Why All the Buzz About Social Media?
January 31, 2012 Leave a Comment
Information is exchanged via an ever-evolving, rapidly expanding network. Not only is the amount of information increasing, the sources of that information and the avenues for accessing it are also increasing. Google is the largest search engine in the pack, and its dominance in the marketplace is changing how we speak about information – you don’t just look someone up, you “google” them. When even the vernacular has changed, the ways we reach out to clients and potential clients needs to change, too.
Social media is on fire when it comes to client acquisition. Advisory firms using social media are growing faster than their counterparts not using social media – three times faster in terms of annual revenue, AUM, and client base, according to Alte Group Advisor Survey Q4 2009. These advisors still need to deliver on their value proposition, pursue efficient operations, and fulfill client expectations; the difference is they are getting more exposure by being in the social media mainstream.
Mainstream? Yes. Social media is mainstream, not because the younger generation uses it but because older generations have adopted it, too. In the market segment of age 55 and older, over 27.5 million individuals indicated they use social networking. Even more staggering, the majority of social network users are actually individuals over 35 years old. For many advisors, these individuals represent their target demographics. Instead of social media, think social networking. Literally expanding your network.
The sheer volume of those numbers presents a great opportunity; now expand your thinking further to see the full vista – your competitors are not using social networking! Again, the proof is in the numbers: two out of three firms say they have a social media policy, however, 83% of those firms do not even maintain a corporate social networking site. In other words, your existing clients and potential clients are in the social networking world, most advisory firms are not.
Therein lies the opportunity. Use social media as an element of your marketing plan, develop a strategy for engagement – and grow your business.