How Social Media Can Grow Financial Advisors’ Businesses

Posted by adaniels in Blog on February 22, 2012

Financial advisors who want to keep up with the best ways to talk with their clients ought to consider social media, RegisteredRep.com argues. The publication says that many advisors are “behind the curve“ when it comes to interacting with their clients on social media, which could prove costly. This is because investors are more likely to refer a financial advisor to someone they know on both a personal and professional basis, as opposed to someone they only know professionally, so that means that those who are not savvy with social media could be missing out.

RegisteredRep.com says that their research has discovered that “social prospecting in affluent circles today is what cold calling was some 25 years ago,” and that “it’s what public seminars were about some 15 years ago.” Basically, that means is that those who want to be “elite” financial advisors need to get connected with social media, and use the tools to grow their business.

Social media, the article argues, may be a new technique, but it is directly related to an old one — word-of-mouth-influence, also known as WOMI. RegisteredRep.com says that WOMI is the “high-octane fuel” that motivates decision making.

Financial advisors who use social media “can now schmooze with their top clients, meet their friends in a non-threatening environment, develop rapport, build personal relationships, and transition their clients’ friends into new clients,” the article says. And those types of connections are critical when it comes to growing a financial advisor’s business. The article suggests using “strategic intent” with the socializing to prospect for new clients, and foster relationships with current ones, and says that those who do can see great success.

Written by Lisa Swan

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