Transforming Customer Experiences through Intelligent Customer Advisory

The challenge

The pension fund sector is characterised by complex products, heavy IT systems, low involvement from customers and varied customer advisory needs. Velliv, a pension fund in Denmark, was facing challenges in customer service and digital transformation efforts. 

Every year approximately 33% of all Danes need to adjust their pension scheme which require advisory. 70% of Danes prefer that pension advisory takes place through physical meetings. It is not possible to meet all in person as Velliv has 360.000 customers. Velliv needed a way to improve its customer service and increase growth.

In 2018 Velliv’s ownership changed to a new model of customer co-ownership. This brought a change in priorities which evolved from cost focus to personalised customer value. Responsive was brought in to advise on how customer service could be improved with the main focus of utilising digital transformation to increase bottom line growth as well as the customer value.

The solution

Velliv's Intelligent Customer Advisory engine was designed to coordinate advice across a variety of channels, including the Velliv mobile app, email, e-Boks, SMS, Velliv.dk, and in-person at the advisory center. Key elements of this personalised customer advisory included:

• Automated advisory at key points throughout the customer's life
• Each point of contact was deeply rooted in data and connected throughout the organization, providing a cohesive rather than superficial level of communication
• Proactive assessments for all customers to determine if they were saving enough according to Velliv's recommendations, with either a confirmation or recommendation for adjustment
• Similar assessments were being developed for insurance coverage (life insurance, loss of income, etc.)
• All customers received at least one annual pension advice, either through a personal digital recommendation, a phone call, or an invitation to an advisory meeting
• Customers with complex financial needs were proactively invited to advisory meetings with optimised processes for invitations and follow-ups

The results

Velliv made the complex simple, resulting in a significantly improved  customer experience.

1. Customer experience
Velliv implemented the Intelligent Customer Advisory program in order to increase customer satisfaction and improve the effectiveness of their recommendations. This approach has proven successful, with a 6% increase in the key brand KPI "Velliv has interest in taking responsibility for my pension scheme" and a 4% increase in the KPI "It is easy being a customer at Velliv."

2. Customer action in accordance with recommendation
In addition, the program has resulted in a significant increase in the number of customers following Velliv's recommendations. 41% of customers are now taking action based on the company's recommendations, compared to a compliance rate of 23.5% before the program was implemented. This success is due to Velliv's investment in data analytics and marketing automation, which allows them to personalize the customer experience and provide more targeted recommendations.

3. Velliv Business Case
Overall, the Intelligent Customer Advisory program has had a positive impact on Velliv's business. The number of meetings with customers who have a genuine need for advisory services has increased by almost 50%, and the financial transfer per meeting has increased by 89%. These improvements are expected to result in a yearly positive effect of 30 million DKK on Velliv's bottom line, and an increase in earnings of 10%.

Responsive delivered

The solution consisted of key deliverables within strategy, communication and technology.

Strategy

• Customer service strategy
• Senior customer service strategy
• Vendor selection process
• Segmentation model
• Org. implementation strategy

Communication

• Meeting screening tool
• E-mail templates
• Advisor program
• Advisor sales material

Technology

• Advanced archive set-up
• Omnichannel advisory visibility
• Implementation of data lake
• Implementation of Marketing Automation

Quote

Jens Christian Nielsen, Velliv head of communication and chief economist, states: “Focusing our efforts on the experiences that matter and aligning them with our brand and a keen sense of what drives the business has been a key driver of our success. Responsive have been instrumental, helping us in this process, from shaping the strategy through to implementation across concepts, organisational alignment and technical development.”