Tgi cashless society

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  • 1. CASHLESS SOCIETYTGI INSIGHTS

2. CASHLESS SOCIETYKEY BENEFITSUnderstand how attached your customers are to cashas a payment meansEvaluate likely take up and engagement of new waysfor your customers to make transactionsGain insight into how best to engage with and attractthose who have adopted a largely cashless existenceIdentify and remove obstacles that may be preventingyour target consumers from abandoning cash 3. CASHLESS SOCIETYWHAT IS IT?Gauge the readiness of Britishpopulation to embrace the concept of acashless societyPopulation divided into groups basedon their propensity to use cash vs newmeans of payment (e.g. contactless)Understand the who, why, how ofconsumers in these groups throughtheir attitudinal, media, leisure etcprofilesCombined with TGIs WHY Codeinsights to highlight what drivesrejection and adoption 4. CASHLESS SOCIETYINTRODUCING THE GROUPSCASHLESS CONVERTSHighest propensity to usemeans of payment other thancashCASHLESS CAUTIOUSMedium propensity to usemeans of payment other thancashCASHLESS CONCERNEDLowest propensity to usemeans of payment other thancashOpen to cashlesspayments butprefer cashCashlessConcernedUnlikely to usenon-cash meansof paymentEmbrace a cash-free existence 5. CASHLESS SOCIETYINTRODUCING THE GROUPSStatementCashlessConvertsHighest propensity touse means of paymentother than cashCashlessCautiousMedium propensity touse means of paymentother than cashCashlessConcernedLowest propensity touse means of paymentother than cashShopping online makes my lifeeasier183 [74%] 116 [47%] 35 [14%]I like to pay cash for everything Ibuy14 [6%] 81 [37%] 171 [78%]Have used contactless technology 211 [12%] 98 [6%] 64 [4%]Send money directly to Charity viainternet268 [15%] 106 [6%] 25 [1%]Paid grocery shopping by debit orcredit card132 [90%] 108 [73%] 71 [48%]Total number of credit/debit cardsheld: 4 Or More221 [29%] 104 [14%] 46 [6%] 6. CASHLESS SOCIETYMETHODOLOGYHundreds of variables scanned in order to identify what was driving cashlesspaymentPropensity algorithm developed to identify different likelihoods of consumers to usecashless payments such as contactless technology etc.Tracking of evolution of customers relationship with cashRespondents given a score and divided into three groups:Groups2013 2012 2011Overallnumbers% ofconsumers% ofconsumers% ofconsumersCashless Converts 4m 8 7 6Cashless Cautious 28m 56 53 50Cashless concerned 18m 35 40 44 7. High IndexingPurchasing Factors Banks(By Index)CASHLESS CONVERTSPROFILE31%(60)69%(141)Gender Split0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%18-24 25-34 35-44 45-54 55-64 65+Age Split57% areworking full time(151)Social DNA Map*Base: All adults 18+ Source: GB TGI 2013 Q1HPTTotalpopTop Bank Retailers(By Index)131(15%)163(14%)152(9%)High Global CapitalLow Global CapitalCulturalDominatingEconomicDominating* See Social DNA Map Explanation in AppendixFactorVert.%IndexInterest Rates 24% 117Introductory offers 6% 144Telephone/InternetBanking Facilities20% 1601328715780161111168204 8. CASHLESS CONVERTSPROFILESource: GB TGI 2013 Q1I would be prepared to pay morefor environmentally friendlyproducts130 (33%)With a credit card I can buythe sorts of things I couldntnormally afford159 (22%)Shopping online makes mylife easier182 (74%)HIGH INDEXING SUPERMARKETS157 (7%)132 (32%)16% (133)fall into the Shopper ArchetypesConscious Connoisseurs or QualityCrusadersHIGH INDEXING EATERIES215 (11%)174 (20%)Base: All adults 18+ 9. High IndexingPurchasing Factors Banks(By Index)CASHLESS CAUTIOUSPROFILE52%(102)48%(98)Gender Split0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%18-24 25-34 35-44 45-54 55-64 65+Age Split41% areworking full time(110)Social DNA Map*Base: All adults 18+ Source: GB TGI 2013 Q1HPTTotalpopHigh Global CapitalLow Global CapitalCulturalDominatingEconomicDominating* See Social DNA Map Explanation in AppendixFactorVert.