Behavioural insights key to engaging KiwiSaver members

Report outlines methods to encourage members to be more active with investments

Behavioural insights key to engaging KiwiSaver members

A recent report from the Financial Markets Authority (FMA) and ANZ revealed that using consumer behavioural insights to drive communication efforts may encourage KiwiSaver members to make more active choices about their investments.

Behavioural insights are techniques that recognise the factors that impact the decision-making processes of consumers. The report outlined several key methods to engage with KiwiSaver members, including applying behavioural insight techniques to transactional letter and emails to make them more effective; using emails where possible as these make it easier for consumers to act; following up on letters and emails; calling members outside of business hours with a simplified script; and step-by-step guidance through the decision-making process.

“KiwiSaver providers should read and understand the results of the trial and the lessons it offers in crafting communications for members,” said Scott McMurray, acting director of external communications and investor capability at FMA. “Even these simple day-to-day communications can be made more effective if they use the right language and prompts to action, and if they’re sent at a time that makes sense to members.”

“We wanted to find new ways to encourage people in their mid-50s to think about whether they are in the right KiwiSaver fund for their circumstances and whether they are putting enough money aside for their retirement,” said Craig Mulholland, managing director of wealth and private bank at ANZ. “This study has produced some promising results.”

“It is clear that any actions you are encouraging people to take must be small and easy to do. The research indicates that people are more likely to take action if it is not going to be time consuming.”

 

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