Roughly 85% of financial advisors across the United States use social media as part of their business practice, proving that social media marketing for financial advisors is a valuable tool and isn’t going anywhere anytime soon. The high percentage of financial advisors using social media also makes sense in light of a report by emarketer.com that claimed 92% of people trust recommendations from individuals (even if they don’t know them) over brands. Not only can social media enhance credibility for advisors, but it also provides an alternative way to build relationships and evaluate abilities.
With social media platforms, financial advisors can connect with clients or prospective clients using strategies and techniques to reinforce their brand and demonstrate credibility by backing up their claims. Without social media, financial advisors are exposed to brand risk. To remove brand risk, social media should be used proactively to promote and safeguard an advisor’s reputation and brand.
Social Media Supports Traditional Business Development and Marketing Strategies
In the past, marketing and business development methods were a practiced monologue with PowerPoint slides interspersed with client questions and carefully crafted responses. A marketer or sales agent could present whatever facts they wanted without any consequences because it was difficult for the buyer to determine whether they were telling the truth or not. Today with social media, clients, prospects, and everyone else can see into a company and how others view your company. Anyone with internet access can evaluate whether a company is living up to its representation or not. A business that says, “our clients are our central focus,” can be verified on that company’s website or blog or social media accounts to see if it’s true. Today, representations are accountable because of social media platforms and enormous user acceptance and engagement. In today’s world, a company can either be proactive and show it’s making good on it’s claims and promises using social media, or they can choose to limit its social media engagement and allow users to draw its own conclusions from the information they find without your company’s influence or management.
Of course sales and marketing strategies are critical to a company, but they must be used in conjunction with social media as credibility can be exposed today more than ever before. The important thing to remember with social media marketing for financial advisors is you can’t control who your prospective clients seek out for information. Traditional strategies are still good to use, but you must use them in conjunction with social media to avoid the risk of being exposed.
Clients Look to Social Media for Validation of Claims
If a financial advisor makes a pitch or communicates certain information to a client, but their social media profile contradicts some of the information, they will take an instant hit to their credibility. One of the tough things about social media marketing for financial advisors is you can have the best relationship with a client, but one small mistake on social media can ruin that relationship immediately. You have to understand clients always look for validation of claims, and social media is the first place they look.
Advisors Must Be Consistent
Consistency is key for successful social media marketing for financial advisors. With the billions of users on social media today, any inconsistencies in your practices will be exposed and your business can suffer as a result. A firm may promote their financial advisors as being the best at providing a particular service, but if their social media activity doesn’t support that claim, then people won’t believe it. Even if the claims are true, there needs to be social media content to communicate it in order to avoid being accused of having communication flaws.
At SocialFinServ, we know social media marketing for financial advisors has a very small margin of error. This is why we are here to help our clients work smarter through social media without damaging their reputation. Be sure to contact us to see how we can help you.