Jan 12, 2007
Electronic Account Statements
Paper-based account statements get opened and read. That’s a
fact. But electronic account statements can get viewed everyday.
By George Linkletter
It’s no secret that account statements are unequalled in their ability to attract and retain the attention of customers. Among the many channels available to marketers to reach consumers, only monthly billing and account statements contain both pertinent and private information, the key reasons the messages cut through mailbox and lifestyle clutter.
Nearly all customers open and read account statement-based mail, if not immediately upon receipt, then at some point when they can concentrate, digest and verify the information, and write a check for payment if necessary.
In fact, studies show that consumers spend more time – and more high-quality, uninterrupted time -- reading individual paper-based account statements than they do with the marketing messages delivered via the more traditional advertising modes, such as TV, radio, direct mail, direct e-mail, text messaging and even personalized hard-copy customer communications.
24/7 Account Statements
Now, thanks to the continuing consumer acceptance of the Internet, an electronic version of the paper-based monthly account statement is fast gaining acceptance. And observers say these electronic statements, which come with instant access, up-to-the-second data, and more features and benefits than any paper-based statement can offer, are beginning to supplant their paper-based counterparts in high-dollar-value applications like personal finance and investing.
If you have any doubt about the shift of personal finance from a traditional physical world to a virtual one, just consider the recent comments of Alan Greenspan, former Chairman of the Board of Governors of the Federal Reserve.
Mr. Greenspan told a group of investors late last year that consumer banking already “essentially exists in cyberspace." He said that advances in technology have transformed the physical bank branch into, in effect, an “anachronism.” However, he added an important qualifier: a key factor delaying the full demise of the bank branch was the simple fact that people still liked dealing with people.
Or consider the rapid shift in the U.S. to high-speed Internet access. It is now estimated that nearly 80 percent of all U.S. homes with Internet access use a high-speed connection.
Along with that shift in Internet access, or perhaps because of it, more advertising dollars are flowing to the Internet. Mary Meeker, an expert on the Internet & Consumer Software for Morgan Stanley, one of the world’s premier investment firms, is particularly upbeat about the five-year outlook for online advertising in the U.S.
She projects a near doubling in the Internet's share of U.S. advertising revenue, rising from 7 percent of spending in 2005E to 13 percent by 2010E. That’s roughly a 20 percent CAGR in revenue over five years. She believes that Internet advertising spending per household could move from about $175 in 2005E to more than $360 in 2010E. That’s comparable to the 2005E radio advertising spending per household, although still short of the estimated $980 for newspapers.
Morgan Stanley ClientServe
In fact, one prominent example of this shift toward electronic access to personal finance/account statements comes from Morgan Stanley and its Global Wealth Management Group. The unit has just completed a substantial upgrade to its web site (called ClientServe http://www.morganstanleyclientserv.com/) in an effort to provide better service and strengthen its relationship with customers.
With more than $680 billion in assets, GWMG offers individual investors and small and mid-sized businesses a full range of financial services, including brokerage and investment advice, credit and lending, banking and cash management, and help with annuities, insurance and trusts.
Of course, many of those customers still operate in the ‘physical’ world. They receive and rely on a monthly paper-based statement, which records transactions and provides an accurate end of month account value. And they deal with their financial advisors intermittently, either in person or on the telephone.
Easy to Use, More Data
To bring more of those ‘physical’ customers to the web site, as well as increase the number of visits (and investment activity) by customers who are already online, GWMG has reinvigorated its web site so that it is more comprehensive and easier to use, with information that is both detailed and more pertinent.
An added benefit of increased online usage is expected to come from greater interaction and a stronger relationship between the financial advisors and their clients. Since both advisor and client will have similar access to more detailed and real-time financial and account data, subsequent discussions related to investing and wealth management, whether in person, on the phone or electronic, should be more focused and more productive.
In effect, the firm is using the electronic account statement as a foundation, and bolstering it with an array of interactive features, to help grow the customer relationship and the business.
“Financial information can be found virtually anywhere today,” Tristan Rudgard, Executive Director in National Sales for Morgan Stanley Global Wealth Management Group, told Linking with Customers. “There are literally hundreds of newspapers, magazines, newsletters and web sites out there all offering some kind of information or advice or recommendations.”
Up-to-Date and Relevant
“Putting a static representation of a monthly paper-based account statement online is helpful,” he continued, “but it is hardly the way to differentiate your self in this crowded marketplace.” Observers concur, adding that the key to online success centers on capturing the ongoing interest of customers and delivering information that is both useful and relevant. And that frequently requires providing context and interpretation as well as pertinence.
“Our new web site provides clients with easier access to their important account information, so they are more empowered to understand their financial relationship with Morgan Stanley. The web site is more intuitive to use and provides added facilities for clients to easily download their account data to other personal financial software programs, such as those used to automate tax preparation.”
“Our clients who use the web site have much more up-to-date information than those who rely solely on their monthly statements and so discussions with their financial advisors are more often specific and more productive.”
Other changes to the Morgan Stanley ClientServe web site include:
- An uncluttered and intuitive design that puts key information in a single dashboard view, and provides drill downs to whatever level of detail the client needs.
- New, flexible ways to view accounts and holdings, which allows clients to customize the display of account information.
- A new Help function that now works contextually to provide the relevant assistance to the page the client is using.
- An updated infrastructure, providing a solid base for future development.
The previous version of the ClientServe web site was developed in 1997. With its renewed focus on strengthening customer relationships, Morgan Stanley anticipates making a regular stream of enhancements to its online channel.
“With its improved features and clean new look, ClientServe will bring our clients added convenience and enhance the relationship they have with their Financial Advisors and Morgan Stanley,” said GWMG President James P. Gorman.
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Comments? Contact: georgelinkletter@charter.net.