Social media has taken over the world — or so it seems — and financial services firms are being pulled into the mix, albeit kicking and screaming. The truth is, if a company wants to remain competitive in this digital age, social media must be a strategic part of its overall marketing plan
Social media has taken over the world — or so it seems — and financial services firms are being pulled into the mix, albeit kicking and screaming. The truth is, if a company wants to remain competitive in this digital age, social media must be a strategic part of its overall marketing plan.
Yet given the regulations that weigh heavily on financial services firms, many fear that the return on investment in social media doesn't outweigh the compliance headaches they are sure to encounter. This couldn't be further from the truth.
Part of the problem is that most firms look at ROI in a very one-sided manner. More often than not, advisers and their firms measure their return by the number of new clients acquired as a direct result of social-media efforts.
Although client acquisition should be one goal of using social media, it shouldn't be the only goal.
Here are other benefits from social-media participation that shouldn't be overlooked:
Developing greater presence. Both online and off, building awareness is part of all financial advisers' roles. In today's competitive marketplace, it is critical to differentiate yourself. Work to build your personal brand by using social media to let clients and prospects get to know you personally while you share your expertise and engage them in conversation.
Team building. When hiring new team members, do your research. How connected are they? Based on their online interactions and persona, would they be a good fit with your team? This kind of research will go a long way in determining fit and feasibility of a potential employee.
Improved customer service. Social media is becoming a primary channel for clients to offer feedback and ask questions. Because these tools are now a key component of people's lives, it is critical to pay attention. Although there may be some compliance concerns about engaging in interactive discussions online, it still pays to monitor your social-media profiles to know what is being said and the questions being asked. You then can take those conversations offline.
Sharing best practices. Social-media sites are full of industry-related groups. A quick search of LinkedIn groups with the keywords “financial advisors,” for example, yielded nearly 600 groups. Take time to research such groups and determine which sound interesting. Group forums are excellent places to share best practices and foster relationships with potential business allies.
Building deeper relations faster. Advisers whose prospecting efforts seem almost effortless all do one thing very well: They build incredibly strong relationships with their clients. Clients trust them and are more loyal. Typically, clients introduce them to prospects without even being asked. These types of endorsements don't come without strong relationships. Although they should never take the place of in-person interaction, social media can help you learn more about your clients and deepen your relationships with them.
Driving website traffic. Your social-media profiles should point users to your website. Once there, give visitors a call to action and a reason to stay connected. Ask visitors to sign up for an e-newsletter or offer a white paper on a topic of particular interest to your target market.
Saving marketing dollars. Social media can be a very cost-effective way to establish credibility, elevate your presence and be seen as an expert in your market. And the cost is free in most cases, which just can't be beat. Granted, you must make an investment of time. But with a well-thought-out strategy, the time you dedicate to your social-media efforts will produce extremely cost-effective returns.
TIME AND EFFORT
Just like face-to-face networking, social networking requires time and effort. You can't expect a new client to land on your doorstep out of nowhere.
But with consistent effort and a mindful strategy, social networking can prove to be another powerful tool in your marketing arsenal.
And while measuring the ROI of your social-media efforts isn't easy and may be a bit more subjective than other metrics you use, that doesn't mean social media isn't worth the investment.
Using social media isn't just about the numbers; it is about the quality relationships you can build and the meaningful interactions you can have online. This is what will allow you to see the reach social media has and the impact that these tools are having on your business.
Kristin Andree (kristin@andreemedia.com) is president of Andree Media & Consulting.
