The use of social media networking by financial advisors in the U.S. is gaining momentum, according to a study released in September.
Texas-based Socialware Inc. polled 144 advisors and found that more than 84% were using LinkedIn, Facebook and Twitter for their businesses. That’s higher than Socialware had projected in 2010’s study, when only 60% were using social media. At the time of the 2010 study, Socialware expected that number to rise to 71% over the next 12 months.
Advisors who use social media to network spend an average of five to 60 minutes checking in on various sites. More than 35% of study participants reported success in finding prospects using social media, many of those turning into new clients.
The 2011 study found that 80% of advisors had a social media policy at their firms, up from 57% last year. However, many advisors thought there still are roadblocks ahead: 38% said compliance issues and an inability to archive data — a regulatory requirement — will prevent them from enjoying the full use of the medium.
Although Socialware’s study participants are American, the study’s results reflect the situation in Canada. Says Christie Campbell, Socialware’s marketing director: “The patterns and issues are similar for advisors in both Canada and U.S. Use of social media for business is on the rise and, as companies do more to address regulatory compliance concerns, the focus shifts from risk management to ROI.”
This trend doesn’t surprise Simon Reilly, a business coach with Parksville, B.C.-based Leading Advisor Inc. In a survey of 69 advisors conducted in May, he found 49% had LinkedIn profiles, 9% were on Twitter and 7% were on Facebook. IE