Social Media Marketing for Wealth Management Firms
Brought to you by WBR Insights
When we think of social media marketing, we often think of quirky retail or restaurant brands sharing fun and humorous posts, or tech companies posting blogs and articles about the latest innovations. However, social media marketing can be of benefit to all industries.
Forty percent of the world is on social media and, if we restrict this number to only Organization for Economic Cooperation and Development (OECD) countries, it rises to a staggering 90%. Breaking those figures down by generation, 90.4% of Millennials, 77.5% of Generation X, and 48.2% of Baby Boomers are active social media users, meaning that as time goes on more of your clients will be found on one or more social media platforms.
This means that even those in the wealth management business would be wise not to sleep on social media marketing. In fact, 2020 should be the year you start to really unlock its potential to boost the profile and profitability of your brand.
Social Media and You
Social media is about more than just sharing memes and such. By building a presence on social media, financial brands can gain credibility and acquire opportunities, engage with prospective and current clients, and network.
Once people see that your social media pages are a genuine, authentic, and consistent place to get information on all manner of wealth management topics, it will establish your brand as a thought leader in the field. This then has the knock-on effect that, when those people are looking to invest money, your company is the one they will think of as a trusted source of advice.
"Remember that the use of social media in financial services extends well beyond looking for the sale," writes social media scheduling platform, Hootsuite in a blog post. "The first step is getting your name out there. You want to be front of mind when potential new clients are ready to seek out a new financial services firm. For example, social media can be a great way to extend the reach of event sponsorships. This can build brand awareness among an audience that may not see your ads in the newspaper or on TV."
However, none of that is possible without engagement. Social media is about conversations, so you need to be interacting with people and not just silently posting content. You need to answer comments, make use of reaction buttons, and share the posts of your peers. Social media is more than just a live billboard for your business, so make sure you're making the most of its potential.
When starting out on social media, it can be tempting to go all out, signing up for anything and everything and adding people en masse. However, this is a mistake. Instead, you should start slowly and be more selective with your presence.
Choosing platforms that are most relevant to your audience is important. For B2B business, platforms such as Twitter and Linkedin are the best places to reach the people you need to. However, if you operate in the B2C space, you might have more luck elsewhere. If you are targeting young people, you'll find more of them on Instagram and Snapchat, while middle-aged and elderly people tend to prefer Facebook. There is some crossover of course, but these are the guidelines you should be following.
Start with your existing network and people you already know, then build your audience from there. Your network will no doubt be connected to other people in the same business. They can provide a great springboard from which to launch your platform.
Do some research. Find out which types of social media posts do well, and which don't. Find out what the most frequently asked questions in your industry are — you probably already know these — and post content that answers them. Remember that social media is an inbound marketing strategy and your focus should be on providing free, actionable, and authentic advice rather than on making a sale.
"Building relationships is one of the most important uses of social media for finance professionals," continues Hootsuite. "When it comes to money, everyone wants to deal with someone they know and trust. Social media can help you build that trust. Social selling is about building relationships that lead to sales in the long term. So, when one of your connections gets a new job, send a congratulations message to keep yourself top of mind. But don't jump in and try to make a direct sale."
Social media is going to become ever more critical for wealth management brands as time continues. Start slow, build your audience, and engage, and you'll soon see your brand attracting new business and your profile being elevated in kind.
Social media marketing is sure to be a hot topic at Digital Wealth 2020, being held in May at The Ritz-Carlton Fort Lauderdale, FL.
Download the agenda today for more information and insights.
WBR Insights is the custom research division of Worldwide Business Research (WBR). Our mission is to help inform and educate key stakeholders with research-based whitepapers, webinars, digital summits, and other thought-leadership assets while achieving our clients' strategic goals.