60% of Financial Advisors in North America are Using Social Networks to Drive New Business: Study
2 September 2010
According to a survey by Socialware, over 60% of financial advisors in North America are using social networks to drive new business and build better relationships with customers. The survey consisted of over 30 questions and was completed by a total of 196 financial advisors; 44% of the respondents have an average account size of $300K and more than 53% of them have over 100 clients.
- In addition to the 60% who are already using social networks for business, 11% more plan on using them in the future.
- Of the 29% with no plans to use social media in the future, 85% of them are prohibited by their firms.
- The average number of social networks employed is 1.8.
- Linkedin is the most popular social network used.
- 100% of the respondents believe that social media has a positive or neutral impact on their business’ reputation.
- Over 60% agree that there is business value in adopting social media as it allows them to gather information on the clients without having to meet them face to face.
- 47% have identified one or more referral from their social media activity.
- 36% have acquired new customers through social media.
- 10% stated they identified over 21 new referrals.
- 57% are aware that their company has a policy in place.
- 11% were unsure if a policy existed.
- 40% believe that the firm’s social media policy is a detriment to performing one’s job successfully.
Socialware’s findings are in line with a survey conducted by Ledermark Communications in March of this year which found:
- LinkedIn was the top social networking site used for business and Facebook for personal use; however, both social networks allow them to be more visible, have a platform for questions and answers, and reconnect with old friends, introductions and referrals — all cited as how social media helped bring in business.
- Respondents agreed that social networking will be an important business tool within five years.
- None of the respondents claimed that social media wasn’t worth their time.
Here is presentation that conveys the findings:
One of the big questions that Investor relations officers have about social media is the ROI of using these channels as part of their IR communications strategy. Both of these studies convey the power in using social networks to make new business connections and build better relationships with customers. These are two compelling reasons why public companies should consider when pondering using social networks for investor relations.