By Michael Byrnes
The integration of social media into the financial services industry turned out to be one of the hottest topics at the Charles Schwab Impact Conference in San Francisco last week.

"As an industry overall, we are late to this game," said Kathleen Pritchard, director and head of Advisor Business Development at Legg Mason Global Asset Management. In a presentation on how to leverage the Internet in marketing, she said that the fervor with which businesses are engaging in social media is reminiscent of the Oklahoma Land Rush of 1889.

"Social media has literally transformed the world," Pritchard said.  "If you want to be relevant, you have to make decisions on how to engage in social media."  

There are three ways to use social media
1.    Make connections.
2.    Create or use content.
3.    Share opinions.

"People are researching online first.  It is your footprint," Pritchard said.  "It is not one-and-done marketing.  Someone has to be responsible for making the Web site dynamic."  

That means paying for quality Web site vendor services, stocking the site with photos taken by a professional and updating the Web site on a regular basis, she said.  "Do this at least monthly.  Keep it fresh," she added.

Pritchard recommends walking clients through the Web site and providing them with the ability to make referrals on every page.  She suggested doing a home visit and bookmarking the site on their home computers-a task that could be carried out by a junior staff member.

Google Yourself

Advisors should strive to be at the top of search lists generated by sites such as Google, Pritchard said. She said advisors should try to get their name out on the Internet, but cautioned against being too aggressive. "It is not to be a place to rant and rave about everything," she noted. Advisors need to be careful about what type of information they release on the Internet, noting that all political contributions are Web searchable.  "Clients might disagree with your political views," she said.

Social networks are not just for kids, she noted.  "Baby boomers are hitting social media in waves.  If clients are there, you need to be there," Pritchard said.

LinkedIn is a great place to start making your firm visible, she said.  It has over 100 million members and it is built for business people to network. "It is all business. It is a great way to build credibility," Pritchard said.  "Turn this into a networking machine."

Facebook is the single most powerful social media network, she said. The average user is on Facebook 55 minutes a day, she said. That means it's important to build a company Facebook page, she said, adding that one advisor told her, "I thought I knew my clients well until I connected with them on Facebook."

Advisor Insight

At the end of Pritchard's presentation, Barry Glassman, founder and president of Glassman Wealth Services, and Daniel Gregory, director of technology and marketing at Merriman, Inc., talked about how they use social media for their practices.  

Glassman said that "80% of social media is listening."  He said advisors should start by following the right individuals on social media.  He also shared that his clients are certainly on Facebook.  

Glassman said the Internet has enabled him to connect with the media.  "We all want to get quoted," he said. Glassman said he loves making charts to make a point, which has helped him attract attention from the press.  "They seem to eat it up," Glassman said.  On the flip side, he said has stopped distributing white paper, which he says are a nightmare to put together and bring little benefit in return.

Gregory noted that social media helps him know what others are doing-in particular, other advisors.  "I don't have time to call [other firms]," he said, adding that his firm works with a social media company.  
"You want to find a consultant out there," Gregory said.

Advisors Play Catch-Up

Advisors seem to be jumping on board with social media, but they still have a long way to go.  

"We saw a marked increase in the use of social media, primarily Twitter, at this year's [conference]," said Lindsay Tiles, managing director of Public Relations at Charles Schwab, adding that the conference generated about 900 Twitter "tweets."

Mike Byrnes founded Byrnes Consulting to provide consulting services to help advisors become even more successful. His expertise is in business planning, marketing strategy, business development, client service and management effectiveness, along with several other areas. Read more at www.byrnesconsulting.com.