At Hearsay Social, one of the most frequent questions we hear from the financial services industry is this: “What is the ROI of social media?”
Depending on who you ask, there are a few answers. What we’ve seen is that social media ROI is largely qualitative, with a social media presence alone resulting in new business or better relationships with existing clients. Additionally, the ROI for each firm will depend on the goals associated with that firm’s particular social strategy. For many firms, the first measure was growth, connectivity, and having a compliant social presence with little to no infractions.
Beyond that, however, we’ve heard countless anecdotes directly from financial advisors attributing increased business to their use of social media. Backing up these anecdotes, Accenture recently published a report entitled Reimagining Wealth Management for the Digital Age, which explores not only how digital technologies and social media are changing the wealth management industry, but also what results have been seen.
Here are a few of the best results:
- Over half of financial advisors have found and/or converted clients via digital channels
- 77% of financial advisors have improved client retention via digital/social tools
- 74% of financial advisors have increased assets under management (AUM) via digital/social tools
Besides these and other eye-opening statistics, Accenture’s 20-page report analyzes how digital technologies and the new “digital generation” have disrupted traditional ways of doing business in the wealth management industry. Near the report’s conclusion, the consulting firm offers three essential components that will help financial firms, advisors, and their clients find success in the new digital era:
- Empowerment: of both client and advisor, building trust by making clients better informed
- Engagement: to enable a more collaborative relationship between client and advisor
- Agility: of both mindset and business model, to adjust rapidly to the speed of change
To learn more, download the full Accenture report here.