A recent study by American Century Investments yielded some counter intuitive results.
The survey found that advisors with 5-20 years of experience are savvier when it comes to social media than their younger counterparts. ACI conducted the survey earlier this year, soliciting views from 301 advisors from broker/dealers, independent b/ds and registered investment advisors.
It’s not surprising that social media usage by advisors is rising steadily. According to the survey, 57% of advisors use social media compared with only 25% nine years ago. It’s also not surprising that the advisors who eschew social media are doing so for compliance reasons. What is surprising is the population gaining the most from social media.
The survey found that 85% of advisors with 5-20 years of experience use social media, while only 44% of those with less than five years of experience do. Indeed, four out of five more experienced advisors have scheduled meeting through social media and say that social media usage has increased their assets under management.
Why are younger advisors staying away? Possibly, they may feel that social media is more personal in nature rather than a business tool. These advisors also may lack guidance from their firms regarding social media. With less experience, they may feel unsure about messaging in a medium that limits the amount of content. Compliance fears may also exacerbate their reluctance. The survey found that 41% of all advisors who avoid social media do so out of fear of making mistakes.
While social media can be daunting, it’s also an excellent medium through which to position your practice. While young advisors may make a distinction between social media for work and for their personal lives, clients are not likely to do so. Humor tends to play well, although it’s important to avoid anything controversial. Use it to express a bit of personality and get the message out about relevant topics regarding wealth management.
Importantly, while advisors may see a client in person once a year, social media offers regular exposure. This can help keep you top of mind for clients, and is especially invaluable in creating a referral network. For more on building your network through social media, please see:E
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Study: Older Advisors Are Savvier on Social Media Than Younger Advisors | Wealth Management