tgi cashless society

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CASHLESS SOCIETY TGI INSIGHTS

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Page 1: Tgi cashless society

CASHLESS SOCIETYTGI INSIGHTS

Page 2: Tgi cashless society

CASHLESS SOCIETYKEY BENEFITS

Understand how attached your customers are to cash as a payment means

Evaluate likely take up and engagement of new ways for your customers to make transactions

Gain insight into how best to engage with and attract those who have adopted a largely cashless existence

Identify and remove obstacles that may be preventing your target consumers from abandoning cash

Page 3: Tgi cashless society

CASHLESS SOCIETYWHAT IS IT?

Gauge the readiness of British population to embrace the concept of a cashless society

Population divided into groups based on their propensity to use cash vs new means of payment (e.g. contactless)

Understand the ‘who, why, how’ of consumers in these groups through their attitudinal, media, leisure etc profiles

Combined with TGI’s WHY Code insights to highlight what drives rejection and adoption

Page 4: Tgi cashless society

CASHLESS SOCIETYINTRODUCING THE GROUPS

CASHLESS CONVERTSHighest propensity to use

means of payment other than cash

CASHLESS CAUTIOUSMedium propensity to use

means of payment other than cash

CASHLESS CONCERNEDLowest propensity to use

means of payment other than cash

Open to cashless payments but prefer cash

Cashless ConcernedUnlikely to use

non-cash means of payment

Embrace a cash-free existence

Page 5: Tgi cashless society

CASHLESS SOCIETYINTRODUCING THE GROUPS

Statement

Cashless Converts

Highest propensity to use means of payment

other than cash

Cashless Cautious

Medium propensity to use means of payment

other than cash

Cashless Concerned

Lowest propensity to use means of payment

other than cash

Shopping online makes my life easier 183 [74%] 116 [47%] 35 [14%]

I like to pay cash for everything I buy 14 [6%] 81 [37%] 171 [78%]

Have used contactless technology 211 [12%] 98 [6%] 64 [4%]

Send money directly to Charity via internet 268 [15%] 106 [6%] 25 [1%]

Paid grocery shopping by debit or credit card 132 [90%] 108 [73%] 71 [48%]

Total number of credit/debit cards held: 4 Or More 221 [29%] 104 [14%] 46 [6%]

Page 6: Tgi cashless society

CASHLESS SOCIETYMETHODOLOGY

Hundreds of variables scanned in order to identify what was driving cashless payment

Propensity algorithm developed to identify different likelihoods of consumers to use cashless payments such as contactless technology etc.

Tracking of evolution of customers relationship with cash

Respondents given a score and divided into three groups:

Groups2013 2012 2011

Overall numbers

% of consumers

% of consumers

% of consumers

Cashless Converts 4m 8 7 6

Cashless Cautious 28m 56 53 50

Cashless concerned 18m 35 40 44

Page 7: Tgi cashless society

High IndexingPurchasing Factors Banks

(By Index)

CASHLESS CONVERTSPROFILE

31%(60)

69%(141)

Gender Split

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18-24 25-34 35-44 45-54 55-64 65+

Age Split

57% are working full time

(151)Social DNA Map*

Base: All adults 18+ Source: GB TGI 2013 Q1

HPT

Total pop

Top Bank Retailers(By Index)

131(15%)

163(14%)

152(9%)

High Global Capital

Low Global Capital

Cul

tura

l Dom

inat

ing

Econom

ic Dom

inating

* See Social DNA Map Explanation in Appendix

Factor Vert .%

Index

Interest Rates 24% 117

Introductory offers 6% 144

Telephone/Internet Banking Facilities

20% 160

Page 8: Tgi cashless society

CASHLESS CONVERTSPROFILE

Source: GB TGI 2013 Q1

I would be prepared to pay more for environmentally friendly

products

130 (33%)

With a credit card I can buy the sorts of things I couldn’t

normally afford

159 (22%)

Shopping online makes my life easier

182 (74%)

HIGH INDEXING SUPERMARKETS

157 (7%)

132 (32%)

16% (133) fall into the Shopper Archetypes

Conscious Connoisseurs or Quality Crusaders

HIGH INDEXING EATERIES

215 (11%)

174 (20%)

Base: All adults 18+

Page 9: Tgi cashless society

High IndexingPurchasing Factors Banks

(By Index)

CASHLESS CAUTIOUSPROFILE

52%(102)

48%(98)

Gender Split

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18-24 25-34 35-44 45-54 55-64 65+

Age Split

41% are working full time

(110)Social DNA Map*

Base: All adults 18+ Source: GB TGI 2013 Q1

HPT

Total pop

High Global Capital

Low Global Capital

Cul

tura

l Dom

inat

ing

Econom

ic Dom

inating

* See Social DNA Map Explanation in Appendix

Factor Vert .%

Index

Telephone/Internet Banking Facilities

14% 112

Range of services 8% 108

Introductory offers 4% 108

Top Bank Retailers(By Index)

109(15%)

108(13%)

108(9%)

