Award winning behavioural interventions leading to FCA compliance
DAS
SERVICES: Strategy
IMPACT AREA: Campaigns & Comms
TOOLS: Neopic
The Challenge
Customers' lack of understanding of products resulted in multiple purchasing of the same policy for which FCA imposed an objective to reduce that.
Customers’ emotional experience and decision making processes caused poor overall experiences due to a lack of understanding of a) what they could claim for and b) how they might activate their claim.
This resulted in high investments of client resources with money and staff time being wasted on managing customer frustration, irritation and confusion via call centre resolutions and claims. NPS scores in Customer Experience also dropped significantly.
Industry Considerations
The insurance industry is keen to gain a better understanding of how policy articulation interacts with customer cognition and emotion along the engagement journey with a brand. Why customers make fake positive claims and why they do not make claims when they are fully entitled. These issues were also areas of industry improvement as recommended by the FCA. Insurance brands need to develop clearer policy communications and information to reduce false claims and increase positive claims (thus being more compliant with the FCA, reducing call centre resourcing and improving NPS).
Our Approach
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In the investigation phase, we conducted a psychological assessment of customer need archetypes with our unique NEOPIC engine to discover the non conscious motivations customers have in terms of insurance needs/awareness, searching, purchase, understanding and claiming.
Against these investigations we also tested how best to frame the product description in terms of achieving the best customer understanding and memory. We designed the product descriptions in various formats such as STORY, BULLET POINT, TIMELINE to see what format worked best. We then tested how each method impacted customer understanding of various potential claim scenarios.
This enabled precise behavioural interventions in terms of redesign of service communication, product descriptions, customer reach out letters/emails and call centre conversations/resolutions.
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We discovered which framing ensures that people have a better understanding of their policies and whether they already have this insurance policy.
We provided clear scientific proof for which format (STORY, BULLET POINT, TIMELINE etc) resulted in the best understanding, memory and correct behavioural solutions relating to each insurance product.
We provided quantitative evidence for which product framing also results in significantly reduced false claims and that significantly increased genuine claims.
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We achieved scientifically validated evidence for which format worked best in terms of product description. This led to a significant increase in customer experience (NPS scores); reduction in customer false claims (53% drop); a drop in same cover purchases (81%) and approval of psychological underpinned policy documentation by FCA (as well as meeting their governance requirements).
The resulting behavioural intervention work was awarded the first ever Golden Behavioural Intervention Award as awarded by Rory Sutherland.
“Their innovative, practical and scientifically rigorous approach brought new insights into the unmet and unspoken needs and emotions of customers, which have helped us to shape multiple aspects of our offering, from product understanding to branding campaigns. We have seen an immediate uplift in customer experience scores. In terms of claims – we have reduced unnecessary resourcing’ by 19%. Not only that but total approval from the FCA and an Award for the work! Definitely recommended if you’re seeking an evidenced based approach that’s hands-on and creative whilst focused on delivering clarity, value and impact.”