As financial advisors rack their brains for ways to differentiate themselves and relate to a new generation of clients, one old-fashioned technique may be the answer: be a better communicator.
Social media marketing is a relatively quick and easy way for advisors to better communicate with both prospects and clients, and an increasing number of advisors are using social media to engage on LinkedIn, YouTube and Twitter, to name a few. But have you wondered how advisors gain clients by using these platforms? Here, we explore how advisors are using social media to grow AUM.
What subjects are your clients thinking about at this moment? What news headlines have their attention? What do they want to know?
The first step in being part of a conversation is to make sure that there’s actually a relevant conversation currently taking place. Delivering the right message at the right time will help increase your engagement, as likes, comments, and DMs can lead to more formal meetings with potential clients.
With Google processing over 90% of all searches worldwide, we’d suggest using Google’s free tools: Google Trends and Google Search Console, in addition to performing searches on Google itself, to see what’s trending.
Consistency is key
Commit to having a consistent voice and being part of a conversation. According to a recent study, 89% of advisors have gained new clients due to their social media activity. Moreover, “high-achieving” advisors increased AUM by 10% or more by maintaining an active social media presence and reported an average increase of $15.3 in AUM. Lastly, the study outlined that the median age of a new client generated from social media is now 40 years old, up from 35 in 2018.
Many people post MEDIA to social media, but they aren’t SOCIAL — that is, they don’t get their names out there by joining dialogues or conversations. If you’re only posting for your existing followers, how will potential clients find you?
We recommend the 80/20 rule of social media:
• Offer a differing opinion (respectfully)
• Add to the conversation by sharing your own experience
• Share a compelling stat or fact regarding the topic at hand
• Agree but continue or expand the conversation with additional insight
The best social media posts start conversations rather than sell brands, as people tend to connect more often with other people. Posts that ask a question are like open doors that invite users to contribute thoughts and insights, making them feel like they’re a real part of your conversation. And it doesn’t have to be strictly business!
Sometimes it doesn’t hurt to let your audience see the real you. Adding a link to your article and crossing your fingers that people read it isn’t enough — nor do advisors have to be advisors 24/7. Show your audience who you are, and they will feel more connected to you.
By building that human link, your audience will want to interact more with you by reading other articles or visiting your website. After all, “people work with people they like.”
What I’ve found is that if you truly understand your customer and you put the effort into social media – it will work!
The trick then is to focus on being authentic and improving lead quality to increase those conversion rates.
I hope you’ve found this post on how to grow AUM using social media useful. If you would like to discuss any of the issues discussed in this guide, please email me – Hitesh@L2WDigital.com.