CREATING FUNDS THAT PROVIDE GROWTH AND MINIMISE RISK

PROTECTED FUND INVESTMENTS

 

THE CHALLENGE:

With an increasingly fragile economy and an ageing working population our client was keen to identify just how appealing certain types of investment products might be to the risk averse consumer approaching retirement. Since investment products are highly regulated much of the interest in new financial products comes directly via intermediaries such as IFAs. In this instance, how appealing might such an offer be and how could the client best approach consumers directly?

OUR APPROACH:

In our qualitative research, which combined both focus groups and immersive interviews, we discovered much about the hidden appeal of the lottery and attitudes towards gaming that was to prove valuable in shaping a more inclusive and effective communications programme for the state.

DRIVING ENGAGEMENT THROUGH EMPATHY, NOT GAMES:

In talking individually to investors we gained a very specific and detailed understanding of how consumers understood and tackled investing. Subsequent cocreative research allowed us to develop ideas for a range of ‘risk averse’ products which were subsequently evaluated via ‘trade-off’ quantitative research. This enabled us to examine the tipping points for specific investment products and where consumers could be ‘nudged’ into action.

PROVIDING SECURITY IN AN UNCERTAIN WORLD:

With consumers living longer, more active lives, it soon became apparent that investors wanted flexible products that better suited their lifestyles today. Moreover, they demonstrated to us that despite the availability of IFAs they wanted products that were uncomplicated and that they could evaluate simply and personally. Guaranteeing a certain standard of living was also important. So whilst high returns were desirable, protecting existing assets was even more so.

POSITIVE OUTCOMES:

Through our co-creative work we helped our client develop a series of ‘Protected Fund’ product ideas that helped balance out the need for reasonable returns with protection of the funds themselves. These products were then tested quantitatively using trade-off techniques to help us
model the best balance of protection versus return against other lifestyle and fund access features.

STATS:

QUALITATIVE:

10 immersive pathway interviews with middle-aged investors and 4 co-creative focus groups to both explore and develop product ideas for protected investment products.

QUANTITATIVE:

72% Agree

n=2,000 online interviews, incorporating ‘trade-off’ analysis, with UK investors aged 55 years+ to assess a range of investment product ideas

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