all these areas, in order to remain compliant.
“The new duty will drive a change in culture at firms. We expect firms to step up and put consumers at the heart of what they do, and we’ll be holding senior managers accountable if they do not.” warned Sheldon Mills, Executive Director of Consumer and Competition at the FCA.
Customer marketing – who are the new prospects?
Clearly, the FCA wants firms to better understand their customers. But how do wealth and asset managers do that? What steps do they need to take to make their business fit for purpose in a digital world and comply with Consumer Duty?
Regulatory pressure provides an opportunity to capture the market – collecting data and enriching it in order to tailor distribution and marketing.
Wealth managers are seeing changes in both customer behaviours and types of customers, and are moving away from the traditional investor to hunt out wealth in other areas – as they fight for market share. Meanwhile, fintech disruptors are raising the bar with innovative offerings.
Consumer insight is key. Young investors who are creating or inheriting their own wealth are increasingly important, as the older consumer market depletes. They are joined by more entry-level investors – and both personas have very strong customer service expectations.
These younger, and often more knowledgeable, investors are the customers of the future. They know they can invest quickly and easily online and they expect the same level of speed and ease of use in all their financial dealings.
A data-driven customer experience
Firms need to better understand the current and future needs of investors, those who might have a sophisticated, historic book of customers, now need to reach a broader audience – and CACI can help firms do that.
Consumer Duty firmly indicates products need to suit their customers, and firms need to be where investors can see them in order to market more broadly. Changing expectations might include more sustainable or green investments.
Those firms that recognise the need for better customer understanding are starting to bring in people with wider customer-first experience from other industries – increasing the sector’s pool of knowledge.
It is key to firms’ long-term growth that they do more with consolidated data – because if they don’t, they can be sure their competitors will. Firms will have data on customers, but many don’t know how to make the most of it.
At CACI we can help firms:
Understand their customers
Understand the market and identify opportunities
Know where potential and current customers are located, and their value
We can help brands across the wealth management, asset management and financial services space with demographic data and behavioural insights on investors.
Wealth and asset management firms looking to grow their business need to consider the importance of over- arching information and scalable transformation. Rich demographics on lifestyle, attitude and behaviours in the investment market, can empower better target distribution activity – driving revenue growth and increasing client engagement.
CACI will:
Provide detailed understanding of current investor behaviour needs and growth opportunities
Quantify the acquisition opportunity across regions to inform growth and investor engagement strategy
Enable optimisation of marketing performance across channels
Improve distribution performance through digital direct and intermediated channels
Demonstrate compliance with Consumer Duty to show that they are looking at, and understanding, customer needs
The new Consumer Duty is an important directive from the FCA to protect consumers. It recognises the need to focus on consumer outcomes and to put these outcomes at the heart and centre of the organisation.
For financial services organisations to achieve the requirements of the Consumer Duty, there is a need for change. Change will require overcoming common obstacles around data, communication plans, marketing goals and working practices.
To be in line with the Consumer Duty, firms need to know their customer, adapt their products, and use data to drive messaging.
CACI is here to help
The result is that Financial Services organisations will need to improve consumer understanding, have a complete view of the consumer lifecycle and journey, revisit the selection and messaging used in communications, and establish new means to measure.
Operational siloes, fragmented data, incomplete consumer profiles, product-oriented campaigning, and slow/linear working practices all create barriers to achieving the FCA’s directives. Our experience has been that firms may be dealing with several of these blockers at one time, requiring more holistic solutions than a traditional agency or consultancy can provide.
CACI’s unique positioning in the market as part agency, part consultancy, part data provider and part system integrator ensures that we can really drive value for your business. Our services and data products have always been there to connect firms with their customers. Some of the ways we can help:
Enriching consumer data – Nationwide rely on CACI’s demographics and lifestyle data variables to provide deeper insights on who their customers are and the size of the market opportunity
Segmenting and insights on consumer audiences – the Money and Pension Service have used CACI’s services to build a profile of the nation’s wealth and indebtedness
Fixing data quality and fragmentation – working alongside their own data teams, CACI are improving the quality, latency, and reliability of the data that Bupa holds and uses in marketing
Improved marketing and communications tools – Virgin Money have invested in market leading communication tools, CACI has designed bespoke customer journeys to leverage this new technology
New reporting and measurement – from attribution through to complex propensity models, CACI can visualise and report on the KPIs that really matter
Efficient operating models – through improvements in the people and process side of marketing operations, CACI can strip out 80% of the time required to launch a campaign from idea through to results. This will enable you to send more targeted campaigns to the right consumers
Product insights – our Retail Finance Benchmarking services provide vital insights into the market for personal loans, current accounts, savings, and mortgages which supports and enables product design, proposition development, and provides an objective measurement of market performance.
