From just networking sites a few years ago, social media is now becoming a business development and brand building tool for financial advisers.
The latest Putnam Social Advisor Survey which surveyed 1,021 financial advisers currently advising retail clients shows that nine advisers in ten say social media plays a significant role in their marketing efforts. More than six advisers in ten consider social media more efficient than traditional business development initiatives. Not surprisingly, advisers are getting more comfortable with their fluency in using social media.
Older clients
Another interesting finding is that the median age of clients acquired through social media has increased from 35 to 40 last year as social media gains traction with older and potentially higher asset prospects.
Popular SM platforms
LinkedIn remains the undisputed leader for advisers to prospect clients. The survey finds that the credibility of LinkedIn as a source of information is growing faster than the credibility of Facebook. LinkedIn helps advisers follow companies, like, comment, share others’ updates, request recommendations and posting to groups/pages. Advisers are using LinkedIn to connect with other financial professionals, enhance current client relationships, expand their knowledge, and cultivate prospective clients. Besides, the use of Twitter is increasing among advisers for business development activities and promoting themselves as thought leaders. They are also exploring other platforms like You Tube, Instagram and Snapchat. More than 52% advisers said that they use LinkedIn for business, followed by Facebook (30%), Twitter (7%), Instagram (5%), You Tube (4%), and Snapchat (1%).
Benefits of SM
Almost half (48%) advisers agree that social media has changed the nature of their relationship with clients. More than two thirds (67%) said they have more frequent communication and 57% said the decision making is getting faster and easier.
Strategies
The strategies adopted by advisers while using SM are going deeper with existing presence, followed by integrating SM into marketing automation system, adding resources to build a social media team and using paid promotion.
Also Read: How to master social media