Customer Insight Toolkit for Library Services

1. Customer Insight Toolkit for Library Services London Borough of Enfield London Borough of Barnet Supported by the London Library Change Programme

2. Contents Introduction - what is customer insight? Customer insight and strategic commissioning The Barnet and Enfield collaborative partnership project – a customer insight toolkit for library services Using customer insight – a practical model Customer insight and strategic direction The Barnet and Enfield experience Appendices Reference documents Project data sets and information sources Experian’s library catchment analysis for Enfield and Barnet Short bibliography

3. 1. What is customer insight?

4. The Starting Point – a definition A useful working definition of customer insight is: “ A deep ‘truth’ about the customer based on their behaviour, experiences, beliefs, needs or desires, that is relevant to the task or issue and ‘rings bells’ with target people.” (from the Government Communication Network’s Engage Programme) But – Customer insight is not raw customer data, nor can it just be bought off the shelf; Customer data is undoubtedly useful but there is a gap between it and deeper “insight”; Effectively bridging the gap between data and true insight is a precious tool to be used by all organisations whose goal is “service excellence”.

5. Step 1: Seeing the value of customer insight • The power of customer insight has long been proven in the commercial sector - we all know that satisfied customers are loyal, happy and generally much nicer people to deal with – and happy customers recommend excellent services to others. • But customer insight is also an essential tool in addressing the public sector’s current challenge of providing a quality service with ever increasing efficiency. • If we don’t understand what really matters to the people we are trying to reach, we will waste time and money – and fail to manage demand. • We also risk compromising our reputation and fostering social exclusion by offering services which customers don’t recognise as being for them or have difficulty accessing.

6. Step 2: Making the link between customer insight and service efficiency • Not only is customer insight a powerful tool for assessing the true nature of customer demand and improving customer contact quality at the front line, it is an essential means of driving greater efficiency throughout often complex delivery chains and multiple delivery partners. • It informs overall service design, processes and systems, the resources needed to deliver them, and how best to procure and commission them – all focused upon the reduction of waste and improvement of the user experience. • Customer insight underpins many currently used approaches and tools for service improvement, such as : • Channel optimisation strategies • Lean/systems thinking programmes • Business process re-engineering • Eradication of “failure demand”/waste

7. Step 3: Key sources of customer insight 1. Front line staff 2. Surveys 3. Customer journey mapping 4. Usability testing and website analysis Segmentation Ethnography 7. Consultation 8. Formal and informal contact with representative bodies 9. Agents or intermediaries 10. Written correspondence Media coverage Tip - use this list as a checklist to assess your organisation’s sources of insight and how they are used, bearing in mind that raw data alone does not constitute real insight.

8. Step 4: Adopting a continuous cycle of insight and improvement (i) • Effective customer insight kicks off a continuous cycle of change. • Customer needs should be the starting point of this cycle - develop strategic propositions around them. • As you progress, be prepared to meet the public on their terms to manage expectations more clearly along the way. • Balance the need for savings against your increasingly well-informed public’s demand for high quality and low cost services. • Develop an agreed set of realistic customer-focused outcomes to drive coherent corporate planning. • Remember that this cycle of insight and implementation should become an on-going process driving service improvement throughout an organisation or service area.

9. Step 4: Adopting a continuous cycle of insight and improvement (ii) Taken from HM Government’s Promoting Customer Satisfaction: Guidance on improving the customer experience in Public Services

10. 2. Customer insight and strategic commissioning

11. A new role for commissioning • There is a broad consensus between central and local government that there needs to be a continued shift of emphasis from more traditional models of service delivery to commissioning and an open-mindedness about the best ways of securing better outcomes for people and places. • Commissioning activity in local government reflects a range of different outcomes, but increasing numbers of authorities are making it central to their overall corporate management and are working with a range of partner organisations to deliver those outcomes. • Clarity and focus around outcomes should be at the heart of the commissioning process and the cycle of activities used to deliver them.

12. Approaches to commissioning • The term “commissioning” is loosely understood and applied to a variety of different approaches from straightforward procurement of supplies or services to individual care packages, and from regional planning to school meals. • There are varying models for how these outcomes are incorporated into commissioning, procurement and contracting processes. • The process and considerations for decommissioning must also be considered during the commissioning cycle: • “The process of planning and managing a reduction in service activity or terminating a [service or] contract should be carried out in line commissioning objectives.” Improvement & Development Agency, IDeA

13. The commissioning cycle Across the many different approaches to commissioning, the processes involved are often depicted as a cycle. One of the most commonly used models was developed for the Department of Health by Oxford Brookes University.

