USING MAIL TO COMMUNICATE REASSURE HOW TO USE

USING MAIL TO COMMUNICATE & REASSURE HOW TO USE MAIL TO GET CONSUMERS TO COMPREHEND AND BUILD TRUST May 2020 YOUR LOGO HERE Classified: RMG – Internal MAIL IS REMEMBERED MAIL STAYS IN THE HOME MAIL DELIVERS LASTING RESULTS MAIL REACHES EVERYONE MAIL IS TRUSTED

WHAT’S BEEN HAPPENING IN FINANCIAL SERVICES Classified: RMG – Internal

HOW HAS THE FINANCIAL SERVICES INDUSTRY RESPONDED Lenders offer almost 700, 000 payment holidays on credit cards 27 million customers offered option of interest free borrowing for 3 months on first £ 500 of arranged overdraft Over 1. 6 million mortgage payment holidays for customer facing financial hardship 470, 000 on personal loans for customers facing cash flow problems Contactless payment limit changes to £ 45 to help consumers shop more safely Some insurers offering refunds but not across the board 3 Classified: RMG UK – Internal Source: Finance, March – April 2020

HOW HAVE FINANCIAL SERVICES BRANDS RESPONDED Giving customers access to fixed savings accounts Payment holidays on loans being set up Not charging interest on first £ 300 overdraft Working on credit card repayment holiday The first to launch an online service to apply for a payment holiday and offering credit card payment holiday Branches open but operating reduced hours The first bank to offer mortgage holidays Gives a £ 25 refund for each vehicle for not being on the road 4 Classified: RMG – Internal

MANY STILL CUTTING BACK SPENDING BUT THE SHARE OF RESPONDENTS EXPERIENCING NEGATIVE FINANCIAL IMPACT HAS DECLINED Strongly disagree/disagree Somewhat disagree/agree I or someone in my family or a close friend have had negative health effects from coronavirus or COVID-19 59% My ability to make financial ends meet has been negatively impacted by coronavirus or COVID-19 39% My income has been negatively impacted by coronavirus or COVID-19 40% Uncertainty about the economy is preventing me from making purchases or investments that I would otherwise make 25% 48% 42% Given the economy and my personal finances, I have to be very careful how I spend my money 39% 13% 21% 34% 40% My ability to work has been reduced by coronavirus or COVID-19 16% 41% 25% My job has been impacted by coronavirus I am cutting back on my spending Strongly agree/agree +4 -5 26% -4 27% -9 29% 31% -7 26% 32% +1 41% 47% Strongly agree/agree difference since last survey March then April 21% 40% -6 +4 5 Classified: RMGMc. Kinsey – Internal & Company COVID-19, UK Consumer Pulse Survey 4/30 -5/3/2020 n=1, 003 4/15 -4/19/2020 n=908 sampled and weighted to match the UK’s general population 18+ Source:

CONCERNS ABOUT THE ECONOMY LARGEST CONCERNS OF THE UNITED KINGDOM POPULATION RELATED TO COVID-19 The UK economy 56% Not knowing how long it will last 55% Overall public health 53% Health of my relatives in vulnerable populations 51% Safety of me or my family 50% Taking care of my family 43% Contributing to spread of virus 36% My personal health 34% Impact on upcoming travel plans 33% Impact on upcoming events 30% Negative impact on my job or income 26% Not being able to make ends meet Not being able to get the supplies I need Negative impact on my business 24% 23% % of respondents who are concerned or very concerned 21% 6 Classified: RMGMc. Kinsey – Internal & Company COVID-19, UK Consumer Pulse Survey 4/30 -5/3/2020 n=1, 003 sampled and weighted to match the UK’s general population 18+ Source:

HOW MAIL CAN SUPPORT CONSUMERS AND GIVE ADVICE OR REASSURE Classified: RMG – Internal

JICMAIL GIVES US GOLD STANDARD DATA THAT SHOWS EXACTLY HOW CONSUMERS INTERACT WITH FINANCIAL MAIL ■ ■ Mail is collected in the first week and recorded, then that week’s mail is tracked over 28 days People record what they do with their mail physically Opened it Read / looked at / glanced at it Put it on display e. g. fridge / noticeboard They tell us the type of mail, i. e. is it addressed or unaddressed to them or someone else. They capture what business sector the mailing or door drop comes from. Passed it on / left out for the person it’s for Put it aside to look at later Threw it away / recycled Took it out of the house e. g. to work Used / did something with the information They record the contents; is it information, special offer, etc. You can tick all that apply here. Put it in the usual place 8 Classified: RMG – Internal

