If current trends are any indication, social media will only continue to become more relevant within the Australian wealth management industry.
Most would concede that financial services has lagged the majority of industries in adopting technologies that support advisers’ efforts to consolidate existing relationships and engage clients more effectively. We definitely see this trend changing; the tide is turning daily. Advisers are becoming more aware that to remain both relevant and competitive, changes must be made to employ more scalable technologies. The stage is set for social media to play a key role to play in this transition.
Advisers fall into three main camps when it comes to social media. The first group includes those who view it as more trouble than it’s worth, would prefer to take the ‘wait and see’ approach and continue to rely on outdated email for content distribution. The second group comprises advisers who recognise that content distribution has changed; they get that social media is a powerful ally but they’re hamstrung for time and unsure of which path to take. The third group has made the jump and created social profiles; some post regularly and have an established digital strategy in place but others are restrained in terms of time and are seeking a specialised and active management solution.
Below we have provided some action points for social media to ensure you are not left behind in capitalising on this hugely powerful opportunity.
Truth be told, disruptive technologies such as the rise of robo-advice, among others, are a reminder that as advisers, we need to be dynamic and innovative now more than ever, especially when it comes to communicating with clients. Numerous studies have also indicated that consumers are more likely to trust a brand if they’re able to engage with it via social media, so the rewards are compelling.
Social media has now become heavily entrenched in our daily lives. Three-quarters of Australians use social channels at least once a day. On average, Australians spend more than half a day, 12.5 hours, each week on Facebook alone. In a world where financial advisers are consistently attempting to stay front of mind, these figures are difficult to ignore. The opportunity to connect has never been greater, but it takes a switch in mentality. Many of our adviser clients have already made this transition and the number of advisers adopting social media continues to rise; however, believe me, delivering compliant and engaging content need not be so onerous.
As an adviser, reaching all of your clients each week generally isn’t feasible but social channels can help bridge the gap. You can reach many people without much effort and posting regularly puts advisers in an incredibly powerful position to deliver highly targeted content that resonates. Social media also grants clients the opportunity to engage at a time of their choosing. Social media platforms strengthen rapport, loyalty and trust with clients while keeping them up to date with the ever changing regulatory and investment environments. As we all know, clients are forever seeking greater value from advisers. Social media provides a path for you to keep your clients up to date in real time.
Here are some tips for kick-starting social media for your financial planning business:
- Determine your audience and how best to connect
Knowing your target audience and the best way to connect with them is important when deciding how you will connect with existing and prospective clients. LinkedIn is a great platform for creating strong business relationships and networking, whereas Facebook is more powerful when it comes to engagement. Ask yourself the question: Are my clients more active on LinkedIn or Facebook and which platform do my clients frequent more often? For the majority of advisers the answer will be Facebook. This a key question that many advisers get wrong.
- Consistency and quality over quantity
Higher volumes of posts do not necessarily equate to a more successful social media presence. In fact, no matter how many times you post, if your content isn’t relevant to your target audience, you’ll fail to engage. The substance of what you post is far more important than how often you post it but be consistent and try to post a minimum of four times a week. All too often, people get fixated on their number of followers, using this as a benchmark of success. Keep in mind that a smaller following of highly engaged clients is much more valuable than a large following of people who have no interest in you or your business.
- Share useful content
Professional articles are a great way to share relevant information quickly, without having to spend hours writing new content to share every day. Sharing happens easily and at the click of a button, while allowing you to deliver content on a range of topics. When sharing posts, it’s important to attach a thought provoking comment as this is your opportunity to personalise. Keep in mind that you can set up Google alerts in order to help find trending topics to share and discuss with your following as well as subscribing to industry magazine emails.
- Keep content relevant, engaging and occasionally personalised (80/20)
Followers are more likely to trust a brand if they find posted content engaging and relevant. It might seem obvious but ensure you are using reliable sources including information which both current and accurate. Also always ensure posts are accompanied by an image. If there is important or breaking news, try to share these stories immediately to have the best traction on your page. If people learn or hear important information from your page they will have trust in the information you share and know you’re a go-to source for the latest news. Keeping content 80 per cent professional and 20 per cent personal is a good balance to strike, interestingly personal posts generally attract the most engagement.
- Ask for referrals – social media has never made this so easy!
Once you have the trust and engagement of your existing followers, don’t be scared to make a post once in a while prompting your audience to consider if they might know anyone who could benefit from your services. This can be achieved in a non-confrontational and easygoing way. Simply asking this question plants a seed and will keep you front and centre for potential referrals.
Tom Loneragan is founder and director of Latch Consulting Group.
