Cost of Living Archives

Uncovering consumers’ leisure priorities in the festive period

Posted on: 13 December 2023

The latest findings from our Cost of Living consumer survey are in, and we’re taking a look at the insights through the lens of the leisure industry.

With over 2,000 respondents surveyed in November, we asked consumers about their thoughts and priorities in the lead up to Christmas to help brands understand how their customers may be behaving. For companies in the leisure space, being able to predict the movements, intentions and spending patterns of customers is key at this time of year, especially in the current economic climate.

So, what did we find?

Nearly half of consumers still want to socialise and spend despite the impact of the Cost of Living

With 46% of respondents agreeing that the increased Cost of Living will not impact their intended Christmas social plans (up from 40% in 2022), leisure brands can expect to benefit from people wanting to attend and spend on events out of the home this year.

While this is reflected in general financial fears dropping since the late summer, there seems to be a generational divide with Gen X, Millennials and Boomers feeling more confident. Gen Z, on the other hand, reached a new peak of concern at over 50%.

Their concerns relate to their personal finances as opposed to family finances or the national/global economy, which could affect brands reliant on young adults to boost their seasonal profits.

Energy fears remain high as the cold moves in, leading to potential cost-cutting in other areas for some groups

With energy costs becoming more of a focus as temperatures drop, some demographic groups are having to cut down on other costs to keep warm this winter – with one in three among the Low Income Living Acorn category expecting to have to do so.

The impact decreases as we climb the affluence scale but remains fairly significant, with over 20% of the Established Affluence category also considering cost cutting for this reason.

Spending on food and drink at home remains a priority, but the importance of entertainment and leisure at Christmas is growing

With a significant 79% of people considering spending on food and drink at home to be important this festive period, there is further optimism for the leisure industry as our latest survey has also detected a shift back towards entertainment and leisure as a source of importance.

While consumers report that most other areas of spending are reducing in importance, entertainment and leisure is trending in the other direction, with 59% of consumers surveyed classifying entertainment and leisure as either somewhat or very important to them this year, which is up from 53% in 2022. This is supported by 47% of respondents identifying that socialising outside of their homes this year is important, which is a slight increase from 2022.

Overall, the social planning picture is a lot less negative than last year

When we consider the contrast between pre-pandemic and Cost of Living crisis behaviours versus consumer attitudes now, it’s fair to say that people continue to exert caution in the lead up to Christmas. Nonetheless, we’re seeing less negativity year-on-year, which shows that there’s opportunity for leisure brands in the coming weeks.

Brands may still want to consider how different demographic groups are going to drive success this Christmas, as levels of concern and caution seem to be directly related to affluence. The findings show that the Established Affluence category appear to place the most importance on maintaining their food and beverage spending and socialising this year.

When taking age into account, we found that a surprisingly large pocket of younger respondents actually prefer New Year’s Eve to Christmas Day as a celebration. So, this could be something to consider when rolling out engagement strategies post-Christmas.

Apply these insights to your consumers and stay in the loop as you strategise

We work with a range of market-leading brands in the leisure industry, helping them to identify, understand and locate their customer base to drive value for their businesses and inform successful estate optimisation and growth. If any of our demographic or location-focused data is of interest to you, or if you’d like to dive deeper into our survey results, please get in touch to discuss this with us.

How Orkney Islands Council is tackling housing affordability, education accessibility and fuel poverty

Posted on: 5 December 2023

Background

Orkney Islands Council is the smallest council in the United Kingdom, situated on Scotland’s north-east coast. With a population of approximately 22,000 people, it spans 70 square miles and encompasses 22 inhabited islands. Orkney Islands Council supplies all local authority services for the archipelago, including education, roads, housing, waste collection and more.

Of the many areas of support that the Council provides, three of the focus areas have been to update the Housing Need and Demand Assessment (HNDA), to receive approval to support families and children in need through education and tackling fuel poverty. To address these priorities, the Council needed accurate, up-to-date, and consistent information that would help benchmark Orkney against other parts of the country.