ENGAGEMENT RATES WITH FINANCIAL MAIL STRONGER THAN AVERAGE ACROSS ALL MEASURES 64% 98% of all financial mail is engaged with ie mail is processed in some way (opened, read, sorted, put aside) 82% of all financial mail is opened 64% of all financial mail is read / looked at / glanced at 9 Classified: RMG –JICMAIL Internal Q 2 2017 – Q 1 2019 Addressed or Business Mail, Financial and Insurance Services, n=24, 267 Source:

WHAT IS THE FINANCIAL SERVICES SECTOR SENDING? NOT SURPRISINGLY 51% OF CONTENTS CONTAIN A STATEMENT AND THE NEXT IS INFORMATION ABOUT PRODUCTS AND SERVICES 32% Information about products/services 4% Special offers or discounts 5% Notification/reminder 1% News/update/magazine articles 51% Financial statement/bill/update Invitation/information about a specific event 2% Postal reply 2% 1% Information about local services 9% Sender's contact details 18% Administrative information 0% 10% Source: JICMAIL Q 2 2017 – Q 1 2019 Addressed or Business Mail, Financial Services n=24, 267 Any. RMG type– of content with less than 1% has been removed Classified: Internal 20% 30% 40% 50% 60% 10

PHYSICAL ACTIONS PHYSICAL INTERACTIONS WITH FINANCIAL MAIL ARE STRONG WITH HIGH OPEN AND READING RATES AND FILING ACTIVITY Read/looked/glanced at it 64% 13% Passed it on/left out for the person it's for Used/did something with the information 7% Took it out of the house (e. g. to work) 1% Filed it for reference or records 39% Threw it away/recycled 32% Put it on display (e. g. on a fridge, notice board) 1% Put in the usual place 12% Put aside to look at later 22% Opened it 82% 0% 10% 20% 30% Source: JICMAIL Q 2 2017 – Q 1 2019 Addressed or Business Mail, Financial and Insurance Services, n=24, 267 Classified: Internal Any. RMG type– of content with 1% or less has been removed 40% 50% 60% 70% 80% 11

MAIL DRIVES COMMERCIAL ACTIONS FINANCIAL MAIL PERFORMS SLIGHTLY UNDER THE AVERAGE FOR ALL SECTORS – 32% BUT CERTAIN CONTENTS DRIVE MUCH HIGHER COMMERCIAL ACTION 60% 29% Overall resulting commercial actions with financial mail 60% 50% 47% 40% 41% 30% 20% 31% 44% 36% 34% 31% 23% 19% 17% 10% 0% 7, 781 861 Information Special offers about discounts products and services 103 Vouchers / coupons 1, 164 317 12, 347 507 359 Notification / News / update Financial Invitation to a Postal reply reminder / magazine statement / specific event article bill / update 164 1, 952 4, 196 Information Sender's Administrative about local contact details information services 12 Classified: RMG –JICMAIL Internal Q 2 2017 – Q 1 2019 Addressed or Business Mail, Financial and Insurance Services, n=24, 267 Source:

ALL SORTS OF GROUPS ENGAGE WITH MAIL FINANCIAL MAIL IS ENGAGED WITH BY ALL TYPES OF CONSUMER THE AVERAGE FREQUENCY OF EXPOSURE FOR ALL SECTORS IS 4. 3 FREQUENCY OF EXPOSURE FOR THESE GROUPS HIGHER THAN AVERAGE ADVERTISING AND BUSINESS MAIL FEMALE 35 -54 HOUSE TENURE 6 -10 YRS TV AREA: MERIDIAN WEST 4. 86 5 5. 73 HH WITH KIDS ACORN: COUNTRY PARENTS C 2 DE COMMUNITIES 4. 9 5. 4 13 Classified: RMG –JICMAIL Internal Q 2 2017 – Q 1 2019 Addressed and Business Mail, Financial and Insurance Services, n=24, 267 Source:

ALL AGE GROUPS ENGAGE WITH MAIL FREQUENCY – HAS A SWEET SPOT FOR THOSE AGED BETWEEN 45 AND 64 6 5 5 4 4 5 4. 2 3. 61 3 2 1 0 17 -24 25 -34 35 -44 45 -54 55 -64 65+ 14 Classified: RMG –JICMAIL Internal Q 2 2017 – Q 1 2019 Addressed Mail, Financial and Insurance Services, n=24, 267 Source:

