The study, now in its 12th year, measures investors' satisfaction with their investment firm based on performance in six factors : interaction, account information, trading charges and fees, account offerings, information resources, and problem resolution. Overall satisfaction in 2013 averages 752 , down from 768 in 2012, the firm said.

The JD Power & Associates study reveals that challenges with effective communication are contributing to the decline in satisfaction. Although investment firms are offering more online tools and information for self-directed investors in 2013, the additional content and capabilities may actually make it more difficult to access the functions investors are seeking if a website is not easy to navigate and communication is not clear.

Overall satisfaction declines by 72 points when website functions are difficult to locate. When investment firms do not communicate frequently enough and do not communicate via investors' preferred methods, satisfaction declines by 62 points, the survey found. 

The study is based on responses from 3,619 investors who make all of their investment decisions without the counsel of an investment advisor. It was fielded in January and February 2013.

Furthermore, the study finds that, industry-wide, performance in meeting several key communication-related metrics has declined since 2012. For example, the percentage of investors who say they "completely" understand their fee structure dropped to 35 per cent in 2013 from 39 per cent in 2012.

The study also reveals that the proportion of investment firms that have contacted investors two or more times in the past 12 months - the minimum standard - regarding products, services or educational seminars has declined to 34 per cent from 39 per cent. In addition, the incidence of investor awareness/use of at least one financial planning tool has fallen from 31 to 28 per cent.

"Investment firms miss an important opportunity to keep self-directed investors informed about fees, investor tools and other product offerings by not communicating in the manner and frequency that investors prefer," said Craig Martin, director of the wealth management practice at JD Power. 

"Firms need to know how their investors would like to be notified whether it occurs via email, phone or other means. It's important to contact investors proactively and at the appropriate frequency based on investor preference," said Martin.

Meanwhile, the type of information firms are communicating is another important driver of satisfaction, the study suggests. Although 55 per cent of investors indicate that their firm offers investment education seminars to inform them about investment tools, news, guidance and research/analysis, only 7 per cent of investors indicate attending one of these seminars.

"While, in theory, offering more tools and services may seem to be better, those offerings will have limited value if the features and benefits aren't applicable to the majority of investors. Investment firms need to understand the trading behaviors of their investors and provide them with information, tools and other capabilities that will address their highest priority needs. Taking a one-size-fits-all approach is likely to result in fewer investors being satisfied," Martin concluded.