classifying consumers by their channel preference and ... · foundation’s nvision. propensity...
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Communicating effectively with consumers in
today’s multi-channel world is a complex process.
The growth of digital and direct response media,
and the increasing importance of more informal
networks such as family and friends, presents
organisations with new challenges in the way
they communicate with consumers.
Understanding an individual’s channel preferences,
and how media informs their choice of product
or service and their purchasing behaviour, is of
fundamental importance to anyone wishing
to maximise the effectiveness of every
customer contact.
Experian Business Strategies’ TrueTouch consumer
classifi cation addresses this challenge.
TrueTouch is a new segmentation solution that
classifi es individuals by their channel preferences
and promotional orientation. It helps you to develop
smarter and more relevant contact strategies.
Classifying consumers by their channel preference and promotional orientation
TrueTouch
TrueTouch
Understanding why consumers choose
your product or service is fundamental
to the growth and development of any
organisation. Understanding an individual’s
channel preferences, how responsive they
are, how they like to be contacted and
where they are likely to go for information,
means that you can improve the quality
and efficiency of your communications.
TrueTouch enables you to do this by
classifying every UK consumer into one
of 22 detailed behavioural segments,
aggregated into six groups based upon
their channel preferences, motivation and
promotional orientation.
Developed by Experian Business Strategies
and its team of leading consumer forecasters
from the Future Foundation, TrueTouch helps
you identify the optimum channels for faster,
more effective communication.
Understanding consumers’ motivations and decision making
To develop your dialogue with consumers,
you need to know how consumers make
decisions, particularly when faced with
ever increasing choice and the continued
development of media.
Using its extensive programme of socio-
cultural research, from which it monitors
trends in consumer behaviour, the Future
Foundation has identified a series of
key consumer behaviours that influence
the use of media in decision making.
These inform our thinking and have
been used to provide a framework for
the development of the TrueTouch
classification. Key behaviours include:
Complicated lives – people are developing
their own coping strategies to manage the
complexity that comes with increased choice.
New ways to engage – consumers are
moving from consumption to active use
of media for self expression.
Social networking – social networks
are becoming more important in raising
awareness of products and services.
The experience economy – consumers
increasingly value intangible rather than
material experiences.
Self-service society – independent
consumers are ‘doing-it-for-themselves’,
using interactive media to proactively
control their dialogue with organisations.
Flexible customer journeys –
increasingly complex lives impact on
preferred communication channels,
opening up new pathways.
Participation media – successful media
need to create two-way interaction and
participation with consumers.
These behaviours inform the classification
and help it to keep pace with consumers’
changing attitudes towards media.
The TrueTouch media behaviour matrixFor example, TrueTouch type 11 ‘Cellular
Society’ highlights the role that mobile
phones play in the planning and
enhancement of consumers’ social
lives, furthering the growth of
social networks.
TrueTouch type 1 ‘Information@speed’
illustrates the increasingly flexible
way in which consumers interact with
organisations through the use of new
technology such as mobile phones,
wi-fi computing and PDAs.
How is TrueTouch built?
TrueTouch is built using over 700 individual
data variables. These are chosen for their
ability to illustrate an individual’s range of
behaviours in relation to media consumption,
including use of different channels,
responsiveness and exposure to media.
These are distilled into two core data sources:
Quantitative data
Experian’s UK Consumer Dynamics database
compiles information on all UK individuals,
their demographics and lifestyles, attitudes
and responsiveness to media. It includes
known data on demographics and lifestyles
from publicly reported sources such
as the ‘edited’ electoral roll, company
directors, shareholders and council tax,
as well as Experian’s proprietary lifestyle
information taken from its programme
of consumer surveys.
This data provides a comprehensive and
unambiguous view of every UK individual’s
key demographic and lifestyle characteristics.
Information on media consumption is taken
from authoritative sources of media and
market research including BMRB’s Target
Group Index (TGI), MORI’s Financial Research,
Forrester’s Technographics and Internet User
Monitor, Hitwise internet research and Future
Foundation’s nVision.
Propensity models link media and channel
behaviour to Experian’s demographic and
lifestyle characteristics so that every individual
in the UK is assigned a propensity to exhibit
these behaviours.
Qualitative research
Without an understanding of consumers’
motivations, you could choose the right
channel but the wrong message and style
of communication.
