This document summarizes the results of a conjoint analysis study conducted to identify the optimal design and marketing strategy for a web-based newsletter development system called Newsletter OnDemand. The study found that financial advisors prefer a low price, branding from well-known companies, email reports on readership, and a high level of customization. Further analysis identified preferences varied based on advisor demographics. The recommendations are to design a product priced at $250, branded by Standard & Poor's, including readership reports, and allowing full customization. Additional exploratory research is also recommended to refine the product before further testing.

1. Standard & Poor’s Financial Communications CONJOINT ANALYSIS OF Newsletter OnDemand A collaboration of: Sheila Farrar Jiten Goyal Christopher Powers Narayanan Raman Peyton Williams

2. About S&P Financial Communications A division of McGraw-Hill Education Leading provider marketing and communications solutions for the financial services industry Mutual Funds Banking Retirement Brokerage Insurance

3. Newsletter OnDemand A web-based newsletter development system for financial advisors Allows advisors to maintain mailing lists and stay in contact with their clients through regular newsletter emails Provides: Access to a library of articles on five different financial topics Ability to customize the entire appearance of the newsletter Monitoring capabilities to see which users read the newsletters

4. Project Objectives OBJECTIVE 1 – Identify Optimal Product Design Using conjoint analysis, determine what combination(s) of product features and attributes would have the most sales potential. OBJECTIVE 2 – Marketing Strategy Identify opportunities for specific targeting of financial advisors based on demographic and/or behavioral profiles

6. Contact Method: Blasted 4000 emails with link to Qualtrics survey

7. Survey Design:Psychographic & Behavioral (9) How much do advisors value client communication? What content categories are most important? Extent of their marketing activities How much time/resources do advisors spend on marketing? Attitudes surrounding newsletters Do clients prefer e-mail or printed material? How important is compliance? Conjoint Cards (16) Demographics (11) Age, Gender, Ethnicity, #clients, yrs experience

9. $250

10. $350,

11. $550

12. $750

13. Brand

14. Standard &Poor’s

15. McGraw-Hill

16. FC OnDemand

17. Peter Montoya

18. Email Reports (Sent, Opened, Failed)

19. Included

20. Not Included

21. Customization LevelCustomized: Advisor selects style and articles for each newsletter Pre-set: Several style options offered. Advisor given list of suggested articles monthly Automated: Three mailing list categories. Preselected articles automatically sent monthly

22. Big Picture –Low Overall Product Appeal Sample Card Sample Card - Results

23. Analysis Framework Conjoint Analysis Overall Model Segmented Model Demographic Analysis

24. CONJOINT ANALYSIS – OVERALL MODEL Attribute Level Preferences Price – Prefer low price Brand - S&P most preferred followed by MH Email Reports – Want reports Level of Customization – Fully customizable preferred! Consistent across most of the segmented models Constants Price: $250 Brand: McGraw-Hill Report: Not Included Customization: Custom

25. CONJOINT ANALYSIS – OVERALL MODEL Relative Attribute Preferences Customization Level – First! Price and Brand – Not much difference in preference levels Great variability noticed among segmented models

26. CONJOINT ANALYSIS – SEGMENT LEVEL ANALYSIS Q: How long have you been a financial advisor? Q: How many clients do you serve?

28. 95% CaucasianAge Years as financial advisor

29. Psychographics Today, clients not only want more communication, but they also want higher quality information Client communication is the most important thing you can do to build and sustain your business.

30. Psychographics

32. Conduct focus groups

33. Learn about compliance challenges

34. Refine Customization wording

37. Higher lifetime value

38. Established advisors prefer Price and CustomizationQ: How long have you been a financial advisor? Q: How many clients do you serve?

39. Recommendation 4: Content Editorial should focus content on investing / economy

41. Brand: Standard & Poor’s

42. Reports: Include

44. Conduct focus groups

45. Learn about compliance challenges

46. Refine Customization wording

48. Higher lifetime value

49. Established advisors prefer Price and Customization4. Content should focus more on investing/economy