Effective rewards programme essential to a future fit practice

By Janice Roberts
Editor

Lizl Budhram

  • Financial services reward programmes should enable customers to exercise responsible financial behaviours
  • Old Mutual Rewards helps advisers create tangible, long-term value
  • Holistic advice underpinned by genuine value-added benefits and services is necessary to retain customers in a post-RDR world

In an increasingly technology-driven environment where the implementation of the Retail Distribution Review (RDR) is now imminent, a holistic approach to financial planning is fast becoming an industry requirement. It is also essential that this approach be underpinned by mechanisms to help customers stay informed and on track to achieve their financial goals and dreams.

To strengthen the adviser value proposition and encourage responsible financial behaviour, Old Mutual has launched its loyalty programme – Old Mutual Rewards.

With over 120 000 South Africans signed up to the programme since its launch, Lizl Budhram, Head of Advice at Old Mutual Personal Finance, believes that a free, accessible rewards programme is key to running a future-fit practice. “In order to expand their value offering and remain competitive, advisers need to shift from a vertical stack of solutions towards an ecosystem of integrated propositions that enable and support financial wellness.

“Rewarding customers for loyalty and responsible financial behaviours is a critical component in this transition. An effective financial services rewards programme helps customers understand their financial needs vs what they have covered, encourages them to stay committed, and demonstrates the value of advice. It also allows for a feedback loop to occur, which will assist in customer retention and promote comprehensive financial plans and solutions.

“Furthermore, because Old Mutual Rewards is open to all South Africans – not only Old Mutual customers – the programme will play an important role in attracting new customers. This creates the opportunity to introduce more South Africans to the financial planning journey, and will be a potential source of business for financial advisers,” she adds.

“Advisers are uniquely positioned – by way of being a trusted coach and partner – to leverage effective rewards programmes and help members stay on track to reach their financial goals. It is therefore essential that advisers integrate rewards seamlessly into their customers’ financial planning journeys.”

Old Mutual Rewards come in the form of points which members can spend at rewards partners, donate or re-invest, she adds. “This is to ensure that customers are able to see consistent value being created, not only through the solutions they have in place but also through a guided journey toward financial well-being.”

Budhram says that the simplicity of the Old Mutual Rewards platform also supports an adviser’s role. “Points are easily earned in a way that gamifies the financial planning process. Members can earn points by furthering their financial education modules on Moneyversity, maintaining monthly premiums or completing financial assessments. With Old Mutual Rewards, customers will quickly recognise the value in good financial behaviour.”

This means that both the practice and the customer are rewarded through the experience. “In a post-RDR world, partnering with customers in a personalised, customised manner, and helping them to understand the role that building good financial behaviour plays in creating their future wealth, will arguably be the most important aspect of financial planning.

“As the only free programme in our industry that provides real, tangible value while helping South Africans reach their financial goals through responsible financial behaviours, Old Mutual Rewards will play a crucial role in the relationship-building between an adviser and customer,” she says.

 

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