Case study
Principality Building Society launched a new proposition to a new customer segment with Fresco
Summary
Principality Building Society developed a new highly focused proposition using Fresco’s insight on consumer behaviour and needs, aimed at the rising metropolitans segment. The targeted campaign produced triple the expected uptake of its innovative First Home Steps app.
Company size
1,000
Industry
Financial
Products used
Challenge
Principality’s portfolio and propositions teams have been working together to define and understand new target customer segments and design services and products to meet their needs. With a loyal and long-standing customer base, the team wanted to find a way to engage with younger customers nearer the start of their savings journey.
Principality has always used data to support planning and risk assessment and to measure performance. Principality has evolved the use of demographic, lifestyle and market data from CACI to further refine its customer and market insights. Using CACI’s Fresco segmentation was an obvious choice to support the project. Fresco describes individuals in terms of their financial product holdings, attitudes, life stage, affluence and digital behaviour. Principality wanted to differentiate through propositions with better customer type information.
Solution
Very often, insight is siloed within teams. Data is purchased and used for specific projects and activities. For the First Home Steps proposition, Principality shared insight across all the teams and individuals involved in planning and delivering the campaign.
CACI presented data insight to a multi-functional Principality team, showing how it could help to refine different aspects of the proposition and supporting the communication campaign. The data was used from the start, informing every aspect of proposition development. Principality combined CACI’s Fresco insight with its own research into first time buyers to produce a robust and differentiated evidence base that informed every First Home Steps decision.
The Fresco data helped build a picture of the target group and to understand their needs, in the context of how they live and work and the challenges they face in saving and planning. First Home Steps addresses the rising metropolitan segment, aiming to appeal to those looking to the future and saving to buy their first property.
The Fresco insight helped Principality’s team understand exactly how to reach the people it had identified, showing geographic areas where there was a high proportion of rising metropolitan consumer households. This supported targeting of ads and resources.
Results
The proposition team launched the First Home Steps campaign to educate and support younger adults who have reached the stage of wanting to buy a house, so they can be confident in their ability to manage their finances and buying decisions.
Promoted and supported in-branch, First Home Steps offers ‘workouts’ to get homebuying hopefuls financially and practically fit to obtain a mortgage and buy their first home. Resources include a borrowing calculator, a budget planner, house prices guide and savings tips. It’s all brought together in the First Home Steps app, a free pocket guide to the house-buying process. Principality hopes to motivate users to open a First Home Steps savings account, to save towards a mortgage deposit.
“We launched in branch and the campaign exceeded targets, especially for people downloading the app, with triple the numbers expected. From the first phase of the campaign the insight basis has given us great confidence for the next stage.”
Susan David, Propositions Manager, Principality Building Society
Sharing the data insight with colleagues from all parts of the business has not only created a stronger proposition, it has driven interest and positive support from branch colleagues who talk to branch visitors about their finances. They have been advocates for the app, able to talk knowledgeably and empathetically with branch visitors who might benefit, armed with a clear understanding of their likely needs and attitudes.
Principality has a mature approach to data, using a range of sources intelligently and collaboratively. They use their budget smartly, ensuring that they make full and focused use of the insight sources they subscribe to. CACI’s resources and services are key tools that help them retain loyal customers and to innovate. As well as delivering proposition insight, Fresco helps Principality understand branch footfall and customer profiles. Weekly flow information from CACI’s Retail Finance Benchmarking Mortgages and Savings provides the market context.
