There is no doubt that social media is a powerful marketing platform for many businesses. However, is there a place for more traditional, conservative businesses such as wealth management companies on platforms like Facebook, Twitter or Instagram? Historically, financial service companies such as wealth management firms have shied away from implementing a social media marketing campaign. However, they are also missing out on marketing to potential customers who are ripe to begin establishing the financial habits that will secure a more stable financial future.
The financial services industry is a highly regulated industry that has typically shunned social media for a number of reasons including trust concerns associated with both security breaches and reputation control. However, are wealth management companies limiting their ability to expand and grow by opting out of wealth management marketing on social media?
Customer Service and Target Audience
It’s no secret that today’s youth are probably the least educated in terms of their finances and probably the one demographic that is the most need for sound financial guidance. They also live life online. Experts agree that the key target demographic for wealth management companies are recently graduated and just getting started in their professional lives. However, while wealth management companies understand the need to reach out to these individuals, they are disengaged from the social media platforms that provide the path to their front doors.
By instituting a wealth management marketing campaign and building a following on Twitter or Facebook, wealth management companies can create an open line of communication with the Millenials that desperately need their services and give them the instant access they want to sound financial advice. By giving your company a voice through social media, you make wealth management services more accessible to those who truly need it. This process builds the trust that wealth managers need to help clients reach their financial goals.
Social Media Analysis
The other benefit to using social media as a wealth management marketing platform is the ability to see real time analytic data. All social media platforms provide you with the ability to reach out to new demographics. They also allow you to see how well your marketing efforts are doing. Wealth managers can quickly see which demographics are responding to what content and allowing them to capitalize on those efforts while tweaking others. In addition, wealth managers can see what financial topics are trending in their own communities and contribute valuable information on those topics, allowing them to continue to establish their authority in the financial world and attract new business.
Savvy wealth managers can also use social media to track which demographics are the strongest within their communities and then develop targeted content based around specific milestones. For example, young professionals might be ready to begin investing for their financial futures and might have questions about starting a 401k or IRA. By getting out in front of those questions, you can position yourself as the leading authority and potentially land new business.
There is no doubt that there are risks in wealth management marketing on social media platforms. However, the risks of becoming obsolete are also very real. By taking a managed approach to social media, wealth management companies can control many of the potential risks while reaping the benefits of this powerful wealth management marketing tool.
