KiwiSaver has introduced many people to the investment market who have never been involved before; investments are complicated with many choices of plans and providers along with financial concepts such as compound growth and risk profiles. With long-time horizons, it’s also a low involvement category and AMP faced a churn risk from banks who encourage customers to lump everything into one provider.
KiwiSaver providers are also historically not good at keeping communications simple, or leveraging their data to make better sense of things for their customers. This isn’t helped by complex legacy systems which are indexed by product held instead of customers.
AMP customers felt unloved and were giving a clear message that they needed and wanted more.
So AMP asked customers what they wanted to help them better manage their KiwiSaver, and got told:
- Make communications relevant to me (not generic information for everyone)
- Make it simple to understand (it’s too complex for a long-term outcome)
- Help me make plans for the future
AMP responded with a dynamic, content-driven programme delivering hyper-personalised information in what is believed to be a category first.
Marketing worked in partnership with IT to harness a customer view of legacy data, to extract meaningful mail-files that enabled multiple bits of relevant information to be merged into a totally revamped eDM approach. Analytics formed segments and highlighted product opportunities to be offered in a personalised format.
The customers love it - and it has reduced churn and retained substantial balances against a control group. The result is proof of the programme’s absolute value, with millions of retained investments.