Customer Insight a Strategic Business Asset

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Customer Insight - a Strategic Business Asset

• Helen Begley
• Delivery and Transformation Group
• National Customer Service Network
• Melton Mowbray, 16 July 2007

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Transformational Government

• Customer-centricity
• Use customer insight
• Design services properly
• Shared services
• Explore opportunities to partner-up
• As well as technology
• Professionalism
• Be part of the business
• See wider opportunities

To modernise services, government needs a
systematic view of what citizens and businesses
want and need.
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Service Transformation Sir David Varneys Review

• The report identifies key changes needed to
  create joined up citizen and business facing
  services
• Engaging more with citizens and businesses and
  putting customer insight at the heart of service
  design
• Grouping Service Delivery around customer needs
  and life episodes and not government services,
  departments and policies
• Rationalising Service Delivery by radically
  reducing the number of websites, phone lines and
  front offices whilst managing customers across
  those channels
• Making best use of the governments information
  asset to underpin Service Transformation by
  managing identity and data to benefit the
  customer

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Service Transformation Delivery Agreement
Citizens time is not free, yet often the way we
deliver services assumes it to be so. The aim of
this agreement is to change public services so
they meet the needs of people and businesses
rather than the government and to transfer the
burden of co-ordination of our different
processes from the public to the government.

• A measurable improvement in customer experience
  is central to the ambition of the Service
  Transformation PSA and the delivery plan
• Measures will be based on
• A reduction in the number of contact points
  across a range of representative tasks and
  episodes for citizens and businesses
• Improvements in customer satisfaction based on
  experience of key drivers
• Penetration of the new Customer Service Standard
  in public sector organisations
• .. But measurement is hard!

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The Customer Insight Forum
The Customer Insight Forum supports the work of
the Delivery Council in the implementation of the
recommendations of Sir David Varneys Service
Transformation Review, around the use of customer
insight. It is a small group of heads of insight
in the public sector, working individually and
collectively to help government at a central and
local level to establish a customer-focused
culture of continuous improvement. More
information about the work of the Delivery
Council and the Customer Insight Forum is
available at www.cabinetoffice.gov.uk/public_ser
vice_reform/deliverycouncil
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A common language around insight?
Customer Insights (1)

• A deep truth about the customer based on
  their behaviour, experiences, beliefs, needs or
  desires, that is relevant to the task or issue
  and rings bells with target people.
• May be delivered by a single piece of research or
  ad-hoc project

• Insight means different things to different
  people, its definition often dictated by peoples
  experiences and areas of comfort.
• The term is used all the time in reference to
  interesting bits of information
• It is not necessarily clear how to recognise
  strong insight from weak
• It is useful to draw a distinction between an
  insight and Insight as a discipline

Customer Insight (the discipline) (2)

• Having a deep, embedded knowledge of the
  customers and the market around us that helps
  structure thinking and sound decision making
• Comes from a combination of multiple pieces of
  data, built into a joined-up big picture
  through strategic, business and political analysis

A customer-focused organisation has customer
insight and orientation embedded throughout
Source (1) Government Communications Network
Engage Programme (2) Will, S. The management
and communication of customer insight,
Interactive Marketing, April/June 2005
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Customer Insight is a strategic discipline that
draws on many sources to create a
single-customer-view
The Government Communications Network Engage
Programme sets out a framework for the engagement
of customers and generation of insight,
illustrating clearly the range of sources that
can be used to build a joined-up big picture
Customer intelligence exists within
organisations, often in large volumes. However,
the co-ordinating function that links information
together to generate stories and genuine
insights which meet specific strategic and
business objectives is often absent.
http//engage.comms.gov.uk/
Source
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Customer focus is the embedding of customer
understanding and insight throughout the
organisation and its behaviours
Changing what you do and how you work
Bringing the organisation with you
At a high level, customer-focused companies
embrace three concepts. First, they know they
can become customer focused only if they learn
everything about their customers needs second,
they know this picture is useless if employees
cant or wont share what they learn finally,
they use this insight to guide not only their
product and service decisions but their basic
strategy and organisational structure as
well. - Harvard Business Review, April 2005 (1)

