Our findings on the design of digital acquisition journeys and customer outcomes.
We are publishing this work as part of our ongoing commitment to share more information on how firms are embedding the Consumer Duty[3], so firms can learn from the good practice we have seen and areas for improvement.
In recent years, apps and digital platforms have changed customer journeys. This has affected how customers:
- Engage with firms.
- Apply for products.
- Borrow money.
Following our research on digital design and sludge practices[2], we wanted to see how firms acquire customers through digital channels and how they are delivering good customer outcomes, in line with the expectations of the Consumer Duty[4].
We worked with a small number of firms, reviewing their digital acquisition journeys and the design of their apps and websites.
Who this applies to
The findings of this review relate to consumer credit providers only, but there is good and poor practice that might be of interest more broadly to those firms with a digital presence.
What we found
The design of digital platforms can encourage customers in a specific direction and can influence their understanding of products and features.
When used well, the design can really support good consumer outcomes.
But customers can also be driven towards making quick decisions which may not be in their best interests or consistent with our expectations under the Consumer Duty.
We encourage firms to consider how the design of customer journeys can affect customer understanding and their decisions when applying for credit.
Design aspects
Some firms had carefully considered the design of their digital platforms and were proactive in reviewing and updating them.
Good practices
Areas for improvement
Different customer groups
Firms' target markets are likely to include a range of customers with a variety of needs and characteristics. Other circumstances, such as financial literacy, can also impact a customer’s understanding of products and services.
Under the Consumer Duty, we expect firms to understand the needs, characteristics and objectives of customers in the target market, and this should inform the design of the product and customer journeys.
Good practices
Testing and quality assurance
Firms can test their communications where appropriate, including in digital journeys, to check that customers understand them and are supported to make effective decisions and act in their own interests.
Good practices
Management information and oversight
The Consumer Duty requires firms to monitor and regularly review customer outcomes.
Digital journeys produce significant amounts of data on how customers interact across firms’ apps, websites and financial promotions. This can help firms to understand and monitor outcomes.
During our review and engagement with firms, we saw that analytics software can provide firms with data that gives deep insight into the customer journey. This may include identifying steps on a journey with a high dropout rate, such as the point at which customers are asked to enter payment details.
Areas for improvement
Next steps
We will continue to monitor firms' approaches to digital journeys and app design.
We will also consider how the design of digital products and services offers the required level of support and customer understanding when we engage with firms about the Consumer Duty.