No more excuses for not being wired

We live in a wired world, both personally and professionally. Yet the financial industry continues to lag behind when it comes to social media. I spoke last month to a group of registered investment advisers on leveraging the power of social media. The audience, consisting of partners, compliance officers and financial advisers, was eager to hear more, even though the majority of the firms barely use social media. Here are seven reasons why firms and advisers shouldn't hold off any longer: Using social media is allowed. Both the Financial Industry Regulatory Authority Inc. and the Securities and Exchange Commission have acknowledged their understanding of the role that social media plays in our everyday world and have issued guidelines on its use. It isn't that firms can't use social media but rather that their compliance departments haven't drafted a policy, set up archiving and monitoring of social-media activities, and developed a strategy for how advisers can build their practices using these tools. If an adviser's firm contends that it can't use social media, it is time to push back on the issue before competitors are so far out in front that it is difficult to catch up. With massive resources available to help firms implement social media, there is no longer any excuse. Increase website traffic. Most advisers have a website, yet the majority of sites don't receive the amount of traffic desired. Sites such as Facebook, LinkedIn and Twitter are excellent ways to drive more traffic to the site. By listing a website on social-media profiles and also having badges on a website that link to these profiles, advisers will capture and engage visitors from a variety of different channels. Allow clients and prospects to find firms more readily. Search engines love social media. If someone Googles an adviser's name, the Facebook, Google+, LinkedIn and Twitter profiles will be among the links on the first page of the search. Advisers who don't use these social-media sites are missing a prime opportunity to be found by clients and prospects. Build the brand. Social media helps build brands, and it is important for advisers to remember that they are the brand, not the products and services they offer. The bottom line is that an adviser's profile shouldn't read like five compliance attorneys drafted it but rather flow like a normal conversation (minus the industry buzzwords). Boost networking and referrals. It is no secret that clients, especially wealthy ones, prefer to find an adviser through a personal introduction. Being present on social media helps facilitate such introductions. Advisers are able to see who their connections have in their networks, and can ask for an introduction to individuals they wish to meet. This has been the greatest return on investment for the social-media efforts of our adviser clients. Engage the firm's audience. Social media is designed to foster conversations and facilitate interactions. Even if a firm doesn't allow users to post comments or advisers to participate in groups, social media remains a great way to share content and educate a firm's audience. Posting relevant articles and asking thought-provoking questions helps clients and prospective clients think of the firm's advisers as experts. Add a research tool. Rest assured that clients and prospects research advisers before they ever walk in the door. By developing solid social-media profiles, advisers can help control what people learn. Don't overlook this critical piece. Take time to create content that is reader-friendly and engaging. Further, social media is an excellent way for advisers to seek information, research and get to know clients and prospects, follow competitors and examine industry trends. There is a wealth of information. These are just a few of the benefits of incorporating a social-media strategy into an overall marketing plan. Don't get left behind. Kristin Andree (kristin@ andreemedia.com) is president of Andree Media & Consulting.