The Challenge: Lack of robust, credible information due to small yet widespread population

One of the greatest challenges for the Council has been Orkney’s small yet widespread population. This has complicated the acquisition of statistical information – particularly information that is robust and credible. Slight changes in population size can considerably sway numeric results, which has hindered the Council’s benchmarking capability and innate understanding of the financial realities of Orkney’s inhabitants.

David Brown, Service Manager (Resources) within Education, Leisure and Housing at Orkney Islands Council, elaborated on the impact this lack of decipherable data has had on the Council and the population financially.

“One of the difficulties within Orkney is that we are very spread out. We have deprivation, but there’s nothing indicating that we have a particular housing estate or area where we need to put resources,” he explained.

The Solution: Paycheck enables updates to the Housing Need and Demand Assessment (HNDA) and supplies granular insight on housing affordability

Paycheck gives the Council a unique, granular point of view and information that has enabled their benchmarking against other local authorities and how Orkney compares to other parts of the country. Through Paycheck data, the Council has also been able to update their HNDA, a document that analyses the projection of Orkney’s population over the next five to twenty years which helps the Council establish the necessary housing and school programmes. The information within this document looks at the affordability of housing, which correlates with residents’ income, coupled with demand.

The Council assesses residents’ incomes against the likelihood of owner occupiers and current housing availability for those seeking private rentals, mid-market rentals and social rentals. This supplies insights that evidence decision-making linked to residential building programmes and determine how fast growth can be delivered.

This has been complicated by the fact that the population across the group of islands is increasing at the same rate as the whole of Scotland at 6%, with vast differences between life on the islands and on mainland Scotland. Orkney residents must adapt to much greater extenuating circumstances that come with higher costs, and the Council has had to find a way to prove these differences through data to the Scottish government. Paycheck has bridged this gap by providing an accurate representation of the current circumstances in Orkney, enabling the Council to strategise and plan for the most suitable house build programmes that have been acknowledged and approved by the government.

The Benefits

The integration of CACI’s Paycheck into Orkney Islands Council’s operations has yielded transformative outcomes, with its robust and credible data supplied proving to be key in decision-making processes. Notably, Paycheck has streamlined the approval of the HNDA, securing the necessary signoff from the Scottish government. Without this approval, the Council would have had to revisit and overhaul the entire HNDA, which would have resulted in a substantial loss of time and resources. Paycheck’s precise income
models and predictive capabilities have played a crucial role in ensuring that the HNDA remains accurate and credible.

Paycheck has also been instrumental in redefining residents’ financial realities in light of fuel poverty. It equips the Council with accurate data on residents’ earnings, enabling a greater understanding of communities that are at the most risk with rising fuel costs and may need Council support. The reallocation of resources in education has also been supported by Paycheck. By analysing school catchment areas and identifying pockets of deprivation, the Council can allocate resources to ensure access to education, fostering a more inclusive and supportive learning environment.

Ultimately, Paycheck has become an indispensable tool for the Council to address the triad of housing affordability, fuel poverty and education accessibility in a comprehensive, data-driven capacity.

Read the case study

You can access and download the full case study here. If you have any questions or want to learn more about CACI’s solutions, please get in touch with us.

Travel spend behaviours that will redefine your customer strategies

Posted on: 3 November 2023

In our previous blog, we explored some of the most common challenges that have arisen in the travel sector in 2023 and how you can leverage digital marketing and personalisation to tackle them.

In an era where the Cost of Living is placing pressure on consumers’ budgets, the significance of precise, targeted marketing and aligned messaging cannot be overstated. Moving towards the end of the year and the holiday-booking surge that happens in January, marketers will need to be aware of timely shifts in behaviour and expectations to capitalise on customer intent at the right times.

Through our recent Cost of Living consumer survey, we have identified important shifts in travel spending habits that will influence the January booking window, and have pinpointed the demographic groups experiencing the most significant adjustments:

Travellers are more frugal than they were, but still want the best experience they can afford
Travellers will spend more time than usual researching to try and find the best the value options
Travellers may be more sceptical about convenient booking options and package deals still offering the best available value
Solo travellers, travellers without children and families are all being hit differently, and will therefore have different needs and expectations when it comes to researching and booking.

