Financial Advisors’ Use of Social Media Moves from Early Adoption to Mainstream
Advisors use a variety of social networks overall – but when it comes to driving business, the overwhelming majority turn to LinkedIn
FTI Consulting and LinkedIn
May 11, 2012
In a mere handful of years, social media has fundamentally changed how individuals and businesses communicate. Marketing communications have shifted from one-way conversations to dynamic social communities — thus transforming social media from a tangential element of business strategies to a decisive game-changer.
Among financial advisors in particular, social media has quickly become a critical business tool. With a business that is fueled principally by networking, advisors are increasingly integrating social media as a core element of their marketing efforts. This comes as no surprise, given the adoption rates of their prospective clients: According to Forrester Research, two-thirds of U.S. online adults with an investment account now have social network profiles.
9 in 10 Financial Advisors who use social networks turn to LinkedIn.
Facing a competitive disadvantage of being left behind by earlyadopter peers, advisors are inclined to improve their understanding of how best to leverage social networks for business. However, with obstacles like securities regulations and company compliance policies, financial advisors arguably have more barriers to adoption than professionals in other industries. Despite these challenges, advisors are finding ways to effectively work within the parameters of compliance.
For financial advisors who use social media, LinkedIn’s platform is key — particularly due to its professional context and growing audience of valuable financial consumers. Perhaps more significant, however, is that advisors are able to leverage the LinkedIn platform in a way that parallels and enhances their traditional business cycle. Simple opportunities, such as utilizing one’s full extended network for possible leads, provide advisors with now imperative resources to be more efficient and effective.