A recent report by Spectrem (a US based consulting firm) on ‘Using Social Media and Mobile’ examines how high net worth investors are using online resources and technology and whether they are dependent on their advisers through social media.
One-third of millionaires (34%) identify themselves as event-driven investors, meaning they make most of their own decisions but use a financial adviser for specific life events, such as retirement planning. Just over one-in-five (22%) are adviser-assisted; they regularly consult with an adviser. 13% are adviser-dependent and rely on their financial advisers for all of their financial and investment decisions. The remainder are self-directed investors, who do not rely on an adviser.
Social media is an opportunity to open and maintain lines of communication with clients, finds the research. Of the social networks, Facebook is the one that offers the highest likelihood of success in this area. HNIs who consult with a financial adviser indicate they check their Facebook pages more than other social networks. For example, 37% of adviser-dependent HNIs check their Facebook page two-to-five times per day, compared with 22% who check Twitter with the same frequency.
The research shows that 60% HNIs who consult an adviser check LinkedIn, which is more professional and less social in nature at least less than once per week.
They also check YouTube either less than once per week or multiple times during the week, but not daily. Almost 67% of adviser-dependent respondents watch financial information videos to get more tips and knowledge.
When asked on which social media platforms are wealthy investors who consult with financial advisers most likely to be the most active participants, the research found that HNIs are more likely to observe, share, comment and communicate with others via Facebook and Twitter. In case of Twitter, they are presently more likely to follow a financial and/or investment commentator than they are their own financial adviser.
Shifali Satsangee of FundsVedaa uses Facebook attract prospects. According to her, “Over the years, Facebook has helped me to acquire many clients. The posts should be interactive and visually appealing. The maximum weightage is given to visuals and then to links. Visual connectivity catches the eye of the audience more when you post a link. Also, I keep conducting regular contests which helps me to engage with my prospects.”
Key takeaways for financial advisers:
- In conversations with clients, be sure to ask about their social media usage. What platforms do they use and how do they use them?
- Be sure to be consistent in posting social media content so your clients get into the habit of checking for new material and information from you.
- Wealthy Twitter users are more likely to follow news, political, and financial commentators than they are their own financial adviser. Use Twitter to enhance your visibility and your credentials as an expert.
