RSe Consulting

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RSe Consulting London Borough of Hackney

• Customer focused improvement
• Segmenting your customer base

Guy Mallison Gillian WheeldonLGA
ConferenceTuesday 6th March
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Agenda

• Brief introduction
• Customer segmentation in Hackney
• Customer insight and segmentation in local
  government
• QA

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What is customer insight?

• The use of information about customers to better
  understand their needs, wants and expectations.
  
• This insight is used to design and deliver
  services that better meet customers needs

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What is customer segmentation?
A powerful tool that divides all the customers
of an organisation into subgroups that share
similar characteristics and needs

• It can enable authorities to tailor services cost
  effectively

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Agenda

• Brief introduction
• Customer segmentation in Hackney
• Background
• What we found
• Where we are now and what we will do next
• Customer insight and segmentation in local
  government
• QA

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Background
London Borough of Hackney

• Central London Borough
• 210,000 residents
• Rich ethnic diversity
• gt40 non-white
• 100 languages spoken
• Most deprived authority (2004)
• Previously failing now a 2 star authority,
  improving well

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Aims for segmentation
London Borough of Hackney

• Understand our customers better
• Which are the main groups
• What services they use
• How they access services
• What we could do to improve their experience and
  better meet their needs
• Use this information to inform our transformation
  programme
• How we roll services into the contact centre
• The design of physical access points
• Provide a platform for further work

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Approach
London Borough of Hackney

• 1st cut analysis
• MOSAIC

• Supplement and revise
• Services
• Consultation
• Focus groups

• Who are our customers?
• Where do they live?

• What services do they use?
• How do they access them?
• What is their experience of these services?
• What are their preferences?

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Agenda

• Brief introduction
• Customer segmentation in Hackney
• Background
• What we found
• Where we are now and what we will do next
• Customer insight and segmentation in local
  government
• QA

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What we found
The next slides

• Key findings
• Who our customers are
• What services they use
• How they contact us
• How satisfied they are
• The relevance of ethnicity

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What we found
Key findings

• There are 4 main customer groups
• Over 50 of the population are struggling
  singles and breadline families
• Almost a quarter are less visible dynamic
  singles
• Life stage and wealth appear to be the primary
  determinants of service use and experience.
  Ethnicity is less important, but still relevant
• Satisfaction varies considerably between groups
• There is a significant opportunity to migrate
  customers to cheaper channels

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What we found who our customers are
Breadline families is an important group (30)

• Low income
• Families
• Live on council estates
• Scattered but large concentration in the south
  and the east
• Highest levels of ethnic mix Black-African
  most prominent
• Segment most likely to require information in
  another language
• High users of all needs-based council services
• Interactions often about housing and benefits
• Day-to-day lives coloured by crime, anti-social
  behaviour and poor housing.
• Approximately 25,000 Households

My positive was the people, because at the end of
the day its a unique borough
I want out. I want my kids to live a bit better
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What we found who our customers are
Dynamic singles are a large, less visible group
(22)

• Medium to high incomes
• Young, without children
• Some home ownership, but often private renting
• Primarily in the West and South of the borough
• Medium ethnic mix, approx half White British
• Low users of many services mostly engage about
  council tax, planning, parking and waste
• See Hackney as vibrant, interesting, slightly raw
  and alive, part of real London, indeed of global
  urban culture
• Approximately 18,000 households

Got our first WetherspoonsOh No!
I quite like it not perfect
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What we found who our customers are
Overview of all our residents
Substantial minority are more affluent, young
people




Majority are in two low affluence groups

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What we found how they use services
The largest segments are high users of needs
based services
Service Use
Service Use
Source RSe analysis of MORI data
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What we found how they want to contact us
There is a substantial opportunity for channel
migration
Preference for using the web to interact with the
Council
H
M
I would like to use internet as its more
convenient but I dont believe I will get a
response. At least with phone I can talk to
someone (eventually) and get a name
L
L
M
H
Current usage of the web to interact with the
Council
Source RSe analysis
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What we found how satisfied groups are
Satisfaction with Hackney Council varies
significantly
satisfied with the Council
Source RSe analysis of MORI data
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What we found the importance of ethnicity
Ethnic groups are distributed across all segments
Distribution of segments by ethnic group
of that ethnic group
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What we found the importance of ethnicity
Income and life stage are bigger drivers of
service use
Use of housing benefit by main segment and main
ethnic groups
of customers using housing benefit
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What we found the importance of ethnicity
Satisfaction is driven by segment and ethnicity
Satisfaction by main segment and main ethnic
groups
satisfied with the Council
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What we found the importance of ethnicity
Channel preference is driven by segment and
ethnicity
Channel preference, by main segment and main
ethnic group
saying would prefer to use face to face
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Agenda

