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How Lloyds Banking Group nailed customer segmentation

Tuesday 31 October 2017 Customer PersonasData Insight & AnalyticsData-Led Marketing

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Kandyce Tester's picture
By Kandyce Tester

Lloyds Bank knows its customers want to be treated as individuals, and is keen to deliver the kind of personalised service they want. Intelligent segmentation is helping the bank do that.

Lloyds Banking Group’s aim is to be the Best Bank for Customers. To help the bank achieve this they want to understand their customers in a holistic way. However, when identifying segments there isn’t one single approach that can do everything and it’s important to understand the limitations of each.

Enter Fresco, CACI’s industry-leading financial services segmentation, which categorises consumers into 12 segments, 45 sub-segments and 134 micro segments. 

Caption: Fresco gives Lloyds Banking Group an external lens on its customers.

“We’re using Fresco to try to understand our customers in a different way - as individuals, rather than as mortgage customers, or savings customers,” said Rob Milligan.
 

Socialising the segmentation

 
Embedding the segmentation across all business divisions could have been a major challenge, as is with all large organisations comparable to Lloyds Banking Group. Rob’s strategy has been to present Fresco not as a replacement approach, but rather as an overlay on top of everything the bank does.
 
That way, everyone gets to keep the existing view of their products and campaigns through previous segmentation processes, but everything is also viewed through the lens of the Fresco segments. The result is that, little by little, everyone has the ability to think about customers in the same holistic way.
 

One size does not fit all

 
Viewing customers in terms of their Fresco segmentation will allow the bank to be able to understand their customers better as individuals and fulfil their needs in a way that suits them.
 
Today, for example, through other segmentation methods you might view two customers with similar mortgage products as being broadly the same type of person, and communicate with them accordingly. But when viewed in terms of the Fresco segmentation, those two customers might turn out to be two completely different individuals, with very different attitudes to life, money and risk.
 
“Fresco has allowed us to see that one size does not fit all,” said Rob Milligan. “We can see what our customers are really like, and decide how we’re going to talk to them in a way that will be helpful.”
 

MORE CUSTOMER SEGMENTATION SUCCESS STORIES

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Mastering customer segmentation in media: Telegraph case study

Customer segmentation at NEC Group: Uncovering what customers really want

 

Lloyds Bank knows its customers want to be treated as individuals, and is keen to deliver the kind of personalised service they want. Intelligent segmentation is helping the bank do that.

How Lloyds Banking Group nailed customer segmentation