Following several years of regulation around the fair treatment of vulnerable customers, it can feel like a bombardment. Compiling reports, evidence and outcomes is quite a facing with cost and time implications. In the depths of compliance, it is easy to lose track of the purpose, so let’s get back to basics with vulnerable customer service.

What is Vulnerable Customer Service All About?

Our team are regularly talking with organisations about vulnerable customer service. As such, we hear concerns about balancing commercial interests and Consumer Duty obligations. In addition, we are often asked how far their company should go to identify and record vulnerable customers, as they are ‘off target’ in terms of FCA data.

We’re also aware that the mission to gain sufficient customer consent, or evidence of outcomes, is distracting firms from the intention. So let’s get back to basics. The fair treatment of vulnerable customers is exactly what it says on the tin. It isn’t ticking boxes or reaching targets, it is ensuring equity, accessibility, inclusivity and support to those who need it most.

Why Do Vulnerable Customers Need Special Treatment?

Until the FCA regulations came into play, too many customers and prospects were not able to access the services they needed. This was because they didn’t fit the fixed standard processes and policies. A lack of flexibility, options and support meant many were denied essentials and were placed in positions of greater harm. So, significant change was necessary.

The FCA regulations encourage companies to broaden their horizons and show a greater understanding of customer needs. Compliance aims to encourage less rigidity and alternative provision when customers are facing tough life challenges. Now, these adaptions aren’t a case of preferential treatment of a few. In most cases, they benefit many customers and potentially colleagues, too.

What’s more, by adopting inclusive provisions, your business attracts more customers and can retain their loyalty. Therefore, there is a commercial incentive to take action.

Revisit & Review Your Support for Vulnerable Customer

As we approach the end of 2024, it’s a good time to step away from the paperwork and consider the people.

Firstly, take stock of the changes that your team have implemented. Most businesses have introduced a range of measures to improve communications and break down barriers. What has your business put in place? It is great to see how far you have come, even if there is still a way to go. Take note of what has gone well. Read the positive feedback from your customers and team.

Secondly, review recent policies and procedures to consider if they are ticking a box or will genuinely benefit customers in vulnerable situations. If you were grieving, struggling to pay bills, in poor health or didn’t comprehend the information, would the support be adequate?

Thirdly, get among the people. Take a shift in a customer-facing role to experience the reality. Are the training, resources and support provided to your team sufficient? Does the need for alternative provision come into play or is every customer able to follow the standard procedure? How well can you support or signpost customers in need?

Where are the Gaps in Provision?

From your experience and team feedback, identify room for improvement. There may be a particular enquiry or disclosure that is currently difficult to resolve. For example, your team might lack confidence in how best to support customers with dementia or a cancer diagnosis. Equally, there might be a procedure that simply isn’t working as it should. This insight can inform the company’s vulnerable customer service goals for 2025.

As specialists in vulnerable customer service, our team provides tailored training, consultancy and resources to plug those gaps. From policy templates to courses, we offer a full range of solutions to suit all budgets and needs.

Contact us to discuss your requirements and how we can assist or join one of our free Q&A sessions to get the answers you need.

Identifying Needs Without Disclosures of Vulnerability

A lot of companies have concerns about identifying vulnerable circumstances and how far their teams need to pry to gather information. This is not in the best interest of customers or colleagues.

The reason to build an understanding of needs is to improve your services in ways that benefit your customers. However, you do not need every customer to divulge personal information to provide inclusive services. Some steps are simply good practice that benefit multiple people.

In addition, the typical customer demographic for particular products can indicate that additional needs are likely. If your customer base is largely retired, does your team understand how to respond appropriately to someone stating they are the Power of Attorney for your customer? Are they aware of the impact of bereavement, or ailments more common in older people? Do they understand the importance of making eye contact and speaking slowly to aid lip reading?

Actions to increase inclusivity, flexibility and support are where you make a difference. As such, many low-cost steps can be implemented that improve accessibility and increase the chances of customers getting the services they need. Going back to basics, this is the core intention of the FCA regulation.