As competition in the market increases, customer loyalty can no longer be taken for granted. Many companies are encouraging customers to cash in their annuities, and a bidding war has begun.
This could be perceived as a threat, but it also allows and encourages companies to make their service more unique, providing their members with greater, easier insight into their pension plan.
2. Operational efficiency
In order for companies to keep up with the rapid changes now occurring in the life and pensions market, their operation must be streamlined, convenient and low-cost.
Information and insights must be easily available to members, and transaction costs must be kept to a minimum, whether taking on a new member, or providing support to an existing one.
Sometimes, maintaining a relationship with your customer can be difficult, especially if they are using your service via a third party provider.
A pension plan is a long-term engagement, and a continual, stable and close relationship with the customer is essential both to keep their loyalty, and provide them with the best possible service.
A lifelong engagement with your customer.
Engaging with your customer on a close level is empowering for both you and for them, but at the moment, it can be difficult. If your product was sold via a third party, or even if it wasn’t, it can be difficult to communicate in a way that is regular and meaningful to both organisation and member.
By maintaining a connection between you and your customer, you are giving them an environment where they can receive quick, easy self-directed advice about their plan, and, for example, realise the long-term benefits of their annuities rather than cashing them in straight away. When the customer is able to easily view and analyse information about their pension plan in a safe space like a Mydex PDS, the burden of guidance on you as the provider is greatly reduced.
A Mydex Personal Data Store enables a persistent connection with the customer over the course of their lifetime. The empowerment of the individual to use their data to make the best decisions about their pensions makes the policy and the provider become more meaningful to the individual on a daily basis. Not only this, but there is less risk of losing a customer: the intermediary forces in the market no longer distance you from the individual.
Massive operational savings & streamlined digital processes.
The shift to digital systems and online verification of identity and attributes seems a costly overhaul. With the Mydex platform, communicating with one of your customers costs a one-off fee of 60p, and then 15p per year, as opposed to 63p per physical, first class letter. Your operational costs could be reduced by 45-67%, whilst you are safe in the knowledge that your communication got where it needs to be, easily accessible by the individual.
Being connected to your member via their PDS automatically updates data in your own systems, reducing the cost of maintaining data quality and the risk of human error.
Providing your members with verified attributes, ‘digital proof’, is an simple process using a personal data store, and an easy way to give value to your members whilst simultaneously aiding the smooth running of your own operation.
Reduced risk, increased benefits.
There are many challenges in the current life and pensions market: the risk of fraud and pension liberation, losing customers, security breaches. With a hyper-secure and efficient platform like Mydex, any risk of a security breach is minimised using the most up-to-date security measures, and information is handled according to ISO27001 protocol, for which Mydex has company-wide certification.
Risk of fraud is also inherently reduced when using verified identity and proofs of claim in a secure space. Mydex implements this privacy by design, with any exchange of information end-to-end encrypted.