Guest post: "Can I replace my paper newsletter with an e-newsletter instead?"

/1 Comment/in , , , , /by

Are you considering scrapping the newsletter you send via U.S. mail in favor of a newsletter delivered via email? If so, please read the guest post below by Tom Ahern of Ahern Communications, a specialist in fundraising, advocacy, and “persuasion” communications. It is excerpted with permission from his Love Thy Reader newsletter.

Ahern writes from the perspective of non-profit organizations seeking donations. But most of what he says applies equally well to investment and wealth managers seeking to retain existing clients and attract new ones through communications with clients, prospects, and referral sources.



Can I replace my paper newsletter with an e-newsletter instead?

This is the most commonly asked question at my workshops. My considered answer has stayed the same for the last five years: “Ummm…no. You really want both.”

A well-done paper newsletter can produce significant revenue. Witness the Gillette Children’s Foundation in Minnesota, which went from generating $5,000 per issue to $50,000 per issue just by changing a few things.

Understand, too, that paper and electrons are two very different media.

Paper is slow — the good kind of slow, the kind that’s made the “slow food” movement so popular among the health-conscious. Paper is a reader’s medium, a relaxing place where you, as the writer, have the elbowroom to tell stories, show terrific pictures and report results.

An emailed newsletter, on the other hand, is fast. It’s an ACT NOW! medium. Words are kept to a minimum.

In December 2008, Jeff Brooks shared with me some conclusions from his company’s ongoing research into e-newsletters.

“I had a hypothesis,” he wrote, “that e-newsletters were radically different from print newsletters. Not about story-telling,” Jeff clarified, “but about the actions you can take. We’ve tested that notion a couple of times, and so far, that’s proving to be true. It seems what works is to have one topic with 3 to 5 actions a reader can take, at least one of which is to give a gift, but the others aren’t.”

A fully firing communications schedule stays in touch with the donor base at a minimum once a month. Electronic newsletters help you satisfy that torrid pace. But if you pull the plug on paper and switch to utterly electronic, your donor income will almost certainly fall.

Here’s a tantalizing bit of confirming data from Convio, via Ted Hart: Donors you contact with BOTH email and conventional mail give $62 on average annually versus a $32 average gift for those donors whom you contact ONLY through postal mail.

In other words, it’s NOT an either/or situation, paper or electronic. It’s a BOTH situation: paper AND electronic, if you want to maximize results.

Of course, that assumes you are actually getting results.

If you aren’t currently making money with your paper newsletter, don’t expect to do any better with an e-newsletter. Really good donor newsletters are few and far between, in my experience. Most nonprofit newsletters sent to me for audits are unwittingly built to fail, due to a variety of unguessed fatal flaws.

Related posts:
* Should you drop subscribers who don’t open your e-newsletter?
* Boost readership of your e-newsletter with powerful subject lines
* Three tips for how often to publish your newsletter 

What does GIPS verification mean?

/in , , , /by

I’m an amateur when it comes to understanding investment performance standards. So I was surprised when a speaker at the CFA Institute’s GIPS (global investment performance standards) conference speaker said verification does NOT verify that firm’s composite numbers are correct or that firm is compliant. Huh?

As I understand it, verification simply means the firm has the right processes to be compliant and to calculate performance accurately.

If you’ve got questions about this topic, I suggest you mosey on over to the Investment Performance Guy’s blog, which includes a post on “Verification verifies compliance…not!” Blogger David Spaulding, president of The Spaulding Group, Inc., looks like a valuable resource for your GIPS and performance questions. Back in March 2009, I enjoyed writing “Fixed income attribution falls short” about his talk to the Boston Security Analysts Society.

Related posts:
*  SEC’s update to CFA Institute’s GIPS conference
*  A quant’s guide to detecting a future “Madoff”
*  Top 5 tips for investment performance advertising

Do you use “pride capitals”?

/2 Comments/in , , , /by

If you’re in business, you probably use capital letters more than grammar geeks recommend.