14. Phases in the commissioning cycle The processes of the commissioning cycle require effectiveness in all four phases: Analyse: the analysis of need, of capacity and resources and of the capability of the market; Plan: gap analysis, stakeholder engagement, the design of a commissioning plan; Do: implementing the procurement plan, facilitating the market and developing an outcome-based contract; Review: contract monitoring and reviewing the effectiveness of the strategy. There is a clear role for using customer insight in all these phases making it not just a mere set of customer metrics but a real strategic business asset.

15. 3. The Barnet and Enfield collaborative partnership project – a customer insight toolkit for library services

16. Overview (i) The brief: to create a core enabler for an effective review of library service provision The product: a local authority customer insight toolkit for library services which can be applied across borough boundaries The benefits: a re-usable product for other London boroughs to enable customer needs analysis more efficiently and at less cost

17. Overview (ii) The methodology: Design of qualitative methods to assess customer needs and current service use Identification and analysis of existing customer data sets Design of methodology for library catchment analysis Design of methodology to evaluate cost and performance of relevant library services/branches Identification of demographic/spatial data sets to assess resident/customer profile Design of methodology to assess customer need by key segments

18. Barnet’s and Enfield’s libraries

19. Project scope – key factors The project builds upon an existing will for the two library services to identify areas for delivering shared services or collaborative arrangements that will be of benefit of customers in both boroughs. Each borough is undergoing strategic reviews and is aware that high quality data, insight and analysis are essential for service remodelling and effective decision making. Customer insight is acknowledged to be a vital element of the drive towards shared services as a way of delivering innovation and best value. There is a desire to understand the degree of similarity/difference of aspiration across the boroughs to build a sound business case for far reaching change, in areas such as mobile library and homebound services. Learning Point 1 – There is a clear need from the outset for recognition of the strategic importance of customer insight in change programmes

20. Project outcomes – shared goals Barnet and Enfield library services have a shared commitment to greater efficiency, new ways of delivering services, and reducing back office costs. Both councils are committed to high-quality, engaging library services which meet the needs of our residents and customers. Both cover a large geographic area, serve diverse communities and have a large network of libraries. They share the goals of improving a joint range of services for customers, reduce the cost of back office services, provide opportunities for innovation, and produce significant savings. Learning Point 2 – There is a need for common strategic goals to underpin the desire to deliver and share services effectively

21. Project approach and structure Senior officer backing and drive – including monthly meetings to review progress, highlight reporting and analysis of options to collaborate. Existing resources were used to design and execute research activity, consultation and customer insight, with specific tasks allocated to each authority, and an external partner commissioned to review data sets. Synergies between boroughs and their joint approach were recognised and endorsed at both Director and Member level – building upon an existing will for the two library services to identify areas for delivering shared services or collaborative arrangements that will be of benefit of customers in both boroughs. So far there has been deliberate focus upon the early stage of business development – i.e. understanding customers - and the creation of solid building blocks for the future Learning Point 3 - Senior endorsement of projects is essential, along with corporate recognition of the value of investing time and effort in customer insight

22. Project vision (i) “To respond to the new economic reality and contribute to efficient local government by collaborating to improve the quality and cost effectiveness of library services to the people of Barnet and Enfield” Shared objectives: An exceptional reading service - with capacity and intent to develop and promote literacy and reading A first rate information service, available to all High quality specialist services, to reach new readers and the most vulnerable in innovative ways Lean, focussed infrastructure to enable better delivery Efficient back office, smart processes and use of resources A sustainable foundation for the coming years with the capacity to develop

23. Project vision (ii) Intended outcomes : Savings linked to the budget reduction and efficiency process in each borough New and innovative models of service provision based on greater insight into library use Learning for the wider library sector This shared vision is fully consistent with Barnet’s library strategy (2011 onwards), and the corporate One Barnet programme; and with Enfield’s LEANER Review of the Library and Museum Service Learning Point 4 – The need for customer insight is seen clearly to underpin a published vision and well-articulated objectives and outcomes, and complements parallel programme goals