Page 10: Tgi cashless society

CASHLESS CAUTIOUSPROFILE

Source: GB TGI 2013 Q1

You have to be careful about the quality of things you buy on the

internet

71% (109)

I don’t like the idea of being in debt

82% (97)

I spend money more carefully than I used to

70% (98)

13% (106) fall into the Shopper Archetypes

Conscious Connoisseurs or Quality Crusaders

TOP EATERIES BY %

30% (107)

30% (108)

TOP SUPERMARKETS BY %

42% (103)

31% (102)

Base: All adults 18+

Page 11: Tgi cashless society

High IndexingPurchasing Factors Banks

(By Index)

CASHLESS CONCERNEDPROFILE

57%(111)

43%(89)

Gender Split

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18-24 25-34 35-44 45-54 55-64 65+

Age Split

23% are working full time

(60)Social DNA Map*

Base: All adults 18+ Source: GB TGI 2013 Q1

HPT

Total pop

High Global Capital

Low Global Capital

Cul

tura

l Dom

inat

ing

Econom

ic Dom

inating

* See Social DNA Map Explanation in Appendix

Factor Vert .%

Index

Counter Staff/Personal Service

21% 138

Locality 25% 135

Interest rates 20% 95

Top Bank Retailers(By Index)

142(2%)

136(1%)

91(13%)

Page 12: Tgi cashless society

CASHLESS CONCERNEDPROFILE

Source: GB TGI 2013 Q1

If there’s something I want I save up for it

108 (73%)

I like to pay cash for everything I buy

171 (78%)

I am very good at managing money

110 (59%)

14% (135) fall into the Shopper Archetype

Accustomed Acquirers

HIGH INDEXING SUPERMARKETS

138 (7%)

135 (4%)

Base: All adults 18+

Page 13: Tgi cashless society

PRACTICAL APPLICATIONS

RETAILERS & BANKS

Page 14: Tgi cashless society

PRACTICAL APPLICATIONSRETAILERS

Source: GB TGI 2013 Q1

Cashless Converts

Cashless Cautious

Cashless Concerned

17% [157] 64% [107] 19% [65]

Cashless Converts

Cashless Cautious

Cashless Concerned

14% [132] 63% [105] 23% [78]

Cashless Converts

Cashless Cautious

Cashless Concerned

8% 56% 35%

TOTAL POPULATION

% of Waitrose Shoppers % of Sainsbury’s Shoppers

% of total population

Waitrose and Sainsbury’s are particularly likely to attract Cashless Converts. Cashless Converts bring business efficiencies for retailers as handling less cash reduces security issues and enables faster transaction times. It also reduces costs associated with processing and sorting cash. With so many customers already familiar with a cashless existence, retailers like these would do well to encourage more consumers into this cashless group by pioneering contactless payment at self-service checkouts.Base: All adults 18+

Page 15: Tgi cashless society

PRACTICAL APPLICATIONSRETAILERS

Source: GB TGI 2013 Q1

Cashless Converts

Cashless Cautious

Cashless Concerned

7% [63] 53% [88] 40% [138]

Cashless Converts

Cashless Cautious

Cashless Concerned

9% [79] 52% [87] 39% [135]

Cashless Converts

Cashless Cautious

Cashless Concerned

8% 56% 35%

TOTAL POPULATION

% of The Co-Op’s Shoppers % of Marks & Spencer's Shoppers

% of total population

The Co-Op and Marks & Spencer are at the other end of the spectrum: they both have few customers in the Cashless Converts group. They, therefore, have enormous scope for making gains in the cashless market. They need to encourage consumers to adopt the cashless and contactless technologies they offer and encourage more self-service. Consumers need to be nudged into a cashless existence, and The Co-Op and Marks & Spencer have much to gain from doing this.

Base: All adults 18+

Page 16: Tgi cashless society

PRACTICAL APPLICATIONSBANKS

Source: GB TGI 2013 Q1

Cashless Converts are 63% more likely to use HSBC [14%]

Factors influencing choice of bank

Cashless Converts (Index)

Reward Scheme 205

Special Offers 153

Interest Rate 136

Cashless Converts

Cashless Cautious

Cashless Concerned

17% 65% 18%

% of HSBC customers

HSBC are in a good position to take leadership in changing customer behaviour. They already have a strong cashless customer base which they could well increase.

Base: All adults 18+

Page 17: Tgi cashless society

PRACTICAL APPLICATIONSBANKS

Source: GB TGI 2013 Q1

Cashless Converts

Cashless Cautious

Cashless Concerned

12% 64% 24%

% of Santander customers

Santander have a smaller proportion of Cashless Converts. They therefore have substantial work to do to boost this group. Key business efficiencies can be made through encouraging cashless consumption, so it is worth Santander’s while to boost their proportion of Cashless Converts. They could do this through promotions and reward schemes.

Base: All adults 18+

Page 18: Tgi cashless society

For more information about the Cashless Society, please contact:

T: 020 8433 4243E: [email protected]: www.kantarmedia.co.uk