Social Networking Still Needs Adjustments

A growing number of financial advisers are embracing social media to acquire and service clients, but perceive the return on investment as mediocre, a survey found.

Phoenix Marketing International surveyed financial advisers in October to examine the use and impact of social networking to enhance client relationships, acquire clients, collaborate with other financial advisers, and work with asset management firms.

Recent findings show that over half (58%) of surveyed advisers use social networking in their advisory business, and about one-quarter of these adopters do so primarily to either acquire new clients or to enhance client relationships.

Other primary goals for using social networking include promoting themselves or their firm (15%), professional networking (13%) and interacting with asset managers on fund offerings and performance (9%). Advisers cited asset managers in particular as needing improvement to disseminate information about products using social media.

Among the topics Phoenix covered were:

  • The extent to which advisers have adopted social networking for their advisory business. Adoption variation was considered by adviser’s role, assets under management, annual production, tenure, age and gender.
  • The devices and social networking platforms used by advisers in their advisory business.
  • The obstacles and concerns for integrating social networking as a business practice, and to what extent advisers are governed by a social networking policy or guidelines.
  • The most important purposes for which advisers use social networking.
  • Whether there are unmet business needs advisers hope to improve through social networking, and which social networking platforms are most likely to have increased usage in the near term.
  • The most important business goals advisers anticipate for social networking, and the return on investment (ROI) realized from social networking for achieving each goal.
  • Reasons social networking did or did not contribute to achieving each goal.
  • Perceived success specific asset management firms have with utilizing social networking for the benefit of their relationship with advisers and the purposes for which social networking would enhance interaction with leading asset managers.
  • Content advisers would like to receive for asset managers via social networking.

The report on how 200 advisers utilize social networking, their perceived ROI, and how well specific asset managers are providing information to advisers via social networks is available for purchase. This same report is included free of charge to subscribers of the semi-annual financial adviser study.

More information is available at Phoenix Marketing International.