Many high net worth clients have a hard time identifying the investment management firms they wish to partner for their wealth management needs. It’s not like a wealthy individual is going to browse the yellow pages to find an advisor. Why would social media be any different?
The investment management and wealth management industries have known for a long time that the best way to connect with high net worth clients is through personal referral, either by friends, family members or other existing clients. However, all the buzz these days is around social media. It seems like every wealth and financial advisor wants to be on Twitter, MySpace, YouTube, LinkedIn. While there is no doubt an investment management firm and a financial advisor should have a presence on these social media platforms, the hype is bound to overwhelm any promises of returns. Factor in that being active in social media will take a lot of time for advisors, the FINRA regulations and a lack of proven social media ROI in the investment management industry, and now appears to be the time to go back to basics in marketing and targetting prospects. Now is the time to go back to EVENTS!
When choosing an advisor and investment management firm to work with, high net worth clients initially desire a high level of face-to-face interaction where the prospective client can make their own judgment based on items such as level of trust, personal integrity and compatibility. None of these factors can be evaluated over social media, which is all the more reason why advisors need to continue to leverage events as a large part of their marketing and prospecting activities. Additionally, events enable high net worth prospects to network and meet with existing clients who are like-minded, have similar interests and can be influenced to become a new client.
Mar 20, 2010Kevin,
You are correct that some companies in financial services undertaking an active social media presence are most likely doing it with long-term conversation and relationship building in mind. However, there are a number of investment managers either starting on social media or already underway without a clear cut strategy. In more than 1 case, I have had discussions with CMOs who are looking for an immediate ROI.
What do you think about the re-emergence of events? I think a lot of advisors focused on the HNW segment are going to go back to that tried and true approach.
Thanks for commenting!
Jan 31, 2011Yes very true . I think the above post is very true Social Media is some what similar to the Yellow pages in many sense.
Feb 23, 2011I’m more in the camp of the author on this one…
I think he did a good job of pointing out some limitations of social media. As he put it, I think the name of the game is tempering the hype <–too much of the consultation I hear Marketers giving FAs seems to be "ignore social media at your peril".
Events do deliver benefits that social meia CANNOT.
Mar 10, 2011Hi Kevin –
Thanks for the support and comment. I think all the heat and noise on social media is a little overdone for advisors. That is not to say that there is room for improvement, but the tried and true approach to book building through events should not be forgotten. Then marry offline events with social media as the means to keep in touch with event participants and that is a great recipe for advisors and asset managers.
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6:52 pm
I think you’ve absolutely missed the mark on this one. Social media marketing is about a conversation designed to build relationships without an immediate expectation of financial return. Yes, ROI matters, but social media marketing success is not measured the way quarterly investment performance is measured. Social media can help satiate that hunger in a powerful way—if it’s done the right way. If not, you’re absolutely right: it’s hype that takes an undue amount of time. I think we can do better.
.-= Kevin Sime´s last blog ..Social Media is NOT like the yellow pages: a counterpoint for financial services =-.