There has been a surge in the percentage of financial advisors in the U.S. who have attracted new clients through social media over the past three years, according to new a study by Boston-based Putnam Investments.
Specifically, 80% of the 1,000 advisors surveyed for the Putnam Investments 2016 Social Advisor Study say their client base grew in 2016 with the help of social media compared with 49% who said the same in 2013. As well, 85% of survey participants say social media has shortened the time it takes to turn a prospect into a client compared with traditional approaches.
“The use of social media by the financial advisor community has matured to a level at which it’s ingrained in how business is conducted and how professionals communicate with their clients and prospects,” says William Connolly, co-head of global distribution with Putnam Investments, in a statement on Friday.
Overall usage of social media has also increased in the past few years as 85% of advisors say they have incorporated these online networks into their business practices compared with 75% in 2014. In particular, Facebook usage for business has jumped to 54% in 2016, which is 18 percentage points higher than in 2014, while LinkedIn has also increased in popularity, with 73% of advisors using it in 2016 compared with 64% in 2014.
“Our research indicates that not only are a huge swath of advisors using social media in their practices today, they are actively combining their professional and personal presence on multiple platforms to further develop and strengthen their client relationships,” says Mark McKenna, head of global marketing at Putnam Investments, in a statement.
The study also builds a profile of the average “social advisor,” who’s 43 years old, works at an independent dealer and has 10 years of experience. This advisor has a median level of US$92 million in assets under management.
More details on the study can be found on Putnam Investments’ website.