While a common perception goes that social media is for younger audiences, the reality is that social media is being widely used by people above 35 years of age. This is validated in the latest study done by Putnam Investments, a US based advisory firm, which shows that more than 80% of clients above 44 years use social media for client acquisition.
The study points out that social media has become an essential client communication and business-building tool for financial advisors across the industry.
The survey covered over 800 advisors who are active on five social media channels and have an experience of 10 years. “The increasing use of social media by advisors is translating into concrete business results. The share of advisors acquiring new clients through social media is up sharply to 79% (from 66% in 2014), with the average annual asset gain from these clients standing at $4.6 million,” says the survey.
Advisors of all ages are more frequently using social media networks in their professional practice, with 40% of advisors (versus 25% last year) now using four or more networks for business and a growing number (69%) pointing to social media having a significant role in their marketing efforts — up steeply from the prior year (56%).
Another interesting finding is that advisors use certain social media platforms for different business building practices. For instance, they use LinkedIn to improve their referral network and connect with other financial professionals; Facebook to enhance client relationships and build professional brand and Twitter to expand professional knowledge and help establish a thought leadership platform.
While LinkedIn continues to be the dominant network for business use by advisors, business usage of other networks is growing more rapidly. Advisors are increasingly getting their business news and information from social sites along with traditional news sources.
In a press release, Robert L. Reynolds, CEO and President of Putnam Investments says, "We are seeing a clear, powerful trend emerging where social media is becoming an almost indispensable communications tool for financial advisors in their day-to-day interaction with their clients, investment providers and the broader marketplace. This is a dynamic that is likely to endure, providing tremendous opportunity for advisors to establish and build relationships."
