How can you best help your vulnerable consumers?

As the COVID-19 pandemic has demonstrated, we can all become vulnerable at any time. Ill health, financial hardship, mental health problems or life events such as relationship breakdown can impact anyone, at any time. As consumers, that vulnerability makes it so much harder to make smart, informed choices.

A new international standard BS ISO 22458:2022  has been developed to supercede BS 18477 Inclusive Service Provision. This gives guidance on how to provide an inclusive service at all stages of service delivery, helping organizations to identify and support consumers in vulnerable situations and minimize the risk of consumer harm.

What is consumer vulnerability?

There are some categories of consumer who are understandably more likely to be vulnerable. For example, elderly people, those with learning difficulties and people with physical disabilities. However, any one of us could become vulnerable due to a change in personal circumstances.

Losing a job, bereavement, developing a medical condition, dealing with addiction or struggling with literacy and numeracy. There are many reasons why someone might become temporarily or permanently susceptible to financial problems, or less able to make informed decisions.

Without asking for help, the situation can worsen.

People in a vulnerable position often find it hard to admit their difficulties and ask for help. As a result, bills go unpaid or the consumer might try to ration use of essentials to reduce costs. They might take out a loan to help, which can cause debt to build up and reduce their credit rating. Consumers might also find it hard to decide which services or products are suitable for them, entering inappropriate contracts or transactions as a result.

Consumers need protection when their vulnerability leads to detriment, which will be different for every person. For example, one person’s experience of mental health problems might have no impact on their ability to manage financially, whereas another person might struggle. Equally, an organization’s processes can result in detriment that could have been avoided.

The pandemic has increased vulnerability within the population, turning many people into vulnerable consumers.
1. Financial hardship
In early 2021, the UK unemployment rate rose above 5% for the first time since 2016 and almost four million workers are on furlough. The hardest hit sectors include hospitality and retail, in which many jobs were already insecure and poorly paid.
2. Mental health
UK depression rates are estimated to have doubled since the pandemic began, with a disproportionate impact on young people, women, disabled people and those living in deprived areas. One in five adults (19.2%) experienced some form of depression.
3. Bereavement
More than 130,000 people in the UK have died from COVID-19, often in very difficult circumstances without hospital visits or a full funeral. Bereaved people may face challenging emotional and financial circumstances as a result.
4. Physical health
Approximately 1.1 million people are living with long COVID symptoms such as fatigue, muscle pain and difficulty concentrating. Those aged 35-69 years, women, those in deprived areas and people in health or social care professions are the worst impacted. COVID also impacted other areas of health care: between April 2020 and May 2021, there were 3.63 million fewer elective procedures and 23.67 million fewer outpatient attendances.
5. Digital exclusion
Digital technology has been used to facilitate contactless provision of goods and services in the pandemic. But access to technology can be restricted by not having a device or connection, lacking skills or another condition such as a disability. This results in digital exclusion. Age, region, socioeconomic status and having a disability all increase the risk of being on the wrong side of the digital divide. For example, 76% of UK adults use online banking, but this figure falls to 49% of those aged 65+.
6. Domestic violence
Repeated lockdowns left many people impacted by domestic violence trapped inside, unable to escape their abusers. Official figures show there was a 12% increase in domestic abuse cases being referred to victim support and between April and June 2020, calls to the National Domestic Abuse Helpline rose 65%.

The development of BS ISO 22458:2022

The new global ISO standard is based on BS 18477, which was first published in 2010. In the time since its initial publication, the concept of consumer vulnerability has evolved. For example, where energy companies may once have helped customers through hardship funds, they might now also work on prevention by identifying customers who need help before arrears build up.

Global reach to minimise harm

Countries around the world have very different approaches to consumer protection and equality regulation. In many countries, especially in the developing world, vulnerability is not a concept that is incorporated into legislation. BS ISO 22458:2022 represents a valuable way to increase global awareness of vulnerability and minimise harm to people in difficult circumstances.

The new standard also contributes to UN Sustainable Development Goal 10: Reduced Inequalities. This relates to a quality and compliance system to ensure proper functioning of a market, including key areas of public welfare.

What can you do to help vulnerable consumers?
BS ISO 22458:2022 is built around the principle that the needs of vulnerable customers should be considered at every stage of a customer journey. Using a framework enables organizations to train staff to understand and recognize vulnerability, as well as developing processes that help with the problem. It’s an approach adopted by a number of regulators too.

Typical improvements might include developing staff communication skills so they can encourage customers to disclose problems. Using translation apps can help customers with English as a second language. Finally, concise language in your communications can help those with literacy or cognitive problems.

Many organizations have concerns about data handling and whether consumer vulnerability measures are compatible with regulatory requirements. However, these challenges can be overcome by developing robust procedures to ensure that stored data is secure, proportionate and relevant. Information should only be shared where this is needed to meet consumer needs.

The benefits for your organization
Organizations that serve their vulnerable customers may also find that improvements benefit the entire customer base. Ways that organizations can benefit include:
1. Increased staff morale
Workers who are skilled and empowered to help people can experience greater job satisfaction, loyalty and engagement.
2. Improved customer satisfaction
Customers respond well to organizations that respect them and treat them as full individuals.
3. Increased customer base
Excluding vulnerable customers can vastly reduce the potential market for an organization’s goods or services. It makes business sense to treat people well.
4. Reduced complaints
Treating people well reduces the time and money spent on handling complaints, because you are more likely to get things right, first time.
5. Improved reputation
Treating customers well will help to improve ratings and reputation, as well as reducing the likelihood of damaging publicity if a customer is treated poorly.

The role of CPIN

Talking to BSI in a recent consumer vulnerability podcast on the occasion of the 70th anniversary of the Consumer and Public Trust Network (CPIN), its Chair Julie Hunter, Chair explained how the standard will benefit organizations.

“If businesses use this standard, it’s going to really help improve the quality of their interactions with their customers; it’s going to hopefully help them reduce the likelihood of problems and complaints – because they’re going to get things right first time – and it’s going to help enhance their reputation because their doing the right thing.”

Another person involved in the development of the new ISO standard was Julie Walker, Social Obligations and Vulnerability Services Delivery Manager for Scottish and Southern Electricity Networks. “It was a real eye opener listening to all the other people that are part of that working group from across the globe. I think we get stuck in what happens in the UK and our legislation and our own challenges, and it really opens your eyes hearing what other countries’ challenges are. It really has given me more knowledge of vulnerability in lots of different areas. And the company are really proud that we’re a part of that, that we’re seen as being an expert in that group, and we can take that out and engage with others across the industry.”

Is your business doing all it can to help vulnerable consumers?

Current standards on consumer vulnerability include:

BS ISO 22458:2022 - Consumer Vulnerability
BS 18477 - Inclusive Service Provision  (Withdrawn)
BS 8878 - Website Accessibility

Listen to the full podcast here.