Scrolling to success: How advisors are mastering social media

It’s not just a niche section on a wealth management website anymore. Financial advisors catering to all demographics are realizing the value and power of a strong social media presence. Popular social media platforms like YouTube, Facebook, LinkedIn, Instagram, X (formerly known as Twitter), and TikTok help businesses grow and communicate with clients effectively.

No longer is a phone call or email reach-out campaign the sole way to get your message across as an advisor. The Advisor360°Connected Wealth Report: Client Edition revealed that financial advisors are using social media more than traditional communication channels. This change enables advisors to use technology to connect with clients, provide personalized advice, and reach more potential clients.

The changing professional networking landscape

Step into an advisor-focused industry conference. Gone are the days of stuffy hotel ballrooms filled with advisors listening to endless PowerPoint presentations expounding on markets and sales strategies. Now, it is all about developing the right kind of personalized connections, and social media is at the core.

The environment quickly shifted, too. People used to view posting on Facebook as a compliance risk, and heaven-forbid if you were to flip on a webcam to record a video about financial advice to upload onto YouTube.

It turns out that among the 2,000 mass affluent and high-net-worth investors surveyed by Advisor360°, half said they would be more likely to engage an advisor who uses YouTube, with Facebook and LinkedIn not far behind in popularity. We expect these numbers to sustain, if not grow, over the coming years. Effective social media use offers advisors the chance to provide educational content and real-time market insights, but perhaps the biggest advantage is engaging with clients across the generational spectrum.

Building trust through transparency

Establishing credibility is paramount for advisors aiming to grow their book of business. For seasoned advisors, paying attention to evolving client trends is pivotal. Social media platforms provide a medium for wealth managers to feature their value proposition and expertise, even in a fun way.

Picture the best, the catchiest, the most click-worthy TikTok videos or LinkedIn missives. What do they have in common? They are entertaining, educational, and authentic.

Social media is transformational for business growth, and advisors willing to be themselves and embrace it can stand out. By showcasing expertise through informative articles, videos, and infographics, advisors prove themselves as reliable sources of information. This transparency not only teaches clients but also builds trust and credibility, fostering stronger connections.

What’s more, there is no longer a stigma about being on social media. According to the survey, three-fourths of investors are either neutral or positive about their advisors being active on YouTube, Facebook, and LinkedIn.

Educational content delivery

Offering a place to learn about investing, retirement planning, and tax issues is good, but don’t make it a library. Bite-sized and snackable videos, articles, and even memes can go a long way toward increasing engagement

Don’t roll your eyes at this; it turns out that it will be crucial to bonding with the next generation of wealth. The Connected Wealth Report: Client Edition found that 56% of older Gen Z and younger millennials view Instagram as an advisor advantage. Of course, you may want to stick with YouTube, Facebook, and LinkedIn when sharing educational content with older generations.

Real-time updates and market insights

Sharing knowledge and tips on social media helps people make better financial decisions in their daily lives. For instance, a quick video reminder about making a year-end Roth conversion might be just the reminder needed to get a client to act on a plan.

You see, harnessing social media and technology is not just fun and games—it is a vehicle to drive clients to make smart money moves and buy-in to a financial plan. Offering real-time updates and market insights merely keeps the engagement level up (spoiler alert: it’s not about getting them to stay attuned to what the S&P 500 is doing).

Engagement and interactions on social media platforms

By now you probably recognize the value of social media and why so many successful advisory practices devote countless hours, money, and even headcount to it. Still, it is a challenge for even the savviest TikTokers and LinkedIn posters to get two-way communication going.

Here’s a tip: Be conversational and include a call to action for the readers. As for you, respond to comments and replies—that's the whole point. Immediate feedback often sparks conversations that can lead to more meaningful interactions.

Perhaps you want your clients to take steps to develop an estate plan. A video about a client’s difficult time after losing a loved one can improve online engagement. A true story with real people and human emotions can go a long way toward prompting clients to take the necessary steps.

Navigating regulatory challenges

Social media is a powerful tool to grow an advisory business, but there are risks. Always be professional and adhere to industry regulations. There is a constant and delicate balance between sharing insightful content and not crossing any lawful lines.

Managing online reputation

Along with staying within the navigational buoys, maintaining your authority and overall reputation is key. Maintain a professional demeanor and be proactive when responding to feedback and addressing any negative comments. Advisors proficient in social media outreach can turn disparaging remarks and criticisms into business development opportunities. That strategy also underscores a commitment to client satisfaction.

Looking ahead: Future trends

Technology keeps chugging along, and it can feel overwhelming for a busy advisor to stay abreast of the latest trends. Social media, artificial intelligence, chatbots, and virtual assistants are all poised to enhance the client experience further.

The future is all about personalized recommendations, streamlined interactions, and real-time support. Is that how your practice runs today? Maybe not so much.

There’s good news, though. Simply recognizing key trends today and taking small steps now can put you in a prime position to grow your business.

Ronnie Campbell is a Senior Content Marketing Associate at Advisor360°, responsible for generating insightful and engaging content that develops the company’s social media presence and story.