Circle Insights

Creating a strategic segmentation to help TSB understand and drive money confidence

An accurate, current segmentation that reflects consumer behaviour

TSB is pioneering a new kind of banking for Britain – one that’s simple, straightforward and cares about people. The bank offers friendly, honest and convenient banking that’s designed to meet customers’ needs and equip them with money confidence.

The Challenge: a segmentation to drive business growth

TSB had a creative-led segmentation developed by its brand agency to help understand its target audience, but it wasn’t fully effective. Justin Bell, TSB’s Head of Insights, Strategy & Planning explains:

“We couldn’t use it for media planning and it couldn’t be overlaid on our customer base.

We knew we needed something more practical in terms of consumer insights and choices of media. At pitch, our new media agency the7stars, came up with a more effective segmentation that we could use for media selection. We wanted to take this forward another step and overlay it onto our own base. We had for some time been working with CACI, mapping their Fresco financial lifestyle segments onto our customer base. We therefore initiated a joint project, working with CACI and the7stars to develop the segmentation further.”

The Solution: accurate, current segmentation that reflects consumer behaviour

Working in collaboration with TSB’s Research and Strategic Insights Team, CACI created an evolved segmentation that clearly distinguishes different customer types and provides clear segment profiles and personas.

CACI used Fresco and other external consumer demographic datasets to give TSB bespoke behavioural and lifestyle insights into its target customer base.

Justin explains, “We started with a market-wide segmentation, based on all UK adults. We’ve subsequently created a version of that for our customer base.

CACI provided a proven methodology and approach drawn from their data expertise and experience. Once we had clear segment parameters, our data team mapped them to our base.”

The Results: tailored propositions, content and media selection

TSB is actively using the segment insights to develop its media strategies and in campaign briefs, creating content tailored to target consumers’ profiles.

Justin continues:

“Part of the output of the segmentation was to rank the segments in order of money confidence. Working with CACI, we agreed on a weighted mix of key questions in the TGI consumer survey, to derive a money confidence score. We support people with content, products and services to help raise their money confidence and we need to be relevant to those that need that support most.

At the heart of it is a money confidence score: we’ll measure our progress against our purpose: Money confidence for everyone everyday. We hope to see a gap opening up between the money confidence levels of our customers and that of non-customers, with a continual improvement against today’s baseline.

We believe this segmentation will continue to pay dividends as we develop our channel and campaign marketing – we’re looking forward to tailoring products and services even more to meet customer needs.”

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