Evolution of Customer Experience, Technology in Pension Industry

Ophelia Alex-Iwuanyanwu

Customer Experience is the overall perception and impression that customers associate with a brand based on their interactions throughout the entire customer journey, from initial awareness to post-registration support. It encompasses every touchpoint and interaction experienced by a customer which would include marketing, sales, customer service, and product or service usage.

Customer experience is crucial to organizations because, as it is often said ‘Perception is Everything’. Hence, it is important for customers to perceive an organization as caring, innovative, and forward-thinking. Moreover, with the introduction of digital technologies, customer interactions with organizations have become more intimate and fast paced. In Nigeria, the financial sector has been at the forefront of the use of digital technology as a point of service, especially as commerce is tied to financial transactions. This becomes even more important as financial products are fast becoming commoditized and customer expectations have in turn become more sophisticated with emerging trends. This experience has evolved in the industry from the traditional methods of physical visits to branches to the introduction of technology-driven methods like query resolution via emails, deployment of call centers for query resolution via telephony, SMS, mobile aps, and other social media platforms.

In the service industry, understanding customer needs is crucial for providing effective solutions. Let us briefly explore three key customer needs that reflect their attitudes, expectations, and desires towards products or services.

Functional needs: What does the product/service/brand do and what are its qualities?

Social needs: How does the use of this product/brand influence the way customers are perceived by others?

Emotional needs: How does this product/service/brand make me feel?

While the Pension Industry as we know it today is relatively new, being birthed only 20 years ago with the enactment of the Pensions Reform Act of 2004, the industry has seen a significant evolution in customer experience and technology integration. Investments in digital technologies have become critical to remain competitive. It is a well-known fact that organizations that provide great customer experience record faster growth, stable retention, and better brand capital. Therefore, to achieve these three key objectives, industry players need to look more closely at how they can use technology and digital capabilities to manage their organization’s service delivery, capitalize on these opportunities, and enhance even further their customers’ experiences.

There is a rapidly growing tribe of digital natives (millennials and Gen Zs, Alphas, and soon-to- come Betas) that form an increasing proportion of the active contributors’ bucket in the pensions industry. Taking Nigeria as an example, its huge youthful population presents an opportunity for

a steady source of pension contributions. These ‘natives’ experience on their devices, relevant insights tailored to them, customized dashboards, and access pertinent tools across sectors leading to elevated expectations. Instant gratification is no longer just a concept but is now a stark reality that demands a carefully curated response from organizations hoping to retain their customers’ loyalty. Expectedly, these ‘natives’ demand similar kinds of experiences, which that have become accustomed with from their pension providers.

In seeking to deliver better experiences to customers, PFAs need to adopt a ‘platform’ approach by offering a myriad of services and capabilities. As mentioned earlier in this write up. traditional pension management has shifted more towards user-friendly digital platforms, offering self-service options, personalized retirement planning tools, and real-time access to account information.

Technology such as AI and machine learning is being used to provide recommendations for retirement savings. Mobile Apps and online portals have become common, allowing customers to manage their pensions conveniently from anywhere. Overall, the focus has been on enhancing accessibility, transparency, and efficiency in managing retirement funds, ultimately improving the customer experience in the pensions industry.

The ‘platform’ approach also allows for the integration of technologies to manage organizational internal capabilities such as core business processes, data, and analytics, whilst constantly improving customer experience. It can provide end-to-end seamless service delivery that meets the demand for customer satisfaction. It offers a means to reduce organizational complexity and embraces a simplified digital operating model that is agile and efficient.

Unlike in traditional models, digital solutions and technology are now at the heart of the business.

Digital technology can help a pension company become more competitive in several ways:

Streamlined Operations: Implementing digital tools and automation can streamline administrative processes, reducing overhead costs and improving efficiency.
Enhanced Customer Experience: Digital platforms can provide self-service options for pension members, such as online account management, retirement planning tools, and personalized advice, leading to higher satisfaction and retention rates.
Data Analytics: Leveraging data analytics can provide insights into customer behavior,

investment trends, and risk management, enabling more informed decision-making and tailored product offerings.

Mobile Accessibility: Offering mobile apps and responsive websites allows customers to access their pension accounts real-time, anytime, anywhere, improving convenience and accessibility.
Personalized Communication: Using digital channels, such as email marketing and social media, enables targeted communication campaigns tailored to specific customer segments,

increasing engagement and loyalty.

Cybersecurity Measures: Implementing robust cybersecurity measures to protect sensitive customer data and prevent fraud enhances trust and confidence in the company’s services.
Innovation and Product Development: Embracing digital innovation allows for the development of new products and services, such as digital investment platforms, robo-advisors, or pension planning apps, catering to evolving customer needs and preferences. It also creates room for integration into the wider financial ecosystem such as banking services, payroll/outsourcing companies, etc.

By effectively leveraging digital technology, a pension company can stay ahead of the competition, improve operational efficiency, and better serve its customers.

It is important to note that these technological capabilities will need to be supported by human resources and the organizational culture of innovation and entrepreneurship to be truly successful in achieving the desired goal. While we may not be able to predict how customer needs will evolve in the next 15 years, but with the right digital strategy, organizations will be able to adapt to the fluidity of customer and market requirements.

Overall, prioritizing customer experience is essential for organizations looking to thrive in today’s competitive business landscape by fostering customer loyalty, driving revenue growth, and building a strong brand reputation. Digital technology is the tool to achieve this worthy goal and infuse more customer confidence in the capabilities of the industry.

. Ophelia Alex-Iwuanyanwu is the Vice President, Customer Experience Access Pensions Limited