%IndexTelephone/InternetBanking Facilities14% 112Range of services 8% 108Introductory offers 4% 108848997103100107111104106Top Bank Retailers(By Index)109(15%)108(13%)108(9%) 10. CASHLESS CAUTIOUSPROFILESource: GB TGI 2013 Q1You have to be careful about thequality of things you buy on theinternet71% (109)I dont like the idea ofbeing in debt82% (97)I spend money morecarefully than I used to70% (98)13% (106)fall into the Shopper ArchetypesConscious Connoisseurs or QualityCrusadersTOP EATERIES BY %30% (107)30% (108)TOP SUPERMARKETS BY %42% (103)31% (102)Base: All adults 18+ 11. High IndexingPurchasing Factors Banks(By Index)CASHLESS CONCERNEDPROFILE57%(111)43%(89)Gender Split0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%18-24 25-34 35-44 45-54 55-64 65+Age Split23% areworking full time(60)Social DNA Map*Base: All adults 18+ Source: GB TGI 2013 Q1HPTTotalpopHigh Global CapitalLow Global CapitalCulturalDominatingEconomicDominating* See Social DNA Map Explanation in AppendixFactorVert.%IndexCounter Staff/PersonalService21% 138Locality 25% 135Interest rates 20% 9516614911811010863746650Top Bank Retailers(By Index)142(2%)136(1%)91(13%) 12. CASHLESS CONCERNEDPROFILESource: GB TGI 2013 Q1If theres something I want I saveup for it108 (73%)I like to pay cash foreverything I buy171 (78%)I am very good at managingmoney110 (59%)14% (135)fall into the Shopper ArchetypeAccustomed AcquirersHIGH INDEXING SUPERMARKETS138 (7%)135 (4%)Base: All adults 18+ 13. PRACTICAL APPLICATIONSRETAILERS & BANKS 14. PRACTICAL APPLICATIONSRETAILERSSource: GB TGI 2013 Q1CashlessConvertsCashlessCautiousCashlessConcerned17% [157] 64% [107] 19% [65]CashlessConvertsCashlessCautiousCashlessConcerned14% [132] 63% [105] 23% [78]CashlessConvertsCashlessCautiousCashlessConcerned8% 56% 35%TOTAL POPULATION% of Waitrose Shoppers % of Sainsburys Shoppers% of total populationWaitrose and Sainsburys are particularly likely to attract Cashless Converts.Cashless Converts bring business efficiencies for retailers as handling lesscash reduces security issues and enables faster transaction times. It alsoreduces costs associated with processing and sorting cash. With so manycustomers already familiar with a cashless existence, retailers like thesewould do well to encourage more consumers into this cashless group bypioneering contactless payment at self-service checkouts.Base: All adults 18+ 15. PRACTICAL APPLICATIONSRETAILERSSource: GB TGI 2013 Q1CashlessConvertsCashlessCautiousCashlessConcerned7% [63] 53% [88] 40% [138]CashlessConvertsCashlessCautiousCashlessConcerned9% [79] 52% [87] 39% [135]CashlessConvertsCashlessCautiousCashlessConcerned8% 56% 35%TOTAL POPULATION% of The Co-Ops Shoppers % of Marks & Spencers Shoppers% of total populationThe Co-Op and Marks & Spencer are at the other end of the spectrum: theyboth have few customers in the Cashless Converts group.They, therefore, have enormous scope for making gains in the cashlessmarket. They need to encourage consumers to adopt the cashless andcontactless technologies they offer and encourage more self-service.Consumers need to be nudged into a cashless existence, and The Co-Opand Marks & Spencer have much to gain from doing this.Base: All adults 18+ 16. PRACTICAL APPLICATIONSBANKSSource: GB TGI 2013 Q1Cashless Converts are 63% more likely to use HSBC [14%]Factors influencingchoice of bankCashless Converts(Index)Reward Scheme 205Special Offers 153Interest Rate 136CashlessConvertsCashlessCautiousCashlessConcerned17% 65% 18%% of HSBC customersHSBC are in a goodposition to take leadershipin changing customerbehaviour. They alreadyhave a strong cashlesscustomer base which theycould well increase.Base: All adults 18+ 17. PRACTICAL APPLICATIONSBANKSSource: GB TGI 2013 Q1CashlessConvertsCashlessCautiousCashlessConcerned12% 64% 24%% of Santander customersSantander have a smaller proportion of Cashless Converts. Theytherefore have substantial work to do to boost this group. Key businessefficiencies can be made through encouraging cashless consumption, soit is worth Santanders while to boost their proportion of CashlessConverts. They could do this through promotions and reward schemes.Base: All adults 18+ 18. For more information about the CashlessSociety, please contact:T: 020 8433 4243E: duncan.stark@kantarmedia.comW: www.kantarmedia.co.uk