24. Project risks and quality Two key risks were identified in this project: 1) The capacity of officers to input – this was mitigated by dividing key tasks and commissioning an external organisation to review joint data sets 2) Relevance of the findings – this was mitigated by joint challenge sessions to query approaches used and developed in both authorities Learning point 5 – Combine project resources and customer insight functions for optimum delivery of output, testing and challenging at each step of the way

25. 4. Using customer insight – a practical model

26. 1. Where to start “There is much that can be done quickly and simply: the things which matter to people are often far more straightforward and basic than we think. The design of a form, the sequence of a process, a well-timed question can make the difference between success and failure. Being customer-centric and using insight is not just about being able to collect data and information. It is about having the capability to turn that information into action and it requires a culture which values insight and is willing to act on it.” Customer insight in public services – “a Primer”, Cabinet Office 2006

27. 2. Use of some key sources of customer insight in the project (i) 1. Front line staff 2. Surveys 3. Customer journey mapping 4. Usability testing and website analysis Segmentation Ethnography 7. Consultation

28. 2. Use of some key sources of customer insight (ii) • The focus of the project thus far has been sources of strategic data already being collected by the two boroughs, supplemented by specific spatial data sets specially commissioned and analysed for the purposes of creating this toolkit. • User consultation and customer segmentation have featured highly in the project so far, as some of the most relevant sources of insight on library provision in local areas. • However the boroughs are well aware that this toolkit is just the start of their customer insight journey and that for them, as for library services, there is more potential in terms of developing further customer insight work, especially data modelling. • The following slides illustrate some of the important sources of insight that Enfield and Barnet have incorporated into their project along with other categories which are known to be particularly effective in the public sector. (For a complete list of data sets used, see Appendix 2.)

29. 1. Front line staff Principle - Front line staff often have an excellent idea of what is important to their customers, what customers would like to have more of, what frustrates them and what they would change.  Organisations in the public and private sectors that are customer-centric have formal processes in place to ensure that front line customer information – including complaints - is fed back into the organisation. These processes support a cycle of continuous improvement and tailoring of the services around customer needs. Project example – This is an area that has been neglected up until now but the application of Enfield’s LEANER review process will ask staff for their input on the future of library services.

30. 2. Surveys Principle - surveys, such as customer satisfaction surveys, are a significant activity across government and can help to inform customer insight. Although “satisfaction” can be a misleading and difficult concept to quantify and interpret, the data from surveys is often useful for providing robust evidence to support a business case for change, for example. However, always ask if it’s going to tell you what you need to know, do you already have this information, is it really worth it? Project examples - Future project work on channel, access and user reference and understanding what prevents use of libraries (e.g. literacy skills, social mobility, geography) Identification of ways to engage users, non-users and specific customer segments in shaping future services based, for example, upon 2011 Barnet library customer surveys and focus groups

31. 3. Customer journey mapping (i) Principle - a customer journey map is a way to describe the experiences of a customer during their interaction with a service or set of services and the emotional responses these provoke - from their first consideration of a related need, to receiving the service outcome. In government, customer journeys are often complex, with multiple interactions taking place over extended timeframes. Customer journey mapping is a particularly useful tool to help describe the customer's experience of a series of services, their thought processes and reactions. It can help to ensure a consistently good service experience, optimising outcomes for all customer groups, increasing efficiency and ensuring the services, which often span organisational boundaries, are designed right first time.

32. 3. Customer journey mapping (ii) A well-known example of effective customer journey mapping is that of the free school meal application process (Connect Digitally Programme). If Enfield and Barnet go ahead with shared library provision, customer journey mapping is a tool which could prove very illuminating in tracking changes in the customer experience across borough boundaries as well as in designing shared library services

33. 4. Usability testing and website analysis Principle - usability testing should always be employed when designing new services, particularly within the online environment. It is a means for measuring how well people can use something (such as a web page, a computer interface, a document, or a device) for its intended purpose. During usability testing, the aim is to observe people using the product in as realistic a situation as possible. It involves users navigating their way through a system and set of processes and tackling tasks in a controlled environment. It can offer valuable information about how a customer is likely to respond to a service and practical ideas for service improvement. For many organisations, websites themselves can be a valuable source of insight, provided that adequate tracking and management information systems are in place. This may be a useful source of insight in future, especially as self-service models of online and digital library provision develop.