I confess. I was guilty of overcapitalizing titles until Prof. Albert Craig, my Ph.D. thesis advisor, drummed the rules into me. I learned to write “Goto Fumio, home minister” instead of “Goto Fumio, Home Minister.” Titles should be capitalized only when they directly precede the titleholder’s name, as in “Home Minister Goto Fumio.” Goto Fumio, by the way, was the focus of my Ph.D. dissertation.

For a quick overview of the rules, see the Grammar Girl blog’s “When Should You Capitalize Words?” (Sorry, this post is no longer available.) The blog post, written by Rob Reinalda, who goes by word_czar on Twitter, discusses “pride capitals” to explain why “One mistake business writers often make is capitalizing words simply for emphasis or to augment their importance.”

You’re using pride capitals if your firm’s biographies refer to “Jane Smith, President and Chief Investment Officer” instead of “Jane Smith, president and chief investment officer.”

 

Note: edited on Feb. 11, 2016 to delete an outdated reference and again on Dec. 12, 2016.

Image courtesy of FrameAngel at FreeDigitalPhotos.net.

Top 5 tips for investment performance advertising

/in , , , , /by

Knowing the rules for advertising your investment performance is your key to staying out of trouble with the regulators.

Here are some of the tips I gathered from “Performance Advertising 101: Regulatory Do’s and Don’ts” presented on Sept. 23 at the CFA Institute’s GIPS conference by Rajan Chari of Deloitte & Touche, who focused on GIPS issues, and Steven W. Stone of Morgan, Lewis Bockius, who focused on SEC issues. 

1. Don’t think that you’re not subject to advertising rules because you’re not buying a newspaper or magazine ad. Advertising is broadly defined. It’s “basically, any written communication addressed to more than one person (or used more than once) that offers investment advisory services with regard to securities,” according to the speakers’ slides. Advertising includes client materials. It may also refer to anything that you distribute in unchanged form to 10 or more people. 

2. Make the necessary disclosures about performance. Consult with experts who are knowledgeable about your disclosure requirements. 

3. Tread carefully in performance advertising areas of particular concern to the SEC. For example, projecting returns may be viewed as promissory. Back testing is easily manipulated. To avoid the appearance of cherry picking, top stock picks must be balanced with worst stock picks. 

4. Keep a log of the people to whom you send advertising materials. I’ll bet that many people aren’t doing this. But it’s essential for making things right if you discover that inappropriate materials have been distributed. 

5. Take your audience’s sophistication into account when you choose the materials you send them. The regulators give you more leeway in materials aimed at sophisticated investors.

Despite the fact that “Performance Advertising 101: Regulatory Do’s and Don’ts” was presented at the CFA Institute’s GIPS conference, GIPS didn’t get much attention compared to the SEC.  That’s because investment managers always have to pay attention to SEC rules, whereas “GIPS advertising rules are only applicable if you choose to claim [GIPS] compliance in an advertisement.” You can read the GIPS Advertising Guidelines, on pages 33-37 of the Global Investment Performance Standards.

Happy advertising!

Sept. 27 addition from Rajan Chari
Thanks to the generosity of Rajan Chari, here are two links to give you more information on advertising standards.


Thank you, Maine CFA Society!

/in , , /by

The Maine CFA Society got into the spirit of my Sept. 17 presentation on “How to Write Investment Commentary People Will Read.” They skewered me for using an unnecessary adverb in a sample sentence.

That’s the enthusiasm I enjoy when I teach CFA charterholders to write more concise, compelling investment commentary.

Three tips for how often to publish your newsletter

/1 Comment/in , /by

Newsletters are a great way to connect with your clients, prospects, and referral sources. But you may lose–or even alienate–readers if you communicate too often. If you don’t contact them often enough, they may not think of you at the right time.

In this blog post, I’m sharing my top three tips to help you decide how often to publish your newsletter.

