Thinking Beyond LinkedIn

On May 24, 2009, In Uncategorized, By Bruce Johnston
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By D. Bruce Johnston, President, DBJ Associates

 

While LinkedIn offers an attractive gateway to the world of social media, many financial professionals we have been speaking with downplay the importance of other social media tools like Twitter. That sentiment was forcefully expressed recently in John Ridley’s Visible Man column, which decries Twitter as a stomach-churning indulgence for navel gazers.

 

Is John right? Are Twitter and its fellow social media apps best suited for distracting easily bored, attention deficit fad followers? That thought was on the minds of many at the Russell Reynolds Distribution Roundtable focused on Social Media tools as a way to expand distribution for asset & wealth management firms in New York recently. The other side of the story was well-represented as well: That every game-changing communications improvement arrived first as a fad. Those over 20 may remember the early cellular phones in their lunch box-size vinyl bags; when it wasn’t unusual to wonder: “Isn’t that guy just showing off? Does he really need to have a phone with him all the time?”

 

Every communications improvement finally wasn’t really about the app after all, it was about the content, about what the message was trying to achieve.

 

·         It’s about the characters stupid A cross between blogging and instant messaging, Twitter currently has 5 million users and is growing at a rate of 7500 a day. Each “tweet” is short and sweet, 140 characters. What can you do in 140 characters? Use the word count/character count feature in Microsoft Word, and find out. Remember; work backward from the URL you wish to hyperlink to. That italicized text is 140 words long right there.

·         An application is not a vendor Asset and wealth management firms considering adopting social media applications to enhance customer relationships and loyalty should do so by utilizing a combination of social media applications, not just a specific application. For most this will be a difficult concept to grasp because as managers, most of us are usually being asked to choose one vendor over another.

·         The power of social media lies in their combination. There is no single application that is right for everything all of the time.

·         Face-to-face (F2F) is part of the social media tool kit too F2F is at the heart of every successful media program. Even with communications preferences changing and online engagement tools becoming commonplace, F2F selling still has a place in the solution suite. “Social” means “passed in pleasant companionship with one’s friends or associates” – that’s F2F in action.

·         You are your own thought leader Social media also represents the democratization of information, transforming people from content readers into publishers. Through identifying and publicizing your expertise – or thought leadership – you begin to set the standards of engagement for your network to generate exposure, opportunity and sales.

 

Some enterprising CEOs are taking to the promise of social media in a big way. Take a look at this message from Vanguard CEO Bill McNabb on the firm’s financial stability. Posted on their web site in April, to date 96 visitors have commented. Simultaneous to the posting of the message on the Vanguard website, they very well could have sent a tweet, allowing recipients to forward, or “retweet”, the message to friends thus enhancing the number of receipients.

 

Sprint Experience Makes Us Think Twice

 

Sprint and many other companies and their managers could take a page from this experience that my good friend Scott McKain had recently with Sprint. He twittered a complaint to Sprint about excessive advertising covering up a loss of customers and received this series of 140 character tweets from Stephanie Vinge of Sprint PR:

 

·         Thx 4 the feedback. You’ll find we’re doing far more than just running cool ads& our customer serv metrics continue 2 improve

·         And, as U can see, we have been watching, listening and helping our customers consistently via twitter, etc. Tweet me anytime

·         Did U know: Sprint has the most dependable 3G network and is now rolling out Sprint 4G. DM me anytime for Sprint info

·         Did U know: Sprint 3G is faster in more places than AT&T

 

Scott was impressed at her persistent follow-through and responded this way:

·         Grateful for…and impressed by…your kind responses. Challenge is (obviously), how do you re-interest former customers like me?

·         Don’t mean that sarcastically or disrespectfully! It’s that we think it’s tougher to re-engage former customers than acquire new.

 

Stephanie responded:

·         I get it. not taken that way. I agree. I have been an angry, unsatisfied customer myself (of select companies) but we know what we need to do!

·          Oh, what I’m doing is nothing compared to our company progress. Thanks and give us another chance – you’ll be glad!

 

And, he’s considering it.

 

The takeaway is this: When someone voices a concern about your organization, you strengthen your hand by responding just like Stephanie did: Immediately, openly, and sincerely. And she made an attempt to reconnect with a former customer. Who knows? You might get that dissatisfied client back.

