Social media is changing the way financial advisors interact with their clients. According to an update of the Putnam Investments Social Advisor 2020 Study, 74% of U.S. financial advisors used social media for business initiated new relationships or onboarded new clients since the start of the coronavirus pandemic back in Ferburary. In fact, over half (55%) of advisors who initiated new client relationships during this time, increased their use of social media.
In June, Putnam conducted a pulse survey of 252 advisors across the United States to explore changes in their use of social media in light of the COVID-19 pandemic. The results see the continuation of the trend seen at the end of 2019, as 89% of advisors told the global asset management firm that during their tenure as advisors they have gained new clients attributable to their social media activity.
“When it no longer became feasible for advisors to hold in-person meetings due to stay-at-home and social distancing orders, many professionals turned to social media to help clients and prospects weather the financial and emotional impact of the crisis,” commented Mark McKenna, Head of Global Marketing at Putnam Investments. “Advisors’ active use of social media during the pandemic has been critical to their success, not only in communicating with prospects and referrals, but also in advancing their ongoing relationships with clients,” added McKenna.
The study found that advisors have proven adept at managing their practices through the pandemic by finding additional ways of interacting with their clients, including greater use of social media. Furthermore, 84% of respondents expect that the changes made to their communications methods will largely be kept intact moving forward.
“It is encouraging that some of the changes advisors made to how they use social media in their practices during the pandemic will become foundational for their communications with clients on a go-forward basis,” explained McKenna.
The study found that nearly three-quarters of advisors (74%) relied on direct messaging through key social network platforms to communicate with clients and prospects; of those, 94% reported gaining new assets. Of particular note:
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50% use direct messaging on LinkedIn, with 92% gaining assets
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38% use Facebook for direct messaging, with 98% reported gaining assets
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33% use Twitter for direct messaging, with 98% gaining assets
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26% use direct messaging on Instagram, with 98% gaining assets
Choosing A Social Media Platform
While all of the social network platforms tracked showed increased use since the first Putnam Social Advisor Study in 2013, and more advisors use multiple platforms, LinkedIn remains the clear leader::
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LinkedIn (85%)
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Facebook (65%)
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Twitter: (57%)
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YouTube (53%)
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Instagram (46%)
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Snapchat (31%)
In their use of LinkedIn during the first few months of the pandemic, nearly half of advisors (48%) who initiated new relationships report using the platform’s InMail feature to contact out-of-network prospects and 36% say they have hosted or participated in a LinkedIn Live session. Additionally, 80% of advisors who initiated new relationships since late February used one of LinkedIn’s premium memberships.
Social Media Support from Home Offices
Nearly 90% of advisors reported that support from their home offices made a positive difference as they worked remotely by enabling and supporting their use of social media. Importantly, advisors pointed toward specific areas where their home offices have laid the groundwork for their social media efforts, including providing timely content to post (55% of advisors); expanding the number of social networks approved for business use (48%); providing access to support resources (45%); and offering training from partner firms (40%), home office (37%) and third parties (27%).
