Social Marketing& Customer Insight

Anil MehtaCustomer Insight Manager

Nudge/Behavioural Change

A Different Approach

Customer Satisfaction

• The Leadership Factor• Currently – 4 areas• By August – 3 more areas• Annual Environmental Survey• Over 10,000 interviews• Good Customer Satisfaction – ability to

compare across THG

Definition

Social marketing is the systematic application of marketing, along with other concepts and techniques, to achieve specific behavioural goals for a social good.

Can we ‘nudge’ customers towards doing the right thing?

It’s not just...

Why would we want to change behaviours?

• Are we wasting resources communicating everything to everyone?

• Are customers engaging with us?• What is going on in the world?• What challenges do we have ahead of us?• Can we do it better / Cheaper?

Are we just communicating the same thing the same way?

Customer Behaviours – Rent Income Management

• Pay their rent on time.• Keep to arrangements when made.• Turn up for appointments.• Read letters before ringing us (some say to contact HB

section first)• Respond to letters and visits.• Keep us updated regarding changes in circumstances.• Listen and act on the information we give them.• Engage with us.

Nudge, Nudge

• Nudge the customer towards/away from• Motivate away from/towards• Get that change in behaviour• Good for the customer, good for us

How?

• Customer Insight – a deeper understanding• What motivates our customers?• Understand Customer Behaviours- norms?• Apply Customer Segmentation – not one size

fits all• Apply mix of intervention/marketing to get the

change in behaviour

Segmentation – Come Again?!

• To develop a tailored approach (service, communication) to different types of customers.

• Using Customer Profile (demographic)• Where people live (geographic)• How people access (transactional/behavioural)• Why people behave in different ways

(Psychographic)

Tesco

Helena Homes – Segmentation Business Outcomes

• 8 customer Segments• Understood what vulnerability means to customers• Targeted messages on Money Matters and Tenancy Support• Relaunch of customer Magazine (3 versions – older

customers, families, single tenancies)• Using SMS on target groups who benefit on welfare

benefits advice and financial inclusion• Using new telephone software to understand who contacts

for what and when• Data sharing protocol with Fire to target checks on those

customers who would benefit the most

What we do, Who we are!

1. People follow the herd2. People are loss averse3. Habits are important4. People are motivated to do the right thing5. People’s self-expectations influence how they

behave6. People are lazy7. People are really bad at adding up8. People need to feel involved to make a change.

Communicating with Impact

• Concise• Clear• Simple• Clever/Different• Campaign• Technology

Quick win 1

‘90% of customers pay their tax bill on time’UK Tax Office – 60% increase in collection

‘Following the herd’ (Cabinet Office)

Quick win 2

‘Pay your tax or lose your car’DVLA – 50% increase in collection

‘People are loss averse’ (Cabinet Office)

Quick Win 2 contd.

‘Pay your tax or lose your car’ pt 2

DVLA – further 33% increase in collection‘People are loss averse’ (Cabinet Office)

Monte Campaign

‘People are motivated to do the right

thing’

Future Campaigns

• People are paid benefits directly• Can customers Budget?• Will customers prioritise rent first?• Online applications• Risk to Income

• Financial Profile• Transactional History• Geography• Behavioural Insight• Communication Preference• SEGMENT• Communicate and Motivate

Questions

80% of you were listening...

Thank You!