Despite these shifts, there are still plenty of opportunities for travel businesses to keep customers interested in going away. Below we have detailed some of the tactics that can help:

Consumers’ travel spending will continue—with exceptions

Many travellers may have set expectations in their minds around what a ‘good trip’ looks like, such as having to be a certain distance away or for a minimum number of days. Our findings concluded that despite the ongoing Cost of Living crisis, holidays remain a priority for consumers of all ages, and they are determined to find ways to make them happen.

In fact, 57% of consumers surveyed have or will be making changes to their holiday habits to save money and get more for their money.

Respondents expect to cut their expenditure on their next holiday, with 45% saying they will either find a cheaper destination, travel option, accommodation, do fewer activities or simply reduce their trip length. Which means that they will most likely spend more time researching their holidays and trips. Equally, this may affect the package holiday market as consumers compose their own holidays by booking their own flights, hotels and transfers.

The most affluent Acorn demographic groups expect to cut their holiday expenditure in this way more than other groups, as do millennials and Gen Z respondents. 22% of respondents are also taking fewer breaks compared to previous years.

To continue to encourage travellers to go away, travel businesses will need to shift the focus from larger packages and holidays and instead start spotlighting the benefits of closer destinations and shorter trips or weekend getaways. Their focus language will need to be around ‘doing more with less’ to ensure travellers continue to see the value in getting away no matter the length of holiday. Travel businesses can promote this throughout the year as well, as shorter breaks are far more flexible and can happen at any time.

Gen Z are spending the least on travel this year

Younger holidaymakers—particularly Gen Z— appear to want to spend as little as possible to keep travelling this year.

When it comes to cheaper destinations and accommodation, more than 1 in 5 respondents of younger age groups have opted for these. Younger men surveyed are particularly determined to continue to take breaks as they have before. Just 14% of Gen Z men expect to take fewer breaks compared with previous years, yet that rate more than doubles among Gen Z women, 29% of whom reported that expectation.

To combat this, travel businesses that speak directly to traveller concerns around value will build their trust in the options they’re being presented with. For travellers that are wary of costs and will expect to be researching for longer periods of time to seek the best value, curated options and direct, value-based messaging will help to make their concerns feel acknowledged and will offer a faster and more convenient option for them to browse.

Family holidays are being cut…

Respondents that have children appear to be affected to a greater extent than those without. The appeal of cheaper destinations rises from 14% among those without children to 24% among those with under 18s in their household. Bearing this in mind, more price-sensitive families can be a stronger focus for value-based messaging and cheaper travel options from travel businesses.

…while solo travellers are on the rise

The results show that independently living, single travellers are taking the most advantage of getting away on holiday this year. In fact, rates of those cutting back on holiday expenditure are nearly 1/3 lower among those who live alone. This includes reducing spend in other areas to make room for travel and shortening the length of trips compared to previous years. To maintain interest across all pricing options, travel businesses should target more expensive and premium options towards solo and non-children couples.

How can CACI help?

As a trusted partner to major brands within the travel industry, our team is highly experienced in supporting strategic targeting by leveraging the necessary data and technology to understand customers and their behaviours as innately as possible and being able to design marketing strategies to target these groups.

CACI partners with global brands to harness and enhance customer data, enabling them to identify and prioritise the most valuable customers. Insights are then activated through strategic CRM initiatives and acquisition strategies, ensuring targeting is precise and relevant. This approach is pivotal for brands seeking to align their products with consumer needs and foster long-lasting brand loyalty, repeat bookings and maximising share of wallet.

To find out how we can support your business strategies or operations by enhancing your customer understanding, or to find out more about the products and services we offer, please get in touch.

Read blog 1 from our travel series: Travel sector hurdles and the promise of digital marketing and personalisation

Leveraging data to underpin your Sustainability strategy

Posted on: 16 October 2023

Ever since helping an automotive client launch their first all-electric vehicle into the UK a few years ago, I’ve had a growing interest in sustainability and the environment. Now, as part of CACI’s internal working group on Climate Change and Decarbonisation, I’m involved in several exciting initiatives where CACI is using data to drive sustainability.

