PensionBee’s Holistic Approach to Customer Communications & Engagement

Engaging customers in long-term financial products like pensions takes a multifaceted approach. Combining education with personalised, multi-channel communications is how PensionBee maintains customer engagement over decades for their lifetime product.

In financial services, customer engagement extends beyond transactions; it involves building affinity and relationships through multiple interactions.

We spoke with Brooke Day, Head of Brand and Communications at PensionBee, to explore how the company keeps customers engaged throughout their lifelong pension journeys.

The Challenge of Long-Term Customer Engagement

Unlike everyday purchases, pensions are long-term investments that span decades.

Engaging customers over such an extended period requires a strategic and dynamic approach.

According to Fredrich Reichheld, increasing customer retention rates by 5% may increase profits by 25% to 95% in the financial services.

This underscores the importance of long-term customer engagement strategies like those employed by PensionBee.

Education as a Key Engagement Tool

PensionBee places a strong emphasis on customer education to keep clients engaged.

"For us, one of the biggest elements is education. We provide multi-format content and give customers the content they want where they need it."

— Brooke Day, PensionBee

Research by Ragan reveals that 82% of consumers feel more positive about a company after reading custom content.

This aligns with PensionBee's emphasis on educational content across various platforms.

The company utilises diverse channels—including blogs, an app, the Pension Confident Podcast, and YouTube videos—to deliver valuable information tailored to customer needs.

Personalised Multi-Channel Communications

By offering content in multiple formats and platforms, PensionBee makes sure its customers can access information whenever and wherever they prefer.

This approach not only caters to different learning styles but also helps maintain engagement across different stages of the customer journey.

A report by Accenture found that 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.

Measuring and Enhancing Customer Engagement

Tracking the effectiveness of communication strategies is crucial for continuous improvement.

Customer retention is a key metric reflecting overall satisfaction over time.

According to Sprinklr, the average customer retention rate in many service industries is around 75%.

Improving this rate can significantly impact profitability.

Beyond Vanity Metrics

While traditional metrics like unique views and video watch rates provide insights, PensionBee looks at the bigger picture.

"We weave this all together to create a more holistic view. We rely on customer testimonials, Trustpilot scores, and NPS scores to understand our customer retention goals."

— Brooke Day, PensionBee

The Edelman Trust Barometer 2023 reported that only 59% of people trust the financial services sector.

Compliance with Consumer Duty

The introduction of Consumer Duty has prompted PensionBee to focus on the clarity and accessibility of their communications.

"We make sure we're not just putting loads of terms in there that nobody understands. It's really important that we hold our customers' hands through the different journeys."

— Brooke Day, PensionBee

The Financial Conduct Authority predicts expects Consumer Duty to lead to major changes in financial services consumer protection.

This aligns with PensionBee's continued efforts to improve communication clarity and accessibility.

Leveraging Technology for Personalised Engagement

PensionBee is embracing technology to deliver more personalised and timely communications.

Implementing Advanced CRM Solutions

The company recently onboarded a new CRM (Customer Relationship Management) platform called Iterable to improve personalisation.

"We identified that we wanted to provide more personalised communications based on things beyond gender."

— Brooke Day, PensionBee

Reports by McKinsey suggest that leveraging advanced analytics and AI can significantly enhance customer personalisation in financial services.

Success on Emerging Platforms like TikTok

PensionBee ventured into TikTok to reach a broader audience and found surprising success with older demographics.

"It surprised us not only how well that has done and the viral moments we've had. Actually, what surprised us the most is how much older the audience is on there for us."

— Brooke Day, PensionBee

A study by Hootsuite found that nearly a quarter of Internet users follow a brand they’re considering purchasing from on social networks.

Navigating Regulatory Constraints in Communications

Operating within the financial services sector takes careful consideration of regulatory compliance, especially when providing information without giving direct advice.

Working Closely with Compliance Teams

PensionBee maintains agility by having a streamlined compliance review process.

"We're actually really lucky to be able to get things through quickly. Internally, there is a lot of communication and shared values that help us all know we need to move quickly on some things."

— Brooke Day, PensionBee

This collaborative approach ensures that communications are both compliant and timely, enabling the company to respond swiftly to market changes and customer needs.

Providing Reassurance Without Giving Advice

The company focuses on education and reassurance, helping customers understand their options within the regulatory framework.

"We want to provide education to understand investing more broadly so that doesn't make people fearful; it actually reassures them in the long term."

— Brooke Day, PensionBee

Building Relationships through Values and Customer-Centricity

PensionBee's approach is deeply rooted in its company values, which guide its interactions with customers.

The Importance of Shared Values

The company's leading value is love, emphasising compassion and empathy in all customer interactions.

"Every single team at PensionBee knows what the values are. It drives everything that we do here, especially the value of love."

— Brooke Day, PensionBee

This value-centric approach fosters a culture where customer needs are prioritised, and feedback is actively sought and acted upon.

Advice for Communications Leaders

For those looking to enhance customer engagement in financial services, Brooke emphasises the importance of being customer-first.

"You need to be with people every step of the way, tailoring your communications with empathy to whatever their needs are at that time."

— Brooke Day, PensionBee

By understanding the nuances of each customer segment and their specific journeys, you can create more meaningful and lasting relationships.

A Lifetime of Engagement

Maintaining customer engagement over the long term in financial services requires a blend of education, personalised communications, and a strong value-driven approach.

Leveraging technology, multi-channel strategies, and a deep understanding of customer needs, PensionBee exemplifies how financial services firms can build lasting relationships with their clients.

Embracing company values and fostering collaboration across teams ensures that communications are not only effective but also resonate on a personal level with customers.

About Brooke

An experienced Head of Brand and Communications with over a decade in content marketing, brand, and digital marketing. Brooke specialises in planning and delivering customer-led brand campaigns and data-fuelled content marketing activities to drive performance for FinTech and retail brands. Her expertise spans both client-side and agency-side roles across a range of B2C and B2B clients, including FinTech, retail, property, e-commerce, luxury, fashion, automotive, and beauty sectors.

References

Average Customer Retention Rate, Sprinklr, 2024

24 Stats About the Importance of Content Marketing, Ragan, 2013

Widening Gap Between Consumer Expectations and Reality in Personalisation Signals Warning for Brands, Accenture, 2018

Edelman Trust Barometer 2023, Edelman, 2023

The FCA's Consumer Duty Will Lead to a Major Shift in Financial Services, FCA, 2022

Reimagining Customer Engagement for the AI Bank of the Future, McKinsey, 2020

Social Media in Financial Services, Hootsuite, 2024

Pension Confident Podcast, PensionBee, 2024

Reviewed By

Sabrina McClune, 14.11.2024

Sam Kendall, 14.11.2024