5 Ways Financial Advisors Can Effectively Utilize Social Media

by Emily Retherford

3 min read

It’s important to stay connected in today’s digital landscape, so your business needs an online presence to get noticed. With millions of people using social media, information of all kinds spreads at a rapid pace, meaning, you need to to be plugged into social media to stay in the loop. Studies published in 2017 show that more than 80% of financial advisors use social media as a part of their regular business practices. The effective use of social media has led to the majority of these advisors taking on significant numbers of new clients and profiting billions of dollars from gains in assets under management. The power of social media websites such as Twitter, Facebook, and LinkedIn in the financial advisement field is evident. Yet, a few investment professionals still avoid social media sites, partly because they haven’t figured out how to use the platforms in a way that helps their businesses grow yet stay compliant legally.

First Things First

Before using social media for marketing and other business purposes, it is important to understand your company’s social media policy. Most companies have transitioned from a strict “no” policy to allowing employees to use social media for business purposes. Every company has different policies, though, so keep this in mind as you set up your social networking profiles. If you have any questions, or there seems to be a gray area, talk to your manager or human resources personnel. You don’t want to set off on the wrong foot while trying to benefit your business.

Determine Your Audience

There are a variety of social media platforms you can use. The trick is to know what platforms your target audience is using. Social media giants like Facebook, Twitter, and Instagram are highly popular among a younger audience, but as people become interconnected in the digital space, more users of various ages are logging onto these platforms. So, you need to figure out which platforms offer the best opportunity to connect with people interested in your services as a financial advisor. If you specialize in high net worth individuals, retirees, or low-income clients, research which platforms will allow you to reach these clients.

Soften Your Image

Because social media is easily accessible and often used for personal communication, reaching your audience at this level works wonders for humanizing your company. Your clients want to develop a personal connection with you and turn to you as someone they can trust with their financial matters. Your presence on a platform regularly used to stay in touch with friends and family goes a long way towards softening corporate edges. That said, aim to maintain a professional tone in all your content and in any online conversations you have with present and future clients.

Use Social Media as a Platform for Distributing Content

The reality is that social media isn’t the best place to sell financial products and services. Regulatory rules are one major reason for this; the other is that social media outlets like Twitter or Instagram don’t work well for the financial services industry. Instead, consider using social media as a place to showcase your company’s content, such as intellectual capital, groundbreaking research, and investment techniques your firm uses.

Generate and Share Content That Matters

Current and future clients are eager to get advice, tips, and insight from your firm. Social media is a great way to share enough to encourage viewers to come back for more, and hopefully, end up giving you business. You should be looking for solutions to financial problems constantly and researching financial issues that impact people in your target market. Find ways to share this information effectively using social media. Make sure that the content you generate and share – whether it’s videos, blog entries, essays, case studies, or a combination – is relevant and matters to clients with varied financial interests. The content you share should reveal something to your social media following, expand their thinking, or help them solve a problem. Switch up the timing of content releases; some contacts are best reached in the morning, while others are more likely to see posts in the evenings. Before engaging your current and potential customers through social media, determine which platforms help you reach your target market easily.

References & Resources

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