Everyone has a role to play

Climate change and what governments, brands and individuals are doing about it has become a constant in the news cycle and data is proving to be a powerful asset in identifying and meeting key sustainability targets.

Governments need to support their communities

At a local level, governments must understand their communities and provide support via adequate infrastructure. For example, councils are already working with a wide range of data to understand demand and develop strategies for residential EV charging points. Working with CACI means that council-held data can be enhanced through consumer and geospatial data to further define community needs for EV infrastructure or even green space development.

Strong brands are those taking environmental responsibility

The last five to ten years has seen the rise of new, innovative brands that are disrupting their industries. Among my favourites are a company using flexible solar cells to create solar powered remote controls and headphones, and a packaging company being recognised by Prince William and the Earthshot Prize for using seaweed to replace plastics in food takeaways and hospitality.

In more traditional industries, environmental responsibility is arguably even more important if we are to have a sustainable future. B-Corp certification is a widely recognised way of measuring a company’s social and environmental impact, and being certified tells consumers a company is serious about their commitments. The CDP (Carbon Disclosure Project) is a not-for-profit charity that enables companies to disclose and take accountability for their environmental impacts – a key first step in positive action – something many of our clients are signed up to.

Away from these more well-known programmes, we’re working with clients who have clearly stated environmental goals of their own and who understand that all departments have a responsibility. This includes Facilities Management assessing how to cut energy consumption, Logistics optimising their routing to reduce CO2 emissions, and Marketing implementing paperless processes and better segmentation to make communications more efficient.

Individuals support net zero goals

A survey by CACI at the beginning of September shows that 84% of consumers support the government’s goal of achieving net zero by 2050. Consumers are actively looking for brands that have strong environmental policies, with half of respondents seeking brands that set their own, earlier net zero targets.

Fig. 1 Support for Net Zero goals from CACI State of the Nation Update consumer survey (September 2023)

How CACI is making a difference

Data is at the heart of everything we do at CACI, and we’re encouraged to think of innovative ways to use it. One example is Ocean, a database of the UK population containing over 600 attributes across demographic, digital and attitudinal characteristics. Our Green Lifestyle attributes include attitudes to recycling, reducing energy use and dietary choices, and can be used to profile and understand your customers’ attitudes to inform targeting audiences and messaging.

Further evolving this, we’ve developed an ESG score, that drills deeper into Environmental, Social and Governance issues and can help brands gauge which customers are likely to pay a premium for sustainable products and services.

Fig. 2 Example Environmental Score pen portrait

In addition to these attitudinal variables, we’ve been looking at carbon emissions and developing innovative ideas and solutions that include:

Carbon footprint of Household and Travel: Identifying and measuring the impact of consumer behavioural choices on carbon emission. This will help consumers understand their impact (based on property, travel and consumption) and improve local governments’ understanding of their communities.

Carbon footprint of Fulfilment: Helping commercial property owners and retailers assess the carbon impact of acquiring customers and fulfilling orders. This could be used to inform parking, EV charging infrastructure and determine whether click & collect is better than delivery.

Carbon footprint of Logistics: Evolving CACI’s Pin Routes route optimisation software to support the electrification of fleet and distribution services. Our algorithms help reduce mileage, vehicle count and CO2 emissions, cutting valuable costs and reducing your carbon footprint.

Carbon footprint of Marketing: Measuring the carbon emissions from different marketing campaigns and channels to enhance businesses’ understanding of their environmental impact. This enables marketing teams to balance sustainability with sales and optimise campaign strategies to improve both.

CACI is registered to the Social Value Portal and is actively working towards achieving social and environmental goals aligned to the National TOMs framework.

We’re passionate about using data and technology to create more sustainable businesses, so if you’d like to discuss how we can help you, please get in touch.

Travel sector hurdles and the promise of digital marketing and personalisation

Posted on: 9 October 2023

The travel sector has faced turbulence over the past few years. From the devastating impact of the COVID-19 pandemic, to the cost of living crisis and ever-changing travel norms, the sector finds itself navigating a host of challenges.

