Sending a message:Member communications a vital link

When you pick up a document to read, do you like a quick overview of the content or the full background briefing? Do you prefer to have someone tell you exactly what you need to do to achieve your goals, or do you read all the available information and make a decision as to which is the best way to go?

At Plum, our education strategists and consultants have done a lot of research into how people learn. We know it is not as easy as simply putting the information down on paper for people to read — instead, you have to really think outside the square and come up with something that caters to all members in the one kit or brochure.

Our main goal with our education materials is simple: enthuse our members to take control of their financial future by making three key decisions.

1. Where to invest?

2. How much to invest?

3. How long to invest for?

We believe that if you can get people to think about and take control of these three decisions, they will be better able to make the right decisions and ultimately be better placed to be comfortable in retirement.

However, we realised very early on that simply giving all our members the information they needed wasn’t enough to enthuse all of them. We needed to do more.

That’s why, in consultation with Plum’s strategic partner Vanguard, we looked to the latest research in adult learning, human behaviour, learning styles and behavioural finance to redesign and develop our member communications and materials, ensuring they cater to the needs of all our members.

In addition, we have recently introduced a number of new mediums using the latest technology to communicate with our entire member base, both young and old.

They say the proof is in the pudding, and our results show us that we are on the right track.

Human behaviour

Plum found people learn through a combination of sensory learning (touch), reinforcement of key learning/elements and cognitive learning (learning through experience, problem solving and insight). That means not only does Plum’s education material have to be visually attractive, but it must also reinforce key messages and use techniques to trigger cognitive learning.

Learning styles

Plum also found learning styles differ markedly between individuals. As many of you will be aware, some of us prefer to learn through written word, while others prefer to learn through someone telling us what to do, by doing it ourselves, or a combination of these.

Plum found the majority of people are visual learners and learn best when they can see or visualise information. That is why our education materials are developed with an emphasis on the use of charts and graphs to illustrate concepts, symbols, icons, images, diagrams and consistent colour coding throughout.

For those members who are auditory learners and take their cues from sounds, information becomes more meaningful when it is spoken out loud, so we have developed a DVD that goes into all member kits.

Lastly, a small percentage of people are kinaesthetic learners and learn best through using touch, movement and space. We have carefully considered the printed material that members can feel and use, right down to paper quality and texture.

Segmentation theory

Overlaying the learning and human behaviour aspects is the latest in behavioural finance and segmentation theories, which has influenced the layout of the materials and level of content. Plum determined that people loosely fit into five broad segmented attitudes towards money — called the five ‘money attitudes’.

These five segments show people range from being ‘successful planners’ to ‘live for today avoiders’. The planners are those that require more background information and enjoy using lots of information to make their own decisions. The avoiders on the other hand have very little time to spend on financial matters and like to be told quickly and simply what they have to do.

In other words, Plum found people not only prefer different mediums to learn, but each member also requires different levels of detail at different stages of their life.

The visual design

As a result, Plum’s education kits, brochures and materials are designed so a member can quickly and easily access the depth of information they want.

For example, last year Plum launched a new member kit applying the above principles. For the avoiders — Plum developed a colour-coded checklist and ensured the application form was the first item they saw when they opened their education kit.

The kit also includes a snapshot of the key features of the Plum Superannuation Fund on the left hand side, ensuring an avoider receives the three most important pieces of information they need to make a decision — what to do (complete application form), how to do it (use colour coded checklist) and why (snapshot of key features).

For the planners, a more in-depth brochure provides the details required for them to make their own decision and includes pointers as to where they can get more information. For example, in one of our member kits specific plan and benefit design information is also provided on the left hand side of the education kit, which is the ‘detailed’ side of the kit developed specifically with planners in mind.

Appealing to both young and old

In June 2007, we launched podcasting of our regular email updates for members, known as Mail2Me. These podcasts are mp3 files that can be listened to directly from the email link or downloaded to a personal computer for members to listen to at their convenience. Although it might not become the latest craze to jog to, it will appeal to the younger generations who are more conversant with the use of this technology.

We are also currently piloting PlumCast — an online seminar that any member of the public can access from our website. We plan to expand the use of these in the coming months, allowing members to view a seminar from Plum at any time. This is a great innovation, as it also caters to those members in more remote locations, ensuring they continue to access the latest Plum communications.

Results

But how successful is this approach? We believe it is very successful for two reasons. Firstly, around 76 per cent of our members make an active investment choice when they join Plum. That is well above the industry average according to figures from Rice Walker and means we are meeting our goal of enthusing members to make those three key decisions.

In addition, our internal member satisfaction survey, conducted by an independent company, told us the majority of our members rated our communications kit an eight out of 10 or higher (61 per cent).

In this increasingly high tech age, we have to continue to find new ways of communicating with our members. Initial results from PlumCast and podcasting have been great, with around 10 per cent of recipients accessing podcasting in its first few days of release. Some other mediums we are considering are sliver casting and online blogging.

Who knows, one day in the not too distant future you might be using web cam technology, so our members can talk to our consultants face to face.

Mike Fitzsimons is managing director of Plum Financial Services.