The evolution of customer journey and experience in the pensions industry

By Ophelia Alex-Iwuanyanwu

Buyer journey is the total perception and influence that prospects associate with a brand through their interactions throughout the entire customer lifecycle, from initial awareness to post-purchase support. It encompasses every touchpoint and interaction experienced by a customer, which may include marketing, sales, customer service, and product or service utilization.

Buyer journey is important to organisations due to the, as it is in most cases stated, ‘Concept is The entirety’. Attributable to this reality, it is severe for purchasers to take into narrative an organisation as caring, innovative, and forward-pondering. Moreover, with the introduction of digital applied sciences, customer interactions with organisations enjoy turn into more intimate and like a flash-paced.

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In Nigeria, the financial sector has been at the forefront of adopting digital technology as part of service delivery, especially as commerce is tied to financial transactions. This becomes even more important as financial products are rapidly becoming commoditized and customer expectations have, in turn, become more refined with emerging trends. This evolution has developed in the industry from the traditional methods of physical branch visits to the introduction of technology-driven solutions such as query resolution via email, the deployment of call centres for query resolution via telephony, SMS, mobile apps, and other social media platforms.

In the service sector, understanding customer needs is essential for providing effective solutions. Let us briefly examine three key customer needs that reflect their attitudes, expectations, and desires regarding products and services.

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

Social needs: How does the use of this product or brand affect how customers are perceived by others?

Emotional needs: How does this product, service, or stamp actually make me feel?

While the pension trade as we understand it today is relatively new, having been established just two decades ago with the enactment of the Pensions Reform Act of 2004, the industry has undergone significant evolution in customer experience and technology integration. Investments in digital technologies have become essential to remain competitive. It is a well-established fact that organisations that deliver a superior customer experience achieve faster growth, stronger retention, and greater brand equity. Consequently, to achieve these three key objectives, industry players must examine more closely how they can leverage technology and digital capabilities to enhance their organisation’s service delivery, capitalise on these opportunities, and further improve their customers’ experiences.

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There is a rapidly growing cohort of digital natives (millennials and Gen Zs, Alphas, and soon-to-be Betas) who constitute an increasing share of active contributors in the pensions sector. Taking Nigeria as an example, its large youthful population presents an opportunity for a substantial source of pension contributions. These ‘natives’ expect seamless experiences on their devices, relevant insights tailored to them, customised dashboards, and access to pertinent tools across sectors, which in turn raise their expectations. Instant gratification is no longer merely a preference but is now a stark reality that demands a carefully curated response from organisations seeking to retain their customers’ loyalty. Predictably, these ‘natives’ demand the same kinds of experiences they have become accustomed to from their pension providers.

In seeking to deliver better experiences to customers, PFAs want to adopt a ‘platform’ approach by offering a wide range of products, services, and capabilities. As mentioned earlier in this article, mature pension administration has shifted more toward user-friendly digital platforms, offering self-service options, personalized retirement planning tools, and real-time access to account data.

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 primary focus has been on enhancing accessibility, transparency, and efficiency in managing retirement funds, thereby improving the customer journey in the pensions industry.

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

Unlike in legacy systems, digital solutions and technology are undoubtedly at the heart of the industry. Digital technology can help a pension firm become more competitive in several ways: Streamlined Operations: Implementing digital tools and automation can streamline administrative processes, reduce overhead costs, and improve efficiency.

Enhanced Buyer Journey: Digital platforms can offer self-service options for pension customers, 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 behaviour.

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

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Cell Accessibility: Providing mobile apps and responsive websites enables prospects to access their pension accounts in real time, anytime, anywhere, improving convenience and accessibility.

Personalized Verbal exchange: Utilizing digital channels, similar to electronic mail marketing and social media, permits focused dialog campaigns tailored to explicit customer segments, rising engagement and loyalty.

Cybersecurity Measures: Imposing robust cybersecurity measures to protect sensitive customer data and prevent fraud enhances trust and confidence in the firm’s products and services.

Innovation and Product Development: Embracing digital innovation enables the enhancement of unique 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 products and services, payroll/outsourcing services, and more.

By effectively leveraging digital expertise, a pension firm can outperform competitors, strengthen operational efficiency, and better serve its prospects.

It is essential to note that these technological capabilities must be supported by human resources and an organisational culture of innovation and entrepreneurship to be truly successful in achieving the desired outcome. While we may not be able to predict how customer needs will evolve over the next 15 years, with the right digital strategy, organisations will be able to adapt to the fluidity of customer and market requirements. Overall, prioritising customer experience is crucial for organisations seeking to thrive in today’s competitive business landscape by fostering customer loyalty, driving revenue growth, and building a strong brand reputation. Digital expertise is the tool to achieve this goal and instil greater customer confidence in the capabilities of the business.

Alex-Iwuanyanwu, vice president, Customer Journey Ranking Access Pensions Limited