The importance of Consumer Duty and effects on User Experience
For someone who has worked in the insurance industry, I know the importance of providing clear and transparent financial information to consumers. In recent years, there has been an increasing emphasis on Consumer Duty in various industries, and its impact on user experience cannot be overstated.
Consumer Duty can be defined as the responsibility of businesses to act in the best interests of their customers, with a focus on providing clear, honest, and accessible information. This duty has become increasingly important in recent years, as consumers have become more empowered and expect businesses to be transparent in their dealings.
The impact of Consumer Duty on user experience is significant. By providing clear and transparent information, businesses can build trust with their customers and create a more positive user experience. Conversely, businesses that fail to provide clear information or act in a way that is not in the best interests of their customers risk damaging their reputation and losing business.
In the insurance industry, Consumer Duty has become a key focus in recent years. The Financial Conduct Authority (FCA) has placed an increased emphasis on ensuring that insurers act in the best interests of their customers, with a focus on providing clear and transparent information about products and services.
My experience in the insurance industry has taught me that providing clear information is not only the right thing to do but also makes good business sense. When customers feel that they are being treated fairly and that their interests are being put first, they are more likely to trust the business and remain loyal. On the other hand, when customers feel that they are being misled or that information is being withheld from them, they are more likely to switch to a competitor.
However, this Duty is not limited to the insurance industry. In the travel industry, for example, consumers have become more demanding in terms of the information they require before making a purchase. Travel companies that provide clear and detailed information about their products and services are more likely to build trust with customers and create a positive user experience.
Similarly, in the e-commerce industry, consumers are increasingly concerned about issues such as data privacy and security. Businesses that take a proactive approach to these issues and provide clear information about their data practices are more likely to build trust with customers and create a positive user experience.
Below are some examples of businesses who are already utilising Consumer Dut within their UX experiences:
- Monzo Bank — Monzo is a UK-based digital bank that has built its business around the concept of Consumer Duty. The company is committed to being transparent and ethical in its dealings with customers and providing clear and accessible financial information. Monzo regularly publishes its policies and procedures online, and its user-friendly app makes it easy for customers to manage their finances.
- John Lewis — John Lewis is a UK department store that has a long-standing reputation for providing exceptional customer service. The company has embraced Consumer Duty by providing clear and transparent information about its products and services. John Lewis also offers a price-matching policy, ensuring that customers always get the best deal possible.
- Airbnb — Airbnb is an online platform that connects travellers with hosts who offer accommodations. The company has embraced Consumer Duty by implementing a detailed review system that provides users with valuable information about the quality of accommodations and the experiences of previous guests. Airbnb also provides clear information about its fees and policies, helping to build trust with its users.
Unfortunately, not all businesses have embraced Consumer Duty and this can have a negative impact on user experience. Recently, I had a frustrating experience with a media site where cancelling a subscription was made intentionally difficult. The website provided no clear instructions on how to cancel the subscription, and when I eventually found the information buried deep in the site, I had to navigate through a maze of confusing menus and pop-ups to cancel my subscription and had to phone a call centre in certain hours to do so.
This experience was frustrating and left me feeling like the business was not acting in my best interests. It also highlighted the importance of Consumer Duty and the impact it can have on user experience. Had the media site provided clear and transparent information about cancelling subscriptions, the user experience would have been much more positive.
To take notes from this experience, here are four tasks we as UX Designers can do to help implement Consumer Duty within businesses:
- Conduct user research
Conducting user research is a critical step in implementing Consumer Duty. UX Designers should conduct research to understand the needs and expectations of their users, and to identify any pain points or areas where clarity and transparency are lacking in information about the product and offerings made by the business.
2. Create clear and accessible information
UX Designers should work to create clear and accessible information that is easy for users to understand. This may involve simplifying complex information, using visual aids, or providing detailed explanations of terms and conditions.
3. Test and iterate
UX Designers should regularly test their products and services with users to ensure that they are meeting the needs of customers. This may involve conducting user testing, gathering feedback, and making iterative improvements to the user experience.
4. Advocate for Consumer Duty
UX Designers should advocate for Consumer Duty within their organisations and work to build a culture that prioritises transparency and ethical business practices. This may involve educating colleagues and stakeholders about the importance of Consumer Duty and the impact it can have on user experience and business success.
Therefore as UX designers, we have a critical role to play in implementing Consumer Duty within businesses. By conducting user research, creating clear and accessible information, testing and iterating, and advocating for transparency and ethical business practices, we can help businesses build trust with their users and create a positive user experience that benefits both the user and the business.
