DVLA is aiming to pinpoint drivers who could have problems paying their road tax by implementing Metrix Data Science’s cost of living segmentation system, which identifies 14 separate groups of individuals and details how they are coping with the financial squeeze.
Launched in the summer, StrappedUK is designed to help organisations with offer product selection or simply how to talk to individual groups.
Based on how much each group has seen their living costs increase and their ability to pay, the segments are characterised by two scores: a Stress Score and an Increase Cost Score.
The Stress Score is a metric of affordability – the higher the Stress Score the harder it is for these people to physically pay for things. People with very high stress typically fall into poverty. The Increase Costs Score illustrates the extent to which everyday costs have risen for that segment.
At one end of the scale there are households who simply cannot meet their weekly bills and have to live off buy now pay later schemes, sub prime loans and food banks; on the other end are those who can cover these increased with ease.
StrappedUK will sit alongside the suite of segmentation systems provided by Metrix Data Science – which was first appointed in 2016 – that the DVLA uses to improve services and communications to customers and stakeholders.
These segment the UK into manageable clusters based on where people live and can determine factors such as car ownership, home ownership as well as driver location in terms of distance to – among other things – their nearest motorway, petrol station and car dealership as well as things like distance to supermarket, National Trust property and health club.
Crucially, it uses hundreds of “peripheral data indicators”, also developed by Metrix Data Science, which tap into public information to inform organisations about their customers without using personal data. It is claimed that StrappedUK, adds another layer to the data spectrum.
The segments are being used in conjunction with DVLA Research, Usability and Behavioural Insight teams to develop and improve DVLA services.
DVLA head of analytics Adam Catley said: “We are delighted to have Metrix Data Science on board with StrappedUK for the next phase of our important work together.”
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