In today’s increasingly digital world, social media is a powerful tool that no financial professional can afford to ignore. Whether you’re a Financial Advisor, Wealth Advisor, Investment Counsellor, Investment Advisor, Insurance Advisor or Certified Financial Planner (CFP), building a strong social presence is crucial to staying relevant and reaching new clients. The financial services landscape is evolving, and advisors who fail to embrace the power of social media risk falling behind. From expanding reach to establishing credibility, social media offers numerous opportunities to grow your book of business. In this blog, we’ll explore the top five reasons why advisors – regardless of your specialty – need to be active on social media.
1. Expand Reach and Attract New Clients
The most immediate benefit of being active on social media is the potential to reach a much broader audience. While word-of-mouth and in-person prospecting remain essential, social media allows you to efficiently engage with potential clients who may have never heard of you or your services otherwise. This is due to the sheer volume of individuals who are active on social media every single day, offering an online stage to effortlessly come across, engage with, and ultimately consume your information.
On platforms such as LinkedIn, Facebook, and Instagram, targeting specific demographics based on location, age, occupation, and interests is available at your disposal. This pinpoint accuracy can be incredibly valuable, allowing you to reach professionals, retirees, business owners, and even high-net-worth individuals who are actively looking for financial guidance. Oftentimes, many of these individuals simply do not know the options available to them, which is a situation that can be addressed by building a robust social presence.
Additionally, as more people turn to the internet for research, an active social media presence can help ensure that you and the firm you may be employed by appear in search results. Sharing regular content fuels this increase in visibility, naturally leading to amplified awareness and inquiries.
2. Establish Credibility and Trust
In an industry where trust is paramount, social media serves as an avenue to showcase your expertise and credibility. Prospects seek advisors they can trust and build long-standing relationships with. As such, sharing consistent and high-quality content on social media is a perfect way to demonstrate your knowledge and reliability within the space you serve.
By posting informative content such as financial tips, market updates, or insightful articles, you position yourself as an authoritative outlet in the field. The more value you provide, the more likely potential clients will see you as a reliable source of information, making them more inclined to reach out when they require your services.
Moreover, social media helps to humanize a brand. When prospective clients can see your face, learn about your philosophies, and even get a behind-the-scenes look at how you work, they naturally feel a stronger connection. Prospects seek to collaborate with other “humans” who share similar values as they do as this directly reflects the quality of services that will be provided. For advisors, there is no better way to display this than on social media.
3. Enhance Client Engagement and Retention
Social media isn’t just a tool for client acquisition – it’s also crucial for client retention. Advisors can utilize platforms like LinkedIn and Instagram to stay connected with current clients, offering ongoing insights that address general needs and concerns. By posting content that resonates with existing clients, you always remain top of mind. This keeps the lines of communication open at all times in a more subtle way than direct contact and reinforces the value you continuously bring to their financial journey. In addition, social media provides an opportunity to celebrate client successes and milestones, adding a personal touch to your relationship that builds loyalty over time.
4. Strengthen Client Education
One of the most powerful advantages of social media for advisors is its ability to serve as a platform for educating clients. In a field where many people may feel overwhelmed or uninformed, using social media to share educational insights can be a game-changer. Advisors who take the time to simplify complex topics and share valuable information can significantly enhance their existing client relationships.
On the other hand, sharing compliant opinions that further complement complex industry topics helps you speak to more sophisticated and knowledgeable clientele. The purpose of this different educational angle cannot be overlooked. Specifically, taking the initiative to address and educate these types of clients on pressing topics via social media as opposed to relying on them to eventually receive your thoughts through a phone call or email. In many cases, the latter tends to happen after the fact as a reactive task, as compared to a proactive action.
Educational insights also have the advantage of being highly sharable. When your clients or followers find value in what you share, they are more likely to pass it along to others, expanding your reach organically. This not only brings more visibility to you but also establishes you as a go-to resource for financial knowledge both within and outside of your network.
5. Stay Competitive in the Digital World
In today’s market, being absent from social media can make you seem outdated or out of touch. According to Putnam’s Social Advisor Survey conducted last year, 94% of surveyed advisors are using social media for business. The number of advisors who are currently active on social media underscores the importance of keeping an eye on your competitors. Observing what types of content resonate with their audience, how they engage on specific platforms, or how they position themselves in the market, for example. This knowledge can help refine your own approach and further assist in differentiating yourself from the competition.
Blackrock’s recent article titled Social media marketing that drives growth for advisors highlights another beneficial angle, suggesting how “social media marketing is business critical for advisors.” The article further explains that “investors expect you to be on social media” and “about half of mass affluent and high-net-worth investors report they are more likely to engage with advisors who use social media.”
It is no secret that individuals are more inclined to work with advisors who are visible, engaged, and up-to-date with their online social presences. With more advisors turning to digital tools to reach and connect with individuals, staying off social media may cause you to lose ground to competitors who are more digitally savvy. Having an active approach to social media signals to the general population that you’re staying current with industry trends and understand what it takes to be successful in the modern digital landscape.
Navigating Regulatory Hurdles
One of the biggest challenges advisors face when using social media is adhering to industry regulations and compliance standards. Given the sensitive nature of financial advice and the relatively strict guidelines imposed by regulatory bodies, advisors must approach social media with a clear strategy.
With the right guidance, it is more than possible to build a robust social media presence while staying compliant with relevant rules. After all, social media is no longer an option for advisors – it’s a necessity for those who want to expand their reach, build trust, prospect efficiently, and stay competitive.
At Stach Consulting, we understand that navigating the complexities of compliance can be discouraging. This is why we work very closely with advisors and their respective compliance teams to develop customized strategies that align with industry regulations. Not only is this a key differentiator our firm possesses as compared to other industry leaders, but it also situates the business relationship to ensure all stakeholders are always in the loop. Our track record speaks for itself and spans across nearly a decade of success. Allow our team to offer you peace of mind while navigating the intricacies of social media so you can focus on growing your business.
If you’re ready to take your social media strategy to the next level, contact us below to schedule a free 30-minute consultation and learn how we can expedite your success!
