Communications and Engagement
Andy Davies - Independent Member
While Phoenix communications contain relevant information, they would be more engaging to customers if the design and layout was improved. Digital functionality remains limited with low levels of customers registered. There are also a considerable number of customers with out of date contact details.
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Value for money indicator
Why we gave this score
Most communications from Phoenix provide comprehensive and relevant information for customers. Our key concern is the outdated layout and low use of pictures, charts and personalisation to make them more engaging.
Phoenix offers online functionality through its website portal and the MyPhoenix app. These provide some good capability which has been further developed this year. The digital functionality and usage is, however, behind the market, with customer registrations very low.
Overall, due to systems constraints, there have been limited development to their communications this year beyond regulatory changes. We have therefore kept the same ‘adequate’ rating as last year.
- Phoenix’s communications contain all relevant information but their overall ‘readability’ could be improved and they have a very low use of charts, pictures and diagrams making them potentially less engaging to some customers
- Phoenix therefore continues to collect insight from customers through their ‘Customer Feedback’ programme
- Customer Feedback is positive overall with 87% rating ‘good’ or ‘excellent’ following telephone calls
- Have a robust customer testing process ensuring communications are relevant and understood
- We would like to see Phoenix capturing more feedback from customers, particularly in terms of their general and digital communications
- Phoenix offers online functionality and through an App
- Their overall digital capability is fairly low compared to the wider market
- Phoenix’s digital strategy focuses on building new features and broadening access to existing tools
- There are plans to provide some of the best tools from Standard Life (part of the Phoenix Group) digital estate but we do not have firm timescales
- The number registered for digital solutions is growing and has risen from 3% to 5% of customers in 2024 but this is still very low
- Despite systems constraints preventing digital availability to some customer groups, we would still like to see considerably more customers engaged and using the digital services
- About 30% of customers are considered ‘gone away’ where Phoenix do not have up to date contact details
- This is a significantly proportion of customers and higher than we would expect. The IGC has urged Phoenix to improve its tracing programme which has now been agreed so we are hopeful to see results in 2025
- Phoenix currently has personal email addresses for only 17% of their customers which we would like to see increase
- 8% of registered customers have changed their personal details through the digital self-service functionality
Some additional information
Challenges
In order to improve the value for money that customers receive, we set specific challenges to address areas that could be improved. Below is an update on the challenges we set Phoenix for 2024:
- Fully met: We challenged Phoenix to take action to increase online registrations and usage with their current digital capability (ready for further digital development). They have increased registrations during 2024 by almost 30,000 users, ending the year with over 120,000.
- Not met: The IGC challenged Phoenix to update the ‘look and feel’ of key communications to make them more appealing and engaging. However, due to systems constraints there has been limited development beyond regulatory changes.
- Partially met: We wanted to see improvement to the ‘Gone-away ’ process and reconnecting with customers who have moved. We are disappointed to report this still remains high at 30%. Phoenix have, however, established a new tracing solution but results will not be achieved until 2025.
- Partially met: The number of email addresses held for customers need to increase. While moving in a positive direction with a marginal increase from 15% to 17% this remains an important area of focus.
Challenges set for 2025:
- Improve the ‘look and feel’ and modernise key communications to make them more engaging to customers
- Urgent attention to reduce gone-aways and increase the number of email addresses held