What happens when an unstoppable force hits an immovable object? It sounds like the making of the next Avengers movie, but in reality it’s something many companies are facing today. Social media, content marketing and smartphones have revolutionized how we connect with each other. But that world is on a collision course with the financial advisory world, an industry where people’s ability to freely converse is limited by regulatory and company constraints.
Though there are legitimate reasons to curtail some business communications, the model needs an overhaul in financial services. As the world continues to rapidly evolve and adapt to these changes, so must the advisory industry.
As we grapple with how to incorporate these new platforms and capabilities into our business model, we can look to industries like retail and entertainment that have successfully made the shift. Granted, such companies are not as hampered by communications rules, but by incorporating a set of best practices, financial advisors can enjoy the benefits, too.
A Major Shift
Over the next three to five years, advisors should expect a major shift in the way they interact with clients and prospects. The industry has acknowledged the growing influence of social media and mobile usage and the growing importance of content. But there’s skepticism about the idea that digital touch points could be used to build relationships in an industry that has traditionally offered a high-touch, personal service.
Though companies have to navigate the regulatory and privacy hurdles they face both internally and externally, such regulations should not be a deterrent to adopting social media. But a firm’s adoption of social-mobile initiatives should not be managed in isolation. Many firms are making significant investments in social media monitoring so they can remain compliant while also giving clients real-time responses. There’s an important distinction between providing insight through social media (which conforms to Finra guidelines) and making recommendations. Companies that are proactive get high customer grades. Those that aren’t risk being perceived as not customer-friendly.
Figure 4 outlines recent social media stats and their implications for firms considering how to use social media as part of their strategy.
Every advisor should consider creating a personal social media playbook in order to build a personal brand in a connected world. Given that every client has a sphere of influence across his or her own social platform, consider the following guidelines for connecting with your audience:
Build Your Social Media Profile
• Ensure that your LinkedIn profile articulates and highlights your experience and expertise. The recommendations and endorsements add credibility, though they may be prohibited.
• Create a Facebook profile that highlights your personal side and interests. Include content that will garner attention and encourage sharing among your Facebook friends.
• Use Twitter as a communication platform to connect with specific content, Web pages and other social media platforms.
Expand Your Circle Of Influence
• Facebook, LinkedIn and other social media platforms provide a window into clients’ personal events and milestones. That will allow you to offer them relevant, targeted content.
• LinkedIn and Facebook allow an advisor to scan a client’s network for potential prospects. But you should avoid overt selling tactics. Take a consultative approach that builds your reputation as an experienced thought leader.
Broadcast To People In Your
Network And Their Connections
• It’s important to publish useful, relevant information, research papers, etc. Sharing this information in LinkedIn groups, on Facebook and in e-mail will expand your reach.
• Twitter is a good way to broadcast to your network and lead people to a more detailed view of relevant information.
• You can take advantage of your firm’s own content, using articles, podcasts and white papers as part of a content distribution strategy to increase awareness and engagement with clients.
It is important to clearly define your goals when crafting your social media plan. Decide if you want to increase sales, create a stronger brand identity, position yourself as a thought leader or deepen the relationships with your clients. Follow these recommendations:
• Know your community and create compelling content for it. Ensure that the content is timely and relevant and that it can be shared across social networks.
• Focus efforts on conversation rather than selling products or services.
• Devise ways to harness user-generated content to attract a larger base of followers.
• Use social media to listen to customers as well and provide proactive customer service.
• Make some of your online tools, such as calculators, available for mobile devices and tablets.
• Advisors already on social media should be proactive and keep reacquainting themselves with internal policies and regulatory policies.
Jeffrey Fleischman is the CEO of Blue Panda Interactive.
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