To address this issue, the Future
Foundation has conducted new research
into the different ways in which consumers
make decisions. This supports Experian’s
quantitative data and provides an in-depth
analysis of consumers’ motivations when
using different media and the processes
they go through in deciding about
products and services.
An initial representative sample of 1,500
consumers was surveyed, followed by a
more in-depth analysis of 1,000 respondents
and their decision making processes.
Responses from the research were then
used to augment Experian’s understanding
of an individual’s media consumption.
The Future Foundation’s research is based
on the principle that there are four key
dimensions that shape the decision
making process:
Engage – your level of participation
in society
Learn – methods for information gathering
and processing
Communicate – media for information sharing
Conclude – processes for making choices
Respondents were asked a series of questions
on each dimension. For example, in relation to
‘Learning’, they were asked:
’Thinking about the information you gather
and process prior to making purchases or
lifestyle choices, to what extent do you
agree or disagree with the following:
• There’s no such thing as too
much information
• I mostly act on instinct in an emotional
rather than rational way’
The research was used to identify the six
decision making styles that sit within the
TrueTouch solution.
TrueTouch classification groups, types and decision making styles
TrueTouch classifies all adults in the UK
into one of 22 individual behavioural types.
These are then aggregated into six groups.
These groups and types are also linked to
the six decision making styles.
TrueTouch Family Tree
The TrueTouch family tree illustrates the
polarities in channel consumption between
each of the groups and types. It shows how
Linking the TrueTouch groups and types
to the decision making styles
the TrueTouch types relate to each other,
and illustrates the correlation between
TrueTouch types and decision making styles.
Type 9: Gadget-mad Technophiles
Type 1: Information@speed
Group A: Experienced Netizens
18.99% of UK Adults
(Types 1 – 4)
Experienced Netizens are established citizens
of the internet and love the functionality of
new technologies. They have embraced new
communications tools in every area of their
lives, from work to leisure and personal lives.
They have an Inquiring decision style which
reflects their fascination with new technology
and are often among the first to adopt new
devices. Their motivations vary between the
practical applications of technology and
enjoying its entertainment value.
Group B: Cyber Tourists
22.59% of UK Adults
(Types 5 – 8)
Cyber Tourists are part-time internet users.
They have found that the internet can help
them with certain key areas of their lives such
as access to shops or a social community,
but have not yet made it their central
information source.
The types in this group often have a
Perfectionist decision style. This inclines them
towards the internet because of its ability to
give them information in their pursuit of the
perfect solution.
Group C: Digital Culture
14.88% of UK Adults
(Types 9 – 11)
Digital Culture have made modern
communication channels an intrinsic part of
their social world. The fast pace of their lives
and demand for immediacy of information
makes the mobile phone the preferred
method of communication with their
network of family and friends. They have
a strong Experiential bias in their decision
style. This means they are looking for
entertainment, and communications that
are fun or amusing have the greatest
potential to get their attention.
The TrueTouch Groups and Types
Group D: Modern Media Margins
14.98% of UK Adults
(Types 12 – 15)
Modern Media Margins are not up to date
with all the latest technological advances
and tend to have older, lower specification
equipment. Those that have computers and
access to the internet use it for peripheral
entertainment and social purposes, such as
making an online bet or downloading ring
tones. They are still inclined towards traditional
communications and purchasing media –
shopping through catalogues or by visiting
stores. There is no single, dominant decision
style in this group and motivations vary.
Group E: Traditional Approach
19.62% of UK Adults
(Types 16 – 20)
Traditional Approach are predominantly
offline. They use traditional methods of
purchasing such as post, visiting shops
or using catalogues. They source their
information from newspapers, TV or
radio and will be most responsive to
communications through the post. They
tend to be either Adamant or Accepting
in their decision styles, meaning that they
are either sure of their own opinion, or they
are not confident in their ability to embrace
the benefits of new technologies.
Group F: New Tech Novices
8.94% of UK Adults
(Types 21 – 22)
New Tech Novices are an ageing but
progressive group. Whilst they are late
adopters, they see the benefits of new
technologies and are committed to learning
and getting online, either through work
or in their own leisure time. They are still
influenced by traditional media channels
and will happily use post or telephone for
communicating. New Tech Novices tend to
have Adamant and Perfectionist decision
styles which drive their self-belief and desire
for the wealth of information available online.
