Supporting consumer understanding has been identified as an area for improvement in the latest FCA Findings. Every business has to communicate important information to enable the customer to make informed decisions and take action. However, there is often a mismatch between the information presented and what is comprehended. So, how can that be addressed?

What We Know About Consumer Understanding

The starting point has to be awareness of the barriers that impact consumer understanding. Fortunately, this isn’t dependent on customer disclosures. The latest Organisation for Economic Cooperation & Development (OECD) survey of adult skills reveals the following information.

This means that when serving a representative group of customers, approximately a fifth are unlikely to understand your standard communications. That is a strong reason to review and simplify your messaging.

Inclusive Communications & Regulatory Requirements

Wouldn’t it be great if we could just present information in short sentences, whole numbers and one-step solutions? However, there are two problems with this concept.

Firstly, overly simplified formats don’t help individuals to make informed choices. It doesn’t allow them to explore alternatives, compare the options or gather the full implications of their decisions. Secondly, regulatory requirements determine what has to be shared with customers and this is typically far from clear and concise.

So, how do we strike a balance?

Strike the Balance in Customer Communications

Drawing on my experience in helping my son, Daniel, to understand correspondence and communications, I suggest the following.

Summary

Start with the purpose of the communication and a summary of the key points. Keep this as simple as possible, avoiding all unnecessary information and technical terms. All customers will benefit from an instant grasp of what is contained in the communication.

Details

Then provide further information to outline the details. This might include the breakdown of a bill, a chart to help customers compare several options or the service you can provide. It could include points that the customer should consider. Again, jargon-free, plain English is advised.

Support Information

Next in line is any supporting information. This could include a link to video instructions that guide customers through a process. Or, contact details if they want further assistance. You might also list a few external organisations that provide specific and relevant support.

Technical Information

All of the regulatory requirements and technical data can be provided in a separate section or link. This enables those who want to check all the finer details to do so. However, it doesn’t cloud the understanding of the core information.

Advice on Improving Consumer Understanding

It’s difficult to review your communications internally. That’s because the information is so familiar and seems easy to understand. Equally, if you rely on readability tools, be aware that a good score doesn’t mean that the information is easy to comprehend. Finally, asking customers if they think your communications are easy to understand can be misleading. It’s human nature to say you get it, because it’s embarrassing to admit that you haven’t got a clue.

For these reasons, it is important to partner with external, independent people who will flag potential issues.

For expertise in best practice, I would recommend:

• Plain Numbers – specialists in ‘clever, fair and never misleading’ communications.
• Three Hands – informing inclusive design with feedback from individuals with lived experience.
• The Plain English Checklist provided by The National Adult Literacy Agency.

In addition, I have prepared a Consumer Understanding Guide for Business and will be hosting a Vulnerability Toolkit session on Checking Consumer Understanding on 4 August.

Just remember that you don’t need to identify specific customer vulnerabilities to take action and improve communications. At some point, we’ve all found a letter, a contract or a form overly complex and confusing. So, everyone benefits when communications are clear and simple to follow.