Being wooed by Charles Schwab
Today in the mail I received the winter issue of a publication from Charles Schwab called On Investing. While it was appreciated and timely – since I hope to glean some interesting tidbits from it for new blog topics - it did raise an eyebrow because I’ve never received this publication before despite being a Schwab customer for more than three years.
Perhaps all my previous issues were bilked by the mailman? Or maybe I’m suddenly cool enough since I recently bought new stock? Both of these are feasible (I realize one more than the other), but the third possibility that crossed my mind is that this is Schwab’s newest PR effort to improve the company’s image in a tough economic environment.
Yes, that may sound as if I’m being cynical, but actually I think it’s a genius idea. Right now, people are hungry for information and advice to help them feel more in control of their finances. Subtlely, the magazine seems to suggest that Schwab understands their customer’s mindset and they’re right beside them as they muddle through these turbulent times.
In bull markets, people don’t care as much about the extras - like free magazines, a holiday card or a call from their financial advisor out of the blue. All they care about is that their returns are maximized. But when results are not as impressive, it’s these extras that inspire loyalty and keep customers engaged throughout the downturn.
Assuming the advice in the magazine is unbiased, accurate and helpful (which I can’t yet vouch for since I’ve only glanced at the cover) I see nothing wrong with it if it truly is just a PR move. In fact, I think more companies, no matter the industry, would be wise to adopt such an “extras” approach if they can afford to do so without sacrificing product quality, jobs, etc. By adding value to their services and ensuring the loyalty of their customers, companies will find themselves better positioned to rebound when the economy eventually recovers.
Enough speculating…anyone know if this is a regular publication or a new initiative from Schwab? If so, email me at saverinthecity@gmail.com or post a comment for all to see!
[Update: Okay, I did a little creative Googling and according to the Schwab website, On Investing is a publication customers are supposed to automatically receive every quarter. Maybe I really should look at my mailman theory a little closer... Regardless, it seems even non-Schwab clients can sign up to receive this publication free for a year. In flipping through the magazine last night, I would say it's well worth the five seconds it takes to sign up.]
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