Relevance of financial direct mail has gone down, not up
Investment product providers are failing to engage consumers who intend to invest, especially those most likely to have the wealth to buy their products.
Seventy per cent of consumers say that the majority of mailings they receive from this sector are irrelevant. Only 13 per cent said that most of the items are of interest.
Research carried out among 1,000 consumers by consumer insight company KDB found that 71 per cent do invest, either directly or through a financial adviser. Two thirds are also planning to increase the amount they invest this year.
But the direct mail being sent to potential investors is not aligned to their needs. Among those aged over 45, the proportion saying direct mail was irrelevant rose to 77 per cent, while those who were engaged by mailshots fell to 9 per cent of 44 to 55-year-olds and 11 per cent of those over 55.
Matt Boot, chief analyst at KDB, says: “At a time when marketing and communications could be vitally important for firms focusing on investment products and services, the findings do not bode well for the mass of players in this area. But it also means that there can be huge opportunities for those that get their messaging and their approach to the marketplace right.”
