Riding the Next Digital Wave
The digital disruption of wealth management is here.
In today’s wealth management landscape, there’s more to growing a business than handshakes and passing out business cards. Incorporating digital touch points and social media consistently into efforts will enhance connections and further the conversations that help grow a firm.
Clients and prospects alike have access to a vast array of information at their fingertips, and their continued use of social media present significant potential for lead generation. Consider that 73% of the 5 million “affluent investors” using LinkedIn use it to research investment decisions.
Today’s clients are better educated as they perform more research themselves, which means that firms need to get connected to stay on the top in the digital landscape.
The first step is to create a brand identity on social media. The three most important platforms in the wealth management space are LinkedIn, Twitter, and Facebook. Despite each having their own characteristics and audiences, the combination of all three can reinforce expertise, influence search engine optimization results, and develop a network of prospects.
There might be some reluctance among firms to embrace social media, especially when it comes to compliance issues. However, the digital capabilities of these platforms can simplify compliance management and they have been credited with enhancing trust in the industry. Research has shown that social selling provides direct benefits to all businesses – including those that are heavily regulated.
The results of using social media highlight more evidence of the importance of participation and sharing the right content. Take a 2015 study by Putnam Investments which found that 79% of financial advisors gained new clients through social media, with an average asset gain of $4.6 million. The ROI is immense when social media is free to set up and be active on.
Most important to remember, your social media practices can only be successful by constantly staying engaged and involved with your network. As advisory practices continuing to focus on younger prospects, their behavior has changed and will continue to do so. These prospects are already online and are looking for your business on social media – it’s now up to you to deliver what they want.
Are you ready for the challenge?