Absent communication, there is confusion

I read a good story from Marketing Daily recently, which discussed the about-face of financial institutions recently, with regard to their correspondence with consumers. The article cited direct mail activity as tracked by Mintel, which noted that credit card and mortgage and loan offers accounted for 86% of all direct mail offers. No wonder the activity was down 26%.

In another Marketing Daily report, Boston Consulting Group research indicated the importance of communicating with customers, especially in the financial sector. When asked if they were satisfied with their financial institutions, 83% of those who had been contacted by their bank recently said, “Yes.” Those who had not been contacted said they were happy only 53% of the time. Similar satisfaction declines were reported by people who had not been contacted by their investment brokers or insurance companies.

Implications: A while back, I wrote about the importance of transparency and clarity, with regard to financial institutions, insurance carriers and investment counselors (Let us be perfectly clear, 1/20/09). In a confused economy, there can be no clarity without communication. Those in the financial services sector who feel they have bigger fires to focus on right now might not realize the blaze of contempt that is at hand.

Are your clients confused by everything that’s going on? Would they appreciate—or do they expect—a phone call, letter or email from you, providing counsel? Reassurance? A simple report?

Often, what consumers fear most is the unknown. Regardless of the business you’re in, what kind of communication could you offer to relieve that stress?

Mike Anderson