Maslow for comms

Why there should be a clear hierarchy guiding how you release your communications

🎅🏻 Sorry, dear reader: it’s a short briefing this week. My Christmas preparations have somewhat dominated my weekend. Here then is some of the week’s news likely to impact you, delivered with a little insight on why it matters and just one idea on what to do about it.

👉🏻 Read on to learn why:

① Robo-advisers in the UK continue to consolidate.

② Customers deserve to be the first to hear your news.

③ Sequencing your communications is critical.

④ CBDCs promise a more inclusive financial system.

⑤ DLT’s cost savings can boost investment performance.

⑥ Your company name doesn’t matter. Standing out does.

⑦ Access to financial networks should not be politicised.

What's new?

Wealthsimple closed its UK operations this week and sold its client book to Moneyfarm. Citywire Wealth Manager has the story.

Source: Citywire Wealth Manager, 6 December 2021

① In short:

“Robo-adviser Wealthsimple is closing its UK operation and transferring 16,000 accounts to competitor Moneyfarm. The move will mean that £272m will be transferred to Moneyfarm, adding to its £2bn in assets under management (AUM) across 68,000 clients.”
“In Wealthsimple’s most recent results to the end of 2019, the UK operation made a loss of £3.3m. Moneyfarm is also yet to make a profit since launching in 2012. It lost £11.7m in its results to the end of 2020.”
“Wealthsimple clients have been notified of the transfer, which will happen on 28 January. They will pay the same fees, or lower, as their current rate for investment services.”

Why does it matter?

It’s clearly hard to turn a profit in the robo-adviser space. Scale is needed and that has piqued the interest of some larger players. JP Morgan bought Nutmeg earlier this year, while Goldman Sachs has plans to launch a digital investment service via its consumer bank Marcus. But that’s not why I bring the story to your attention.

② I mention it because, as a Wealthsimple customer, I read the news first in a personalised email from CEO Europe Caroline Murphree. That made me feel valued by the brand, it showed the company had prioritised me when they were planning their communications.

This is in sharp contrast to a week earlier when I learnt from the press that HSBC my bank - my bank of 25+ years - had added an investment feature to its mobile app for UK customers.

That was 12 days ago and I have yet to hear from HSBC directly about this. Not an email, not a notification from the app itself which sits there on my phone surreptitiously offering to sell me a new service, not even a letter through the post (which, inexplicably, HSBC still somehow insists on using for its marketing from time to time). Nothing. How do you think that makes me feel as a customer?

I’d argue that marketing and communications professionals need to adapt Maslow and develop a Hierarchy of Comms.

What's next?

Take action

③ Next time you’re going to publicise news of any kind, ask your head of communications to see the plan. Pay attention not just to the audiences and channels but the timing for each. The sequence is critical and should look something like this:

Your team: Staff need to know what’s happening before anyone else if they’re going to respond to enquiries effectively.
Your customers: Good news or bad news, they deserve to hear first - preferably by email.
The press: Following closely after your customers - but distinctly after them - journalists should get the story via a press release before it’s widely available online.
The public: Lastly, perhaps a couple of hours after the press have received the story, remember to publish on your own website and social media channels as a matter or record and to inform your other stakeholders.

This is basic stuff but you would be surprised how often the execution goes wrong.

Get help

Visit InMarketing, my resource library for leaders in finance or technology who want to innovate, interact and influence.

If you have a question, just hit ‘reply’ or send me a tweet. I always do my best to answer helpfully.

Can I ask you a favour? If you found this useful or know someone who would, please share it. It really helps me to grow the community of regular IMTW readers.

What else?

Three other articles that are worthy of your time.

FINANCE

Behind the central bank scramble to unveil digital currencies

④ CBDCs promise a more inclusive financial system.

Katharine Neiss. Source: Investment Week, 6 December 2021

“With more than 80 global central banks researching central bank digital currencies, the European Central Bank has moved to the forefront by formally launching an investigation phase of a digital euro. A digital euro would allow everyone - including households and businesses - to directly make electronic payments in money issued by the ECB”
“The digital euro would be focused primarily on improving payment services to consumers by offering greater efficiency, lower costs, and broader access to financial services.”
“From an end-user perspective, the key determinant will likely be Europe’s ability to innovate and use the digital euro as a catalyst to revolutionise the European payments system, which will ultimately enhance the role of the euro and help overcome existing socioeconomic barriers.”

TECHNOLOGY

Blockchain-powered breakthrough on mutual fund

⑤ Distributed ledger technology’s cost savings can boost investment performance.

Source: The Financial Times, 10 December 2021

“Franklin Templeton’s OnChain US Government Money Fund is the first mutual fund to use blockchain to process transactions and record share ownership.”
“The blockchain technology that powers transactions for the OnChain fund is the only feature that makes it different from the many similar funds Franklin Templeton has been creating and selling for decades. Still, securing approval took months of extra negotiating with regulators.”
“Asset managers could also look at putting existing funds — or part of them — on a blockchain infrastructure.”

MEDIA & MARKETING

Build branding on ‘distinctiveness’ not company name

⑥ Your company name doesn’t matter. Standing out does.

Mark Polson. Source: Professional Adviser, 9 December 2021

“The most important factor in any branding exercise is not the name of the business but what makes it different from its peers.”
“You have to think about where the brand sits and what you do that is different and better. Professional services businesses need to think about this.”
“It is hard to distinguish yourself from what everyone else does - try to find something distinctive and hold on to that for dear life.”

Well said

⑦ An anonymous former senior Ofac official as quoted by John Dizard in an opinion piece about cutting off Russia from Swift:

“If you politicise a Europe-based institution such as Swift, then you encourage countries like Russia and China to set up their own system. So there are tremendous disadvantages to a Swift cut-off to implement a policy decision.”