How you can encourage employees to save more

It is well documented that in the pensions industry we face a struggle to get employees to put enough money into their funds. In an increasingly defined contribution world this is an important challenge for us to take on if we are to help members to plan adequately for their later years.  

A well-defined pension communications strategy will give you a yardstick against which to measure your success down the line

The good news is there are a number of ways you can ensure you maximise the effectiveness of your communications and, importantly, the return on your communications investment.

Have a defined strategy

At the outset it is important to have a well-defined pension communications strategy in place. Setting out your aims for the next few years will help you focus on a defined set of targets and you can then decide what tools you will use to achieve them.

Importantly, this will also give you a yardstick against which to measure your success down the line.

Use the power of data

The data you hold on your members is vital in helping develop your communications strategy. It enables you to work out where you are, so you can work out where you want to go, and down the line you can measure how successful your strategy was.

For example, you may identify that 12 per cent of employees currently opt out of the scheme, and aim to reduce this to 8 per cent in two years, targeting your communications accordingly.

By reviewing the member data afresh two years later, you can easily measure how successful this has been and adjust your strategy accordingly.

Some basic analysis can also help identify specific audiences that might be in need of targeting to promote a particular action, for example those on a legacy contribution rate that is not making the most of double-matching opportunities.

Segment your audience

As humans, we are not all alike, our needs are different and generally we want to feel that information is relevant for us to engage with it. This is no different in the world of pensions, therefore segmentation is important.

Analysis of member data will help you to carve your audience up into smaller groups. Your messaging and campaigns can be more targeted, with member-specific messaging, which is more likely to be engaging and to drive subsequent action.

You can segment your audience in many ways – from the obvious, such as age and location, to scheme-specific segments, such as those members paying a particular contribution rate, or exhibiting a particular behaviour.

Personalise your communications

If communications are personally addressed and use the member's name and personal details they are much more likely to engage than if they are generically addressed ‘Dear member’. Personalisation of communications is easier and cheaper than ever before, and it makes a real difference to the success of your communications.

Communicate in a medium your audience is used to

In this day and age, more people consume content on devices in their pockets than on desktop computers. Therefore, designing online material to be ‘mobile first’ is something to think about.

However, it is also important to recognise that we all like learning and consuming information in different ways. Some of us like to sit down with a cup of coffee and read an article, others would rather watch a video or play with a modelling tool or computer game to learn. Think about the demographic you are trying to reach and their particular needs and communicate accordingly.

Don't just do it once

As the saying goes, ‘A communications strategy is for life, not just for Christmas’. Regularly reviewing your aims and evaluating success will ensure you keep abreast of changing audience preferences and behavioural changes, keeping your scheme, and your members, on track for a brighter future.

Karen Bolan is head of engagement at communications consultancy AHC