Financial advisers who
ignore rapidly growing social media networks such as Facebook,
Twitter and LinkedIn do so at their peril.
Or so findings by research
firm Aite Group strongly suggest, with advisers employing the
social networking phenomenon in their business enjoying greater
success than those ignoring it.
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To assess the impact of
social networks, Aite Group conducted a survey of financial
advisers in the US in the fourth quarter of 2010.
The research firm found that
although 63% of advisers surveyed use at least one social media
tool on a personal basis, just 35% of advisers use social media
professionally.
Of advisers who use social
media professionally, 36% reported that it had helped them reach
new prospects.
More than one in five
credited social media for increased awareness of their
practice and differentiation from their competition.
All those using social media
professionally reported various business metrics that were ahead of
those reported by advisers who were not.
However, Aite Group found
that the use of social media by advisers faces a number of
hurdles.
In particular, more than half
of advisers surveyed work for a firm that has a written policy
governing the professional use of social media tools.
Despite this obstacle, Aite
Group senior analyst Ron Shevlin said advisers that use social
media professionally are “believers” in its benefits.
“Beyond the benefits they have already realised, advisers
using social media feel that the tools can help support a range of
business objectives, from building customer relationships to
supporting customer acquisition and employee recruitment efforts,”
said Shevlin.
