Around 97% of Americans own a cellphone; 85% own a smartphone. The writing on the wall, or should we say the screen, is pretty clear. To be where your customers are, you must adopt mobile technology. For better engagement, you’ve got to give your customers the mobile experience. And the sooner retirement plan providers get on the same page, the better for business.
The average retirement savings rate for older generations (millennials, Gen X and baby boomers) is 12% of income, while for Gen Zers, it is 14%! And guess where your Gen Zers are looking? Right into a mobile screen.
Now that we’ve established that it is imperative for retirement plan providers to use mobile technologies to create convenient, accessible, and personalized ways to nurture retirement plan participant engagement, let’s look at how to do it.
Create dedicated mobile apps so participants can get information about their retirement accounts and real-time updates on account balances, contribution history, investment performance, and so on.
Mobile apps can be used to send push notifications and alerts to participants to remind them of important dates, enrollment periods, etc. These notifications can help keep participants engaged and informed.
Offer educational resources such as videos, articles, and calculators to help participants better understand retirement planning concepts and make informed decisions about their contributions. Retirement calculators can help participants set realistic goals and adjust their plans.
“There are tools like digital adoption platforms, automation tools, and others that people are using to make some of these platforms more intuitive. Companies are also using more human-centered design principles to make the user interface easier and more seamless,” said Ronak Doshi from Everest Group during the Congruent Webinar Series on The Future of Participant Experience Innovation in the US Retirement Industry.
Participants can use mobile apps to enroll in retirement plans, update personal information, and make investment selections. Gamification techniques, such as earning badges or rewards for certain actions like increasing contributions, can motivate participants further.
According to research from Cerulli Associates, 25% of plan participants prefer to receive 401(k) account information via email, up from 9% in 2020. Their research also says 86% found digital savings tools and calculators offered on the provider’s website are very or somewhat helpful. In comparison, 75% said digital content like articles, videos, and webinars posted on the website was very or somewhat helpful, up 20% from 2020.
In a 2019 report, it was found that global online users sent over 41.6 million mobile messages and 2.1 million snaps in one minute, clearly showing digital users’ constant need to share. Mobile apps can leverage this need to share and enable participants to share their retirement goals, achievements, and financial tips on social media platforms. This can foster community and peer support among retirement plan participants.
To understand how to use mobile experiences to improve participant engagement, get in touch with Congruent.