A holiday purchase is often one of the largest purchases that a family will make in a year, with an average UK family spending roughly £4,000 per annum. With ever-inflating costs and even higher customer expectations, providing an exceptional customer experience is critical to your long-term success.

In this blog series for the travel sector, we will be exploring how you can harness the power of data and modern marketing technology capabilities to overcome and even exploit these challenges.

What are the most common issues in the travel sector in 2023?

Changed travel behaviour

The aftermath of the COVID-19 pandemic and the cost of living crisis have left their mark on the travel sector. Travellers are more cautious, often opting for cheaper domestic or localised trips over international adventures. Health and safety have become paramount, leading to a new set of expectations from travel providers.

In fact, 25–34-year-olds were reluctant to make holiday plans this year, instead waiting to see how the cost of living crisis evolved.

Moreover, ¼ of those aged 55+ made no plans to travel this year.

With different demographic groups approaching their holiday planning in different ways, applying the right segmentation techniques to target those who are most likely to travel is crucial.

Environmental concerns

There’s also a growing call for sustainable travel. Tourists and travellers are more eco-conscious than ever, wanting to reduce their carbon footprint and seeking eco-friendly options. The consideration of travelling sustainably is especially a factor for 18–24-year-olds, where 22% say this is important to them.

Over-tourism

Popular destinations from Venice to Bali faced issues of over-tourism, where local ecosystems and infrastructures have become overwhelmed.

Complex travel policies

With countries having their own quarantine measures, vaccine mandates and travel advisories, there’s an increasing complexity in international travel logistics.

Trust deficit

After numerous flight cancellations (UK flight cancellations are up 39% in 2023!), changing regulations, strike disruptions and refund issues during peak pandemic times, travellers are more sceptical about committing to bookings.

How can digital marketing & personalisation save the travel sector?

Digital marketing and personalisation have emerged as two tools that can address several of these issues:

Tailored travel options

Through advanced AI and lifestyle and behavioural data analytics, travel companies can now provide tailored packages and ancillaries for individuals. If a user has shown interest in eco-friendly destinations or prefers secluded spots, personalisation and decisioning tools can offer suggestions accordingly. This not only enhances user experience, but can also divert traffic from over-crowded tourist spots.

Building trust through transparency

Customer Experience Platforms (CEPs) like Adobe Journey Optimiser and Braze can provide customers with real-time updates on disruption, travel policies, health and safety measures and reviews. An informed traveller is a happier traveller. That happiness will lead to greater trust, and an increased likelihood of future bookings.

Educative marketing: Digital and content-rich campaigns focused on educating tourists about the importance of sustainable travel can be instrumental. From tips on how to be a responsible traveller to highlighting the less-explored destinations, digital content can shape travel behaviours. It’s worth noting that according to our recent Cost of Living consumer survey, 17% of people believe that they will do most of their travel via sustainable methods by 2030.
Feedback mechanisms: Personalised feedback options and rapid data ingestion help companies understand the unique needs of each traveller, leading to improved offerings around ancillaries, personalised and targeted to the right customers via mobile channels, making holiday purchases easier.
Loyalty programmes & retargeting: CDPs and data-driven marketing allows travel companies to launch personalised loyalty programmes. With retargeting strategies, companies can re-engage potential customers, offering them custom deals based on their search and booking history.

Despite the many challenges faced by the travel sector in 2023, the digital and data tech revolution offers an array of solutions. By adopting well-planned digital marketing and data-driven personalisation, the sector can not only provide enhanced customer experiences, but also address broader issues such as over-tourism and environmental concerns. It’s a transformative era, and travel companies at the forefront of these digital innovations are poised to chart a smoother course ahead.

How can CACI help?

CACI is already a trusted partner to major brands within the travel industry, developing strategic customer journeys to increase frequency of bookings and ancillaries’ revenue through the effective use of data, technology and targeted marketing.

If you would like to discuss your needs in any of these areas, or to find out more about the products and services we offer, please get in touch.

