Everyone is jumping on the social media bandwagon these days. Financial advisers have historically been slow on the uptake when it comes to social media – however, research is pointing to a measurable return on investment for advisers who employ smart and selective use of social media.
Socialware, a US social media consulting/software provider for financial advisers, conducted a survey last year and found that more than four out of five advisers were using social media for business purposes.
Using social media is one thing, but deriving business benefit from it is another. The same survey found that almost a third of advisers using social media for business have been able to cultivate referrals, while just over a third have generated new prospects – with many of these prospects converting to new clients.
Integrating social networks into overall sales, marketing, and client retention plans of financial advice firms is something that needs to be done with care. Understanding the demographics of your client base is key to this plan, as it is likely that clients in the earlier stages of building their wealth are more likely to be social media savvy than those approaching/in retirement.
Social media’s potential value to advisers is growing. As Socialware noted in its research, it provides a direct and inexpensive way to connect, build trust with and inform a large number of customers. However, wading into the social media waters needs to be done in a way that will add genuine value for your practice.
