East of England Customer Profiling Regional Project

1
East of England Customer Profiling Regional
Project
2
Welcome introduction

• Deanna Sorrell
• 27consulting

3
Session Objectives

• Provide an introduction to raise awareness of
  Customer Profiling
• Outline Customer Profiling project for East of
  England region
• Discuss the next steps explain how to get
  involved

4
Background to Customer Profiling

• Drivers
• National Project
• Phases timescales
• Who is involved so far
• What we found out
• esd-toolkit subscriber benefits
• Benefits
• Service improvement
• Access Channel Strategy

5
Customer Profiling the way ahead

• How does customer profiling help?
• What are the advantages of Customer Profiling
  with esd-toolkit?
• East of England Regional Customer Profiling
  Project

6
Drivers for service reform as we have never known
before
Lyons Enquiry
Shared services
More for less!!
Transformational Government
Public Service Reform
LGA - Closer to People Places
Local Government White Paper
Comprehensive Spending Review
Local Challenges
7
Customer insight

• Deep insight into customer needs, behaviours
  motivations, plus the ability for citizens
  businesses to have better information on the
  services on offer, are all important for the
  design of public services that support the
  Government's desired policy outcomes...
• (Service Transformation A better service for
  citizens businesses, a better deal for the
  taxpayer by Sir David Varney, Dec 2006)
• Often delivered by a single piece of research or
  an ad-hoc project

8
Customer Profiling National Project Phases I II

• Funding Model
• Contribution based
• Local Authorities / Central Government
• Demographics for each LA
• Personalised on post codes
• Services costed using proven model
• Software in esd-toolkit developed to add value to
  data held against services
• Personalised reports for each LA enabling them to
  tailor their services distribute them more
  efficiently

9
Who is involved so far?

• Phase I (Apr07 Oct07)
• Chorley Council
• East Northamptonshire DC
• LB Enfield
• LB Havering
• Lancs CC
• LB Lewisham
• Luton BC
• Mendip DC
• North East Derbyshire DC
• LB Redbridge
• LB Waltham Forest
• Wokingham BC

• Phase II (Nov07 Mar08)
• LB Camden
• Dudley Metropolitan Borough Council
• Kettering Borough Council
• Nottinghamshire County Council
• Nuneaton Bedworth BC
• Rossendale Borough Council
• Stevenage Borough Council
• Tameside Metropolitan Borough
• Wear Valley DC

10
What we found out

• Elderly customers were using disabled bus passes
  rather than elderly person pass
• High take up of freebees from affluent groups
  low take up from those who need them!!
• Low library usage was to be expected from certain
  groups but some surprises
• High level of face to face transactions where
  profile indicated other channels possible
• Rural communities missing out
• High usage of postal channel at high cost

11
Example Profile of council tax arrears

• How can you
• Reduce number of council tax arrears
  increase revenue?
• Manage message best way to reach different
  profile types?

12
Profile of council tax arrears
Can Pay
Struggling to pay
Cant Pay
13
Segment council tax arrears
Attributes Middle-aged Directors HH Income over
50k Professional occupations Housing worth over
500k Expensive cars
Action Strong message on need to pay immediately
the benefits of paying by direct debit  
Can Pay
Attributes Very low incomes Low savings State
benefits Some small bungalows Sheltered
housing Look forward to visits
Action More understanding approach Financial
literacy debt advice Encourage opening a bank
account Aim to encourage long term ability to
pay  
Cant Pay
Attributes Older houses Small industrial
towns Close knit communities Foreign package
holidays Former Coalfield areas HH income approx
15- 25k
Action Softer message Look at payment plans
Direct debit payments as a future
option Potential benefits entitlement  
Struggling to pay
14
What do subscribers get?

• Data
• Ward level data
• OR Post Code or Household data with an Experian
  Licence
• Group characteristics, type details
• Software
• Interoperability of profiling volumes data
• Storage of data per LGSL/LGIL/LGChL/Profile
  type/Time period
• Reports graphs
• Cost modelling tool - channel shift

Guidance on how to cost services (All available
from www.esd.org.uk/profiling)
15
Customer Profiling Project
Service
Transaction Costs
Cost
Model
Customer Profile Data

• Standards
• LGSL - Services
• LGIL - Interactions
• LGChL - Channels
• Community of Support
• Benchmarking
• Best Practice

Costs
Costs
Profiles
Evidence
Evidence
esd-toolkit
Local Data
Core Data
Targeted Resourcing
Service Quality Analysis
Shared Services - Evidence to Support
Cost to Serve
Business case For Transformation
Equalities Impact Assessments
Targeted Marketing
Community Development Place-Shaping
Channel Optimisation
16
Service improvement

• Customer usage profiles for services/groups of
  services
• Compare customer
• profiles with those
• of other councils
• Review service take-up over time to identify
• Seasonal variations
• Channel migration