Read blog 2 from our travel series: Travel spend behaviours that will redefine your customer strategies

How the Cost of Living will further squeeze the least affluent

Posted on: 3 October 2023

In our latest Cost of Living Podcast, we examine how expectations around missing payments are doubled among the least affluent demographic category in the coming months, with concerns around paying utility bills affecting nearly one in five households within the Low-Income Living category.

How we drew these conclusions using our Cost of Living survey

CACI’s recurrent Cost of Living survey has revealed particular concern among this group, who cite their likelihood to miss payments on rent, council tax and utility bills as impacts of the rising cost of living. Where 11% of the UK population fear missing payments on utility bills in the coming months, that figure rises to 18% among those households with the lowest incomes. Unlike other demographic groups, this figure outranks their expectations of going overdrawn or using credit cards to fund or defer payments.

Every three months, we ask a nationally representative sample of 2,000 UK adults a series of themed questions around the Cost of Living, their challenges, plans, behaviours and expectations. CACI has been conducting this research since the height of the Covid pandemic, establishing a series of trackers that monitor feelings towards the Cost of Living, the impacts this is having and how their activities are changing. At CACI, we utilise the power of our demographic segmentation, Acorn, to inform brands about how these changes will influence the way consumers are behaving.

Cost of Living Podcast – Part One: How consumers are reacting & adapting to living costs

Part one of our special two-part podcast focuses on the latest changes in sentiment around living costs, the rising use of foodbanks and how Gen Z have been able to avoid cost-cutting measures on the scale as the older generations. Our hosts, Paul Langston and Hannah Smith, react to the findings, including how housing situations may develop as tenants in particular become priced out of their current rentals.

Cost of Living Podcast – Part Two: Impact of living costs on mental health, travel & brand orientation

Part two moves on to consider the knock-on impacts of the continued strain on mental health, changes to the way that we are taking holidays and how consumers are turning to brands to lead on Net Zero goals.

If you’d like to find out more or subscribe to our monthly podcast and receive all of our Cost of Living analysis as it’s published, you can sign-up here.

Tackling the staffing shortage in elderly care with local population data

Posted on: 28 April 2023

Pay is only one factor that influences the number and quality of candidates for your roles, and their loyalty.

It’s no secret that staffing is an ongoing challenge for most providers of elderly care. Market competition doesn’t only come from other care settings. Potential staff may be looking for local work in a range of sectors locally, where hourly pay is higher and the responsibilities seem less demanding. How can you compete to attract and retain quality staff for your elderly care services?

Take a targeted approach to recruitment and retention by applying marketing principles

Traditionally, elderly care providers have used their instincts to decide on good locations for their residential or in-home care operations. In recent years, some have made good use of market data to investigate and understand their potential customer base. By looking at the age and affluence of potential care clients in their catchment area, savvy operators can anticipate the level of need, design the right services and price them competitively. Today, we’re advocating the same approach, to understand staffing supply and demand.

In our work with a few forward-thinking, large-scale elderly care providers, we’ve helped them to factor in staffing availability when looking for new sites or deciding whether expand operations in an existing location. There’s a great opportunity for mid-sized operators to take advantage of the same approach.

Using local market insight and benchmarking to identify potential staff

Using demographic and location data, we can:

Profile the demographic characteristics of ideal candidates for elderly care roles
Contrast them to the Acorn profiles of typical users of the elderly care services
Flag high-risk locations likely to face the biggest staffing challenges
Highlight areas of demographic overlap, with a strong potential customer base and staffing base
Identify the best catchment areas to recruit suitable candidates
Analyse the likely needs and priorities of available candidates in the area

Contextual dynamics in practice: understanding local recruitment landscapes

Our current work with elderly care providers is commercially sensitive. So, we’re using an example from a different care sector with a very similar recruitment and retention challenge – children’s nurseries.

Our client told us that recruitment challenges are hampering business performance – they had had to close some sites because of a lack of staff. They needed to factor the potential to recruit into acquisition decisions. We profiled 11,000 staff members in 400 nurseries in the UK to discover their Acorn groups and identifies primary and secondary target staffing groups. We mapped nurseries in their locations, showing where the customer base and the staff base overlapped. This helped our client tailor recruitment messaging to available local staff priorities. They could plan to expand their service provision in locations where they knew they could recruit to meet demand.

