Many financial professionals wonder: Is having a social media presence necessary, and is it worth it?
The answer: Depending on your goals and resources, yes and yes!
Effective use of social media platforms can serve as a strategic tool to promote financial practices. The allure of social media platforms lies in their ability to amplify brand presence, foster engagement, and ultimately drive client acquisition and retention. In this post, we’ll answer some common questions many financial advisors have about getting started on social media. Note: We recommend consulting with your broker dealer regarding social media guidelines before starting any campaign.
Q: Why Should I Use Social Media?
A: That’s where your audience is.
Social media isn’t just about casual interactions anymore; it’s a powerful conduit for business growth. Of the 5.3 billion global internet users, 93.5% are on social media. Social media forms a significant part of consumers’ decision-making processes, and research shows that high-net-worth investors use social media heavily, with 99% visiting sites regularly and scrolling for close to 90 minutes per day. This immense reach underscores the opportunity firms have to connect with new audiences by establishing an online presence.
There are many benefits to using social media, including:
- Brand Awareness: By leveraging platforms like LinkedIn, financial professionals can showcase their expertise and industry insights to a wide audience of professionals and executives.
- Personal Client Engagement: Platforms like Facebook and Instagram offer a more personal touch, allowing advisors to showcase company culture, highlight team members, and engage with clients on a deeper level. Studies from Sprout Social reveal that 79% of social media users have shared a life milestone on social media, indicating the platform’s potential for fostering meaningful connections.
- Driving Website Traffic: Financial professionals can entice users to visit their websites by strategically crafting content and calls to action, ultimately leading to increased conversions and client acquisition.
Q: Which Platform Should I Use?
A: It depends on your goals!
Navigating the myriad of social platforms can be overwhelming. However, selecting the right platforms that align with your target audience and objectives is crucial. Here are the most useful platforms for financial advisors and the posting frequency that we would recommend:
- LinkedIn is ideal for B2B interactions and professional networking. Share 1-2 posts a week.
- Facebook is a great place to share company news, highlight corporate culture, and reach a wider audience. Share 1-3 times a week.
- Instagram is primarily used to showcase a company’s culture and people. Since it is integrated with Facebook (Meta), it’s also more streamlined for cross-posting on both sites. Share monthly or in cadence with Facebook.
- X (formerly Twitter) is mainly used for real-time engagement and concise communication, requiring constant monitoring and regular posting. Unless you post press, PR, or timely updates, this may not be the right platform for your practice.
Q: How Should I Use Social Media?
A: Here are some best practices to start with.
Once you determine which platforms to use, we suggest using some best practices to maximize impact.
- Complete social media profiles and maintain consistent branding across platforms
- Create a content calendar to plan out when and what you should be posting
- Create original, engaging content, including imagery tailored to your current and target audience.
- This can include blog posts, podcasts, videos, employee spotlights, press releases, and media hits
- Actively engage with your audience and respond to comments or direct messages
Q: How Do I Know If It’s Working?
A: Monitor and analyze social media performance.
By digging into metrics, such as impressions, engagements, and engagement rate, and conducting quarterly audits, financial professionals can refine their strategies and optimize results. This iterative approach ensures that your social media efforts remain aligned with evolving business objectives and audience preferences. You can always add platforms to the mix or change tactics based on the data and what’s working.
A well-crafted social media strategy can be a game-changer for financial professionals seeking to elevate their practice. By harnessing the immense reach and engagement potential of social media platforms, advisors can strengthen brand presence, drive website traffic, and ultimately, attract and retain clients. In an era where, according to Forbes, Millennials and Gen Z investors are increasingly making decisions based on content found on social media, the importance of a dynamic social media strategy cannot be overstated.