In an increasingly busy world, why should financial advisors care about social media? With a finite number of hours each day, is it worth investing time to post or tweet?
The short answer: Yes.
According to our seventh annual study of financial professionals and their adoption of social media, nearly half – some 46 percent – reported social media helped them acquire new business in a significant way, with wins ranging from under $1 million all the way up to over $5 million.
Financial advisors also reported that being connected with someone on social media for business purposes affects the likelihood that they will do business with that person. In fact, 55 percent reported it will make them more likely to do business.
LinkedIn and Facebook Lead in Usage
Although social media sites and applications like Snapchat and Instagram are rapidly growing in popularity, Facebook and LinkedIn are still the top social vehicles used by advisors. When asked if they rely on social media for business purposes only, personal use only or both, Facebook ranked number one in total use of 70 percent. 24 percent of respondents reported using it for both business and personal use, 45 percent for personal use only and 1 percent for business use only.
LinkedIn continues its business-use dominance; total use was 69 percent — 21 percent for both business and personal use, 10 percent for personal use only, but 37 percent for business use only. One out of two financial professionals surveyed said that LinkedIn helped increase their visibility. LinkedIn use was also associated with the following benefits:
- Enhanced their profile with clients (37 percent)
- Enhanced their business knowledge (26 percent)
- Improved their referrals by opening a door that had otherwise been closed (21 percent)
- Allowed them to share insights with clients and prospects (24 percent)
- Attracted new clients (22 percent, up from 18 percent in last year’s survey).
Read or download the infographic below for additional findings from this year’s study results.
This is the seventh annual Financial Professionals Social Media Adoption Study.
Study Objective: Gain a better understanding of financial advisors’ attitudes toward and usage of social media.
Methodology: Study target audience was financial advisors, brokers and RIAs. Potential respondents were screened to verify that they sell and/or provide advice regarding financial instruments. Work as a financial advisor, broker and/or RIA. Work for a national full-service firm, regional broker/dealer, independent broker/dealer, insurance broker/dealer, bank brokerage or work as a registered investment advisor (RIA). Research Now, a large, global, online research panel provider, provided the sample source, programing and survey hosting. Data was collected using an online survey during August 2016.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
The contents of this American Century Investments presentation are protected by applicable copyright and trademark laws.