Many advisers are using social media as their main marketing tool but most are failing to deliver the right mix of messages to attract the interest of their clients, according to Intelliflo research.
Seven out of 10 of the 379 users of Intelliflo’s Intelligent Office who took part in the 2018 survey used social media for business purposes, up from 58 per cent in 2014 when the company first ran the poll.
Events was the second most popular method of marketing, used by 36 per cent, while sponsorship was third, used by 31 per cent.
LinkedIn was found to be the most popular social media platform for business, with 57 per cent using it, with Facebook coming second at 41 per cent and Twitter at 40 per cent.
Lucas Wilkens, EMEA managing director at social media service Hearsay, said: "Understanding how consumers interact with social media is the key to gaining engagement and building a credible business brand via the different social platforms.
"Much of the frustration we see with social media marketing is down to the disconnect between what advisers think they should publish and what their potential audience actually wants to see.
"It’s about getting the balance right. Our analysis of 3.4 million posts from the 77,000 advisers who use our service worldwide shows that the most successful ratio is 70 per cent lifestyle, 20 per cent financial and 10 per cent corporate yet many advisers, particularly in the UK, fall into the trap of posting few, if any, lifestyle posts."
From the 77,000 advisers who use our service worldwide shows that the most successful ratio is 70 per cent lifestyle, 20 per cent financial and 10 per cent corporate yet many advisers, particularly in the UK, fall into the trap of posting few, if any, lifestyle posts.Lucas WilkensAsked why their company gets involved in social media, the top answer - at 56 per cent - was "to be seen to be keeping up with modern communications systems", putting last year’s top answer, "to attract new clients", into second place at 54 per cent.
For the 30 per cent who didn’t currently engage in social media, lack of knowledge and understanding about how to engage with it to provide business benefits was less of an issue, with just 13 per cent giving this in 2018.
The Financial Conduct Authority issued guidance on the use of social media in 2015, which said firms need to include risk warnings when mentioning certain products or services online.
Firms also need to have an "adequate" sign-off procedure for social media messages with a "person of appropriate competence and seniority" controlling them.
Intelliflo's survey found governance had improved among those firms which use social media. In 2018 58 per cent of advisers had formal written policies for using social media, compared to 48 per cent in 2017 and just 25 per cent in 2014.
Nick Eatock, Intelliflo’s executive chairman, said: "It’s good to see that governance is increasing for social media usage and it appears advisers are gaining confidence about using social media platforms to engage with existing and potential clients.
"However, as the data from Hearsay illustrates, advisers can make marketing via social media much more effective if they adapt their posts to appeal to those who engage with the various different social platforms, rather than focusing on mainly corporate or financial-related messages, although I appreciate this may seem counter-intuitive initially."
damian.fantato@ft.com
