How a CCMPlatform Can Reduce Communication Costs in Wealth Management

by | Sep 9, 2021

Wealth managers can reduce communication costs while preserving client engagement

In an environment of increased competition, evolving client expectations, and downward pressure on fees, digital transformation in wealth management is essential to your firm’s success. To serve more clients with lower operational costs, you need to encourage digital adoption. One of the key ways to encourage digital adoption is to enhance client communications.

But enhancing client communications often means sending more communications and estimating the cost of this increase can be challenging.

CCM vendors typically charge per communication, which means the more successful you are at communicating with investors, the more you spend. This can create a situation where you become a victim of your own success, as your digital adoption initiatives deliver way above expectations, meaning your digital volumes skyrocket and your budget is blown.

Doxim’s client communication experts can help you encourage paperless adoption and consult on creative communication design that both promotes engagement and delivers a great user experience. BOOK A DEMO

The dilemma of the double dippers

There is another risk relating to increasing digital adoption. What if investors agree to receive digital communication, but do not agree to go fully paperless? These ‘double dippers’ want the convenience of digital communication but are not yet willing to let go of the familiarity of receiving an envelope in the mail. In traditional vendor pricing, this would mean a doubling up of messaging costs. Your organization achieves no cost saving on postage but must add the cost of each digital communication.

Communicating with these customers costs more than those that are on print, only because you are paying for both print and digital communications.

A Keypoint Intelligence report reveals the following when it comes to financial services customers:

Financial services customers receiving print only – 37%

Financial services customers receiving digital only – 32%

Financial services customers receiving print and digital – 32%

This doubling up of costs, while positive for your omnichannel communication strategy, could be catastrophic for your budget.

In two years, the percentage of digital only customers is expected to increase to 36%, at the expense of the print only percentage, which declines to 31%. But the number of double dippers is expected to remain the same. This means, to reduce communication costs in wealth management, these firms must either adjust communication budgets to accommodate double dippers or find innovative ways to encourage them to go fully paperless.

How to reduce communication costs in wealth management while preserving client engagement

Unpredictable customer communication costs can wreak havoc with a wealth management firm’s annual budget. At the same time, digital communications are a critical way to increase client engagement and serve more clients at a lower cost, so scaling back communication plans can cause long-term problems. By communicating less effectively or less often, you risk losing customers and prospects to non-traditional, low-cost wealth management options with more engaging customer experience strategies.

The solution to this thorny issue is to find ways to simplify your communication-related budgets, so you know what to expect on your monthly communication invoice. The truth is your digital transformation project will not be approved if the return on investment is not attractive or can’t be calculated at all. ROI calculations become far more accurate when the fee for the year (ex-postage) is fixed.

What you need is cost certainty – one predictable fee structure that covers all communications across print and digital. As you migrate customers to digital, the monthly fee (excluding postage costs) remains stable. This approach simplifies budgeting and removes the need for complex invoices based on volumes that need to be audited. It also allows you the flexibility to experiment with different types of communications, like targeted offers to encourage your “double dippers” to turn off the paper.

How Doxim can help reduce communication costs in wealth management

As a single, trusted partner offering a holistic CCM solution at one fixed cost, with predictable monthly fees, Doxim can help you take the uncertainty out of your communications budget and reduce operational costs for your client communications.

See, for example, how working with Doxim helped Aviso Wealth achieve 10- 15% cost savings and SLAs that get statements out 3-4 business days earlier than its previous vendor managed.

Take the uncertainty out of your communications budget and reduce operational costs for your client communications.

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

Our Bloggers

Erin Romo headshot
Erin Romo

CCM in Utilities

James Hall headshot
James Hall

CCM in Europe

Jason Pothen headshot
Jason Pothen

CCM in Utilities and Healthcare

Josh Noble headshot
Josh Noble

CCM for Banks and Credit Unions

Olga Zakharenkava headshot
Olga Zakharenkava

CCM Strategy

Scott Biel headshot
Scott Biel

CCM in Wealth & Insurance

Sean Kennelly headshot
Sean Kennelly

CEM and Payments

Guest Bloggers

Keypoint Intelligence logo
Keypoint Intelligence

CCM Industry Experts

Matt Chester headshot
Matt Chester

Utility Technology

Schedule My Demo