The Consumer Duty is an important directive with vital intention to build trust between financial institutions and consumers. For help with your journey to compliance, please contact either Paul Sene or Cara Bramwell to find out more.
As the country learns to live with Covid, CACI’s data and consumer research is revealing what the new normal looks like for the nursery market.
Customer Movement is on the Rise
Let’s start with the positives. Remember just how much more freedom we have than we did this time last year. The contrast between the two maps based on anonymised Mobile App data are stark. The map on the left shows movement activity levels in the last week of March 2021 relative to pre-Covid (Early March 2020) for Central London.
Source: CACI / Digital Envoy
Dark blue shading shows areas that movement levels were way down on pre-pandemic across much of London – not surprising given that restrictions were really only lifted in early April 2021 for all but essential activities (albeit including trips to nurseries). The map on the right is the same week this year, and shows swathes of red across much of London, highlighting that activity and visits to many of these areas has returned to almost pre-Covid levels as we learn to live with life after Covid.
Despite the fact that we are seeing record numbers testing positive for the new variant there is no doubt that many are back out and getting on with their lives after a painful couple of years.
New Behaviours and Attitudes
But we have emerged into a different world. The right-hand map shows that the recovery in movement is not universal. There are still clear areas of blue and lighter red in office dominated parts of the city, and around the major stations of London. The same pattern is seen in cities across our county.
Analysis of the data reveals that our city centres are only now returning to something close to what we would have called normal before the pandemic, and transport hubs are seeing visits about 25% down. But regional towns have grown in popularity, with visits up by about 40%. So, clearly we have changed our activities, and it looks like many of these behaviours are set to remain.
Our towns and cities are changing, and we can see it happening around us. But it’s a complex picture. Whilst some have speculated that we are going to witness a long-term boom in the suburbs as everyone moves out of our towns and cities – this is not the case. Despite the jolt that Covid brought there are too many interactions at play for all the old links to be broken.
CACI’s research, carried out as restrictions were eased, revealed that many 18 to 34 year olds, many in the target age groups for nurseries, were keen to return to our towns and cities. These included people from across the demographic spectrum with groups with very different lifestyles – from ‘City Sophisticates’ to ‘Struggling Estates’ in CACI’s Acorn classification amongst those most keen to return to urban living.
Consumers are listing eating out, entertainment and leisure activities as the top reasons for wanting to return.
In short, for many our towns and cities remain places of fun, choice and opportunity – and this hasn’t changed with the pandemic. What we are seeing is that towns and cities are responding to this need. At CACI we have never been so busy in supporting our leisure clients who are busy trying to extend their portfolios, filling the units vacated by retailers hit by the step change in online shopping triggered by the pandemic. And other urban offices and former retail units are being repurposed as urban living – a clear sign that everyone is not heading for the countryside and suburbs.
For many, working patterns look like they have changed for the long-term. Evidenced in the conversion of office space to other purposes and in the areas of blue on the map of central London in worker dominated areas. Our research revealed that workers claim that 2 to 3 days is the optimum number of days they would like to spend in the office, and this seems to be becoming the norm for many. But, it is important to remember that not everyone has this option, including most workers in the nursery sector. It is very easy to think everyone can work from home easily, but affluence, age, location and job role all clearly play a part.
Source: CACI / Digital Envoy
Analysing Kantar’s TGI survey data from 2021 shows that, even in a year scattered with various work from home advice, only 25% of those surveyed said that they worked from home every day, or some days, as their ‘normal’ behaviour.
The chart, using CACI’s broad Acorn Categories to dissect responses, clearly illustrates that it is the ‘Rising Prosperity’ that are most likely to be working from home. These are younger, well educated professionals moving up the career ladder and living in our major towns and cities. 38% of this segment claim to work from home at least some days, and 25% of this is made up of those working from home every day. In contrast only 20 or 21% of lower paid, lower qualified segments ‘Financially Stretched’ and ‘Urban Adversity’ have the luxury of even working from home some days.
Source: CACI / Kantar
As a result of this shift workplace nurseries will no doubt continue to suffer, as many will prefer the flexibility of nurseries closer to home, in line with the shift to ‘hybrid’ working, with many neighbourhood nurseries benefiting from this change. The number of parents requiring nursery spaces is unlikely to be impacted by the rise in home working, as many learnt during the Covid lockdowns that working from home and providing childcare don’t mix. However, many nurseries are likely to see increasing staffing and pricing complexity with parents expecting a level of flexibility that reflects the new-found flexibility in their working hours and location.
