Top business challenges for financial advisors

The increasing burden of compliance and regulations

Unsurprisingly, research carried out on a representative sample of financial advisers identified the current top business challenge facing them is the increasing burden of compliance. This was selected by nearly half (49%) of the advisers surveyed[1].

But after compliance and regulation, the next another significant challenge commonly faced by established financial adviser businesses is servicing existing clients to lock in the client business for an eventual sale or business exit, selected by (28%) of the advisers surveyed. This makes total sense, as retaining existing clients is considerably less expensive than acquiring new ones. It’s very well documented that generating business from new client acquisition can cost anything between 5 to 25 times more than it does from an existing client.

Keep your business in front of your clients

Loyal clients expect to receive regular engagement from their financial adviser. One very under-utilised method of delivering this is via social media. When used correctly, social media will keep your business in front of your clients and enable you to create a series of touch points throughout the year in between annual face-to-face meetings.

Social media and the marketing opportunities it provides for the financial services industry will continue to grow over the coming decade. Facebook, Twitter, LinkedIn and many other popular social mediums have become the modern equivalent of the coveted ‘word of mouth’ that traditional financial adviser marketing has relied on for generations.

Deepen your connections with existing clients

Do you use social media to keep your existing clients engaged with your business? Social media marketing can help deepen your connections with existing clients so they continue to carry out further business with you, provide personal recommendations, and remain focused on you and not the competition. Building the right social media presence will enable your business to connect with clients in real time.

Having said this, it’s important to select the right social media platforms for your business. Over the past few years at Goldmine Media, the most successful outcomes we’ve seen from our own clients is when they’ve been selective with more targeted social media channels, rather than trying to spread themselves too thinly across too many channels that aren’t relevant to their audience and business.

Consistent image, messaging, tone and content

Twitter is a popular option and works well for many financial adviser businesses when used to its full potential. While there’s nothing stopping you from utilising multiple social media platforms, ensure that while keeping your business image and messaging consistent, your tone and content is appropriate for each outlet.

LinkedIn, for example, is a professional platform, while sites like Facebook, Pinterest and Snapchat are typically more informal, with users using them for personal entertainment and value. As a result, you may choose to keep your company or more corporate posts on LinkedIn or Twitter.

5 ways to build an effective social media presence:

1. Respond quickly: encourage clients to engage with your business on social media by providing fast, personal replies. Quick responses can start conversations and defuse negative situations. Responses should be signed by individual members of staff to increase transparency and build further trust.
2. Create compelling graphics: informative, easy-to-understand graphics should be some of the most important tools in your social media arsenal. They need to stand out in a crowded news feed and provide a high-impact sharing option. Graphics should tell a story with both text and imagery. You can increase relevance by linking the graphic to a related article on your website or blog. One graphic can be shared across LinkedIn, Facebook and Twitter, and don’t be afraid to add a personal comment. You can boost engagement by combining a high-quality image with a short, instructive caption.
3. Add value: long-form social media tools such as blogs and LinkedIn enable you to add valuable content for your target audience. You might want to provide tips about investing more tax-efficiently, or things to do in the run up to the end of the tax year. Post the link to other social media accounts to drive traffic back to the original post, and encourage click-throughs with an attention-grabbing title, a compelling preview image and a short comment.
4. Use video: done well, video is a powerful way to get clients and prospective clients talking about your business. Video allows you to be concise and capture the viewers’ interest in the first few seconds. Social media success lies in your ability to condense information down into easily digestible snippets of content that is long enough to maintain the viewers’ attention but short enough to leave them wanting more.
5. Ask for feedback: want to increase client engagement? Ask for it! For the best results, keep posts short and easy to follow. Use instructional phrases such as, ‘Tweet us’, ‘Tag us‘ or, ‘Which do you prefer?’ to tell clients or prospective clients how to respond. This method is easy and fast – and you can use it on any social media platform.

When it comes to engaging with your clients on social media, small, regular nurturing efforts are more effective than a one-time activity. Over time, these small efforts will result in a loyal, engaged social media following. Your audience may be looking for answers to their financial questions online, and you can use social media to answer those questions.

Want to keep ahead of your competitors?

Need to master a social platform? Looking to discover how to improve your social media marketing? For more information about how Goldmine Media can help your business, talk to a member of our Business Development Team on 0845 686 0055, or email: findoutmore@goldminemedia.co.uk.

Source:

[1] Research data compiled by NextWealth 2018 from 206 respondents – 64% from firms with five or more registered individuals or £100 million or more of assets under administration. Using an online survey, computer assisted insights.