Any task is made easier when the result is obvious and apparent. Building a bookcase for your child’s dorm room is less daunting because you can see the bookcase come together as you complete each instruction.
But any job is made more difficult when you cannot tell whether your task is ever going to bear fruit. It’s harder to work toward a goal that you cannot see.
Such is the case with some of the tools of investor communication, namely newsletters, financial videos and blogs. No matter how much effort you put into creating those materials, that effort is a bit of a drag on your productivity because you simply have no idea whether anyone is going to read or watch what you are producing.
But, assuming that material that is read by investors is seen as a positive influence, newsletters are certainly worth the effort. New Spectrem research shows that newsletters are not only acknowledged but are also read by a significant percentage of your clients.
Financial videos and blogs are more of an acquired taste, but research also shows that more investors are acquiring that habit as well.
The value of newsletters is impossible to ignore, once you realize that the material you present in them is consumed. Whether you are providing educational information, promoting a new product or discussing current financial and economic events, newsletters reach a sizable portion of your client base. Unlike videos, perhaps, newsletter articles can provide depth and context to complicated financial issues, or they can provide a new level of understanding on an economic matter that not all clients understand.
Whether you use them for educational purposes, marketing purposes or to keep clients apprised of current events, newsletters reach those members of your client base who care enough to pay attention.
And just how many of your clients are actually taking the time to read your newsletters?
Here is where the Spectrem research is stimulating. According to our new study Communicating with Advisors and Providers, 39 percent of clients who receive newsletters delivered in hard copy form read those newsletters extensively. That means they are reading for detail, they are looking to be informed. They want what you are providing.
For those clients who receive their newsletters electronically, 28 percent are reading them to the same degree, diving in to see what information you have provided and what they can learn.
In both the electronic and hard copy versions, almost all investors say they read at least some of the information provided. Less than 10 percent of investors ignore the newsletters they receive.
This is incredibly informative to advisors and providers who struggle to understand the impact of their newsletters. What this tells you is that if you give greater thought to the information you provide in your newsletters, if you think more in-depth about what information your clients want or can use, those newsletters become even more meaningful to your clients and more beneficial to your firm.
And if you are an advisor working for a provider that does not create or distribute newsletters? Well, you are not alone. According to the study, only 44 percent of investors receive hard copy newsletters while 81 percent get a newsletter dumped in their email in-box.
The point here would seem to be that newsletters are a good method for distributing information that a noticeable portion of your client base is interested in receiving. And if you are not sending out newsletters in one form or another, you are missing out on providing information in a manner that allows for wide distribution.
Newsletters do take time to compile and create, and it is uncertain how to determine their cost-effectiveness. But investors say that communication is one of the most important factors in their advisor relationship, and newsletters do provide communication, on a lot of subjects that your clients might find interesting.
©2019 Spectrem Group