So, despite big changes there is no evidence to suggest a need for wholesale changes in where acquisitive nursery groups should be focussing their attention. The big urban to rural shift is not happening and indeed CACI’s research shows that even at the peak of the pandemic 10% of house moves were from villages to towns and cities. Tracking planning applications reveals huge amounts of new dwellings under construction or being proposed in our urban areas and, whilst much of this will have been planned before the pandemic, it’s not that easy to turn a tanker. It is simply not possible for such a shift to happen without fundamental changes in planning policy and housing stock.
So, in summary whilst the change in residential patterns are moderate it is the behaviours of those residents that have changed, and the following are just a few more key behaviour changes that CACI expect to remain:
Communities are eager to stay local
This is good news for nurseries operating well-run community nurseries. But it is increasingly important for nurseries to engage with their wider communities and larger groups need to take care not to look like corporate outsiders
Social governance is increasingly in the spotlight
With consumers expecting their suppliers to behave ethically and transparently
Minimising waste and environmental impact is mainstream
All nurseries now need to ensure that they are meeting parents’ expectations here and that they are living out the values of care for the environment that the children will inherit
Digital is critical to recruitment and engagement
There is no doubt that digital is here to stay – so if you are not happy with your website you can be sure that it is putting off potential customers and if you are not sharing key messages with your parents via emails and portals then you may get left behind
New Challenges and Opportunities
Unfortunately, with inflation and rising rocketing fuel prices, there is no doubt that many families are going to be facing increasingly tough decisions about where to prioritise their spending in the year ahead. This could impact customers’ ability to afford childcare, especially if their salaries rise above the eligibility threshold for free places, but their true disposable incomes fall.
Rising fuel costs for nurseries will compound the challenges of rising wages already driven by the shortfall in staffing that so many in the sector are facing and these need to be factored into nurseries strategic plans.
Successful nurseries should take note of these consumer and market changes, play to their strengths in these areas and they will thrive. But ignore them at their peril as the sector faces the two emerging, and partly inter-related challenges of staffing and the cost-of-living crisis.
TSB is pioneering a new kind of banking for Britain – one that’s simple, straightforward and cares about people. The bank offers friendly, honest and convenient banking that’s designed to meet customers’ needs and equip them with money confidence.
The Challenge: a segmentation to drive business growth
TSB had a creative-led segmentation developed by its brand agency to help understand its target audience, but it wasn’t fully effective. Justin Bell, TSB’s Head of Insights, Strategy & Planning explains:
“We couldn’t use it for media planning and it couldn’t be overlaid on our customer base.
We knew we needed something more practical in terms of consumer insights and choices of media. At pitch, our new media agency the7stars, came up with a more effective segmentation that we could use for media selection. We wanted to take this forward another step and overlay it onto our own base. We had for some time been working with CACI, mapping their Fresco financial lifestyle segments onto our customer base. We therefore initiated a joint project, working with CACI and the7stars to develop the segmentation further.”
The Solution: accurate, current segmentation that reflects consumer behaviour
Working in collaboration with TSB’s Research and Strategic Insights Team, CACI created an evolved segmentation that clearly distinguishes different customer types and provides clear segment profiles and personas.
CACI used Fresco and other external consumer demographic datasets to give TSB bespoke behavioural and lifestyle insights into its target customer base.
Justin explains, “We started with a market-wide segmentation, based on all UK adults. We’ve subsequently created a version of that for our customer base.
CACI provided a proven methodology and approach drawn from their data expertise and experience. Once we had clear segment parameters, our data team mapped them to our base.”
The Results: tailored propositions, content and media selection
TSB is actively using the segment insights to develop its media strategies and in campaign briefs, creating content tailored to target consumers’ profiles.
Justin continues:
“Part of the output of the segmentation was to rank the segments in order of money confidence. Working with CACI, we agreed on a weighted mix of key questions in the TGI consumer survey, to derive a money confidence score. We support people with content, products and services to help raise their money confidence and we need to be relevant to those that need that support most.
At the heart of it is a money confidence score: we’ll measure our progress against our purpose: Money confidence for everyone everyday. We hope to see a gap opening up between the money confidence levels of our customers and that of non-customers, with a continual improvement against today’s baseline.
We believe this segmentation will continue to pay dividends as we develop our channel and campaign marketing – we’re looking forward to tailoring products and services even more to meet customer needs.”
