Communication CX: Insights and Implications Annual study provides insights and pathways toward more profitable, engaging interactions

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Customer experience (CX) can drive higher retention, share of wallet, satisfaction and

profitability. The everyday communications you share are integral to the CX you deliver.

Based on findings from annual research commissioned by Broadridge, this report captures

how your customers feel about the communications they receive. It reflects on how perceptions

are evolving and offers suggestions for meeting challenges and surpassing expectations.

Incorporate these insights and strategies into your plans now—and transform your

communication CX into more profitable, productive interactions.

TABLE OF CONTENTS

Communications matter 3

Make a good impression 5

Start with digital 7

Optimize paper 9

Bridge print and digital 10

Treat data with care 12

Prepare for what’s next 13

Executive summary

AS A PROSPECT AFTER THE FIRST FEW INTERACTIONS OVER TIME

Banking Healthcare Banking Loans Loans Healthcare Investments Banking Investments

Utilities Telecoms Telecoms Health Insurance Health Insurance Health Insurance Insurance Insurance Insurance

CX and communications are linked in critical ways Service is important. But customers mostly rate your CX based on your communications—a fact that holds true

across age, gender, income level and education.

TOP 5 ATTRIBUTES OF COMPANIES THAT DELIVER EXEMPLARY CX

Five-star ratings for CX vary by industry. Financial Services and Healthcare providers more often receive five stars.

Allows me to select how I want to receive communications41%

Sends me notifications when there’s something important 42%

Communicates clearly46%

Easy to navigate my account online48%

Great customer service52%

SERVICE

COMMUNICATIONS

INDUSTRY LEADERS AND LAGGARDS

LEADERS

LAGGARDS

The following industries were included: Banking, Credit Cards, General Insurance, Health Insurance, Healthcare, Investments, Loans, Retirement Funds, Telecoms and Utilities.

COMMUNICATIONS MATTER

For many providers, there’s room for improvement. Most customers don’t give their providers five stars. However, there’s an increase in five-star ratings as customers move along their journey.

STRIVING FOR FIVE-STAR CX ALONG THE CUSTOMER JOURNEY

* Based on consumers’ perceptions of their most recent provider.

Percentage of customers awarding five stars*

25%As a prospect

39%Over time

34%After the first few

interactions

Five-star CX ratings along the customer journey*

H H H H H

H H H H H

H H H H H

H H H H H

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START BY LOOKING ACROSS YOUR DOCUMENTS Identify inconsistencies in look and feel, formatting, logos, language, and more.

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ARE YOUR DOCUMENTS THE ONLY PROBLEM?Technology and process hurdles can keep you from optimizing your communication CX. Consider how well you can handle versioning, personalization and customization. Look for ways to consolidate onto fewer platforms and technologies, reducing redundancies and streamlining workflows. From there, document an optimal future state and build a roadmap for incremental improvement toward that goal.

It’s time to take stock

A proactive audit of your communications

can help you recognize opportunities and

prioritize improvements.

COMMUNICATIONS MATTER

BROADRIDGE INSIGHT

1 OVERLAY FEEDBACK AND SUGGESTIONS from your customers and stakeholders on how you can enhance communication performance and CX.

3

FOCUS ON KEY COMMUNICATIONS that offer the greatest chance for improvement and impact, such as monthly statements.

2 PRIORITIZE NEXT STEPS to accelerate enhanced engagement.

4

>>> Getting started

Pick a document that feels “left behind,” one you can update fast without too many rounds of edits and red tape. Focus improvements on two key factors: A faster read and a more engaging look and feel. Then, test and learn.

>>>

Make a great first impressionFrom the moment you appear on a prospect’s radar, you’re being judged on the experiences you provide. Communication CX

can make or break a new customer relationship, impacting the strength and profitability of that relationship over time.

MAKE A GOOD IMPRESSION

ENROLLMENT: MOST IMPORTANT CX ATTRIBUTES

Onboarding is a crucial step in the customer journey — and clear communications top the list of CX must-haves.

Loans

58%

All products

49%

Healthcare

58%

All products

45%

The “most important” enrollment attribute rankings were consistent across industries, with a few exceptions.

FEWEST ENROLLMENT STEPSwas more critical for loan products

HUMAN INTERACTIONwas highest for healthcare accounts.

45%

37%

Clear communications

49%

49%

Helpful information to get me started

Fewest enrollment steps

Human interaction

Transparency around data usage

63%

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>>>

What it means to be clear

Consumers want information that’s quick to

read, easy to understand and focused on the

things that matter. “Clarity” is a combination

of these ingredients, calibrated for each

communication.

