Social media increases AUM

Almost half of U.S. advisors (48%) interact daily with clients through social media, finds an Accenture survey.

In fact, these advisors see the rapid adoption of digital technologies changing their relationships with clients and view social media tools as increasingly critical to their individual success.

Read: How to measure social media ROI

The survey shows:

• 74% believe social media helps them increase assets under management;
• 50% have successfully used social media to convert prospects into clients;
• 49% believe firms that fail to leverage social media will lose clients to firms that do.

“Wealth management firms that fail to adopt social media will miss an opportunity to build relationships with clients on their terms,” says Alex Pigliucci, global managing director of Accenture Wealth and Asset Management Services. “This is becoming increasingly critical as investors are demanding online resources to help them better understand investment strategy and advice.”

Read: Should you outsource social media tasks?

Advisors overestimate clients

The survey also compares investment perspectives of advisors and high-income, digitally savvy investors, and examines the client-advisor relationship. It shows advisors are overestimating the investment knowledge and risk appetite of their clients.

• 42% of advisors describe their clients as “very knowledgeable,” compared to 12% of investors;
• 28% of advisors see their clients as “aggressive” investors, compared to 13% of investors;
• 67% of advisors claim to have a personal relationship with their clients; only 38% of clients view this relationship as personal.

Read: Overcoming social media barriers

“Firms need to implement deliberate social media strategies and provide their advisors with the tools and guidance to make their digital interaction meaningful,” says Pigliucci. “This will help create tighter client relationships, increase the firm’s visibility on digital channels and, ultimately, drive business for the institution.”

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.