How Financial Advisors Can Use Social Media to Prospect?

Social media, especially Facebook, Twitter and LinkedIn have become part of every marketer’s digital arsenal for reaching and engaging new and existing customers, building sales leads and growing their marketing presence online.

According to research by Putnam Investments surveying 800 financial advisors nationwide in September of 2015, as high as 80% of all financial advisors use social media and gain new business (79%) with average asset gain of $4.6 million. These financial advisors have now become “social advisors.” A majority of these advisors are in the age range of 40-46, live in the southern or western part of the country, are active on 5 social networks, have 10 years of experience and run a median book of business of $80 million with $1.8 million in median client assets.

Financial advisors use social media to:

  • Acquire new business directly
  • Communicate with clients, peers, investment providers and the broader marketplace daily
  • Build relationships and trust over the long-term
  • Grow sales leads through inbound marketing techniques (blogging and social media)
  • Grow relevance in search through news, articles, keywords people are searching for, positive feedback and engagement
  • Building brand identity
  • Expand professional knowledge

Different Platforms for Different Goals

Financial advisors leverage different platforms depending on their goals. By far, LinkedIn was the most popular with the highest adoption rate, average use per month and method of acquiring new business.

LinkedIn: Improves referral network and helps connect with finance professionals

Facebook: Grows client relationships and builds professional brand; helps with SEO

Twitter: Expands professional knowledge, stay up to date on industry news and establishes a platform for thought leadership

7/10 of financial advisors use LinkedIn for business communication and referrals, according to LinkedIn’s study in 2012 and this number has only gone up.

Social media offers a dynamic, multi-faceted channel for financial advisors for whom new business growth is driven primarily by relationships through networks and referrals. LinkedIn’s social networks help you grow referrals quickly, centralize contacts and grow business through simple keyword search and checking common connections.

Financial advisors can also showcase direct expertise and answer questions via participation in forums, Linkedin’s industry groups and social networks. This can help differentiate a financial advisor from others and help that individual and company stand out as competent, professional, friendly and communicative.

Additional sites such as YouTube and Vimeo offer powerful engagement though video and improve search results. These can be used for education and promoting services and products.

Evolving Platforms and Deeper Engagement

Twitter and Facebook have grown as sources of credible business news and information that advisors turn to, just as much as traditional news sources. Financial advisors ranging from major wirehouse advisors at financial companies to independent small businesses and RIA shops seek out social media for deeper and results-driven engagement. Social media is also constantly growing and tied to improvement in technology and communication, that is fostering growth and pioneering change across all industries.