According to the fifth edition of Putnam Investments’ Social Advisor survey, more advisors than ever before are using social media to grow their business.
The survey, which included 1,014 U.S.-based financial advisors and was conducted in November 2017, found 86 percent of advisors reported that social media activity helped them gain new clients, up from 49 percent in 2013. Additionally, while the average amount of assets gained that advisors attributed to social media remained flat at $5 million, top advisors ($100 million+ in AUM) reported $7.8 million gained through their social media use.
While social media has been recognized as a key communication channel for advisors for several years, the survey uncovered a few new trends related to how advisors are using this channel to grow their business.
First, nearly nine out of 10 (88 percent) advisors reported that social media has changed their relationship with their clients. Two thirds indicated that social media makes it easier to share information, and nearly 60 percent have increased the number of touchpoints they had with their clients throughout the year.
Second, 54 percent of advisors indicated their plan to go deeper with their existing social network presences, with a majority of high-AUM advisors indicating that they wanted to add new social media team members and connect social in a more meaningful way to their marketing automation efforts. While grassroots and “DIY” efforts were sufficient in the past, more advisors are recognizing the need to have a strategic approach to their social media use today.
Finally, more than 80 percent of advisors indicated that their social media use helped them shorten the time required to convert a prospect into a client. This finding suggests that strategic social media usage not only helps advisors attract new clients, but also do so in a more efficient way than through other traditional channels.
To download the full survey report and learn about Putnam’s Social Advisor Maturity Curve, visit www.advisorsAREsocial.com.