Modelling the recruitment potential for new and existing locations

The approach is not only relevant for new elderly care locations and investment. By understanding the local employment landscape, you can recruit in a more targeted and effective way and find out what matters to the people you’d like to employ, so you can shape working practices and promote aspects of the role that will be most appealing.

Location and mobile app data can you help you focus recruitment in areas where there are candidates who can easily access your sites and domestic clients. Your potential staff don’t necessarily live on the doorstep but there may be nearby areas that have good transport links, where workers already tend to travel from.

Offering roles that local employees want to take

Of course, pay is a very important factor when it comes to attracting competent and committed staff. Premium elderly care operators may be able to pay staff more and offer a more luxurious workplace. But these are not the only things that influence employees. You can provide other, affordable benefits and mould your working environment and employee programmes to match what workers really value. Profiling target candidates in your local area can help you understand their priorities – from family-friendly working hours to free lunches and incentive programmes.

Beyond pay and benefits – understanding the appeal of elderly care roles

Working in elderly care is a socially responsible job. For some candidates, recognition of the value of their work can be a strong motivator. Creating better career paths and more tangible pathways for carers can make a big difference to your recruitment. Some larger elderly care operators are trying to emulate nursing pathways: clear role definition and progression can help to retain committed staff. If you understand more about the potential candidates in your area and your existing staff, you can decide whether this approach could support recruitment and retention for one or more locations.

CACI’s specialist elderly care and senior living team works with clients in the UK to help them improve operational and financial performance with access to vital insights into their customers, employees and locations. To find out more, contact us.

Understanding the impact of the cost of living in the water sector

Posted on: 17 October 2022

The current impact of the cost of living crisis is being felt across the country. Being able to understand how these impacts are being felt across different customers groups and forecast future changes is imperative to creating a proactive customer support strategy. At CACI we have been researching and collating consumer insights and data on the cost of living to help you support your customers.

Some of the key insights we’ve seen from the research so far include:

Lower and middle affluent family groups are feeling the pressure the most
More than 2/3 of consumers have already started to change their behaviour by reducing their discretionary spend
Younger generations are more likely to turn to overdrafts and Buy Now Pay Later schemes to protect their social outgoings
Rising cost of energy bills has impacted all demographic groups, prompting high levels of concern ahead of the winter months
Economic uncertainty means 75% of consumers are worried about their own, their families, or other people’s finances

What does this mean for the water sector?

The water sector sits in a unique position with defined customer service areas that have a wide range of demographics, and a historically unengaged customer base resulting in a low awareness of support available for vulnerable customers.

CACI recently ran a roundtable to share key insights and discuss how the impact of the cost of living is being felt in the sector, and how water companies are looking to prepare for future forecasted impacts. The key outcomes from the session were:

Innovative partnerships provide new avenues – partnering with councils and landlords to identify and understand the set up for affordable housing allows support to be better directed to those that need it most.

Contact centres provide the first indication of change – whilst payment rates and direct debits currently remain strong after the summer months, the first sign of concern being seen is the increase in contact centre calls for help and support.

Clarity between water efficiency messaging and cost of living is needed – being able to identify the difference between a change in water use for environmental reasons vs to cap bills is key to ensuring the right messaging reaches the right customers.

Engaging the unengaged – is still a priority, in particular identifying those that qualify for social tariffs or support that aren’t currently using them.

Making insights actionable

Having the right data and customer understanding in place is key to enabling proactive communications, and to ensure the right support can be provided to customers. CACI’s data science team has created tools such as web-based water poverty tools, bespoke vulnerability indicators and forecasting tools to help you build proactive strategy with data driven insight.

As we continue to monitor the changing situation, sign up to our Cost of Living Podcast to get monthly updates.

Find out the full spectrum of work CACI does in the water sector from our Water Brochure.

For more detail on how CACI can support through enabling actionable insights, contact us here.