FREQUENCY ABOVE AVERAGE THE AVERAGE FREQUENCY IN ALL SECTORS IS 4. 3 (AND REACH 1. 13) SO FINANCIAL MAIL IS HIGHER IN MOST INSTANCES Look at how different content drives very different engagement rates, highest levels of engagement is when there is a postal reply and next vouchers and notifications/reminders or local messages. 5. 5 5. 3 4. 8 4. 4 4. 5 4. 1 4. 8 4. 7 4. 6 4. 7 4. 4 4. 1 3. 5 2. 5 1. 5 0. 5 1. 15 Average 1. 13 1. 1 Information about Special offers / products/services discounts 1. 17 1. 16 1. 14 Vouchers / coupons Notification / reminder News / update / Financial magazine articles statement / bill / update Reach n=7, 781 n=861 n=103 n=1, 164 1. 16 n=137 1. 17 Invitation to specific event 1. 05 Postal reply 1. 24 1. 09 Information about Sender's contact local services details 1. 12 Administrative information Frequency n=12, 347 n=507 n=359 n=164 n=1, 952 n=4, 196 15 Source: Classified: RMG –JICMAIL Internal Q 2 2017 – Q 1 2019 Addressed and Business Mail, Financial and Insurance Services, n=24, 267

ACTIONS PER THOUSAND FOR GENERAL MAIL THERE IS CONSIDERABLE DISCUSSION AND ONLINE BEHAVIOURS 250 Actions per thousand mail items 214 200 193 182 158 150 120 112 100 83 95 69 55 50 32 17 64 45 49 20 4 0 Information about products/services 8 19 0 9 17 17 News/update/magazine article 73 59 59 24 20 Invitation to a special event Information about local services Bought something/made a payment Used/did something with the information Planned a large purchase Discussed with someone Visited the sender's office Went online Looked up my account details Called the sender Posted a reply to the sender 16 Classified: RMG – Internal

ACTIONS FOR THOUSAND LOOK WHAT HAPPENS IF FINANCIAL SERVICES MAIL CONTAINS A VOUCHER OR COUPON – 363 PEOPLE PER THOUSAND USE OR DO SOMETHING WITH THE INFORMATION Actions per thousand mail items 400 363 350 300 250 205 200 138 150 100 50 14 10 113 95 94 31 7 3 42 19 40 53 10 36 10 0 Special offers/discounts Vouchers/coupons Bought something/made a payment Used/did something with the information Planned a large purchase Discussed with someone Visited the sender's office Went online Looked up my account details Called the sender Posted a reply to the sender 17 Classified: RMG – Internal

ACTIONS FOR THOUSAND MAIL THAT MIGHT SOMETIMES REQUIRE DISCRETIONARY ACTION IT IS DRIVING VERY HIGH INTERACTIONS WITH ONLINE ACTIVITY, DISCUSSION AND ACCOUNT CHECKING Actions per thousand mail items 250 220 200 188 181 188 187 170 157 146 150 158 153 130 115 116 110 100 70 59 59 46 42 50 48 3 9 3 3 5 52 47 27 12 111 100 26 12 8 5 12 2 2 7 32 2 4 43 5 0 Notification/reminder Financial statement/bill/update Postal reply Sender's contact details Administrative information Bought something/made a payment Used/did something with the information Planned a large purchase Discussed with someone Visited the sender's office Went online Looked up my account details Called the sender Posted a reply to the sender 18 Classified: RMG – Internal

WHO’S MAILING RIGHT NOW AND WHAT ARE THEY SENDING Classified: RMG – Internal

HALIFAX SAVINGS ACCOUNTS USEFUL INFORMATION ABOUT CHANGES TO YOUR SAVINGS ■ Halifax writes to savings account holders about changes to interest rates on savings ■ It has a table on the back to show what this will mean to your savings ■ It is clear, concise and factual, setting out the dates and all the information you might need Classified: RMG – Internal

HSBC HELPFUL LETTER ■ HSBC writes to customers to set out how you can get in touch but warning that lines are really busy ■ Therefore they’ve directed people to Digital banking if you can self serve ■ They point people to helpful advice online ■ And they talk about the solutions available if you are struggling with your mortgage 21 Classified: RMG – Internal

LETTER FROM THE CEO REALLY REASSURING MESSAGE, NICELY WRITTEN ■ Send a very clear and reassuring message about how they are carrying on working to ensure that they can continue to service wealth management customers with their needs ■ They apologise if they take a bit more time to get back to people ■ They also address how they are looking after staff but they have the infrastructure in place to ensure staff have access to their systems 22 Classified: RMG – Internal

CONCLUSION FINANCIAL SERVICES It is a fast moving picture and people, whilst slightly less worried consumers are still concerned about the economy and their finances AUDIENCE There are certain audiences who over-index with mail exposure frequency by a big margin EXPOSURE FREQUENCY COMMERCIAL ACTIVITY Some types of mail drive considerably higher physical interactions and are revisited up to 5. 3 times Some types of mail drive considerably greater commercial interactions than others, so think about what you mail in these times PHYSICAL Some brands are using mail to get important customer messages across and reassure their consumers about the situation 23 Classified: RMG – Internal

YOUR LOGO HERE MAIL IS REMEMBERED MAIL STAYS IN THE HOME MAIL DELIVERS LASTING RESULTS MAIL REACHES EVERYONE MAIL IS TRUSTED 24 Classified: RMG – Internal