1. Consider what your readers want 

How often do your readers want to hear from you? Poll them informally when you meet with them. If they’re frequent web surfers, you could conduct an online poll.

Weekly is too frequent, in my opinion, unless your audience is signing up for short market commentary or financial planning tips.
Monthly is the sweet spot for many newsletters. Especially if you’re targeting prospective clients and referral sources, it’s a gentle reminder of your existence. But it’s not so frequent that it’s obnoxious.
Quarterly works well for many financial advisors. Your newsletter can complement quarterly account statements or market commentary.

2. Don’t over-commit.

Come up with a publishing schedule you can stick to because there’s no sense in making promises you can’t keep. Your readers will begin to count on you if you communicate regularly. If you can’t stock to your commitment to publish, clients and prospects may wonder how committed you are to other aspects of your business.  

3. Offer choices.

If your company is robust enough to offer multiple publications at different intervals, let your readers choose how often they’ll hear from you. For example,  one advisor offered the option of receiving emails “for each new post, daily, weekly, or monthly. You can even choose to receive an e-mail for each new post AND weekly in order to ensure you don’t miss out on anything.” The advisor’s default was to send a weekly newsletter.

 

Image courtesy of Stuart Miles at FreeDigitalPhotos.net.

Six ways to stop sending emails with errors

/4 Comments/in , , , , /by

Everybody sends occasional emails with typos and punctuation mistakes. But some emails are more important than others. When you want to make your email perfect, follow these rules. 

1. Print out your email.
Somehow it’s easier to see errors on paper. 

2. Read it out loud.
This is good for catching missing words that your mind might otherwise fill in.Otherwise, you often see what you expect to see.

3. Get someone else to proofread it.
It’s easier for a third party to catch your errors. 

4. Let it sit overnight.
When you read with fresh eyes, you’re more likely to catch errors. 

5. Use a spell-checking program.
If your email program doesn’t support spell-checking, copy the email into your word-processing program, so you can check it there. However, remember that spell-checkers aren’t foolproof. 

6. Create a checklist of common errors.

Using a checklist makes you slow down and, so you’re more likely to catch the errors highlighted on the checklist. For example, let’s say you’re confused about “How to punctuate bullet-pointed lists.” Add to your checklist: “check bullet point punctuation rules” with a link to the rules. 

Have you got other suggestions for keeping emails error-free? Please share them in the Comments section.

It’s not ONLY about your audience

/in , , , /by

Think more about your reader and less about yourself. That’s one of the main things I say in my writing workshops. But sometimes it makes sense to bring yourself into your communications.

Ask this question:

What aspects of myself and my life experience will help me connect with [my audience]?
–G. Richard Shell and Mario Moussa, “The Art of Woo,” Arrive (Nov./Dec. 2008)

Shell and Moussa give the example of singer-activist Bono using his knowledge of the Bible to connect with Jesse Helms, the conservative senator, on the topic of AIDS. Anchoring his pitch to their shared ideas helped Bono make his case to Helms.

You can apply these lessons to your clients, too. Use something you share with your clients to make yourself more persuasive. It doesn’t have to be religion. It could be a hobby, a dilemma, or something else.

Shell and Moussa are the authors of The Art of Woo: Using Strategic Persuasion to Sell Your Ideas.

Guest post: "What is a Visual Brand Standards Guide?"

/in , , , /by

I’m a big fan of companies using style guides to ensure consistency of punctuation, grammar, and other aspects of writing style. So you probably won’t be surprised that I also believe in visual consistency. This week’s guest post discusses your visual brand standards guide. Annie Smidt, its author, is lead designer and strategist for Seltzer.

Investment and wealth management businesses with strong branding and well-crafted, targeted messaging are connecting with current and potential clients — from Fidelity and Schwab with their high-profile “green line” and “Talk to Chuck” rebrands/campaigns to small firms who have finally taken the plunge with a professional design firm.

