There is a lack of prioritised digital maturity in the “member login” area of most Super brands

An email by one of Australia’s largest superannuation funds, on the 15th of April, thanked fund members for their patience and understanding as a 270% increase above normal rates of calls to the call centre had led to increased wait times for phone-based assistance. What is occurring in this business is occurring with the majority of customer facing brands around the world. For all, there is a need to continuously monitor and review service strategies and consider increasing digital maturity during these unprecedented times.

How can any brand, faced with such an unforeseen global upending of normal working practise, cope? Crippled face to face channels, depleted call centre staffing and demands for answers on the fly from a clamour of nervous customers mean digital channels and digital maturity are to the fore. How can brands respond appropriately and rapidly?

Verify which digital features to prioritise based on what target segments deem important

Take this scatter chart, which details the self-service digital features that are most important to superannuation fund members between the ages of 25 and 35. From here decisions can be made about a prioritised digital feature roadmap, digital experience and associated communication strategy based on audience requirements.What is critical with a chart like this however, is the innovation culture that would have to emanate from the leadership team all the way down to the implementers. A belief in continuous innovation would have led to a previously developed solution to deal with an increasing demand for assistance; innovation maturity would have led to the development and testing of a solution to cover this kind of customer need.

In our recent digital maturity benchmark of 15 superannuation brands across Australia, measuring performance based on the weighted desirability and importance of circa 500 self-service digital features (per brand!) we found 3 brands met this standard. A more stark result was that, 7 in 15 brands scored below an average performance – this means they are falling significantly behind their peers in offering the digital services users actually want.

Superannuation brands below average digital maturity is driving down member satisfaction and increasing churn. 

For example, our recent study uncovered that early adopters do not want the same digital features as the early majority let alone the laggards. Younger audiences want different features to older audiences. The types of features you offer have a direct impact on prospective and current customers perception of your brand and whether it is a brand for someone like them.

When we surveyed 1,000 superannuation fund members, those who regularly use the online services provided by their super fund, are less likely to agree that the online service provided meets their needs, in comparison to those who dip in and out at a maximum of once a month. With the most recent demand for service generated by COVID 19, it may be that an increase in frequency of use of digital services will drive down satisfaction of service provision as is demonstrated by those who use most frequently. Early adopters and those in the early majority are also more likely to state that the online fund management experience is more likely, than the average super member, to cause them to stay or switch fund.

The insight is that some features with significant price tags may bring publicity, but do nothing to move engagement or frequency metrics and many brands are guilty of opinion led or misguided prioritisation. Before a brand invests, they need to know their audience and what features will cause them to switch or use their current fund’s services more frequently.

For example, when we look at the top five feature criteria across three different age groups, those between 25 to 34 years of age are more likely to place a “find my lost super” tool in their top five criteria than older age groups do. Those between 35 to 44 place priority on being able to change personal details and those between 45 and 54 want to be able to nominate beneficiaries during the application.

Rank25 to 3435 to 4445 to 54
1stWhile applying, a clear sense that my information will be kept safe and secureWhile applying, a clear sense that my information will be kept safe and secureWhile applying, a clear sense that my information will be kept safe and secure
2ndQuick information on my account balance immediately after logging in.Information about fees, charges and commissionsInformation about fees, charges and commissions
3rdRetrieval links for forgotten password or login details to the member’s areaQuick information on my account balance immediately after logging inQuick information on my account balance immediately after logging in
4thInformation about fees, charges and commissionsBeing able to change personal details online (Address, email, etc.)Retrieval links for forgotten password or login details to the member’s area
5thAbility to find my ’lost super’ during the application (Old forgotten superannuation accounts with other providers)Retrieval links for forgotten password or login details to the member’s areaAbility to nominate beneficiaries during the application

So, let’s take another look at that scatter chart. When we take a deeper look at those features which are above average importance and desirability for the 25 to 34 year old age group, we can devise a clear picture as to how to design for this cohort. Shiny toys like “communication through social media” are actually neither desirable nor important, while being able to find a lost super is more important than it is desirable.Another thing this scatter chart tells us for the 25 to 35 age group is that having quick information available on account balance immediately after logging in is a feature deemed very important and desirable to this group, but who is doing this well? Only half of brands assessed, begging the question why other brands haven’t appreciated the demand for this simple offer.

And so it is today, those brands with an eye on digital innovation within the self-service environment, be it app or web services, have a distinct advantage. The nice to have has, very quickly, become the need to have. If a customer or member cannot change their personal details in the member environment your service is in the Stone Age. If you are not thinking of ways to enable end to end product and service fulfilment entirely online, you are already behind. And businesses that looks to the future based on what users really need and not just what is easy or the current fad, will out-perform their competitors in the digital experience being offered, especially in a time of crisis.

Upcoming webinar

Our upcoming webinar on digital maturity looks at the performance of 31 super and banking brands. To register for the webinar visit https://bit.ly/3aqJ5yS. 

To find out more about what the webinar will cover visit https://bit.ly/3cxHpVJ

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Major motor insurance brands losing 81% of “converted” prospects during online purchasing process

motor insurance

81% of customers shopping online for motor insurance decide on a preferred brand early in the process, only to swap to a competing brand at the final purchase stage. This revelation comes from new data just released from digital conversion intelligence company Global Reviews.

