Sometimes, if an action does not work, we just try harder rather than experimenting using science to determine if there might be a better way. A major defined contribution (DC) provider explains how they use a scientific approach to inspire desired action by employees leading to better outcomes.
Overwhelming employees with emails is getting less and less effective especially if those messages are generic. The provider recommends a three-pronged approach:
- Customized messages beyond even age and job type
- Clear and simple recommendations
- Finding techniques that work
The key is measuring the results which includes:
- Better click through rates
- Better open rates
- Action
The provider found a 400% increase in participant behavior from 2014 to 2015. They used A/B testing using different methods for control groups to determine which is more effective. Science.
Messages are personalized by age, salary and even participant actions and status. If not enrolled, the messages are about benefits of joining the plan. Are they deferring up to the match? Did they neglect to name a beneficiary?
Focusing the message on one clear and simple step also proved to be effective.
Syncing the email message with what the participant sees on the home page of the plan’s website is also helpful. Do certain messages do better on sunny days? Using mobile apps, does location matter?
Rather than email messages which, depending on the generation, are rarely read, many plans are using video. Research shows:
- One-third of all online activity is used watching video
- 59% of executives would rather receive video messages
- 90% of users say that video is more helpful to make decisions
- There is a 200-300% increase in click through rates
401kTV is offering plan sponsors the opportunity to create and deliver customized video messages. Find out more at 401kTV Studios and ask your advisor how that might work for your plan.