17
Access Channel Strategy

• Devise a channel strategy based on
• Savings achievable from channel shift
• Propensity of customers to shift (given by
  profiles)
• Citizens not reached by current channels
• Choose marketing campaigns according to
  responsiveness of customers to different media
• Locate contact centres where most needed
  according to citizen profiles

18
Do you know your customers?

• Quiz introducing Customer Profiling types

19
Which group are the most likelyto receive
Council Tax Benefit?
People living in social housing with uncertain
employment in deprived areas
Low income families living is estate based social
housing
Older families living in suburbia
Over three times more likely
46 below average
40 above average
20
Which group are most likely to use recycling bags
containers?
Younger families living in newer homes
Career professionals living in sought-after
locations
Educated, young, single people living in areas of
transient populations
68 above average
26 below average
24 above average
21
Which groups children are more likelyto gain at
least 5 A-C Grade GCSEs?
Residents in 1930s 1950s council estates,
typically in London, now mostly owner occupiers
Well paid executives living in individually
designed homes in rural environments
Successful managers living in very large houses
in outer suburban locations
63 above average
45 above average
24 below average
22
Which group is most worried about being a victim
of crime?
High levels of social housing, mostly in inner
London, with high levels of diversity
Young professionals their families who have
gentrified terraces in pre 1914 suburbs
Older people living in crowded apartments in high
density social housing
Over three times the average
78 above average
15 below average
23
Which group uses www.direct.gov.uk more?
Small business proprietors living in low density
estates in smaller communities
Economically successful singles, many living in
privately rented inner city flats
Older couples, independent but on limited
incomes, living in bungalows by the sea
23 above average
33 below average
14 above average
24
Do you know your customers?

• 11 profile groups split into 61 types
• Detailed definition/attributes of each
• Considered types from 3 groups
• Suburban comfort (Blue)
• Blue collar enterprise (Orange)
• Grey perspectives (Grey)

25
How does customer profiling help?

• Shows who is using your services / who isn't
  what youd expect from your LA customer profile
• Research behind data supports who could be
  persuaded to change to cheaper channel what
  message where to advertise who are those who
  would encourage others
• Profiling helps you meet your targets
• Shows if there is low / high take up of services
  compared to other LAs allows you to explore the
  implications improve your service to meet YOUR
  customer need
• Supports development of sound channel / customer
  access strategy

26
What are the advantages of Customer Profiling
with esd-toolkit?

• Do you sometimes feel that you are biting off
  more than you can chew?
• Are you relying on anecdotal rhetoric gut
  feeling rather than hard evidence?
• Can you show clear business benefits of change?
• Do you really understand your area?
• Customer Profiling can help...

27
East of England Customer Profiling Project

• 3 Stages
• Stage 1 - Engagement
• Stage 2 - Profiling data licensing
• Stage 3 - Training support
• Project documentation
• Funding arrangements
• Next steps
• How to get involved?

28
Stage 1 - Engagement

• Project Management throughout all Stages
• Pre-project - 2 regional half-day workshops
• Regional Launch Event
• Access to closed Customer Profiling Project
  forum
• Costing workshop
• Data Analysis workshop
• Regional Project Completion Event

29
Stage 2 Profiling data licensing

• Discounted Experian Mosaic profiling licences for
  each LA
• Post code or Household
• Experian will
• Build bespoke regional contextualised
  benchmarking tool - enabling benchmarking against
  each other on series of key measures
• Hold 2 regional events p.a. - share encourage
  best practise guide LAs along customer insight
  journey
• Enable East of England project members access
  Experian Mosaic Income Model at postcode Output
  Area level

30
Stage 3 Training support

• For each participating LA
• Import address profiling data
• Local service tree tidying/update
• Data review, cleansing import
• Detailed training session
• Enable skills transfer future potential

31
Project documentation

• Project Proposal
• Executive Summary
• Generic Customer Profiling overview
• Bid RIEP to follow

32
Funding arrangements

• LAs fund own profiling licence
• Engagement support funded by bid proposal
• EE RIEP bid September 2008

33
Next steps

• Half-day workshops 19 25 June TBC today
  useful?
• Customer Service Managers Steering Group meeting
  end June/early July
• Bid proposal to EE RIEP September
• Subject to interest/take-up, go-live October
  (6 months elapsed)

34
How to get involved

• Consider potential benefits for your LA
• Discuss with your colleagues
• Review any existing use of profiling data
• Consider budget resource implications
• Bring colleagues to June workshops
• Lobby Representatives on Customer Service
  Managers Steering Group
• Contact me for more information to express your
  interest

35
Further information

• Web www.esd.org.uk/profiling
• Customer Insight Forum http//www.esd.org.uk/foru
  ms/viewforum.php?f189

36
Any questions?

• Thank you!
• Deanna Sorrell
• Director
• 27 Consulting Limited
• 07900 927527
• deanna_at_27consulting.co.uk
• www.27consulting.co.uk