Measuring Outcomes: The Next Step in Achieving Consumer Duty Success
The FCA’s Consumer Duty has shifted the focus in financial services from process-driven compliance to delivering real, measurable outcomes for customers. While internal metrics like Net Promoter Scores (NPS), complaint levels, and retention rates remain valuable, they often fail to tell the whole story.
During TURN’s recent webinar, Charlie Williams, CEO of CXCO, highlighted a crucial gap in current practices. Many firms focus heavily on internal assessments—such as fair value reviews, target market assessments, and customer journey mapping—but overlook the consumer’s perspective.
Why Traditional Metrics Aren’t Enough
Metrics such as low complaint levels, high NPS scores, or high customer retention rates may seem positive on the surface. However, as Charlie explained, these indicators don’t always guarantee that firms are delivering good customer outcomes:
- Low complaints may reflect a lack of clarity about how to raise concerns rather than genuine satisfaction.
- High retention rates may result from barriers to switching providers, not positive experiences.
- Positive satisfaction scores may mask specific pain points that remain unresolved.
The real challenge for firms lies in measuring outcomes in an ongoing, meaningful way that reflects what consumers truly experience.
A Balanced Approach: Combining Qualitative and Quantitative Data
To bridge this gap, CXCO has developed a simple yet effective solution that complements TURN’s Distributor Feedback Template (DFT). By gathering direct feedback from consumers, firms can measure their performance against the four key Consumer Duty outcomes:
- Consumer understanding – Do customers fully understand the products they purchase?
- Consumer support – Are customers receiving the level of support they need?
- Price and value – Do customers believe the products offer fair value for the price?
- Products and services – Are the products suitable for the intended target market?
CXCO’s method uses survey-based feedback, asking customers straightforward questions with simple “yes” or “no” responses. For example: “Do you believe this product meets your needs?” If the answer is no, customers are asked to explain why, allowing firms to gather detailed insights into areas of concern.
Building Continuous Improvement
What sets this approach apart is its focus on continuous monitoring rather than a one-time assessment. By tracking outcomes over time, firms can:
- Identify trends and emerging risks – Pinpoint areas where customer outcomes are falling short.
- Benchmark performance – Compare results against industry standards to understand where improvements are needed.
- Address issues promptly – Use real-time feedback to resolve issues and improve processes.
This approach aligns seamlessly with TURN’s DFT, which standardises the collection and sharing of feedback between distributors and manufacturers. Together, these tools provide a comprehensive view of both qualitative and quantitative data, ensuring firms can measure, monitor, and enhance customer outcomes effectively.
Why This Matters for the Industry
The FCA has made it clear that the days of “once and done” are over. Consumer Duty requires firms to adopt a mindset of continuous improvement. Standardising data flow through tools like the DFT and incorporating direct consumer feedback enables firms to:
- Demonstrate compliance with regulatory expectations.
- Enhance transparency and accountability across the distribution chain.
- Deliver tangible improvements to customer outcomes.
In a world where customer trust is more important than ever, firms that embrace this approach will not only meet regulatory requirements but also position themselves as leaders in the industry.
Consumer Duty is not just about compliance—it’s about creating a better, more transparent financial ecosystem for everyone. TURN and CXCO are here to support firms on this journey, helping them move beyond metrics and toward real, measurable outcomes.
Ready to take your Consumer Duty compliance to the next level? TURN and CXCO provide a comprehensive suite of tools to help you measure, monitor, and enhance customer outcomes. From leveraging the Distributor Feedback Template (DFT) to gathering direct customer insights, our solutions ensure your firm stays ahead of regulatory expectations.
Reach out today to learn how TURN can transform your compliance processes while delivering long-term value for your business. Let’s work together to create a more transparent and customer-focused industry.
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