34. 5. Customer segmentation (i) Principle - at its simplest, segmentation is about classifying a population into different groups, recognising that not all people are the same or need the same things. It helps to tailor services to particular user needs and target resources more effectively. There are many types of customer segmentation, which can utilise both existing internal databases as well as data sourced from third parties – such as national statistics, or a proprietary database such as Experian’s Mosaic and Caci’s Acorn which offer classification tools to segment by factors such as socio-demographics, lifestyles, culture and behaviour. However ,as with all forms of customer insight, raw data alone will not tell the full story if it is not analysed carefully, and different forms of segmentation can often be linked together to give a richer picture of your customer base.

35. 5. Customer segmentation (ii) Project examples – a substantial part of the project so far has been the commissioning and use of GIS spatial data and Experian’s Mosaic groups to map and models key “hotspots” across the boroughs in terms of: Deprivation levels Literacy and IT access/literacy Age, health and disability Children, families and other social groupings Employment status/receipt of benefits Ethnicity and so on The intention is now not only to use this data generally in terms of shared strategic goals, but to focus in particular upon: 1) opportunities for cross-boundary shared services, mobile and homebound services to target those individuals/groups not well served by existing library services and 2) to combine customer segmentation and library cost/performance data for a full analysis of library services across the boroughs. (See Appendix 3 for further details.)

36. 5. Customer segmentation (iii) Specific findings on cross-borough boundary opportunities and mobile library service: • Early analysis of Experian’s Enfield mapping show that mobile service transactions tend to be concentrated around the Enfield/Barnet border with significantly fewer transactions taking place in the East and South of the borough. • This would indicate some capacity to use a shared mobile service across the boundary areas and concentrate upon usage of static libraries in the East and South where Experian mapping of households points to greater need in terms of lifestyle and economic activity which could be met the learning and literacy opportunities that static libraries offer.

37. The libraries and mobile transactions in Enfield

38. 6. Ethnography Principle - ethnography describes any scientific method used to understand human behaviour and culture. In the private sector it is widely accepted as a research technique for better understanding customers. This type of insight could be especially appropriate at a later stage in the boroughs’ strategic planning process for libraries. An example of ethnography: Her Majesty’s Revenue and Customs (HMRC) undertook a piece of ethnographic work to understand how post travelled around the home and how HMRC post was dealt with when it arrived alongside other mail. They found that customers often have established 'postal systems' with post tending to stay in a holding place for some time until dealt with - the study revealed that Self Assessment Tax Returns and Child Tax Credit post moves through the home in different ways, with the latter being kept visible in the kitchen or living room 'holding area'. However, in the case of Self Assessment Tax Returns, the return was often filed and forgotten about until a much later date! It would be interesting to find out how people react to the receipt of overdue book reminders….

39. 7. Consultation (i) Principle - consultation exercises can be a useful way of engaging with a wide range of stakeholders. An inclusive approach should consult those responsible for service delivery (as discussed in the section on front line staff) and a representative sample of those people who could benefit from the outcome of the government service in question. Consultation covers a variety of techniques from more targeted and direct consultation with key stakeholders and customers to more traditional types of written consultation. It can provide insights that are otherwise difficult to obtain such as differing cultural perspectives, hidden costs and risks, likely winners and losers and the factors shaping entrenched positions on particular initiatives. It can strengthen the legitimacy of final decisions. It can increase the responsiveness of citizens and build the confidence of communities or interest groups dealing with specific issues. As Barnet and Enfield have discovered, consultation is a powerful tool if used well.

40. 7. Consultation (ii) Project examples – Consultation has already taken place with residents on the use of shared services, with the clear indication that there is broad support for cross-borough working to improve services and reduce costs. More specifically the Barnet Customer Insight team were commissioned by the library service to provide a report which would help underpin future service planning. As part of this an extensive consultation and research exercise was undertaken, with key findings published in March 2011 and as part of Barnet’s July 2011 library strategy. Specific sections focused on options for more shared service and cross-borough provision. The broader scope of the research exercise included: Understanding growth and demographic change (findings now in a State of the Borough Report on trends to inform strategic planning) Matching current library network with town centres (i.e. main shopping streets), regeneration areas, transport and access (using PTAL mapping)

41. 7. Consultation (iii) Project examples cont’d – Barnet’s demographic consultation exercise took place over two phases: i) To identify and understand the needs and priorities of users and residents, consider potential areas for change, seek responses and set a broad direction for the service ii) To seek responses to the proposed strategy and the changes outlined, and review how closely the proposals met the user/resident needs as assessed in phase 1 The exercise comprised: 20 weeks of public consultation activity Two survey initiatives Over 2300 responses Almost 50 events and activities – many specifically designed to reach those disconnected from the library service and supplemented analysis of financial data such as cost per library visit, building costs.

