New Studies Show That Social Media Usage Is Paying Off for Advisors

Financial advisors are becoming increasingly active users of social media, and their efforts are paying off according to two separate studies recently published by Putnam Investments and American Century Investments. Both reports highlight how advisors are using social media resources such as LinkedIn, Facebook and Twitter for networking, new client acquisition, and relationship building with increasing success.

In the 2015 Putnam Investments Social Advisor Survey, researchers assessed the social media usage of over 800 financial advisors across the U.S. Results show that social media is an increasingly important tool for prospecting, client communications and practice development for financial advisors across the industry. Key findings in the report include:

  • 81% said they now use social media for business purposes (up from 75% last year).
  • 79% of respondents said their use of social media has led to them winning new accounts, with an average asset gain of $4.6 million.
  • 53% of the advisors who won new business using social media reported gaining over $1 million in new assets.

In the second report, entitled 2015 Financial Professionals Social Media Adoption Study, American Century polled 300 advisors, brokers, and RIAs to gain a better understanding of their attitudes toward and usage of social media. Key points in this survey include:

  • 60% of the respondents said they have moderate to extensive experience using social media.
  • 43% of these advisors attributed ROI to their use of social media, with 17% of them reporting gaining $1 million or more in new assets from those efforts.
  • 74% said that LinkedIn has helped them develop expertise or build their practices.

Transition to Digital and Social Gaining Momentum

Studies like these confirm what many observers have seen unfolding for some time. Namely, that the shift to digital modes of doing business is well underway throughout the wealth management industry, and it’s continuing to gain momentum.

Digital strategies are increasingly important to the success of wealth management firms and their advisors today, and the social media components of those strategies are especially critical. By creating a social media presence and engaging with clients and prospects in these channels, advisors can facilitate the collaborative and dynamic interactions that investors, especially millennials, now expect.

As more advisors become active users of social media, however, the bar will be raised. Competitive advantages will go to advisors who consistently produce high-quality content that helps their clients stay on track with their investment strategies and goals.

By embracing social media, advisors can broaden their prospecting activities, win new clients more efficiently, and deepen their relationships with existing clients. But to drive major growth in their practices and AUM totals using these channels, advisors need to focus their social media efforts on delivering content in context. That’s the ability to provide relevant and compelling content to the right people at the right times, and deliver it the right ways.


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