Firms must look at ways to improve client engagement with their pensions, says the Financial Conduct Authority, after its research revealed that email alone was not sufficient.
The watchdog said that between 42-55% of emails were opened but just 1-7% clicked through to ‘call to action.’ While older customers were more likely to engage, no key life point was particularly effective at increasing engagement overall, it said.
Three experiments were undertaken by the FCA to test how different subject lines and email messages could influence people’s engagement and understanding of emails about their pensions. The experiments sought to overcome barriers like a tendency to focus on the present rather than the future and feeling overwhelmed by too much information. The results showed that some behavioural messaging could help encourage consumers to open an email but did not affect their engagement with the email, such as clicking on a call-to-action button.
A field trial was also conducted with over 82,000 pension customers from two providers to test if sending the emails at notable touchpoints would encourage people to open and click through for free financial guidance, with the results showing just 1-7% of customers clicked through.
The FCA said: “The findings highlight that it is difficult to get people to engage with their pensions through email alone. Firms are encouraged to explore innovative approaches in talking to consumers about their pensions.
“The research also shows the importance of pre-testing communications to ensure they make the most impact and do not unintentionally discourage consumers.”
The research is part of the FCA’s ongoing work to help firms better support pension savers throughout the consumer journey.
