#2: The power of three and why it matters

Psychology suggests we can process, remember, and act on information much more effectively when it comes in threes.  After all, our brains are wired to seek out patterns, and three is considered the smallest number you can have of something that makes a pattern. While one of something could look unfinished, two might feel unbalanced, and four or more is usually harder than it needs to be, three works.

From this, we have what is often referred to as ‘the power of three’. In writing, the power of three aims to take complex information and simplify it into three clear, ordered messages that will stick with the reader. Whatever the subject matter, whatever the aims, whoever the audience, the principle remains the same.

The power of three is particularly well-suited to financial markets. Financial markets are complex, but great investment content doesn’t have to be. The crucial point here is that by using the power of three when it’s needed, you do the hard work so the client doesn’t have to.

It doesn’t matter how skilled your intended audience is. The same rules apply, even though tone and depth might vary.  Whether it’s written for a seasoned finance professional or a novice retail investor engaging for the first time, well-structured content can create room for better decision-making and better outcomes.

That doesn’t mean that the power of three has to be ever-present. At the end of the day, it’s not a substitute, a panacea, or a shorthand cheat sheet. But whether explicit or implicit, the power of three can help your message be understood, remembered, and (especially important when it comes to investment content), acted on.

So how does it work in practice? Using the power of three in investment content usually means breaking the all-important “So what?” into three sub-questions that clients instinctively ask. So what has happened? What does it mean for me? And what, if anything, should I do about it?

Investment content that answers those questions is far more likely to resonate with the client reading it. It informs, it explains, and it guides. And invariably, it means the client is more likely to want to come back for more.

This is a short post, but when talking about the power of three, maybe that’s the point. Financial markets are complex. Great investment content is simple. The power of three is a practical tool that can, when it’s needed, bridge the gap.

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#1: Markets and investment content