Frameworks for testing the effectiveness of your Consumer Understanding programme


The perception that a firm's content is easy to understand may only be shared by those who created and approved that content, which is frequently centred around the legal, compliance, and other financial services professionals. People who understand the topic much more comprehensively than their customers. So, before knowing how effective our content and communication is, we need to get into the shoes of our target audience.

Effective content needs to be understood by your target audience, not just those involved in their creation.

Businesses should get into the habit of testing their content to determine whether their customers understand communications thoroughly enough to act in their best interests and make wise decisions.


Continuous measurement of performance is key to an effective content programme

When working with Personalised Video and other Video Content, we look at metrics such as view through rates (i.e. how much of a video has been watched), click through rates (i.e. what proportion of people have taken action off the back of the video), and wider metrics collected using devices such as post-view surveys.




How to approach testing


Depending on their size, resources, and operations, different firms will have varying capacities. They will therefore approach testing differently. According to the guidelines outlined above, test companies should use testing capabilities of an equivalent standard to test other facets of consumer understanding when they conduct consumer testing of communications to determine an effective strategy to maximise sales. This will help to ensure positive consumer outcomes.


Firms must test communications as necessary in order to comply with the standards governing this result.

Firms should evaluate a number of aspects before deciding if testing is necessary, including: 


  • What is the purpose of the communication, in particular whether it contains important information intended to drive an action or inform a choice, and the relative importance of that decision.

  • The context, timing, and frequency of the communication (for example, it is likely to be more appropriate to test communications that could impact many customers)

  • The scope for harm if the information being conveyed were misunderstood or ignored by customers; the information needs and vulnerabilities of the intended recipients, including whether the recipients are likely to include a sizeable number of people with low financial capability who may be less likely to understand the communication; and whether it is more crucial to communicate information urgently to support positive outcomes rather than carrying out test.


Ideally, testing should be done before sharing the material with clients. For instance, when businesses are thinking about sending out an email campaign or a personalised video campaign, the messaging can be tested on a smaller cohort of customer audiences. However, there may be circumstances in which businesses must respond quickly to incidents and hence weigh factors related to testing - including the elapsed time - with the requirement to act quickly to safeguard customers from harm.


When appropriate, the degree of customer understanding could be directly assessed through the use of multivariate or A/B tests.

A company's testing strategy will be a reflection of its resources and capabilities.

All companies should be able to show they have a strategy that produces positive results. As a result, businesses should be able to prevent harming customers in the future and customers should feel more confidence that they can choose products and services based on their understanding of them and their ability to suit their needs.


Keep testing, keep learning

By applying a test-and-learn approach, businesses are able to learn from the results and modify communications to increase consumer comprehension and encourage positive outcomes by testing important interactions with customers.


Businesses should implement continuous improvement procedures based on solid proof of client comprehension. Firms should be aware of differences in the content of communications, products, and intended receivers and not rely on this strategy because the lessons learned from testing one message may be helpful in guiding the approach to take for future comparable communications.


Businesses should take the necessary action if testing or monitoring of communications reveals widespread misunderstanding or problems that indicate the communications are not producing desirable results. Adapting communications, for instance, to make them simpler for the intended audience to understand.

A company may think about taking additional action, such as changing the sales process or simplifying the product if a communication regarding a complex product is frequently misinterpreted and cannot readily be modified to promote customer understanding.


The following sorts of data could be used by businesses to assess if they are reaching this outcome's expectations:

  • Any results of testing their communications

  • The percentage of customers that respond to communications that elicit action

  • A more thorough examination of whether clients are adhering to

  • communications

  • Analysis of customer journey responses to communications, including feedback and drop-off rates at each stage

  • Product adoption rates.

  • Product substitution indices

  • Study of refused claims and claim rates

  • Specific complaint information


Get in touch with a content specialist for help building an effective personalised video explainer programme: info@kernel.video


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