Ask the expert: How can I improve consumer understanding and engagement?

'As an adviser, how can I improve consumer understanding and engagement?'

Consumer understanding and engagement are key aspects of the consumer duty that advisers must embrace.

The regulatory focus on consumer understanding is justified, as clear and concise information empowers individuals to make timely and informed decisions.

As a financial adviser, your primary goal is to ensure your clients are well informed and actively involved in the decision-making process regarding their finances.

By effectively engaging consumers and improving their understanding of financial matters, you can build trust, foster long-term relationships and achieve positive outcomes.

Over the past five years we have dedicated ourselves to assisting firms in enhancing their clients’ engagement and comprehension of crucial topics.

Achieving the creation of effective and captivating communications that are easily comprehensible to clients requires the implementation of a diverse range of techniques.

At Money Alive we employ numerous methods outlined below to craft our compelling box-sets, and you too can incorporate these techniques into your own communications to increase consumer understanding and engagement.

Logical flow of information/layering: Ensure information is presented in a logical and intuitive order, with more detailed information provided in layers.

Bite-sized chunks: Break down information into small, easily digestible pieces to improve comprehension.

Headings: Use clear and descriptive headings to organise information.

Bullet points: Use bullet points to break down complex information into digestible chunks.

Font size: Use an appropriate font size that is easy to read.

Clarity of font: Choose a clear and legible font to enhance readability.

Tables: Use tables to present data in an organised and easy-to-understand manner.

Colour: Use colour sparingly and purposefully to highlight important information or add visual interest.

Diagrams: Use diagrams to illustrate complex concepts and make them easier to understand.

Graphics: Use graphics to enhance visual appeal and aid comprehension.

Jargon-free: Avoid using technical jargon that may be difficult for some to understand.

Removal of technical terms (or explanation): Consider removing technical terms altogether or providing clear explanations to ensure all clients can understand.

Accessibility: Ensure all information is accessible to users with disabilities (audio/video/closed captions)

Summaries: Include summaries or key takeaways to help clients quickly understand the main points.

Case studies/examples: Use case studies or examples to make information more relatable and understandable.

Unbiased: Present information in an objective and unbiased manner.

Key information visibility: Ensure key information is prominently displayed and not hidden away.

Brief and to the point: Keep communications concise and to the point to avoid overwhelming clients with too much information. With more complex communications this is not always possible, so break down into bite-sized chunks.

Consistency: Ensure all communications are consistent with each other in terms of words, tone, style and formatting.

Other considerations: Take into account timing and placement of communications within the larger advice process.

Client feedback: Incorporate feedback from clients to improve the clarity and effectiveness of communications.

Interactivity: Consider incorporating interactive elements to engage clients and improve understanding.

As an industry, we still tend to rely predominantly on lengthy written documents for communication. Embracing technology is crucial to improving consumer engagement in today's digital age.

The power of video offers several advantages that contribute to increased engagement:

1. Visual and auditory stimulation: Videos capture viewers' attention through engaging visuals and spoken explanations, enhancing comprehension.
2. Storytelling and demonstrations: Videos make financial topics relatable and accessible through real-life scenarios and examples, fostering emotional connections and deepening understanding.
3. Simplicity and clarity: Videos distil intricate details into concise, structured presentations, avoiding overwhelming technical jargon. Interactive elements further enhance engagement and active participation.
4. Accessibility and convenience: Videos can be consumed on various devices at one's own pace, making financial education approachable and increasing the likelihood of engagement.

By leveraging video's multi-sensory experience, storytelling capabilities, simplicity, interactivity and accessibility, advisers can significantly enhance consumer comprehension and engagement with financial topics.

It is worth noting the impact this can have on your clients' experience – which, after all, is the true measure of success. We have research from more than 14,000 consumers who have gone through a Money Alive experience and 96 per cent said they were better informed ahead of the advice meeting and 92 per cent said it helped them in their decision-making. So, if you get this right the impact can be transformational.

In conclusion, as an adviser, your focus should be on implementing effective communication strategies that prioritise logical flow, clarity and accessibility.

Additionally, embracing video technology can revolutionise consumer understanding and engagement, enabling you to provide a compelling and immersive experience for your clients.

Andy Kirby is CEO and co-founder of Money Alive

If you have a question you would like to put to Andy or any other expert please email it to melanie.tringham@ft.com.

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