A one-size fits all approach to service delivery does not exploit potential opportunities for greater efficiency in migrating customers to cheaper service delivery channels and is generally associated with lower levels of customer satisfaction.

At the other end of the scale, understanding customers at an individual level can be prohibitively costly and time-consuming. However, segmenting the needs of distinct groups of customers can provide valuable insight in terms of understanding, allocating costs more efficiently and communicating more effectively.

Councils should get to know their customers better (customer insight) and understanding the lifestyle preferences of particular groups of people (customer segmentation).

Against a backdrop of rising customer expectations for better-quality services and an ever tighter financial environment, it is important that local authorities improve their understanding of customers and also their communication and engagement with them.  In the words of one local authority, “If we want to put our customers first, we need to know them better.”

The choice of channels available to customer groups varies depending on three factors:

• Capability of the channel to support particular services

• The accessibility of a channel to its target customer segment

• The propensity of a target customer segment to use it

Customers place importance on the convenience of accessing services via a mix of channels. For example:

• Visiting One Stop Shops

• Using an intermediary such as a Post Office

• By telephone

• Browsing Web sites

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