To catch fish

How can brokers and advisers apply technology in their businesses so that it empowers clients, and themselves, as opposed to overwhelming them.

As the industry becomes more defined by technology, brokers and advisers often have a sense of bewilderment as they try to define what operating in a technology driven industry means to them and their business.

A light at the end of the tunnel

While many see this as a major challenge, there is a sense of a silver lining around this dark cloud. This was the overwhelming message that was driven home at the recently held Independent Financial Advisers (IFA) Symposium.

Firstly, if brokers and advisers want to communicate and engage with clients in a better way, they need to operate where the clients are; on social media.

Philip Calvert, a Social Media Strategist and founder of LifeTalk (a professional networking platform aimed at financial advisers), said that personalized marketing that can attract attention is a major selling point brokers and advisers can use as a tool to gain new business.

"Social media is a great way to roll out your red carpet and add value to people’s lives. If you want to catch fish, go to where the fish are," said Calvert.

The rules of engagement

A lot has been said about the new breed of client and their ability to scour the internet for the information that they are looking for. The result of this is that clients are often very informed about a broker or adviser’s product offering long before they engage with them.

"The second aspect that brokers and advisers need to consider is how social media is developing. Social media platforms are rapidly becoming messaging tools because that is what their users are looking for. Facebook is no longer just a platform where you put up a picture of your dinner or your cat. Users are having meaningful engagements across these platforms," said Calvert.

What is the point?

The above information is valuable. However, we are not yet at a point where an adviser can offer advice or sell a product on a social media platform, and there is no indication on whether the regulator has any immediate plans to move towards making this acceptable. So how do brokers or advisers effectively position themselves over social media?

The first thing it does is it increases visibility. In the past, the main way of getting new clients was through referrals. But as Calvert pointed out, this practice was very effective five years ago.

"Humans are predominantly visually motivated beings. We respond to visual stimuli better than anything else. Studies show that the average person looks at their mobile device 264 times a day. If people are looking at their phones all the time, is it not a good thing to be visible on social media?" asked Calvert.

This presents a good opportunity for brokers and advisers to position themselves as thought leaders. This will bring clients to their page and subliminally create a foundation of trust.

The large pond

Going back to the fish reference, Calvert pointed out that we need to change our view of social media. Clients use it, it is here to stay, so we can’t go around adopting a head in the sand approach. Not with this.

There will also come a time where regulators will be casting their eyes on social media and regulating it. So, if a broker or an adviser wants to make hay while the sun is shining, the time to strike is now while the iron is hot.

Editor’s Thoughts:
At the end of the day, while there are some brokers and advisers who are becoming aware of the influence of social media, many are still apprehensive about it. Brokers and advisers need to be proactive to capitalise on increased business interest, no matter where it may be. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.

Comment on this Post

Name*

Email Address*

Comment*

 

Submit Comment