New research from Huntswood, a ResultsCX company, reveals companies must do more to identify their vulnerable customers and support them. ResultsCX provides Customer Experience Management (CXM) services to leading global companies including several Fortune 100 and FTSE 250 firms.
The industry-wide study found just three in 10 (29%) vulnerable customers said the organisations they deal with knew of their vulnerable circumstances, while 42% said their firm was unaware of their need for support, and a further 29% said they were unsure if the firm was aware or not of their situation.
The study from Huntswood, a leading UK-based consulting and customer solutions company working across a wide range of sectors found that 51% of adults are classified as vulnerable, compared to 44% in 2023. The rise is largely due to a near-doubling in cases of mental health conditions amongst consumers, and the fact that a greater number of those surveyed also said they felt financially stressed in 2024 (16.7%), an increase from 14.1% in 2023.
The survey found a worrying number of individuals are still unaware they are vulnerable (67% in 2023, falling to 53% in 2024).
The FCA defines vulnerability as “a customer who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care”. The regulator has made it clear that all customers are at risk of becoming vulnerable, and that firms should consider vulnerability on a spectrum, related to four key drivers – health, life events, resilience and capability.
The customer experience outcome for firms not providing vulnerable customers with the support they need is significant. The research found that vulnerable customers whose provider was aware of their vulnerability but whose needs went unacknowledged resulted in more than four in five (82%) saying they were left feeling unsatisfied. This contrasts with just 18% of dissatisfied customers whose firm knew about their vulnerability and had acknowledged it in their dealings with the client.
The lack of empathy felt by customers whose firm did not acknowledge and support their vulnerability resulted in those clients reporting negative emotions such as anger, sadness and disgust towards their provider. Conversely those at-risk clients who felt their circumstances were acknowledged and supported were more likely to express positive emotions such as trust, joy, and even surprise.
When comparing the progress firms are making in terms of how they treat their vulnerable customers compared with 12 months ago, the study shows some improvement. The report reveals there has been a positive shift in at-risk customers’ views on whether their financial services provider was doing enough to help them given their challenging circumstances, which was up 12 percentage points from 28% in 2023 to 40% in 2024.
Martin Dodd, CEO of Huntswood, commented: “Customer vulnerability is not a niche issue – it’s a widespread and evolving challenge. Firms must be able to identify their clients’ vulnerability with precision, empathy and speed. Vulnerability identification doesn’t necessarily require getting new information. Technology can and should play a critical role in achieving this. But data alone isn’t enough, it must be paired with good quality front-line staff training.”
Siddharth Parashar, Managing Director, UK & Europe, ResultsCX said: “The FCA’s recent review on the treatment of vulnerable customers further raises the stakes for firms – with its proposed amendment to DISP that could expand eligibility for complaints made by individuals in indirect relationships, such as beneficiaries of pension schemes.
“It is therefore essential that service providers leverage technology not only to identify customers in vulnerable circumstances but also use it to inform how they deliver respectful and empathetic support at the frontline.”
If you want to discuss how you can identify, manage and offer the right support to vulnerable customers, reach out to Huntswood’s experts via this link.