Facebook, Twitter, LinkedIn Connect Financial Advisors And Clients

Financial Advisers’ Guide: Systematic Success

Twenty years ago, consumers in search of a financial advisor would ask friends for referrals. Today, they harness social media. To find an advisor, shoppers can tap their own online networks and query peers for their favorite financial planner. Once they gather names of highly recommended advisors, consumers can scrutinize each financial professional’s social media presence on websites like Facebook, LinkedIn and Twitter.

For advisors, the challenge is capitalizing on social media without running afoul of compliance rules. While the smartest financial advisors may not necessarily become social media darlings with millions of Twitter followers, they can reinforce their brand and attract more clients by boosting their online visibility.

Increasingly, financial advisors treat social media as part of their core marketing strategy. About 43% of advisors report a return on investment from their social media use, according to a recent American Century Investments study.

“We see lessening concerns around compliance and regulatory issues,” said Brent Bowen, corporate communications director at Kansas City, Mo.-based American Century. “Advisors have learned social media and have been able to figure out where the boundaries are. And many more asset-management firms have social media policies in place in which they outline what’s appropriate use.”

The annual study found that advisors’ concerns about compliance issues declined for the third year in a row. But with high-profile cyberattacks in the news, more advisors expressed anxiety about potential privacy breaches.

Facebook (NASDAQ:FB) is the most widely used social media vehicle among advisors, with 75% reporting having an account in the American Century survey. LinkedIn (NYSE:LNKD) placed a close second with 70% of advisors using it; only 37% of respondents used Twitter (NYSE:TWTR) .

“Over the last 18 months, LinkedIn has grown from online resumes to become Facebook for business,” Bowen said. He adds that LinkedIn’s “Sales Navigator” has become a popular prospecting and lead generation tool for advisors.

Content That Sells

The standard playbook for those looking to market themselves online involves creating engaging content and deploying it on a regular basis to build a fan base. Ideally, potential clients derive value in such marketing content and gravitate to advisors who come across as thought leaders in their field.

“Advisors can no longer depend on cold calling to reach prospects,” said Ric McConkey, founder and managing partner of Financial Media Exchange, a Plymouth, Mass.-based startup that provides personalized marketing content to help advisors foster client relationships. “They need to use social media, including LinkedIn, Facebook and Twitter.”

Facebook, Twitter, LinkedIn Connect Financial Advisors And Clients