MAKE A GOOD IMPRESSION

BROADRIDGE INSIGHT

>>> It pays to be clear

72% of customers call customer service when they have a question about a bill or statement, at significant cost to the provider.

Broadridge has helped organizations achieve greater clarity in various ways.

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A global bank redesigned their investment proposals, adding easy-to-understand charts and graphs.

A consumer finance company upgraded their email design, increasing open rates by 65 percent and click-thru rates by more than 90 percent.

A broker focused on plain-language strategies, simplifying word choice and sentence structure for easier reading. In doing so, they reduced their Flesch-Kincaid Grade Level reading score by an average of three grades.

A retirement services company introduced a summary statement, providing investors with a snapshot of all their accounts and interactions.

A credit card provider redesigned and simplified a credit card statement framework, enhancing their overall CX. The new statements reduced call volume, lowered costs and improved satisfaction while cutting the number of custom-programmed statements by a factor of 10.

40% asked at signup

19% asked during their first

month with the company

11% asked after their first month

29% weren’t asked

71% of consumers were asked

to go paperless

Only

*As experienced with their most recent new provider.† The following industries were included: Banking, Credit Cards, General Insurance, Health Insurance, Healthcare, Investments, Loans, Retirement Funds, Telecoms and Utilities.

Who is leading the race to digital?

Banking leads in digitally distributing bills and statements, while Healthcare has been slowest to transition.

Digital Both Physical

BANKING

18%45% 37%

HEALTHCARE

Digital Both Physical

38%23% 38%

Who’s asking—and who’s not?

Health Insurance and Healthcare providers trail other industries in asking consumers to go paperless.

HEALTHCARE 58%

HEALTH INSURANCE 62%

CROSS-INDUSTRY AVG† 71%

Drive to digital from the start Many consumers prefer digital communications. In fact, 6 of 10 agree to go paperless with their newest providers.

You can save on postage and paper costs by capitalizing on customer preferences. But first, you need to ask.

START WITH DIGITAL

Paperless adoption rates could be higher if more consumers were asked—and asked before they establish a paper-based connection with their new providers. Only 71 percent of consumers report being asked to go paperless, and only 40 percent were asked to do so at signup (the balance were asked later).*

Missed opportunities

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Paperless post-enrollment

Entice customers to go paperless by focusing on the things that matter most.

Base: Switched to digital after enrollment (N = 1,716)

TOP REASONS CUSTOMERS SWITCH TO DIGITAL AFTER ENROLLMENT

23%

Digital-only experience has improved

30% Digital bills and documents are safer

20%

My provider reminded me to go paperless

27%

Environmental concerns

36%

Get too much physical mail

Paperless default?

Some companies today default to digital delivery, making customers opt-in (and sometimes pay) for paper bills and statements. Put your digital

foot forward

Asking is only part of a successful drive

to digital. You also must be equipped to

execute. Preference management solutions

can connect customer information across

disparate, siloed systems and help to

optimize CX across channels.

Use preference management solutions to empower customers to:

UTILIZE any print and digital options (e.g., web, text, email, mail)

SELECT their own optimal mix of paper or paperless by document type

MOVE seamlessly between physical and digital channels

CONTROL the use of their data throughout their journey

BROADRIDGE INSIGHT>>>

START WITH DIGITAL

MANY CUSTOMERS ARE ON BOARD

believe providers should automatically default to paperless delivery at account opening

42%

Focus improvements to your physical communications on the things that matter most

BROADRIDGE INSIGHT>>>

MANY CONSUMERS STILL WANT HARD COPIES

expect print communications to remain vital or important in 5 years51%

TOP REASONS CUSTOMERS WANT PRINT

Physical record

prefer to receive communications by mail 45%

EVEN MORE REPORT THAT PHYSICAL COMMUNICATIONS COULD DELIVER A BETTER CX

see room for improvement in their physical bills and statements 69%AND SOME CONSUMERS DON’T EVEN WANT TO HEAR ABOUT GOING PAPERLESS

agree CX would be better if their providers stopped asking them to go paperless28%

Ignore print at your own peril There’s a risk in focusing exclusively on digital, despite its momentum. Many

consumers still prefer physical delivery for at least some of their communications—

and will value them for years to come.

OPTIMIZE PAPER

59%Reminder to review statements and pay bills50%Way to review documents when and where convenient50%

Base: See printed communications as vital or important (N=2,017)

Base: Receive any bills and statements by physical mail (N=2,592)

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56%

“ I would go paperless if my providers just sent me a postcard reminder about my statements and bills.”

