Financial institutions recognise the importance of pension communication, but many still need to understand the value of a clear strategy.
Conversations with pension scheme clients used to focus on improving basic communication, such as removing jargon, according to Joe Craig, development lead at Quietroom.
However it has quickly evolved as the sector has embraced the need for communication to serve the end user or member more effectively, he says.
“You would never see communications on the agenda of board meetings or trustee meetings before, now you do and it’s more important,” says Craig.
“It’s on the agenda and people are thinking about its importance, there are more conversations about ‘how do we do this really well?’.”
This shift has been partly driven by the Financial Conduct Authority’s Consumer Duty regulations, which require companies to test their messaging, show the results and demonstrate their efforts to communicate with consumers effectively, he notes.
Steps to success
Yet rather than relying on what has always been done in the past, Craig says consultation should be the first step to creating effective communications, because a good product is shaped by good consultancy.
That’s why Quietroom, which specialises in pensions, investment and insurance communications, powers work with research and insight to understand user behaviour, emotions and responses throughout the journeys that companies create for them.
Craig highlights that starting with consultancy allows companies to identify surprising insights and understand what users did or didn’t grasp about their communications, helping to shape their next steps.
“This means that when the communication goes out there, or when the user journey goes live, we know that it’s going to be much more effective and it’s going to hit the spot,” he says.
For example, rather than simply rewriting a letter that hasn’t produced many responses from members, Craig suggests thinking more broadly about what this letter is trying to do.
“What journey is this letter a part of? What are you trying to achieve? What’s the bigger picture? What story are you telling? Have you given any thought that this letter might not be necessary at all?” he says.
Once the strategy is established, creativity follows, allowing companies to have faith that their communications – whether that be digital copy, website, user journey portal or a written letter – will be best in class thanks to the insights gained from consultancy, Craig notes.
Firms of all sizes can improve communications
In addition to bespoke communications, Quietroom also offers ready-made communications, having identified recurring issues that had already been addressed in the past.
Craig says large schemes undergoing buy-in or buy-out often opt for bespoke solutions while many smaller schemes face the same challenges but lack the budget for a custom approach.
In response, Quietroom developed a suite of ready-made buyout communications, which provide pension schemes with a similar, cost-effective solution that was tested with real members.
This enables firms of all sizes to take the necessary steps to improve their communication efforts.
“Let’s not reinvent the wheel. We can use some of what we learned in one business. It’s maybe slightly different in another business, but let’s adapt it and test it and deliver it,” Craig says.
Quietroom sponsored the Pension Marketer of the Year category at the Financial Promoter Awards 2024. To register your interest for the 2025 Financial Promoter Awards click here.