The FCA is working with industry partners to carry out field studies in which they are identifying touchpoints for engaging customers with their pensions by utilising the most effective social norms message.
The trials make use of behavioural insights from online research and are conducted in collaboration with pension firms. It seeks to enhance pension engagement and improve communication tactics by drawing on insightful data from online trials and pre-testing initiatives.
The FCA conducted three experiments and a qualitative study in addition to online testing. Results showed that engaging customers might be achieved by addressing present bias and overconfidence as well as by using clear email formatting.
The studies also revealed common behavioural hurdles that influence consumers’ unwillingness to seek pension counsel, including present bias, fatigue, overconfidence, mistrust, and information overload.
The pre-tested online trials also showed that behavioural language had a favourable effect on email open rates. Even though early treatment emails were successful in increasing click-through rates, they had the opposite effect on recipients’ comprehension and attitudes towards the MoneyHelper service. Treatment emails are meant to address and modify specific actions or attitudes of the receivers.
The FCA changed the treatment emails to a more neutral and straightforward tone while retaining behavioural messaging to increase engagement because they understood how important pre-testing was. The FCA reported that the updated emails performed well in the preceding pre-tests, especially the ones that made use of social norms.
Pre-testing interventions are highly valued by the FCA as a means of improving strategies and generating a substantial body of evidence to support industry collaboration and customer benefit.
The FCA says that to further develop communication strategies and give industry stakeholders useful information for increased customer engagement, the real-world field trial will be carried out again.