• Brief introduction
• Customer segmentation in Hackney
• Background
• What we found
• Where we are now and what we will do next
• Customer insight and segmentation in local
  government
• QA

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Next steps

• Further investigation
• Updating the analysis for latest satisfaction
  data
• Investigating subsegments further

• Putting the segmentation at heart of strategy
  refresh
• Roll-out of services into the contact centre
• Channel migration
• Business case

• Planning how to roll-out more widely
• Service planning
• Performance management
• Resourcing / customer insight strategy

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Where we were

• A one star council that is improving well
• A major transformation programme underway
• Strong service silos and customers often viewed
  as customers of individual services, not as
  customers of the Council as a whole
• Generally treating customers as if they are the
  same
• Only basic reference to customers in
  decision-making, how resources are allocated and
  service design
• Lots of information about customers
• But typically in pockets around the Council
• Often on single issues
• Not used systematically

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Where we are now

• A one star council that is improving well
• A major transformation programme underway
• Strong service silos and customers often viewed
  as customers of individual services, not as
  customers of the Council as a whole
• Generally treating customers as if they are the
  same
• Only basic reference to customers in
  decision-making, how resources are allocated and
  service design
• Lots of information about customers
• But typically in pockets around the Council
• Often on single issues
• Not used systematically

• A two star council that is improving well

• A major transformation programme underway
  informed by customer insight

• Still strong services silos but were starting to
  think more of customers as customers of the
  Council

• Considering how we best tailor services

• Planning to use customer information more
  systematically, for example in how we redesign
  services

• More and better information about customers
  though still some work to do to integrate
  different internal sources of information

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Agenda

• Brief introduction
• Customer segmentation in Hackney
• Customer insight and segmentation in local
  government
• QA

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Customer insight in local government
Key tools
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Customer insight in local government
Why bother?

• Key challenges
• EfficiencyCustomer focusPartnership working

How CI helpsAn evidence baseThe means to
tailor servicesMotivation to change
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Customer insight in local government
There is a national drive to improve customer
insight

• The White Paper
• A key theme is responsive services and
  empowered communities
• if local public services are to respond to the
  needs of different citizens and communities, they
  need to know what their citizens think
• we will..encourage local authorities to have
  more systematic intelligence on local peoples
  needs and views
• Varney
• Governments understanding of the citizen or
  business is underpinned by insights drawn from
  citizen and business behaviour data. Government
  exploits its insights to develop better services.
  
• Understanding the customer is a challenge that
  the public sector must fully embrace.
• LGA
• Closer to People and Places

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What we have learned
Customer insight in local government

• There is value in pulling data together from
  different sources but it isnt easy
• Segmentation provides the evidence to support
  things you already know it also reveals new
  information
• Officers and members find segmentation
  interesting, useful and motivating
• You cant predict all the interesting
  applications at the start
• It is a journey

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Top tips
Customer insight in local government

• Use a range of tools
• Engage
• Iterate
• Know when to stop the analysis
• Think about ongoing resourcing
• Do something differently as a result

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Agenda

• Brief introduction
• Customer segmentation in Hackney
• Customer insight and segmentation in local
  government
• QA

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Who are we?
RSe in a nutshell / flower

• Strategic and management consulting for local
  government
• 130 clients 90 of clients have already used us
  again
• Clear vision of public service excellence
• Market leaders in customer insight

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Any questions?
Contact details

• Guy Mallison
• Guy.mallison_at_rseconsulting.co.uk
• 020 7233 0608
• Gillian Wheeldon
• Gillian.wheeldon_at_hackney.gov.uk