More evidence that engaging with clients on social media is a good way to foster the advisor-client relationship comes from a new survey from advisor marketing and practice management solutions provider Broadridge Financial Solutions, Inc.
It shows that clients are very open to their financial advisor following them on one or more social media platforms.
A vast majority of Millennials (89%) and more than half of Gen X (59%) respondents to the Broadridge survey, released April 12, said they are open to their financial advisor following them on one or more social media platforms.
The survey shows that Facebook is the most preferred social media network for advisor-client engagement, with 61% of Millennials, 38% of Gen X and 19% of Boomers open to an advisor following them on the platform.
Advisors have the ability and invitation from their clients to be informed and a part of their lives like never before—if they take advantage of the opportunity by using social media to help build relationships.
This is a topic that was brought up again and again during the recent Fi360 Conference in Nashville and the NAPA 401(k) Summit in Las Vegas, and was also the focus of a recent Putnam Social Advisor Survey which found that 92% of advisors who use social media for business say it has helped them gain new clients.
During Joey Coleman’s keynote session at the NAPA 401(k) Summit in Las Vegas, Coleman recommended 401k advisors go as far as to “do their homework” in advance, researching prospects on social media to add something extra, such as having their favorite beverage or snack available for the kickoff meeting.
Evolving social behaviors and technology innovations are reshaping client preferences and rewriting the relationship roadmap for financial advisors, the Broadridge survey concludes.
As investors across generations become more accustomed to highly individualized user experiences and client-centric customization in other aspects of their lives, financial advisors must adapt as they compete for clients, their attention and assets.
Clients want engaging and actionable advice
There is an opportunity for advisors to reconsider the content they distribute to clients in order to strengthen relationships.
Fifty-three percent of those surveyed indicated there was some level of customization in their investor communications by calling them “personally relevant,” but, when asked to further describe those communications, fewer than four in 10 respondents said they were “engaging” and fewer than 3 in 10 reported them as “actionable.”
“As a result of technology transforming the customer experience, investors have come to expect a certain type and level of service no matter the industry or consumer relationship,” said Chris Perry, head of Global Client Solutions at Broadridge Financial Solutions at the SIFMA Private Client conference. “It’s clear investors want to interact with their advisors on social channels and want high-quality, engaging and actionable financial advice. This presents a real opportunity for advisors to provide more personalized communication and experiences.”
From personal meetings to digital updates, a recent Broadridge white paper, “Decoding the Millennial Mindset,” showed that Millennials in particular like hearing from advisors more than other generations—69% of Millennials prefer monthly or more frequent communications.
“The financial services professionals who understand the Millennial mindset and adapt to reach this generation will have an immediate competitive advantage and significant market opportunity for referrals and long-term growth,” said Donna Bristow, Managing Director of North American Wealth at Broadridge.
Beyond general retirement planning, Millennials also have interest in learning about Health Savings Accounts (HSAs) and Environmental, Social and Governance (ESG) funds—two topics which lend themselves nicely to providing clients with educational content.
With an eye toward “making the world a better place,” ESG investing, in particular, has been shown to incentivize Millennials to start saving or increase their 401k plan savings.
Relationship status: It’s complicated
Breaking with the long-held industry belief that clients will overwhelmingly follow an advisor if they leave their firm, the survey revealed that nearly half of Gen X clients (47%) said they would remain with their current firm regardless of whether their advisor made a move. Thirty-nine percent of Boomers and one-third of Millennials would do the same.
In today’s world, brand and customer experience matter.
The survey found that 47% of Gen X and 42% of Millennial respondents stated that the reputation of an advisory firm was more influential in their decision to work with a financial advisor than the advisors themselves.
‘Friend’ Millennial prospects the right way
The white paper recommends advisors update their LinkedIn profile to include personal interests and an approachable photo, and downplaying skills as a salesperson.
“They prefer personal meetings in the beginning and plenty of periodic communications that keep the professional relationship personal and relevant,” the white paper says.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
