May 23rd BI Learning session on how Barnet use customer segmentation to better deliver services.

1. Introducing Customer Segments:
Insight for making customer-focussed policy and service
improvement decisions
Ewa Lemarechal, Head of Insight
07860780657
24 May 2016

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Re-connecting with Barnet residents: build their trust, use insight and then technology
to reduce their service frustrations and maximise satisfaction, redefine what good looks
like for public service – customer services.
Citizen centric commissioning and self sustaining networks: mould breaking use of
customer and service user insight to design better, more targeted and relevant services.
Use insight and technology to help connect individuals to others, services and
community support to improve the quality of their lives and reduce the burden on the
state.
Transform the way we work: modernised systems and operations that empower us to
improve our productivity; an infrastructure that enables flexible working and a significant
reduction in our office accommodation; better data to deliver procurement savings.
Meaningful, accessible data for decision makers: ward councillors and others who
care about their community and the work of the Council (and other partners).
Since 2013 Insight is a critical component of addressing
strategic challenges in London Borough of Barnet

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17 customer segments
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6 Co-
design
Groups
•In-depth engagement with representative stakeholders through Co-design workshops held with
residents and businesses; residents drawn from 6 groups
•Workshop representation from across ethnic groups; workshop run for residents with special
mental or physical needs.
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Personas
•Geo-demographic classification
•Postcode level
•Classifying all households within a postcode with the same characteristics
•Used to provide a high level view of borough composition needed to structure co-design
approach
17 Customer
Segments
• Micro-level solution, segmenting the market down to each individual household
• Each segment representing a unique typology exhibiting distinctive demographic, socio-
economic and behavioural characteristics.

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Barnet Customer Segments
> Barnet customer segments are a
micro-level solution that group
individual households into 17
different segments.
> Each segment exhibits distinctive
demographic, socio-economic and
behavioural characteristics.
> The segments allow our resources
to be targeted so that they reach the
right people, in the right way, and in
a manner that effectively anticipates
and addresses their needs
Customer
Segments
Age
Employment
Health
Income
Wealth and
debt
Housing
type and
tenure
Household
composition
Location
Channel
preference

5. 55
Example

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Digital Segmentation
Online Trendsetters
Family Fun
Spending Big
Follow the Leader
Lagging Behind
Amongst the first to adopt new
technologies
Invest in established
technologies that are easy to use
Slow to adopt new technologies
Neither have the need, or the desire,
to learn new ways of doing things
Addicted to all things technical
Call Credit’ * demographic data splits Lambeth
residents into 5 distinct digital groups, which
describe how the customer uses technology.
 In Lambeth, the proportion of residents in the
‘Online Trendsetters’ category is significantly higher
than the UK average, whilst the proportion of ‘Family
Fun’ and ‘Spending Big’ residents are much lower.
 The overall proportion of residents within the top
four digital groups in Lambeth is similar to that of the
UK.
* Our strategic data partner
2 Family Fun
0.65%
3 Spending Big
2.17%
UnitedKingdom
LondonBoroughofBarnet
LondonBoroughofLambeth
2 Family Fun
2.23%

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How you can use segmentation?
Remember, segmentation is all about targeting our resources so that
they reach the right people, in the right way, and in a manner that effectively anticipates and addresses their needs.
1 - Pick a characteristic that is important to your policy issue – e.g.
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In public health, it might be smoking
In waste, it might be whether they have
environmentally friendly purchasing habits
In adult social care, it might be community
involvement
In customer services, it may be because they use
the internet for shopping and banking?

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2 - Find out which segments have the strongest propensity to exhibit your chosen characteristic
Out of 17 segments in Barnet, there are only 4 relevant to ASC.
3 - Segmentation will inform you about how many of them live in the borough, where they live, what attitudes they may have,
and how to reach them
80% of the 4 segments you are most interested in live in 2 wards, east of the borough.
4 - Understanding issues like this is critical to policy making methodology and to justifying the decisions we make
We are planning to build more residential care units in this area as we can see the demand increasing in the
future.
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How you can use segmentation?

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Think customer, think segments!
 Think – Could segmentation be applied to my policy area to provide a better, more targeted, more efficient service?
 Think - Which segments are my highest service users / target service users? E.g. ‘Low Income Couples’
 Think - How will this segment respond to service change we are planning to implement?
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How do we apply segments in Barnet?
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An example of the project where Segments were used
Simple tasks
Instructional
Nothing online
Everything online
Each person is categorised into one of
segments. The segments are grouped
into four prompts.
Each connectedness
prompt is matched in the
data warehouse to a Lagan
Id.
When a person phones the call centre,
the advisor can use the information to
prompt the resident toward their
preferred channel
Using the Customer Segments, an advisor will
know a residents preferred method for
contacting the council and adjust their advice
accordingly.
Objective
Develop a prompt for telephone
operators that will encourage the uptake
of My Account, the website and other
online channels.