Client stories

Her Majesty’s Revenue & Customs.

Segmenting around risk to increase the tax take and, probably, achieve a record ROI.

We helped HMRC segment the Individuals tax-payer base, on the basis of people’s ability and willingness to pay – what HMRC terms ‘compliance risk’. We defined eight segments, which were used to align resourcing and servicing strategies with the potential £-value of risk. (Later, the Individuals Directorate was re-structured around these segments.) By introducing differentiated treatment to reflect risk. HMRC was able to both increase the tax-take and reduce cost-to-serve. The large numbers involved mean small movements generate high £-revenues, suggesting the work may have achieved a record ROI.

Client: Her Majesty’s Revenue & Customs

Projects: Individual Tax-payers (followed by SMEs and Corporates)

Services: Segmentation, advisory