Editorial: Find the right balance

On the one hand, they face pressure over carpet bombing from consumers wary of junk mail while, on the other hand, there is escalating concern among customers over whether they should be passing or receiving financial information over the internet in the face of the growing identity theft problem.

In the opening feature of the FS report, we look at the need for companies sending out the big financial services mailers to be more targeted. Consumer annoyance over the perception that too much of what they receive from the FS sector is unwanted and unnecessary coupled with growing environmental concerns means that the big financial mailers have to be seen to be cutting down on post.

But they cannot just shift over to email. As the second feature in the report shows, financial institutions have to be very careful about how they use electronic communications as consumers are very mistrustful of the emails they receive - even those legitimately coming from their own providers - because of the growth of online scams.

And yet, paradoxically, the best way to reach FS customers is through the post and online, new research from the Direct Marketing Association shows (see page 4). The key is using the offline and online channels in tandem - which means discovering when and how to use each channel for different types of consumers.

Financial services firms need to achieve a balance between various channels that makes consumers feel they are neither being harassed nor having their identities put at risk. By targeting mail better and finding ways of authenticating electronic communications - and mixing inbound and outbound telemarketing in there, as well - they can achieve this balance and ensure that consumers' negative perceptions and fears are assuaged.