Financial advisors realize business development gains through social media

Lawyers aren’t the only professionals using social media for business development.

Hearsay Social’s Meghan Herfkens Hency (@mherf) reports that 75% of financial advisors are using social media for client development. This per Putnam Investments 2014 Social Advisor Study released this week.

It’s working too. 66% of financial advisors have gained new clients through social media, up from 49% a year ago.

The quality of business obtained through social media is nothing to sneeze at either.

This year, 39% of respondents who reported gaining new clients through social media gained new assets of more than $1 million, with an average gain of $5.5 million. The median booking was almost $2 million in new assets, close to triple the level reported by the 2013 respondents.

Women financial advisers are leveraging social media more than men.

• 82% use social media for client development
• 71% have gained clients through social media
• $5.6 million was the average asset gain/li>
• 67% give social a significant marketing role
• Women advisors use three or more social networks for business

Advisors under age 30 blur the lines between personal and professional on social media.

• 94% use social media for business development
• 80% have gained clients through social media
• $5.7 million was the average asset gain
• 31% use smartphones as the access of choice to social media
• Advisers Are more likely to consider all major social networks equally relevant and effective

Five take aways for law firms.

1. Social media works for business development by professionals. Real and authentic engagement through blogging and social networks establishes trust, relationships, and a word of mouth reputation. The same sort of networking professionals did offline works offline.
2. Just as the average asset gain was significant for financial advisors, sizable business gains can be realized by lawyers through social media.
3. Professionals are out networking and socializing online. Lawyers not effectively blogging and using social networks such as Facebook, LinkedIn, Twitter, and Instagram are missing an opportunity to connect with potential clients and referral sources.
4. Investment professionals are highly regulated in what they can do for sales and business development. Legal regulations and ethical cannons do not limit lawyers using social media.
5. Social media and social networking comes naturally to younger professionals. Empowering and encouraging younger lawyers to leverage social media will grow their book of business and the business of the firm.

Face to face networking is of course still vogue for client development. But with the prospective clients of professionals socializing online more than offline, a professional is playing with fire in not learning how to leverage the power of blogs and social networks for business development.

Image courtesy of Flickr by Alex Proimos