Advisers getting better at social media, but still have work to do

Financial advisers are getting better at using social media to attract new clients but still have room for improvement, according to a new study by Hearsay Systems, a digital communications fintech.

An analysis of 14 million published social media posts from across the financial services industry, including 3.6 million from wealth management firms, found that while posts about a firm's or an adviser’s personal stance on issues are the most engaging, they only account for 1% of total posts. Lifestyle posts were the second most engaging and made up 15% of social activity.  

Posts offering financial education were most popular at wealth management firms, making up 29% of posts, followed by corporate branding at 22% and news at 21%. While corporate branding posts engaged advisers’ followers at the same rate as lifestyle content, financial education and news were significantly less engaging, according to the study.

Advisers are getting better about being more personal on social media but there's opportunity to improve, said Leslie Leach, chief marketing and strategy officer at Hearsay. Content showing a firm’s involvement in its community tend to perform particularly well, and firms doing that well are seeing a return on the investment.

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“Messaging about principles, what the firm stands for or what the adviser cares about, those things all slightly improved [in 2021],” Leach said. Especially in wealth management, where advisers are trying to build more long-term client relationships than in some other sectors of financial services, social followers want to feel good about the adviser they're working with. “It is still the smallest content category that’s suggested by corporate and then published, but when people do use it, it’s impactful,” she said.

Another area where many advisers are falling short is social media profiles. Too many advisers’ profiles are missing a photograph, have incomplete personal summaries or don’t include a phone number, Leach said.

LinkedIn is still the most popular social media platform for financial advisers, and text posts on LinkedIn drive the most engagement with followers. Facebook posts are the second most popular among advisers as well as the second-most engaging with followers. The best posts tend to be unique perspectives or insights from advisers, even if there isn’t an accompanying link or image, Hearsay found.

Advisers are also starting to dip their toes into Instagram, where the most popular posts tend to be videos. The visual nature of the app is organically appealing to consumers, but financial services firms have been slow to add it into the mix, Leach said.

Jennifer Weber, vice president of financial planning with Weber Asset Management, a boutique RIA with $450 million in assets under management, launched a professional Instagram account in July 2020. While she describes it as “a work in progress,” it has led to some new clients and has been a fun way to engage with younger investors.

“One of the reasons why I entered the wealth management business was to help others with financial literacy, so this seemed like a great option, especially since I preferred Instagram to other social media platforms,” Weber said.

The biggest challenge has been finding the time to create video content, Weber said. “Ideally to grow, you need to post three times per week consistently … and I haven’t been able to keep that momentum going. But I would like to.”

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