Once you and your designers have gone through all the work of developing a visual identity for your company, and they’ve built you some great tools, such as business cards, letterhead and a website, and maybe some ads or brochures, then what?

For the long term, you should come away from your engagement with a design firm with a strategic brand marketing plan in hand. It will outline, either in broad strokes or in great specificity, your actions and goals for your brand. Ideally, you will continue working with your design firm throughout the year and years to expand the reach of your visual brand, according to this road map.

Second of all, and more germane to the topic at hand, you should come away with a Visual Brand Standards Guide. We’ll call it a VBSG for short.

What is this VBSG?
Generally, the VBSG will be a document — printed, electronic or both. Depending on what kind of work the design firm has developed for you, it will contain some or all of the following:

Logo Guidelines. This section will give the dos and don’ts for using your logo. It will include such details of logo use and abuse as:

  • what colors it should or should not be reproduced in    what colors and backgrounds it can and cannot be placed upon —  how far away from other elements it should appear   
  • rules governing use of a tagline with the logo   
  • rules governing other graphic elements that may or may not accompany your logo    

Stationery Guidelines. This section will include information such as:

  • what typeface to use when printing on your letterhead and envelopes 
  • what the margins, line spacing and other document layout details should be used when printing on letterhead and envelope
  • if you have multiple letterhead formats (such as first sheets and second sheets, versions with and without your board listed, or other special-purpose sheets), which version of letterhead should be used in which circumstances   
  • how to format an electronic letter on letterhead versus a printed letter


Brand Palette Guidelines. Once in a while there’s a little something design-y you need to create in house. This section will give you info you need about:

  • what colors should be used in your branded communications (usually, your logo colors plus several others) — the VBSG will tell you how to specify them for different printing processes, the web or presentations   
  • what typeface(s) should be used, and where, and how should they be styled   
  • how other graphic elements that are part of your visual brand should be used
  • how photographs should be treated/used


Web Style Guide. If some of your website is under your control (most likely through a Content Management System), your style guide may include guidelines for the visual aspects of web content. The CMS will most likely also be set up to aid in the correct visual display of content through the use of various preset styles built in to the software. Your style guide might include:

  • which fonts, type styles and colors to use on your site for the various levels of hierarchical information (e.g., heads, subheads, paragraphs, captions).
  • if you should include photos, how they should be sized, oriented and placed   
  • any visual considerations for adding pages to the site

Other Guidelines. Depending on what your designers have created for you, and what the marketing plan entails, your VBSG may also include:

  • samples of and specs for on-screen presentations, including styles for charts and other information graphics
  • samples of different ads or ad campaigns and details of when they should be used and/or how they should be sized   
  • samples of and information about (akin to what’s in the web section above) email marketing campaigns   
  • samples of and information about direct mail campaigns
  • how the brand should be localized for other countries, cities or languages   
  • samples of and usage information about any other pieces that sport your visual brand: uniforms, vehicles, holiday cards, billboards, etc.

The article above is an edited version of “What is a Visual Brand Style Guide, and why do you want one?” It originally appeared in Seltzer’s monthly e-newsletter.

Leverage third-party endorsements

/in , , , /by

“Leverage third-party endorsements for maximum exposure.” 

This line from “Survive and Thrive in Today’s Volatile Market” by Peter Hammond, EVP, UMB Fund Services, got me thinking about financial advisors who get quoted by reporters, but fail to let their clients, prospects, and referral sources about it. After all, getting quoted is a kind of third-party endorsement.

If you get quoted, share the good news. Put it up on your website, mention it in letters and conversations, and share reprints. 

Some caveats:
* Make sure your communication is compliance-approved.
* Don’t photocopy or scan an article without the publication’s permission. You’re infringing on their copyright. It IS okay to share a short excerpt or to link to the article on the publication’s website.
* If you buy professional reprints, make sure they’re typo-free and well-formatted. You can’t always count on them to catch errors.
* Don’t share if you’re not proud of the way you were presented.