It’s important for us all to understand how an event, such as the cost-of-living crisis, might be impacting your customers. This allows us all to prepare and adapt our strategies to create better outcomes for everyone. In this article we’ll be sharing some of the trends being seen by COEO UK as, unfortunately, the cost-of-living crisis is likely to be here for some time to come. Here are some ideas of what to expect during 2023.
CHANGES TO CUSTOMER ENGAGEMENT
The most significant shift we’ve seen is the increasing growth of digital engagement. In fact, so much so, that digital platforms have become the norm for our stakeholders (including our clients), with the need for clear and transparent information available just a few clicks away.
It is more important than ever for customers, particularly those in financial distress, to be able to speak with you at a time and via a method easiest for them.
UNDERSTANDING VULNERABLE CUSTOMERS
It is vital to understand the circumstances that might be challenging for your customers and how these directly impact their ability to manage financial commitments.
Continuous vulnerable customer training, alongside coaching and testing, for customer-facing staff is key to driving good outcomes whether they’re faced with customer who might have temporary or permanent vulnerabilities. It’s key to:
- Have prescriptive, succinct and effective methods of identifying customers as vulnerable.
- Actively listening to provide thoughtful and consistent information to help agree an appropriate solution.
- Remember that each customer is different and no two circumstances are likely to be the same.
WHAT WE EXPECT FROM 2023
Considering the impact on affordability, particularly in the lending market, is the expectation that customers who have never missed a payment before may find it increasingly challenging to make ends meet. We expect customers with arrears to require longer payment plan periods due to lower monthly disposable income being available to them.
We expect this trend to continue across all consumer sectors but also in the commercial space as well. It becomes essential to have high-quality support available to maintain your reputation and help customer look towards a more financially successful future.
Customers who get the support now are likely to becomes repeat customers in the future.
FINAL WORDS
As with many things, there is no single solution.
The focus should remain on making solutions simple for consumers and creditors in an ever-volatile macro-environment.
