CASHLESS SOCIETYTGI INSIGHTS
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
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
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
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%]
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
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
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+
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%)
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+
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%)
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+
PRACTICAL APPLICATIONS
RETAILERS & BANKS
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+
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+
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+
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+
For more information about the Cashless Society, please contact:
T: 020 8433 4243E: [email protected]: www.kantarmedia.co.uk
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