Social media insights (based on real data!) for the financial professional, Pt. 3Article added by Jennifer DeTroye on October 18, 2013
Ranked: #426 (219 pts)
Editor's note: This three-part series from The American College details which prospects are on social media and exactly why advisors can no longer ignore the elephant in the room. You can read part one here and part two here. You can find a complimentary link to the full report at the end of this article.
Referrals and the rules
Social media not suitable for referrals. Yet.
Forty-nine percent of consumers have an unfavorable
view of LinkedIn being used to ask for referrals. And
63 percent of consumers have an unfavorable reaction to
being asked for referrals via Facebook. Social media
simply isn’t there yet. Consumers are happy to refer a
mechanic or hairdresser via social media, but referral
requests for a financial advisor don’t happen online. No
matter the social network, the arena is just too private.
Mind your manners while you mine your network
Consumers saying yes to reviews ... just don't forget the rules
The bad news
The SEC and FINRA limit and in some cases
prohibit recommendations and/or endorsements.
And even though the rules have recently softened
a bit, many larger companies continue to enforce
a “no fly zone” in this space. Always consult your
company’s compliance department to ensure you’re
playing by the rules.
The good news
Don’t worry. Even if official recommendations are
off limits, you can easily leverage a client’s favorable
opinion by shifting the conversation to referrals with
traditional prospecting language.
Breaking down the barriers
Advisors see the trend coming
Seventy-nine percent of advisors feel restricted by
compliance or legal issues, and 79 percent worry about
privacy and security. Despite these concerns,
financial professionals can see social media’s
potential and seem open-minded about the future.
Over half have spoken with colleagues about social
media marketing potential, and 55 percent think it can be a
critical business tool.
But they’re not taking action yet. Only 21 percent have
hired a consultant and just 11 percent are making social
media outreach part of an employee’s job.
... and are seeking pre-approved content and training
Although only 23 percent of advisors have a social media
strategy and only 50 percent report that their company
currently provides this content, a significant group
thinks that pre-approved messaging, workshops,
webinars and online content tools would help them
engage effectively in social media as well as alleviate
security, privacy and legal concerns.
Financial companies: How to arm advisors for social media success
For financial institutions, a social media strategy
has become mandatory. It boosts brand awareness
and builds community and goodwill. Advisors and
agents are (and should be) moving more slowly.
But they can only be effective, safe and credible
with stellar support.
Top 5 ways companies can support advisors:
1. Establish rules for
Regardless of social media engagement,
must continue moving
toward technology. There’s
a minimum acceptable
standard and the next
generation of clients — if
you want their business —
will insist you meet it.
2. Help advisors define
a strategy, a plan and
3. Consider a plug-andplay
4. Provide convenient,
5. Host trainings on
how to use social media
Here’s a link to the full report, including several social media strategies specifically aimed at advisors.
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