Occasionally people take social media for granted. There are nearly two billion users on Facebook, over 500 million users on LinkedIn and over 300 million users on Twitter today. It took social media just two years to reach 50 million users. This is an astonishing statistic when you compare it to other traditional means of communication and information resources. Radio took nearly 40 years to have 50 million users and television took 13 years to reach just as many.
We give you these statistics to demonstrate how quickly social media has taken over our lives, and to some extent, the world we live in. On a similar note, social media marketing for financial advisors has evolved to the point where it’s a necessity rather than a luxury. With a large percentage of a financial advisor’s client base using social media, advisors have to find ways to adapt quickly to incorporate it in regular business practices.
History has taught us that when there is a major innovation, there will be winners and losers. Social media is no exception exception to this rule. A closer look tells us that, due to social media, it’s no longer “business as usual” for business, particularly for financial advisors.
Innovation Creates Disruptions
Social media is only going to continue to grow. As a result, financial services social media will become even more vital to a firm’s success. But with the innovation social media brings, there are also plenty of disruptions to normal business. Social media is changing the notion of “business as usual” for financial advisors, since social media is anything but normal when compared to traditional marketing. For instance, a financial advisor can converse with many connections simultaneously while keeping them private at the same time. Thought-leadership can be easily shared, multiplying its reach, increasing connections, and ultimately producing more new-client referrals. The disruption in normal business caused by social media can be challenging for many social advisors, but the best advisors will adapt in order to make social media business as usual.
Opportunities and Vulnerabilities Created By Social Media
No matter which social media platform is used, there are going to be both opportunities and vulnerabilities for financial advisors. The art of financial services marketing is tricky, since most advisors have a diverse client base. You have to consistently produce relevant authentic content reflecting your team’s thought-leadership for your audience to keep them engaged. Not doing so may open the door for your competition to snag some of your followers and turn them into clients.
Social Media Can’t Be Avoided
Ignoring financial services marketing as it relates to social media would be neglectful for an advisor’s business. With a large portion of an advisor’s client base using various forms of social media, not making social media an important means of developing a client base will only help build a competitor’s business. Studies show investors are looking for authentic content from their financial advisor. Investors are looking for information that will help them better plan and prepare their financial lives for themselves and the next generation.
With social media marketing for financial advisors, the first priority is to eliminate any vulnerabilities by being consistent in communicating valued information to existing clients. The next priority is to constantly work to build your network and give other followers the opportunity to become engaged with your content. By prioritizing these two items, you’ll be using financial services social media most effectively for both your present and future business.
SocialFinServ works with financial advising firms to make social media part of normal business, as it should be. The world of social media isn’t going to slow down, so you not only have to use it, but use it properly in order for opportunities to arise. To learn more about how our comprehensive social media services can benefit your firm, contact us today to set up a free consultation.