Social media has disrupted how advisers approach prospects, convert leads, and conduct business, all while sharply reducing the amount of face-to-face time previously required.
Client acquisition through social media
More than eight in ten advisers (83%) say that social media has helped shorten the time required to convert a prospect into a client, shows the fifth edition of Putnam’s Social Adviser Survey.
The online study was conducted in 2017 among 1,014 financial advisers across the United States who have advised retail clients for at least two years or more. While the study was conducted in US, the findings provide useful insights for advisers in India who are doing social media marketing.
More than one third (34%) say social media plays a very significant role in their marketing efforts (up from 29% in 2016), and even more expect social media to play such a role in the year ahead (38%). Of advisers who are using social media for client acquisition, 86% advisers said their business has increased from social media activity, up from 80% in 2016 and 49% in 2013.
How social media has changed their client relationships
Almost all advisers (88%) agree that social media has changed their relationship with their clients; most cite the ease of sharing information and the frequency of contact as the biggest changes. Six in ten say social media is a great deal more efficient than traditional networking, up from 56% in 2016.
Women advisers lead in use of social media
Men and women advisers present contrasting profiles in the social survey. Women advisers are more active with social than men overall and are similarly represented in the survey’s highest performing category of advisers managing assets worth over $100M.
A greater percentage of women are reporting success with social media, as measured by gaining new clients.
Business is business, but advice is personal
Advisers say that they use Facebook most frequently for business — an average of 22 times per month versus only 16 for LinkedIn. This is in line with network use among the broader population. Daily use of LinkedIn is less than 20%, compared with Facebook at 76% and Instagram at 51% based on a recent Pew Research study.
LinkedIn is still identified overwhelmingly as the network of choice for business, although Facebook leads as the network of choice for combined personal and business use. LinkedIn’s share of net business use has flattened among advisers, while the business use of every other network is growing.
LinkedIn remains a critical tool, as its user demographics and rich, indexed data are unique compared with the other social platforms. LinkedIn provides a concentrated network of college educated and relatively affluent users, making it the best place to qualify leads, obtain referrals, and begin the process of converting prospects. But just like the local chamber of commerce, day-to-day social business is conducted elsewhere.
The social activity gap
Advisers who have not gained clients through social media were lower in social activity especially in using as promoted content, paid promotion, and posting original content. Simply liking and sharing content is less helpful in gaining clients.
Edited excerpts from The Putnam Social Advisor Survey (2017).
