How to add visual impact to your product disclosure statement (PDS)

Posted on May 9, 2011 by Gary Chow | 1 Comment » | Trackback URL

I specialise in copy writing for financial services, and over the years have written and edited copy for many product disclosure statements for superannuation and pension funds.

A product disclosure statement (sometimes referred to as a prospectus or a member’s guide) provides information allowing a consumer to make an ‘informed decision’ on whether to invest in a financial product.

While disclosure regulations govern what can or can’t be said, and even in some cases the presentation and actual words that must be used, it doesn’t mean your PDS has to be dull and stodgy, although many are.

I’m aware some companies see a PDS as merely a compliance issue, a job best left to the compliance or legal department. That’s not smart. A PDS is a marketing document as well as a disclosure one. It gives you the chance to strut your stuff, display your credentials and build your brand. It’s too important to leave up to lawyers.

For a PDS to be easy to read it must be written in plain English. That’s a ‘given’ – so keep your legal people well away! But an appealing PDS isn’t just about good copy it’s also about the visual design of the overall document. Yes, make sure the information you present keeps APRA, ASIC and other acronyms happy, but don’t lose sight of the marketing imperative.

8 Design tips to improve your PDS

Here are a few 8 design tips on how to make your PDS (or any other long document) more attractive and reader-friendly.

More white space

White space is the space between different elements on a page. You can incorporate white space between blocks of text, paragraphs, lines, words and letters.

Judicious use of white space gives a page an appealing, elegant, modern look. And because the reader isn’t confronted with large blocks of uninterrupted text, your page becomes more attractive, drawing the reader in rather than scaring them away.

A common way to incorporate white space is to use wide margins to the left, right, top and bottom of the page, as well as between columns. It’s also helpful to put space around graphical elements (e.g. an image) or around a pullout text box and before a sidebar.

Bigger point size

Go for a bigger point size in the typeface you use; depending on the font, at least 10 to 12 point. Small text strains the eyes and makes your page look daunting and cluttered. No one likes small print least of all in a financial document.

In the case of superannuation and pension products, don’t forget many of your readers will be over 50, and some well beyond that, so cater to their reading needs.

Keep length of lines short

The pages of most magazines and all newspapers are formatted into two or more columns. This provides a short line length running left to right on a page. The ideal length of a line of copy should be between 50-60 characters, about 85mm. Studies have shown that shorter text lines are easier to read and facilitate increased comprehension.

Use text boxes

You can highlight examples, case studies and extra information by putting the information in text boxes. This allows you to add supporting information without bogging down the flow of your body copy. You can also use text boxes to place pull-quotes, which will draw attention to key messages.

Have black text on white background

Don’t let your hip designer convince you otherwise. The most legible text is in black set on a white or light coloured background. The reverse, white on black, is much harder to read and darkens your mood (especially when reading about tax!). Putting text over a patterned background or over an image should be avoided at all cost.

Stick to easy to read fonts

There are numerous fonts available but only a handful that are truly good for reading in long documents. Stick to proven reading fonts such as Arial, Times New Roman and Garamond. It’s fine to use more than one font, say; one for the body copy and a different one for headings, but anymore would give your page a cluttered, unprofessional look. Evidently, serif fonts (e.g. Times New Roman) are easier to read and therefore better for body copy, whereas sans serif fonts are suitable for headings. It’s fine to use both types in the one document as long as they look good together.

Use charts, tables and diagrams

Superannuation is difficult to understand because of its many dollar-thresholds, age-related and date-based rules. The best way to support your explanation of such aspects as contribution limits and taxation, is to use visual devices like tables, charts and flow diagrams. This approach is commonplace but some companies do it better than others. Forget the boring default style. Jazz up your tables and charts,  but make sure you use suitable charts for the story you want to tell.

Leave right margin ragged

Justify text only to the left and leave a ragged (uneven) right margin. A ragged right margin has proven to be easier to read and looks better as it ensures even consistent spacing between words. Never justify following the contours of an image. Leave that to gossip magazines.

In summary

In many instances, a PDS is the first tangible thing a consumer will get from your company. Make the most of this milestone by giving them a true marketing document and not just one produced by paralegals.

As to who produces a good PDS?  Check out those produced by Australian Super. They are attractive, informative and engaging, and generally follow all of the above points. Note, too, they have gone to the trouble of using photos of real Australian Super members and not just rely on stock images.