It is critical for financial advisors not to ignore social media sites, but that means more than just having a presence on Facebook or Twitter, according to experts, who say advisors need dynamic communications with clients and potential clients.
"Your social media sites are not an opening for you with clients or prospects if you cannot be found," said Marissa Fox-Foley of LPL Financial.
"If they find you, the expectation from clients and prospects is for an active dialogue, not for you to put something up and forget it," Fox-Foley said. "Social media sites also can help you learn about your competition."
The importance of having a memorable presence on social media sites was one of the topics addressed during a discussion sponsored by LPL Financial entitled, Social Media for Advisors: Engaging and Growing Your Client Base.
Although most advisors have a Web site, some have not embraced things like Facebook, Twitter, LinkedIn and blogs, Fox-Foley said.
"This is part of your management of your reputation that enhances your credibility," she noted.
It is crucial to understand how key words contained in a Web site can make the site easier to find through search engines, she said. Since consumers seldom go beyond the top listings generated by a search, an advisor needs to make sure his firm appears towards the top of the list. Fox-Foley suggested advisors try to search for their firms every week to make sure they continue to appear in the top of the list.
"Social media provides an enormous opportunity for effective marketing," she said. "It is not a replacement, it is a compliment to what you are doing."
To assure compliance, everything needs to be cataloged and archived, noted Craig Brauff, CEO of Erado, a technology company that captures, reviews and archives electronic communications.
The addition of social media is one of the biggest and fastest cultural shifts in history, noted Stephanie Sammons of Wired Advisor.