42. 5.The Barnet and Enfield experience

43. Key findings and lessons learned • Both councils consider their joint approach to developing customer insight has been a very helpful process which will inform future planning. • Engagement with residents and users has been particularly enhanced by the extensive Barnet two-phase consultation process, although it required great commitment, resources and energy. • This “engaged approach” is seen to provide a platform on which to now shape a library strategy in times of less funding. • Experiences of gathering customer insight have been shared and approaches tested out within both boroughs, enriching the process. • Much already existing demographic and other data has been uncovered which has been generally little used in the past but which can now be called upon for future strategic planning purposes. • Officer relationships, skills and knowledge has been much enhanced by the project. • The mass of customer insight data available on libraries required clear aims and objectives in terms of identifying what was key/relevant – this was a major challenge.

44. Next steps • The joint approach to library service strategic planning will continue, informed by this project’s findings and research. • In particular the potential of mapping exercises to identify aspects such as traffic flow and cross-borough linkage will be explored. • The ability to make more informed connections between demographic profiles, library usage, and how and where residents choose to move around and across boroughs has been highlighted. • Enfield will complete a parallel consultation exercise in autumn 2011, allowing comparison with the findings of Barnet’s two-phase consultation process. • The findings of this project will be presented to senior officers and portfolio holders who will then consider future options. • Whilst the customer insight toolkit does not on its own provide a business case for change, it is recognised to be an important component to be considered by Barnet and Enfield (and other authorities) to help plan for the future.

45. Conclusions (i) New ideas for library services already emerging from the Enfield consultation and the findings of Barnet’s earlier two-phase exercise reflect the dual challenge currently facing all areas of public sector service provision – the need for flexibility and adaptability in delivering core services in new and innovative ways, whilst still maintaining quality, and the equal need for ever greater rationalisation and efficiency through shared services, smart procurement and continuous improvement . Enfield says, in terms of libraries, the message is clear – there is no one single solution and any changes must come about as a result of resident and local priorities.

46. Conclusions (ii) So the focus for both boroughs now is on looking more widely at how their library services are provided through the vital tools of customer insight and investigating the potential of new ways of working. Options that will be explored include - Increasing use of volunteers Sharing buildings with other services and raising the libraries service profile with other partners /agencies to become “partner of choice” Working across borough boundaries (including sharing back office staff) New technology and more self-service, with targeted resource such as mobile/homebound where it is most needed

47. Contacts For more information on Barnet’s and Enfield’s experience, contact: Madeline Barrett on: Madeline.Barratt@enfield.gov.uk For more information about approaches to customer insight, contact: info@activistgroup.co.uk

48. Appendices

49. Appendix 1 – reference documents London Borough of Barnet findings of libraries consultation and customer insight research, Mar 2011 http://committeepapers.barnet.gov.uk/democracy/meetings/executivemeetingdetail.asp?MeetingID=6152 London Borough of Barnet library strategy http://committeepapers.barnet.gov.uk/democracy/meetings/executivemeetingdetail.asp?MeetingID=6916 London Borough of Barnet state of the borough report http://www.barnet.gov.uk/state-of-the-borough-21-07-2011.pdf Experian –Applying the Library Analysis Toolkit to Enfield Council Experian – Applying the Library Analysis Toolkit to Barnet Council

50. Appendix 2 – project data sets documents London Borough of Barnet Strategic Library Review Library service performance data (visits, issues, borrowers, costs) National data from the Museums, Libraries and Archives Council (MLA) CIPFA survey of adult library users (2009) CIPFA survey of children library users (2011) Data from LLB consultation report (2011) Data from consultation focus groups and survey (2011) Demographic and spatial data from Barnet customer insight report (2011) Data from 2nd phase of library service consultation, survey and focus groups (2011) Ward data (2008-2011)