Consumers receive so much information from so many sources that it is difficult to know what works and what doesn’t, what is absorbed and what isn’t, what is given consideration and what is ignored.
That concern runs throughout the financial provider industry. Individual advisor-to-client communication is expected and anticipated, but the value of communiqués to an entire client base is difficult to assess.
Which is why investors were asked about advisor and provider newsletters in Spectrem’s new study Communicating with Advisors and Providers.
Newsletters that provide worthwhile information are not easy to compile and create. They require some forethought, they require editorial consideration, and they require appropriate distribution. Even with the available content generators that exist (including Spectrem), sending newsletters takes time, and time is cost for advisors and providers.
But newsletters are a way to stay top of mind with clients and are valuable sales and marketing tools. They will not go away any time soon, especially since many newsletters are now distributed electronically.
According to the Spectrem study, 81 percent of investors with a net worth between $100,000 and $25 million have access to electronically delivered newsletters, and 44 percent still get hard copy newsletters. In both cases, that indicates also the percentage of investors who do not get one of those two offerings, and raises the question as to whether there are providers who have decided newsletters are not necessary.
The research shows that newsletters are noted by clients, and many pay close attention to what they offer. Among those who receive electronic newsletters, 28 percent say they read or view the newsletters extensively, and 66 percent read or view some of the information in the newsletters. That is 94 percent of all investors who receive electronic newsletters who pay some level of attention to what is offered in those publications.
A nearly identical level of involvement occurs with hard copy newsletters: 39 percent of clients read those newsletters extensively and 55 percent do so to some extent. That actually shows a higher level of significant involvement with the hard copy newsletter than with the electronic one.
There are other ways to engage clients. Financial blogs and videos are offerings some advisors and providers provide. But the level of engagement with those more modern forms of communication is not close to the involvement clients have with newsletters, according to the Spectrem study.
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