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Gen X (39-54) 43%

Millennials (25-38) 54%

Boomers (55-73) 19%

“ I want my providers to use QR codes more frequently so I can quickly access my printed communications digitally on my phone.”

Print and digital: Better together Print and digital aren’t opposing channels. Consider your communications holistically, then strategize on the impact to each

channel. For example, you may be able to leverage print to help consumers overcome objections to digital—while using digital to

reduce the volume of mail that paper lovers would otherwise receive.

BRIDGE PRINT AND DIGITAL

POSTCARDS COST LESS TO PRINT AND MAIL AND CAN SERVE AS VALUABLE REMINDERS FOR CONSUMERS

QR CODES ARE MOST POPULAR WITH YOUNGER CONSUMERS—AND THOSE THAT USE THEM OFTEN WISH THEY COULD USE THEM MORE

Strike a balance

Consider how you can improve both your

physical and digital communications.

BRIDGE PRINT AND DIGITAL

BROADRIDGE INSIGHT>>>

Print Consumers would like to see printed bills and statements include information summaries, cleaner layouts and clearer content.

Digital Consumers want the same improvements to their digital documents. Be sure to optimize design for each digital channel you’re using.

Look for opportunities to simplifyYour company may have hundreds, if not thousands, of different document templates. Look for ways to eliminate minor variations, streamlining production without sacrificing CX and personalization.

Sending shorter, summary statements can cut paper and postage costs, providing your mail-loving customers with the information they value most.

>>> As part of your communications review:

Imagine a more efficient use of paper Send a postcard reminder to take action rather than the full statement. Include a QR code so the customer can easily view the full statement on their phone. When customers opt-in to this new format, your paper costs will decrease while keeping paper-loving customers satisfied.

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WHAT DATA DO YOU NEED?

Ways to contact• Email • Mailing address • Mobile phone number

Engagement preferences• Mail • Email • Text • Web • Push notification

Digital opt-ins• Paperless communications• Summary statements• Autopay • Reminders and alerts

Support regulations that make it easier for them to control the personal data they share with companies

84%

45% Would be willing to share personal data if it enhanced the CX a company could provide them

Define your terms— and handle with care

BROADRIDGE INSIGHT>>>

Strike the right data balanceConsumers support legislation that helps them protect

and control their data. Regulations, such as the

California Consumer Privacy Act (CCPA), provide strict

guidelines for usage and handling of their information.

TREAT DATA WITH CARE

“ Personal data” can mean many things—from shopping behavior to social security numbers.

Be clear about the data you need, how you’ll use that data to improve the customer’s experience and how you’ll manage it over time.

Example: Instead of simply asking for a phone number, indicate that you want consent to send account reminders and alerts to their mobile number.

Sometimes you can gather all you need from the onset of the relationship. Other times, it’s most effective to start with less, then ask for additional pieces of information along the way.

Be thoughtful in how you use the data you receive, considering how it figures into your overall CX.

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of investors want more frequent, personalized summaries of performance, activities and recommendations59%

SUMMARY STATEMENTS

of consumers would like document delivery direct to their personal cloud services

40%50%+of consumers want to be able to manage bills by text

Here are some innovations consumers want now Emerging technologies, such as Conversational AI, are propelling communications to the next level.

As you prepare for new advances, there are several communication CX enhancements you can make today.

PREPARE FOR WHAT’S NEXT

TEXT MESSAGES CLOUD STORAGE

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>>>

Partner with a proven leader

Turn to Broadridge for more insight into

what matters to your customers—and the

solutions to deliver superior communication

CX. Broadridge helps its clients deliver

six billion data-driven, customer-centric

communications annually. From proven

technology and workflows to support for

cutting-edge omnichannel communication

innovations, we’ll help you execute with

total confidence.

PREPARE FOR WHAT’S NEXT

BROADRIDGE INSIGHT

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>>> Contact Broadridge today

broadridge.com/CXTrends2020 +1 (844) 889-4040

ABOUT THIS STUDYBroadridge commissioned Engine to conduct this CARAVAN Omnibus Survey. The 45-question survey was administered between November 6-13, 2019, to 3,006 U.S. and Canadian residents aged 25 and older. The U.S. data was weighted to age, gender, region, race and education. The Canadian data was weighted to age, gender and region. The figures are statistically significant at the 95 percent confidence level with a margin of error of ±2 percentage points.

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This study is for informational purposes only and does not, and is not intended to, constitute investment, legal or any other advice of any kind.