The research has it – “the social adviser” is growing market share and developing closer client relationships thanks to social media.
A survey conducted by FTI Consulting Strategic Communications, in partnership with US-based Putnam Investments, has uncovered the growing importance for financial advisers of leveraging social networks to improve their referral network, build brand identity and cement their relationship with existing clients.
The new study indicates that around 3 out of 4 advisers are currently using at least one social network to help serve clients and further grow their business. The research explores the social media behaviour of US-based financial advisers, wealth managers and stockbrokers and underscores the growing significance of social media on a day-to-day basis of financial advisers.
And the results are in, 49% of advisers who use social media acquired new clients through social networks and of those, 29% gained over $1 million new assets.
Other key findings from the study include:
- 75% of financial advisers use at least one social network for business, with 81% using LinkedIn as their primary network
- 46% of all financial advisers, not just those already using social media, expect social media to play a significant role in the future; with over one-third attributing this growth to increased marketing and networking opportunities
- Of those advisers using LinkedIn, 66% use it to prospect for new relationships; in contrast, 69% of advisers on Facebook use it to enhance current relationships.
The Australian financial adviser community
So how is Australia tracking against this research? It seems Australia’s financial adviser community are taking to social media in a big way with the big four Australian banks leading the way. A study conducted by our office found that business and financial journalists believe ANZ, Westpac and Commonwealth Bank are among companies who are most effective at building their business and relationships through social media.
What can we learn from this research?
- Get social. Whether you are a financial adviser or not – you need to actively build out your digital footprint. Fire up your LinkedIn account and get connected. Use online seminars, virtual meetings and online communities to educate your clients.
- Social media means business. Literally. Use your networks to collaborate with peers and cement relationships with existing clients.
- Facebook has grown up. It’s not a channel just for ‘tweens and millennials. Advisers are connecting with clients and potential clients on social media every day.
[Infographic] Social media and financial advisers
FTI Consulting and Putnam Investments Research
