While the industry continues working to adopt social media, it appears that financial advisors have taken matters into their own hands. More than 84% (up from 60% in 2010) of the 2011 survey respondents use social networks for business purposes, and this number is expected to continue growing based on survey feedback.
The other major question to address is whether or not social media can have a measurable impact on an advisor’s business. More than 30% of the respondents using social media for business have been able to cultivate referrals, and 35% have generated new prospects with many of these prospects converting to new clients.
One advisor commented that social media is a great way for prospects and clients to learn more about us and deepen relationships. In an industry that is driven by the quantity and quality of advisor relationships, this demonstrates the impact of social media. Clearly advisors are finding new ways of integrating social networks into their overall sales, marketing, and client retention plans.