Something for 401k advisors to think about as you craft your next message to a client: Personalization in communications–or a lack of it–significantly impacts customer loyalty.
This according to a new study by fintech firm Broadridge Financial Solutions, which found that one in four people said they have entirely stopped doing business with a company specifically due to poorly personalized communications. This grows to one in three (35 percent) among Millennials.
Over one-third (35 percent) say that the companies they patronize need to improve communication experiences.
Interestingly, the survey found one-in-five consumers has purchased a new product or service because they received a message in a bill or statement, a significant conversion rate and opportunity for companies to deepen customer relationships.
“Consumer expectations have changed dramatically in the digital age and brands need to increasingly look to engage their customers in meaningful ways,” Matt Swain, managing director and practice lead for communications consulting services at Broadridge, said in a statement. “Essential communications, like bills and statements, offer a unique, yet often underutilized, opportunity to provide a personalized experience for customers. This can do more than build brand loyalty, it can also drive the bottom line.”
Digital adoption hinges on quality communication experiences
Broadridge found that most consumers (69 percent) are likely to convert to paperless if providers make digital experiences more engaging.
In fact, if a company’s mobile device experience is poor, more than half of respondents said they’d be less likely to go paperless.
That said, most consumers (62 percent) have converted at least one statement or bill to paperless delivery within the last year, with Millennials and households with children leading the migration.
“Companies recognize that digital communications are attractive because they can reduce operational and call center costs by creating more self-service experiences for customers, but consumers now demand digital experiences that are far better than print,” Swain added. “They want personalized digital communications that deliver real value.”
New tech brings new conveniences for digital converts
As the digital landscape evolves, companies should look to introduce next-generation technologies to the communication experience.
Looking at new technological capabilities, more than one-third (36 percent) of consumers want to view statements and bills in one digital location—a key advantage of personal cloud storage, like Google Drive and Dropbox.
Responses suggest that consumers like cloud channels due to the convenient location/access, the ability to create an overview of monthly investments and expenses, and the ease it allows to predict future expenses.
Broadridge found that in the next wave of communications, consumers would be interested in customizing the layout of their statements and bills themselves, incorporating touch ID and facial recognition into mobile experiences, leveraging AI in customer service to get more immediate responses to simple questions, and adding personalized informational videos in digital communications.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