• Getting closer to customers is not just a matter
  of installing a better CRM system or of finding a
  more effective way to measure and increase
  customer satisfaction levels. Tools and
  technology are important. But theyre not
  enough. Thats because getting close to
  customers is not so much a problem the IT or
  marketing department needs to solve as a journey
  that the whole organisation needs to make.
• - Harvard Business Review (Based on 17
  organisational case studies), April 2005 (1)

Source (1) R. Gulati and J. Oldroyd, The Quest
for Customer Focus, Harvard Business Review,
April 2005
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The SIMPLE approach
Customer Understanding at all stages of
development
Evaluate
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What does this mean in practice?

• Services constructed and delivered in a way that
  makes most sense for the citizen, irrespective of
  agency boundaries, in the manner of citizens own
  choosing and with the backing of considerable
  communication and readily availably support so
  that citizens feel well equipped to conduct their
  business with government.

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People are changing socially . . .
Old age stereotypes cease to apply
Appetite for new technology. . . but not across
the board
Growing affluence . . . but lower income groups
are missing out
Citizens driven by value for life and choice . .
. but there can be too much choice for some
Demand for organisational transparency . . . but
desire for personal privacy
Short-termism live for the moment coupled with
global concerns
Households may be changing . . . but family
values re-emerging
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Public Sector Changing Too
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Customer centric services

• Public services to make life easier for people
• Public services serving the public, not
  themselves
• Just having staff who think theyre there to
  help would make a big difference

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Requires transformation

• Listen to the people you are trying to serve and
  those that serve them well
• Assess what they are telling you
• Understand the message
• Take decisive action
• Shift from inside out to outside in thinking
• Fundamental change of mindset
• Be driven by the customer, not the theory
• Often requires radical transformation of service
• Private companies have done this
• Not one size fits all solution
• Continuous and relentless as customers and world
  change

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So what do we need to do tackle some unglamorous
issues like

• Move beyond basic demographic segmentation and
  understand customers according to their values,
  needs and intentions
• Create the infrastructure that closes the loop
  between customer experience and expectation
• Employ people who serve the customer over the
  process
• Develop an ecosystem model which allows us to
  delegate service accountability to the relevant
  community in order to drive outcomes

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Customer Insight in Campaigns
1991
Wearing of rear seat belts made compulsory 90
awareness But lt50 compliance 120 lives per
year lost needlessly At a cost of 240M in
taxpayers money
1997
Cost
TASK How to change behaviour on lt1M million?
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Research Data

• Segment target is 15-30 year olds who
• Travel in back of the car most often
• Highest deaths/serious injuries
• Least likely to belt up
• Least likely to be driver influenced
• Missed generation in exposure to ads

• Reasons for non-use
• Short journey not worth it 63
• Feel uncomfortable 52
• Feel safe 40
• Feel silly 13
• Crease clothes 15
• Offend driver 12

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Pieces of Key Data Information
Understanding
86 believe they wont have an accident on short
journey/ locally
40 think they are safe in a residential area
Belief that I only need to worry when on a
"journey" is misplaced
94 of accidents happen on residential/minor roads
I dont want to live with the guilt of killing
someone else
People believe they are in control in the
back...
Biggest risk is to front seat passengers on
short local drives
...but movement is uncontrollable under impact
Most fatalities are not to unbelted back seat
passenger
Youths feel safe in the back
Risk to self not important- risk to others
shocking
Youths shocked when confronted by statistics
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Results after one campaign
Pre Post Unacceptable not to wear 58
71 Feel vulnerable without
belt 43 55 Actual use 48 60
Rare change in attitude and ACTION
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