Social Media Pivotal to Recruiting Next-Gen Advisors
A new J.D. Power study highlights the technological and brand-centered changes firms must implement to satisfy a new generation of clientele and talent. One of these factors includes shining a light on social media in wealth management and retirement planning.
The firm’s 2025 U.S. Financial Advisor Satisfaction Study, released this week, shows that as more seasoned advisors near retirement (at 46% expected to leave the workforce within the next decade), a new wave of advisors are entering the workforce with different attitudes to amplify and lead the business.
One of these factors includes social media, which 45% of early career advisors ranked as among their highest priorities for investment. J.D. Power found that younger advisors leaned towards applying social media, advisor websites, and search engine optimization (SEO) strategies over webinars and in-person events/seminars, which advisors with longer career tenures preferred.
As this demographic enters the industry with divergent outlooks on social technology, J.D. Power predicts an uptick in firms using social media to market communications and draw in clientele.
“Most advisors are already using social media so we expect the change will be more about how it’s being used,” said Mike Foy, managing director of the wealth management practice at J.D. Power, to 401(k) Specialist. “Advisors will continue to move beyond just a passive social media presence intended to help with discoverability and prospect vetting, and into delivering thought leadership, fostering community and more personalized and targeted communication.”
Advisors focused on AI, branding
“Younger and early career advisors benefit enormously from consumer brand awareness and trust, which more and more is built and maintained through digital channels.”
J.D. Power’s study also emphasized the scope that artificial intelligence (AI) and brand awareness brings to firms. Advisors listed AI as the top technology that firms should be investing in, at 35% of respondents surveyed.
Brand image, on the other hand, saw differing opinions among young and seasoned advisors. When asked to describe their firm’s culture, 20% of advisors under the age of 40 would describe their firm as brand-conscious, while 35% of older advisors said the same.
J.D. Power touches on the significance in prioritizing brand image, noting that until younger advisors generate a book of business, they have to rely on a firm’s reputation and branding to gain new clients.
“Younger and early career advisors benefit enormously from consumer brand awareness and trust, which more and more is built and maintained through digital channels. As they build their book of clients they can obviously rely more on existing client and professional referrals to grow, but many prospects are unlikely to give a younger advisor a chance unless they are affiliated with a known and trusted brand,” said Foy.
Stifel, Commonwealth take top scores
Among employee advisors, Stifel ranked the highest in overall satisfaction for a third year in a row, with a score of 819. Edward Jones and Raymond James Associated followed at 729 and 722, respectively.
Among independent advisors, Commonwealth scored the highest marks in overall satisfaction for a 12th consecutive year, winning the title with a score of 834. Raymond James Financial Services came in at second place with 741, while Cambridge placed third at 686.
J.D. Power ranks employee advisors among six dimensions, including compensation; firm leadership and culture; operational support; products and marketing; professional development; and technology.
The 2025 study is based on responses from 3,698 employees and financial advisors and was fielded from December 2024 through April 2025.
SEE ALSO:
Retirement Plans Still Lag in Digital Experience: J.D. Power
Vanguard, Raymond James Top New J.D. Power Rankings for Investor Satisfaction
J.P. Morgan Wealth Management Tops J.D. Power’s Digital Experience Rankings
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
