Advisors - March 23, 2021
3 Ways Advisors Are Using Social Marketing to Increase AUM
As advisors rack their brains for ways to differentiate themselves and relate to a new generation of clients, one old-fashioned technique may be the answer: be a better communicator.
More than 650 individuals, all of whom currently employ the services of a financial advisor or wealth manager, were asked questions regarding their advisors’ communication styles and how they’d prefer to be communicated with. It led us to 3 findings:
• Clients often do not feel engaged by their advisor
• Clients want more personalized communications
• Advisor success can be directly impacted by your communications strategy
Enter: Social marketing.
Social marketing is a relatively quick and easy way for advisors to better communicate with both prospects and clients, and an increasing number of advisors are using social media to engage on LinkedIn, YouTube and Twitter’s #FinTwit, to name a few. But have you wondered how advisors gain clients by using these platforms?
YCharts CEO Sean Brown teamed up with Samantha Russell, Chief Evangelist at Twenty Over Ten — an FMG Suite company, to discuss 3 Ways Advisors Are Using Social Marketing to Increase AUM.
Here’s a summary of the 3 ways advisors are using social media to increase their AUM:
1. Respond to Timely Topics
What subjects are your clients thinking about at this moment? What news headlines have their attention? What do they want to know?
The first step in being part of a conversation is to make sure that there’s actually a relevant conversation currently taking place. Delivering the right message at the right time will help increase your engagement, as likes, comments, and DMs can lead to more formal meetings with potential clients.
Consider the recent Reddit-fueled short squeeze that “meme stocks” such as GameStop (GME), AMC Entertainment (AMC), and others experienced in January 2021. As unprecedented spikes occurred in stocks that many perceived to have little underlying value, everyone was asking questions. Advisors, commentators, and media outlets alike offered their insights as the story unfolded, with timely social media posts, TV segments, and written articles, many of which contained digestible visuals or deep analyses.
With Google processing over 90 percent of all searches worldwide, Sam Russell suggests using Google’s free tools: Google Trends and Google Search Console, in addition to performing searches on Google itself, to see what’s trending.
2. Stick to a Regular Cadence
Commit to having a consistent voice and being part of a conversation. According to a Putnam Investments study, 89% of advisors have gained new clients due to their social media activity. Moreover, “high-achieving” advisors increased AUM by 10% or more by maintaining an active social media presence and reported an average increase of $15.3 in AUM. Lastly, the study outlined that the median age of a new client generated from social media is now 40 years old, up from 35 in 2018.
But as Sam noted, posting is just half the effort.
Many people post MEDIA to social media, but they aren’t SOCIAL — that is, they don’t get their names out there by joining dialogues or conversations. If you’re only posting for your existing followers, how will potential clients find you?
Social media will not work as a marketing strategy if you don’t engage with others’ posts, which is why Sam recommends the 80/20 rule of social media: for every 1 post, add 5 comments on other content daily. She suggests that advisors:
• Offer a differing opinion (respectfully)
• Add to the conversation by sharing your own experience
• Share a compelling stat or fact regarding the topic at hand
• Agree but continue or expand the conversation with additional insight
Sam’s biggest tip: add a 15 minute time block to your calendar every day so you don’t forget to leave your 5 comments! This will help you stay organized and give you time to better measure the ROI of social marketing for business development.
Sean is a diligent follower of this cadence. On his Twitter page, he makes it a point to post at least one daily market insight derived from original research, and adds commentary to others’ posts.
Speaking of original…
3. Be Your Original Self
The best social media posts start conversations rather than sell brands, as people tend to connect more often with other people. Posts that ask a question are like open doors that invite users to contribute thoughts and insights, making them feel like they’re a real part of your conversation. And it doesn’t have to be strictly business!
Sometimes it doesn’t hurt to let your audience see the real you. Adding a link to your article and crossing your fingers that people read it isn’t enough — nor do advisors have to be advisors 24/7. Show your audience who you are, and they will feel more connected to you.
By building that human link, your audience will want to interact more with you by reading other articles or visiting your website. After all, “people work with people they like.”
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