Advisers warm up to Twitter, give cold shoulder to cold calling

Increasingly, social media the choice for reaching out to prospects

Apr 6, 2011 @ 3:59 pm

By Lavonne Kuykendall

Financial advisers may say they're confused by what constitutes proper use of social media in marketing. Nonetheless, a new survey reveals that advisers are increasingly turning to online networking sites such as Twitter, Facebook and LinkedIn to reach out to prospects and clients. At the same time, it appears cold calling has gone the way of Betamax and the woolly mammoth.

An online poll of advisers conducted recently by SEI Advisor Network, a financial adviser service provider, found that advisers have abandoned phoning prospects, with more using social media sites to prospect for customers. Indeed, one out of five advisers said they had used social media sites to introduce themselves to at least one prospect so far in 2011. Conversely, not one of the respondents said they cold-call for new clients.

Tim Shanahan, an adviser with Compass Capital Corp. is one adviser who has fully immersed himself in social media. Though he shuns Facebook over regulatory concerns, he has a blog, as well as LinkedIn and Twitter accounts. Typical posts include items about changes at the firm, investing and human interest items. Of the three, the human interest postings receive the greatest number of responses, which surprised him.

Still, Mr. Shanahan and others who make frequent use of online media may be the exception rather than the rule.

“More are using these sites, but the challenge is that regulations are kind of murky in regard to what you can and cannot do,” said John Anderson, head of practice management at SEI Advisor Network. As a result, many advisers put up Facebook or LinkedIn pages, and then never got around to doing anything else with them.

Indeed, follow-through seems to be a weak point for many advisers — and they know it. Nearly two out of three admitted that lack of frequency in their client communications was their biggest shortcoming. A much smaller percentage worried about timely, concise or understandable communications.

That could be a big mistake. A recent survey of millionaires conducted by the Spectrem Group found that 72% of respondents indicated the most common reason they dump an adviser is because of the adviser's failure to return a phone call in an expedient fashion.

And what qualifies as expedient? Well, 40% of respondents said they expect to hear back from their financial adviser within two hours of an initial call. (Click the following link to read more about the Spectrem survey)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Nuveen's Farris: How ETFs are democratizing ESG investing

What are firms doing to enable more investors to invest in ESG? Nuveen's Jordan Farris explains how ESG has evolved and how more can get involved in this sector.

Video Spotlight

Help Clients Be Prepared, Not Surprised

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

Why private equity wants a piece of the RIA market

Several factors, including consolidation in the independent advice industry and PE's own growing mountain of cash, are fueling the zeal to invest.

Finra bars former UBS rep for private securities transactions

Regulator says Kenneth Tyrrell engaged in undisclosed trades worth $13 million.

Stripped of fat commissions, nontraded REIT sales tank

The "income, diversify and interest rate" pitch was never the main draw for brokers.

Morgan Stanley fires former Congressman Harold Ford for misconduct

Allegations against the wirehouse's former managing director include sexual harassment, which Ford denies.

Senate tax bill changes for pass-throughs more generous than House version, experts say

Senate measure's handling of such small-business income is simpler and makes allowances for more service companies.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print