Study from customer communications expert shows investor statements not being fully utilised as tool for building client loyalty and growing business
April 2010
More than half of investment management companies are failing to take full advantage of marketing opportunities with their customer communications, new research from direct marketing specialist GI Direct shows.
The GI Direct study found that 58% of investment management companies are not making the most of investor statements and need to do a better job of using them as a tool to engage clients and target them with tailored information packages that include details on other products as well as the funds they already invest in.
While 42% of the companies studied in the report consider the investor statement as a valuable communication tool, 50% consider it only somewhat useful and 8% see it simply as a regulatory mailing sent out to comply with FSA regulations.
Different investors have different values for a business and the research looked at how this affected the way investment management firms are communicating with various categories of investor, particularly when it comes to personalising the statement.
The survey found that only 25% of firms are sending personalised communications to all of their clients, even though 79% say they have the capability to do so and 63% believe that personalising and tailoring communications would build loyalty or improve satisfaction with their investors. Conversely 13% saw no benefit at all in doing so.
Patrick Headley, Sales Director, GI Direct comments: “Evidently some investment management companies have already realised the potential of investor statements to communicate with their investors on a personal level and provide them with information specific to their needs. This gives these firms a clear advantage over their competitors who, by not tailoring their investor communications, are throwing away the opportunity to strengthen client relationships and build customer loyalty.
“Print communications technology now makes it possible for investment firms to tailor the information they send out to each client at the touch of a button and the benefits are evident. Investment management companies can provide personalised and easy-to-understand information on fund performance as well as eye-catching marketing communications that can encourage investors to take interest in additional products or services.
“Nevertheless, a significant proportion of firms are not yet maximising the communication opportunities afforded by investor statements and there are yet others who refuse to see the benefits of tailoring communications. These firms could fall behind as the UK economy recovers and investment activity starts to thrive again.”
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Notes to editors
Other key findings of the research include:
- 17% of respondents named building customer loyalty as the main objective of the investor statement
- 29% said it was to build brand awareness,
- 12% said that making investors aware of other relevant funds was the main objective.
- 42% said the main objective was highlighting fund performance
- 74% of respondents said that when choosing a communications supplier it was most important to have one they could trust
- 17% said getting the lowest cost was most important
- 9% said it was most important to find a supplier that could offer the greatest capability for targeted and personalised communications
For further information please contact:
Naomi Bloomer or Hugh Filman at Lindsell Marketing
020 7087 8053 / 020 7402 0510
naomib@lindsellmarketing.com / hugh@lindsellmarketing.com
About GI Direct:
At GI Direct, we cater for clients’ complicated transactional mailing requirements. Our state of the art software and solution integrity bring clients peace of mind, knowing their critical mailings are securely delivered with 100% accuracy.
Our highly skilled specialists handle every stage of the statement and billing process from document composition and processing to mailing and fulfilment across a wide variety of sectors including investment funds, pension funds, banking and insurance.
Our operational solution spans two sites providing both contingency and robust resilience. Our Birmingham facility specialises in short run applications, with powerful cut sheet digital capabilities and highly intelligent, fully automated fulfilment to either paper or polythene. The Leicester site focuses on higher volume continuous printed output across both digital and laser platforms, with paper fulfilment capabilities mirroring the Birmingham site.
To find out more, please call 0116 232 1711 or visit