Consumer Duty: A helpful list of management information to consider for consumer understanding

To meet the Consumer Duty in relation to enhancing consumer understanding, it’s important for firms to collect and analyse specific types of management information. This information should focus on how effectively the firm communicates with its customers and how well customers comprehend the products, services, and information provided. Here’s a list of appropriate management information to be collected:

1. Comprehension Metrics:

• Surveys or quizzes to assess customer understanding of products and services.
• Analysis of customer queries to identify common areas of misunderstanding.

2. Communication Effectiveness:

• Engagement rates with informational content (e.g., open rates for emails, click rates for online guides).
• Feedback on the clarity and usefulness of written and verbal communications.

3. Education and Resource Utilisation:

• Usage statistics of educational resources, such as online tutorials, webinars, or informational brochures.
• Feedback on the effectiveness and accessibility of educational materials.

4. Customer Feedback and Surveys:

• Regular customer surveys to gauge the clarity of information provided and the ease of understanding products and services.
• Analysis of customer feedback forms or comments for insights into communication effectiveness.

5. Complaints Analysis:

• Examination of complaints related to misunderstandings or lack of information.
• Trends in complaints that might indicate areas where communication or education is lacking.

6. Website and Digital Platform Analytics:

• Analytics from websites and digital platforms to understand how customers interact with information provided online.
• Heatmaps and user journey analysis to identify if customers are able to find and comprehend important information.

7. Readability Scores of Written Materials:

• Evaluation of the readability of key documents, such as terms and conditions, product descriptions, and disclosure statements.

8. Client Onboarding Experience:

• Assessment of the onboarding process to ensure that it effectively educates customers about what they are purchasing or signing up for.

By systematically collecting and analysing this management information, firms can continuously improve the way they communicate and educate their customers, thereby enhancing consumer understanding in line with the Consumer Duty.

Disclaimer: The information provided herein is solely for informational purposes and represents my own personal views. It should not be construed as legal or regulatory advice. For advice specific to your circumstances, please consult a qualified professional. Additionally, the opinions expressed are my own and do not reflect the views of my employer.