Recently I had the pleasure of sitting down with over 20 financial advisors who focus on wealth management, many with over 20 years of experience, hundreds of clients, and millions of dollars in assets under management. While their accomplishments impressed me, I discovered that many of them still had a lot to learn about why social media mattered to their area of expertise.
Using my key takeaways from that meeting, here are three reasons why well-established wealth management advisors should use social media:
Reason 1: Relationship Maintenance
Even if your business can’t handle more clients (don’t we all wish we were in this situation?), social media will allow you to stay in touch with your current clients through life events.
For example, if one of your best clients just had a new grandchild, how would you know if you didn’t talk to them on a regular basis? Let’s say that you take 15 minutes to call each of your 100 clients to check in on their life events. This would take you 25 hours of phone time. Since 87% of individuals who have an advisor are on social media (source), this would take you less than five minutes per day using Facebook, LinkedIn, and/or Twitter.
Even better, social selling platforms like Hearsay Social let you quickly scan important life events in your network such as: new babies, engagements, marriages, promotions, and career changes. When you use social media to look for life events, you’re not only being friendly by staying up-to-date with your clients’ lives, you’re also able to find upsell opportunities.
Reason 2: Generational Transfer
Investopedia recently announced the five richest women in the U.S. One scenario was fairly consistent across these women’s lives: inheritance. Four out of the five women in that article became wealthy by inheriting family money or through widowing. It’s sometimes an uncomfortable topic, but eventually your clients will need to leave their wealth to the next generation.
How are you communicating with your client’s family? If their children are part of the Millennial generation, most likely they are part of Facebook’s 1.11 billion active users and/or one of LinkedIn’s 200 million members. If you don’t want to pick up the phone to give them a call quite yet, you can learn a lot just by connecting with them on LinkedIn, reading the content they’re sharing, and engaging via social media. It’s the medium they most likely prefer.
Reason 3: Credibility
Five million high-net-worth investors use social media to research financial decisions, according to a recent study by LinkedIn and Cogent Research. Even if your client is happy with you as their financial advisor, they still want to make sure they are investing their money with the right person and firm.
One easy way to gain credibility is by creating a LinkedIn profile. Upload a professional photo, add your credentials, and share more details about your educational and professional background. If you don’t do this and your client searches for name online, what will they find?
Don’t be skeptical when it comes to social media. Think about the opportunities for relationship building, competitive intelligence, and your own motivation to be the best in the industry.
If seven out of ten financial advisors are on social media, shouldn’t you be there too?