Customer retention is a growing challenge for Life and Pension providers

It’s difficult to provide the best customer experience if you can’t get in touch with your lost customers.

With 11% of the UK population moving house every year and an average of 2% to 5% of all mail returned to sender*, this is a growing challenge for life insurance and pension providers. Also, some customers pass away, leaving unclaimed funds that need to be delivered to their next of kin.

The benefits of being in touch with every customer

The ability to reunite loyal customers and their families with funds owed to them is a positive outcome which creates brand affinity. Organisations that do it right can create and receive significant brand value in the eyes of the customer.

Life insurance and pension providers who fall short on this requirement could be disciplined by the FCA with the risk of financial penalties and damage to brand and reputation.

Overcoming current challenges

In the quest to find and contact customers, manual customer tracking and tracing processes are creating a challenge for many organisations. The current manual approaches to finding typically thousands of lost customers can be slow, time-consuming and expensive.

As an additional challenge, many life insurance and pension providers need more data and insight to identify and reconnect with their lost customers effectively. If limited information is available about customers, organisations can’t be sure that they are reaching the right customer at the right address.

Accurate, relevant data is required to validate a customer’s latest available contact details, to ensure that communications always reach their intended recipients.

*Research conducted by Office of National Statistics