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Consumer understanding:
clear communication, fewer complaints

When people understand what they’re agreeing to, they’re happier, more loyal, and less likely to complain.

What consumer understanding really means

Consumer understanding means that people genuinely grasp what they’re signing up for — not just skimming terms or clicking 'agree' out of habit.

It’s about clarity, not compliance. Understanding, not just acceptance.

In regulated sectors like finance, law, healthcare and insurance, this matters even more. But in truth, every industry suffers when people don't fully understand what they're committing to.

Why? Because misunderstandings lead to complaints, disputes, refunds, and reputational damage.

Illustration of a person blindly clicking to sign a contract without reading the content

Consumer understanding is about ensuring your clients:

  • "Know what they’re agreeing to"
  • "Feel confident in their decision"
  • "Can easily recall the key points later"

It’s not enough to just present information. You need to make sure it lands.

The cost of misunderstanding

Most businesses underestimate how expensive confusion can be.

A poorly understood contract or unclear communication can spiral into:

  • Refunds and chargebacks
  • Customer complaints and ombudsman escalations
  • Increased customer service load
  • Legal disputes or regulatory interventions
  • Loss of customer trust and churn

According to research by the UK’s Financial Conduct Authority, poor comprehension of financial products often leads to bad decisions and bad outcomes.

In 2022, the Legal Services Consumer Panel found that nearly 1 in 4 people didn’t fully understand the service they paid for.

Multiply that across your client base, and the cost is enormous.

Worse, misunderstandings often surface after the fact — when emotions are high and trust is gone. Fixing them is far more expensive than preventing them.

Clear communication lowers complaints and disputes

image showing how a misunderstood contracts increase disputes and complaints

Businesses that focus on clarity have an edge. Why? Because when people understand what they’ve agreed to:

  • They ask fewer questions
  • They complain less
  • They’re more loyal
  • They’re more likely to refer others

Think about the last time you felt unsure about what a company told you — were you happy? Confident?

 

Clear communication gives people confidence. And confidence leads to trust.

Clarity improves:

  • Customer retention
  • NPS scores
  • Support team efficiency
  • Legal risk management

In fact, clear language has been shown to reduce call centre traffic by up to 30% in regulated industries, just by lowering confusion.

If your contracts, policies or processes are hard to understand, it’s not just a legal risk — it’s a commercial one.

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Why traditional contracts fail consumers

Most contracts aren’t written for humans. They’re written to tick legal boxes.

The result? People skip them. They scroll past the important stuff. They rely on assumptions.

This creates a gap — between what the business thinks it told the client, and what the client actually took in.

Common issues include:

  • Excessive legal jargon

  • Key terms buried in the fine print

  • Lengthy PDFs sent without explanation

  • No confirmation of what the client actually saw or understood

In regulated sectors, this is now a red flag. Both the FCA and SRA stress the importance of accessible information.

At i agree, we help you bridge this gap — making sure your clients genuinely understand the key points before they proceed.

Our approach: proving understanding, not just capturing agreement

At i agree , we help businesses turn dry documents into clear, understandable, and trackable experiences.

Here’s how we do it:

Short summaries

We take your core content and distil it into key points written in plain English — designed to be read and understood in under a minute.

Voice and video

We generate short explainers in voice or video format, leveraging the production effect (people understand and recall better when information is spoken or visual).

Interaction tracking

We track what the client saw, when, and for how long — creating an audit trail that proves understanding was encouraged.

Layered detail

For clients who want to dive deeper, the full contract is still there — but the essentials are up front.

This goes beyond e-signatures. This is about informed consent, not checkbox consent.

With i agree , you’re not just getting a signature. You’re proving the client had every opportunity to understand what they were agreeing to..

Who needs to care about consumer understanding?

Any business that asks people to agree to something should care. But the stakes are even higher in sectors where confusion leads to complaints, disputes, or regulation.


If your clients ever say “I didn’t realise that’s what I agreed to”, then this page is for you.

High-risk industries include:

  • Legal services
  • Financial products
  • Insurance
  • Healthcare
  • Property and letting agencies
  • Subscription models and SaaS platforms

Better understanding = better business

Clients who understand are easier to work with. They’re happier, more confident, and more likely to recommend you.

You get fewer complaints. Less friction. Fewer escalations.

It’s good for your team, your bottom line, and your reputation.

If you want to stop problems before they start, start with understanding.

an image showing a woman happy when she understands and gives consent

Frequently asked questions

What is consumer understanding?

Consumer understanding means making sure clients or customers fully grasp what they’re agreeing to — including the risks, costs, and implications. It goes beyond just showing terms. It’s about ensuring those terms are actually understood.

Why is consumer understanding important for businesses?

Clear understanding builds trust, reduces complaints, and protects businesses from disputes or legal issues. It also leads to better customer experiences and lower support costs.

What happens when clients don’t understand what they’re agreeing to?

Misunderstandings often lead to complaints, refund requests, legal action, or regulatory scrutiny. In regulated sectors, it can also result in fines or investigations.

How does i agree help improve consumer understanding?

We summarise contracts in plain language, use video or audio to explain key points, and provide tracking so you can prove what the client saw and understood. It’s designed to reduce confusion and increase confidence.

Is this relevant for regulated industries?

Yes. Regulators like the FCA and SRA now expect businesses to ensure clients understand key information. Our platform helps you stay ahead of those expectations.

Does improving understanding reduce complaints?

Yes. When clients know what to expect, they’re far less likely to raise complaints or disputes. It’s a proven way to lower risk and improve satisfaction.

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