Social media referrals remain a challenge for advice practices
Research conducted on advisers’ social media usage finds challenges in converting engagement to referrals.
Financial services company BT found that an overwhelming majority of advice practices use Facebook and LinkedIn to increase brand awareness and share information, but only a third are converting social media activities to referrals.
The majority of advisers have a presence on social media, with up to 78 per cent of advisers using Facebook and up to 75 per cent using LinkedIn.
YouTube and Instagram are not far behind, while only 6 per cent of practices use Twitter.
Social media spend was also found to be low, with almost all practices surveyed spending just less than 10 per cent of their marketing budget on social media.
The research suggests advisers are opting to take charge of their own social media rather than outsourcing it, as an overwhelming majority found social media promotion is best generated by their own employees. Only 11 per cent of advisers find advertising through paid posts is effective.
Up to 51 per cent of practices failed to obtain referrals via social media, while 37 per cent have obtained referrals via social media in the past 12 months.
Christopher Mather, head of platforms at BT, said: “These results suggest that advisers may be trying to get the balance right between engagement and sales activities on social media.
“And, as with any digital media usage, there tends to be a cohort who are early adopters and, in this case, maybe using social media to obtain referrals more proactively. Meanwhile, others are still making their way up on the learning curve.
“Generally we are hearing from an increasing number of advisers that establishing referral relationships is an area that they are looking to improve on, as part of their growth plans.”
The research gained valuable insights into advisers’ social media activities and perceptions, with over 400 advisers taking part in BT’s three-part social media webinar series.
While LinkedIn was found to be the preferred platform for most practices, there was still room for improvement. Only 41 per cent of respondents actively post to their company page, while 33 per cent of respondents were unable to recall the last time they updated their profiles on the platform.
“Customers are conducting more research into financial products online. It’s fair to say that they may also be reviewing financial advisers’ LinkedIn profiles, before engaging their services,” Mr Mather said.
“It’s surprising that advisers aren’t more active on LinkedIn; they may be missing opportunities to expand their client base and referral networks.”
BT’s social media survey findings were conducted in March 2022.
