92% of businesses within financial services confirm that social media has helped them acquire new clients, Putnam Retail Management reports. Echoing this fact, The University of Massachusetts Dartmouth Centre for Marketing Research discovered that most of the Fortune 500 financial services companies are active on social media and 84% use social media for finance industry business.
Hootsuite reported that, 12 months before the Putnam survey, the average asset gain for financial advisors using social media was $1.4 million. However, Putnam confirmed that the most effective advisors on social media were able to increase AUM (assets under management) by 10% in one year.
Social media is therefore a powerful tool for businesses in the financial services sector. However, with so many companies now using social media to communicate their products and generate new leads, the competition is fierce. If you are a financial services business that isn’t using social media, the chances are that you are already losing clients to competitors. What’s more, financial services businesses are confronted with the challenges of using social media in a regulated industry.
Linear Media explores the opportunities to use social media for your financial services business in 2020:
Discover and promote industry insights
The financial services industry is one whereby expertise and know-how are paramount to impressing clients and assuring them that you have the competency to manage their money. Social media can be a great too for not only promoting your own thought leadership and research but discover industry insights. LinkedIn is an excellent example. In a study of over 3,000 LinkedIn posts by OkDork,’how to’ posts performed the best, revealing that LinkedIn is not only a destination for securing leads but it is also a place for professionals to learn.
Create brand awareness
For Fortune 500 financial firms, photos and videos are the most popular way to share content on Facebook. In survey conducted by Hootsuite, 53% of financial services firms interviewed stated that brand awareness content performed the best in comparison to other objectives. ‘Boosting brand awareness is incredibly important’ says Kate Horne, Director of Linear Media. On LinkedIn alone, 2 million posts are published every day. That is a lot of content and a lot of companies trying to make noise. How do you stand out and how do you ensure your business is able to engage with clients? Developing a social media strategy is one way for you to ensure your business can achieve this.
Build and nurture relationships
Relationship building is paramount to every business. This will be particularly true within the financial services industry and as AI develops in 2020 and beyond, firms will be increasingly relying on what sets them apart from technology and what it means to be human. Fundamentally, if we review the product and services the financial services offer, it all comes down to a client’s money. People want to know who they are trusting with their money and social media can be a vehicle to nurture relationships with clients.
Humanise your business and communication
If we look back on our former point, people want to do business with people. Social media is a great way to elevate company culture and bring employees to the forefront of brand communication. The hashtag #HootsuiteLife is a one example we regularly discuss with our clients. The company’s Instagram account shares the stories of their employees in the workplace. This illustrates a human side to the marketing business and builds emotive engagement between employees and their clients as they can gain insights to company culture and how teams work together.