After digitally measuring tens of thousands of behavioural data points from online shoppers in the market for motor insurance, Global Reviews found that the major brands are effective at deploying large marketing budgets to build top-of-mind recall. However, these same brands lose hard-won prospects during the purchase process as a result of uncompelling offers, a lack of access to information, and badly designed conversion pages. These “lost opportunities” were most pronounced at Direct Line, but most major brands also suffered this loss to some degree.

Sankey screenshot

Click to view rollover diagram

In part, the extreme customer attrition is caused by the growing reliance of digital teams on site-centric, single data sources. These packages focus almost exclusively on the company’s own website, thus reducing their ability to view and respond to overall competitive market dynamics. Whole-of-market visibility is one of the major advantages driving the rise of aggregators who exploit their competitive intelligence to intermediate brands and dictate pricing and preference.

For example, consider that Aviva is a well-known brand with high unprompted recall. The Global Reviews analytics discovered that this strong branding led Aviva to be the initial stated preference of a large number of customers, and yet during the purchase process, Aviva lost a substantial number of these hot prospects to lesser known brand, Churchill. To quantity the difference, Aviva’s Lost Opportunity score was 72%, representing a huge loss of revenue and an escalated customer acquisition cost (CAC).

This high Lost Opportunity and the success of Churchill in dynamically churning hot Aviva prospects during the purchase process is unexpected. Global Reviews data revealed that initially, in-market consumers start their purchase journey with an emotional view of Aviva as a reputable brand with great prices, products which match their needs, good customer service and a website that is easy to use. Churchill on the other hand is perceived as undynamic and being behind the technology curve.

However, once their shopping process has begun these consumer perceptions quickly change, and Churchill consistently delivers “delight”. In fact, astonishingly Churchill ranked first across all competitors as the most preferred brand at the end of the research phase of purchasing. Global Reviews can reveal that this was driven by an online narrative focused on demonstrating a range of products and offers designed specifically to suit individual customer needs. The navigation data also revealed an information architecture that made it simple to find key information on their website.

Online customer journey

Customer Journey Mobile Motor

Watch our webinar to learn more:

If you would like to book a private conversation to learn more about these or any other Global Reviews insights please contact:

Gerard Farrell
Head of Product and Client Advisory
gerard.farrell@globalreviews.com
+44 (0) 203725 8260

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The Meme Collider?

human interaction vs self service

In 2012, 174 meters below the Franco/Swiss border in a circular tunnel stretching 27 kilometres, the Higgs boson was discovered, through particle collision. It is through the observation of the by-products of these collisions that scientists and researchers are growing our understanding of the universe.

Can we apply the premise of collision to commercial business models; and through observing the by-product, understand the drivers of social and commercial evolution? May we be able to gain a greater understanding of what CX and customer expectation will look like 5 or even 10 years from now?

If we take, for example, Schiphol airport in the Netherlands who provide parking spots and collided it with the business model of a car rental company who invests in car fleets to rent out, what might we observe? Would we discover a company like ParkFlyRent who pairs departing passengers with those who wish to leave their car at the airport for long periods with inbound passengers looking for a car to rent? The pair never meet but trust is established.

Consider the shape of the ‘peer to peer’ model against this ‘peer to business to peer’ model. What is the role of the business? Is it to provide convenience, to provide a marketplace, or something else?

The ability to throw two markets together and turn them into one without affecting people’s access to mobility is surely the premise upon which market places exist.

Convenience is not key. While it may remove friction in terms of customer experience, it may also remove the customer experience altogether i.e. trust, relationships – the human element.

We are moving towards a world where marketplaces are becoming the dominant place for economic transactions. In the past the marketplace may have been defined as ‘an arena of commercial dealings’. Today these new market places facilitate micro-entrepreneurship that only thrive on positive feedback.

Let’s be contentious, let’s say that insurance companies don’t reward their customers with fair play and caution. When the insurance industry collides with a community based model like a social network, what would we observe?  German Insurance broker Friendsurance.de provide a group based claims cash back bonus structure. They group people online who have a similar insurance policy and if no claims are submitted, the members of the group get a cash bonus at the end of the year. For two consecutive years more than 80% of the consumers who took advantage of the claims free bonus received a proportion of their premiums back. Both the insurance companies and the customers can win.

I suggest that all of these examples come from a quickly growing meme which is the consumer viewpoint of what brands are describing as digital disruption: the collaborate consumption economy. Rachel Botsman, in her TED talk, discusses the fundamentals behind the concept of the collaborative economy and predicts that it will evolve every commercial industry that we know today. In the collaborative economy, trust and relevance are the key drivers and what digital has brought to the table is the ability to build trust without having to meet someone.

It is interesting to note that the definition of a community is “the condition of sharing or having certain attitudes and interests in common”.

Is this collaborate-economy an evolution or a revolution of the marketplace? Is the secret to meeting its challenge to reconsider the linear, consumer to business based model and look to the cluster based community model?

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