Slideshow 5 Social Media Tips for Advisors

  • September 24 2013, 12:05pm EDT
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5 Social Media Tips

by Kayan Lim

These days it is almost impossible to find anybody who does not engage in social media. As Jennifer Openshaw, writes in the current issue of Bank Investment Consultant, One financial advisor told me that if you’re not using social media, ‘you’re nonexistent in the eyes of many.'

While many tend to use platforms like Facebook and Twitter for personal use, a large number of industries have seen the power behind social media and have integrated it into their business strategy. However, the financial industry seems to be lagging behind in this respect and is only just now breaking into this new trend.

Here are 5 tips from Openshaw, president of Finect, a firm that provides social media services to advisors.

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1. Personalize Your Brand

Competition among financial advisors is fierce. What can you bring to the table that others can’t? One of the best ways to show clients what sets you apart from everyone else is by personalizing your brand. To do this you must have a thorough understanding of your goals. For instance, what types of clients are you looking to cater to? What type of image are you looking to set for your brand? What platform is better suited for your audience? Once you have identified what you hope to achieve, you can put these goals into action by reinforcing them through social media.

One way you can achieve this is by sharing or distributing content—articles, research, other thought leadership—into the social world, says Openshaw.

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2. Create Opportunities to Engage

Social media is a great way to target prospective clients.

Openshaw cites a research statistic performed by Cogent Research which shows that …Nearly 70% of investors with more than $100,000 in assets have reallocated their holdings or began relationships with investment providers based on content found through social media.

In some cases, financial advisors may regularly post on social media sites but still be disappointed that they are not landing new clients. Posting interesting content is only half of the story. One of the most crucial things that many people forget to do is to create opportunities for their audience to get involved. This can be as simple as providing an email or number where you can be reached at the end of every post.

Openshaw suggests several ways to engage your existing or prospective clients, Take weekly Q&A around, say, Social Security issues or investment strategies. Answer questions. Share your reactions to market news in seconds.

3. Serve Existing Clients Better

Social media is one of the most effective ways to communicate with clients. Although it is indeed a potent tool for reaching out to prospective clients, it is also equally as effective for servicing and strengthening the relationships you have with existing clientele.

By forming private or closed group for clients… you could send instant updates to clients without having to deal with email, snail mail, or other means of communication, writes Openshaw

4. Use It for Yourself

Don’t be afraid to use social media for your own personal use. Platforms like Twitter are an excellent resource, as they provide the opportunity for you to follow some of the most brilliant minds in the industry. These are tools for you to keep up to date with things that are relevant to your business.

You can even use Twitter, as many professional portfolio managers do, to generate investment ideas,says Openshaw.

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5. Measure Your Results

When it comes down to it, results are what matter to us the most. Social media can be a huge game changer for your business, however if you are not able to measure the results then it is almost futile. To measure results you must decide which aspect of your business is most important to you. For instance, some may only be concerned about how many clients they land, while others may consider an increase in phone calls as a positive result.

As Openshaw says, Results aren’t always measurable in terms of new clients.

Find an aspect that you would like to improve on, and use that as a scale for measure.