E-statement Delivery Saves $, But Slow to Take

February 17, 2004 (PLANSPONSOR.com) - While replacing hardcopy report delivery with electronic mediums can generate significant cost savings, participants/consumers have been slow to make the switch, according to new research.

According to Boston-based researcher DALBAR, Inc’s e-Delivery Benchmarks study, the majority of firms have realized some cost savings from e-delivery to date, averaging an annual savings per each converted customer of:

  • $9.00 for hard copy mutual fund quarterly statements replaced by e-delivery;
  • $6.76 for hard copy variable annuity shareholder reports replaced by e-delivery;
  • $2.38 for hard copy mutual fund shareholder reports replaced by e-delivery.

However, DALBAR also reports that, with “significant promotion,” financial services firms can expect just 4% to 5% of customers to adopt e-delivery of the majority of customer communications.  

While DALBAR says that significant returns on investment in e-delivery systems remain elusive, the most effective promotional strategies for increasing adoption of e-delivery tie e-delivery to a financial incentive.

DALBAR’s e-Delivery Benchmarks study was conducted for mutual funds and variable annuities in November and December of 2003. The full report for each industry is available by contacting DALBAR at 617-723-6400 or at info@dalbar.com