From 31 July 2023, companies will now be required to act to deliver good outcomes for customers. It has four outcome rules and requires that companies ensure:   

• customers receive communications at the right time, that they can understand 
• products and services meet the need of their target customers 
• products and services offer fair value 
• customers are given the support they need. 

As part of the Duty, companies are required to assess and monitor whether they are delivering good outcomes to customers. Additional reporting for the board is also required.  

For brokers, this means it has never been more important to listen to customers and learn from their feedback to ensure that products and services are meeting expectations and demand. Not only can this bring benefits to how you approach your recommendation process, it can also help create business efficiencies that prove beneficial. 

With the cost of living crisis and uncertain economic environment placing significant challenges on consumer finances, there has never been greater pressure on brokers and the wider financial services industry to ensure they meet client expectations. Listening to customers and collecting feedback at every stage of a client’s journey is essential to satisfying these needs as well as meeting regulatory requirements, including Consumer Duty.  

  

Sponsored

The changing role of the Bank of Mum and Dad

Sponsored by Aldermore

The benefits of customer feedback

Customer feedback can provide a valuable insight into the workings of your business, helping you to make efficiencies and improve outcomes where necessary. Without feedback, things will not evolve, so questioning and challenging existing processes will ensure you are delivering the best customer outcomes and enable you to react quickly to any changes needed. 

For example, something as simple as the introduction of an extra step in the application process to help streamline the workload of the admin team may have inadvertently added an extra five minutes onto the process for your customers. Only by seeking customer feedback can you measure the impact of the process and whether it has had a positive or negative effect.   

In all cases, reacting quickly and making changes will stand you in good stead. This may mean recently implemented processes that may have had unintended negative consequences may have to be reversed or reconsidered, while a trial process may have to be made permanent following positive customer feedback.  

It is also important to understand that negative feedback does not have to be viewed as a setback. Instead, brokers should consider all customer reviews, both good and bad, as a guideline for where improvements can be made. After all, your customers represent your target market and their opinion matters. By connecting with your customers and listening to their likes and dislikes and evolving your business to better meet their needs, you can help your business stand out from the crowd.   

  

All feedback is useful

Acknowledging all customer feedback, both good and bad, is also vital. How you respond to consumer feedback is integral to how prospective customers perceive you and your business. This is especially true when responding to criticism, as how you treat your customers can have a significant influence on whether others choose to use your services.  

It’s not just direct feedback that matters either. Responding to reviews on external websites can also help your business by expanding your reach and improving your company’s visibility. These websites can act as a free marketing tool for future business by offering potential customers insight into your services.   

While some brokers may be discouraged from seeking customer feedback in case it is negative or damages their reputation, it is always better to proactively seek out the opinions of your customers and implement changes, to prove you are listening and engaged with your client base.  

Doing so can improve their trust in your business, cement your credibility as a broker and help you to meet the demands of the regulator while delivering a great customer experience and outcome for your clients.