Why Should Advisors Care About Social Media?

Written By : Clifford Blodgett

Financial advisors have long relied on social networking and the power of word-of-mouth advertising to grow their practices. And while many advisors are jumping on board with social media marketing, some of you still question whether social media will work for you.

That’s easy to understand. After all, there is a pervasive myth that social media is only used to share pictures of our food or gossip about celebrities. But the truth is, social media has become one of the easiest and most effective modes of marketing today. And here’s why:

Social media is… social! It’s called “social” media for a reason. If you’ve always marketed your services by attending social networking events, keep in mind that Facebook and LinkedIn are the online equivalent of a big party. You can drift from one group to another, participate in conversations, and make a big impression. Social media is the online equivalent of what you’ve always done, and it will open you up to a whole new audience.

Social media is, at its core, word-of-mouth advertising. It has long been said that word-of-mouth is the most valuable form of advertising, and that remains true even today. The most flashy ad in the universe can’t compete with the recommendation of a satisfied friend. Social media allows your current clients the opportunity to share your content and recommend you to their friends. It’s simple and old-fashioned… and it works!

Social media allows you to transmit information quickly and easily. When you need to spread the word about a special service, an upcoming seminar, or a networking event, social media gives you a convenient and easy way to distribute that information. Best of all, the information goes straight to the people who need to hear it: Your clients and prospects who are following your page.

Social media helps you to gather feedback and craft a smart response. Your profession is a social one, and your livelihood relies upon keeping your clients happy with your services. Social media gives you the opportunity to interact with your clients and prospects online, address their concerns, and alter your image or business practices to meet demand. And the best part is that there are no complicated, time-consuming surveys to pursue, and you don’t have to guess what your clients are thinking. Interact with them on social media, and you’ll find out everything you want to know.

Social media increases your online visibility. You may already be aware of how powerful an internet presence can be. A financial advisor who wants to compete in today’s market needs a website – but that website won’t do you much good if no one ever sees it. In order to reach the top of search rankings, most professionals utilize search engine optimization (SEO) strategies. These strategies can be difficult and time consuming. But social media is one easy way to boost your web traffic.

Social media does a lot of the work for you. Social media sites gather a wealth of information on their users. When you need to locate your desired audience using demographics like age, gender, or any other statistic, all of that information is right there at your fingertips. Social media platforms do a large part of your marketing work for you!

Social media provides and excellent return on your investment. Setting up and maintaining a social media profile is free, and requires only an investment of your time. In some cases, utilizing tools like Facebook ads is a highly effective strategy, and these ads are relatively cheap when compared to other advertising options. In sum, social media provides you with a free or very low-cost marketing strategy.

Ready to learn more or launch your social media strategy?  Let us know and we’ll guide you through the process.

Filed under: Social Media for Financial Advisors