Weekly Executive Update: No! Not A Video!
Videos are becoming a frequent means of communication between vendors and clients. They are also common ways for schools to communicate to parents, candidates to communicate to the electorate, and advisors to communicate with investors. Technology has made it easier to communicate via this medium and therefore it has become a more common methodology to communicate ideas, products and information.
But is it always the best way to communicate, especially with investors? In Spectrem Group's recent research report, Communication Post Pandemic, when investors were recently asked the best method for an advisor to communicate about a new product or service with an investor, videos were preferred by only 5% of investors. There were, however, differences based upon age with 14% of Millennials indicating they were open to learning about new products and services via video.
Note that the most popular method to learn about a new product is via email with attached information, followed by a phone call and then an in-person meeting.
Only 11% of investor indicate they have access to videos from their financial advisor. Of those who do have access to videos, 31% indicate they receive the videos monthly while 30% receive a video on a quarterly basis. It’s interesting to note that 41% of investors who receive videos view them extensively while 45% view it sometimes. The videos are considered excellent by 41% of viewers who have viewed their advisor’s videos and satisfactory by 59%.
It’s important to point out that during the pandemic, 19% of investors indicate that their advisory firm offered a video and 24% of those investors utilized the video. Fifty-nine percent of Millennials watched the videos provided by their advisor during the pandemic. For many, the videos were an important communication tool.
Should advisors use videos? Absolutely yes....but for the right reasons and for the correct audience.
1. A large portion of your investors still prefer written information. Videos should not be a substitute for written information especially if it is complex.
2. Videos should not be long and rambling. Get to the point.
3. Videos are not effective as the only portion of a sales presentation. Combine videos with an email explanation, a phone call or a face-to-face meeting
Videos will continue to be an important communication tool but they cannot be the only communication.