Support materials
To help you get the most out of TrueTouch
and to illustrate the classification, we have
created a set of comprehensive
support materials.
TrueTouch e-handbook – a detailed
electronic and printed guide that explains
our research methodology and the structure
of the typology, lists the input variables
and provides illustrations and detailed
descriptions of the TrueTouch types
and decision styles.
TrueTouch website – online access to our
support material, including a white paper
from Prof. Melanie Howard, Director at
the Future Foundation, on the background
to our decision style research, detailed
descriptions of the TrueTouch types and
decision styles and example applications
for TrueTouch. For more information visit
www.truetouch.co.uk
Delivery
TrueTouch classifies every individual in the
UK based upon their channel preferences,
motivation and promotional orientation.
It is available as:
• A classification of individuals by each
of the 22 TrueTouch behavioural types
and six groups
• Six individual-level decision making style
propensity scores
• Eighteen individual-level media behaviour
propensity scores
• An array of data for every UK
postal sector
Data directory and coding services
TrueTouch can be matched to your database
of customer names and addresses to enrich
your view of consumers and help develop
contact strategies. Customer names and
addresses can be matched to Experian’s
universe of adults, coded with TrueTouch
types, media propensities or decision styles.
Experian’s iCoder PC or server-based
application allows you to batch process large
volumes of name and address data in-house.
iCoder can append any TrueTouch data to
your customer database.
Bureau services
Access to TrueTouch is also available through
our bureau and consultancy services.
Our Customer Insight Reports provide
detailed profi le analysis of customer
information using the TrueTouch
classifi cation and propensity models.
Our Consumer Insight team of consultants
and analysts can help you undertake more
detailed predictive modelling and analysis
of your customer data using TrueTouch,
and help you optimise your use of
the classifi cation.
To contact a member of our Customer Insight
Team call us on T: +44 (0) 115 968 5094
About Experian Business Strategies
Experian’s Business Strategies Division provides
a detailed understanding and analysis of
consumers, markets and economies in the
UK and around the world, past, present
and future. Its focus is consumer profi ling
and market segmentation, retail property
analysis, economic forecasting and public
policy research, supporting businesses, policy
makers and investors in making tactical and
strategic decisions. As part of the Experian
group, it has access to a wealth of research
data and innovative software solutions.
The division’s economic research team is
devoted to analysing national, regional
and local economies for a range of public
and private sector clients. Its statisticians,
econometricians, sociologists, geographers,
market researchers and economists carry out
extensive research into the underlying drivers
of social, economic and market change.
About Future Foundation
The Future Foundation is a leading
international consumer think-tank
and strategic consultancy. Specialising in
understanding socio-economic change and
consumer behaviour, the Future Foundation
provides intelligent research, analysis and
commentary. Its research and analysis is
used in the development of new products
and services, to inspire marketing and
communications programmes, and to
instil awareness of the wider operating
environment throughout client organisations.
Clients range across most sectors and
many countries. They include over
140 organisations including fi nancial
services, manufacturing, automotive
through to advertising agencies and
government departments.
About Experian
Experian is a global leader in providing
analytical and information services to
organisations and consumers to help
manage the risk and reward of commercial
and fi nancial decisions.
Combining its unique information tools and
deep understanding of individuals, markets
and economies, Experian partners with
organisations around the world to establish
and strengthen customer relationships
and provide their businesses with
competitive advantage.
For consumers, Experian delivers critical
information that enables them to make
fi nancial and purchasing decisions with
greater control and confi dence.
Clients include organisations from
fi nancial services, retail and catalogue,
telecommunications, utilities, media,
insurance, automotive, leisure,
e-commerce, manufacturing,
property and government sectors.
Experian Group Limited is listed on the
London Stock Exchange (EXPN) and is a
constituent of the FTSE-100 index. It has
corporate headquarters in Dublin, Ireland,
and operational headquarters in Costa Mesa,
California and Nottingham, UK. Experian
employs more than 12,500 people in 34
countries worldwide, supporting clients in
more than 60 countries. Annual sales are
$3.1 billion (£1.7bn/v 2.5bn).
The word ‘Experian’ is a registered trademark in the EU and other countries and is owned by Experian Ltd and/or its associated companies.
www.truetouch.co.uk
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