Case study
Creating a strategic segmentation to help TSB understand and drive money confidence
Summary
TSB is pioneering a new kind of banking for Britain, one that’s simple, straightforward and cares about people. Serving five million customers in the UK across a network of branches and operating centres, TSB offers friendly, honest and convenient banking that’s designed to meet customers’ needs, with the aim of delivering on its core purpose to equip them with money confidence. To do this, the bank wanted to better understand its customers’ behaviour, circumstances and priorities so it could be more relevant, engaging and effective.
Company size
10,000+
Industry
Financial services
Products used
Challenge
Customer segmentation
TSB already had creative-led segmentation developed by its brand agency. Yet, while this segmentation helped understand the target audience, it was ineffective for media planning and couldn’t be overlaid on the customer base.
At pitch, TSB’s new media agency, the7stars, proposed a more effective segmentation for media selection, which TSB wanted to advance further by overlaying it onto their own customer base.
Integration
In addition, the bank faced the issue of integrating these insights into its existing systems and ensuring they could be used for practical and actionable segmentation for effective media planning and customer targeting.
TSB had already been working with CACI to map Fresco financial lifestyle segments onto its customer base. So, a new joint collaboration with CACI and the7stars was initiated to address these requirements together.
Solution
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 Bell, Head of Insight, Strategy and Planning at TSB 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.”
Results
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.”