 

Would it be worthwhile for you and your firm in terms of AUM and revenue if you could respond immediately, personally and sincerely to your customers? Would it be worthwhile for you and your firm to stay connected with current customers reconnect with former customers and stay in front of potential customers?

 

The promise of social media and Web 2.0 is to answer those questions in the affirmative.

 


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What Women Really Want?

On May 22, 2009, In Financial social media marketing, By Bruce Johnston
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By D. Bruce Johnston, President, DBJ Associates

As the world increasingly turns to social media for solutions, information and expression, women are turning to BLOGS according to “The 2009 Women in Social Media Study”.  The study reveals “why blogs”:

  • 64% of women are nearly twice as likely to use blogs than social networking sites as a source of information
  • 43% for advice and recommendations
  • 55% for opinion-sharing
  • 75% are 50 percent more likely to turn to social networking sites as a means of keeping in touch with friends and family

Women are turning in even greater numbers to blogs (55%), social networks (75%) and online status updating (20%) as primary sources of community interaction, entertainment and information.

Of the 42 million women engaged in social media weekly:

  • 55% of women participate in some form of blogging activity
  • 75% participate in social networks such as Facebook or MySpace
  • 20% use Twitter
  • 45% decided to purchase an item after reading about it on a blog

Savvy Asset Management and Wealth Management firms are focused on this demographic and view women as an incredibly powerful segment from both a financial and influence standpoint.  They recognize that:

  • Women age 50 and older control net worth of $19 trillion and own more than three-fourths of the nation’s financial wealth
  • Over the next decade, women will control two thirds of consumer wealth in the United States and be the beneficiaries of the largest transference of wealth in our country’s history. Estimates range from $12 to $40 trillion
  • Many Boomer women will experience a double inheritance windfall, from both parents and husband.

Firms we work with are leveraging these new technologies to effectively access this demographic.  Engagement through blogs, the preferred medium of this group, designed to inform and answer questions regarding financial and other forms of life issues is one way of accessing this powerful group.

However, firms are finding out  that new technologies alone don’t lead to new customers, solidification of their firms’ relationship with existing clients and enhanced client loyalty. True enhanced client experiences and enhanced loyalty occurs when face-to-face (F2F) meetings are added to the mix.

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Twitter, But Keep it to Yourself

On May 12, 2009, In Uncategorized, By Bruce Johnston
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By D. Bruce Johnston, President, DBJAssociates

Finally, thanks to T. Neil Bathon, FUSE Network for bringing to my attention an article not  gushing,  “Seriously, These ARE The Ten BEST Reasons” to be social networking.  John Ridley writing in his “Visible Man” column deserves all the credit.  Here’s what he had to say:

Keep Your Tweets to Yourself

“My real issue with social networking sites isn’t their faddishness. It’s the hypocrisy that goes with them.”

At the risk of sounding like that old guy in Gran Torino telling those “young punks” to “get off my lawn,” it’s gotten to the point that whenever I hear somebody talking about Twitter or twittering or tweeting it just makes my little tummy want to hurl.

I haven’t tweeted once in my life, but I’m sick of hearing about it already. What once may have been the cool way of letting a hundred people know that you’re about to go mow your lawn now has the feel of a used-to-be-fresh means of communicating. So yesterday, like two-way pagers. And AOL.

To be honest, I think tweeting jumped the shark long before ultrahip CNN got into a Twitter match against superdown Ashton Kutcher. Back when politicians started live-tweeting responses to the president’s demi-State of the Union address, Twitter had already taken on all the cool of your mom getting a tattoo.
I imagine, I hope, twitterers are ultimately headed for the social networking retirement home that’s the current residence of Second Life and My Space.

But my real issue with social networking sites isn’t their faddishness.  It’s the hypocrisy that goes with them.  We claim to be a nation of people who take our privacy very seriously. Just mention the idea of warrantless wiretaps and expect to get hit up with a congressional investigation.

But give somebody an avatar and a URL, and he can’t tweet, post or hyperlink enough personal information about himself to as many people as possible.

Seriously, does valuable broadband space need to be taken up with announcements in that creepy Facebook third-person-ese that “John is enjoying two-for-one margaritas with the rest of the IT Team at T.G.I. Fridays”?

Where is the expectation of privacy anymore? Or, more correctly, where is the expectation that people will keep their private nonsense to themselves so that those of us who still like to communicate personal information with one person at a time don’t have to get caught up in somebody else’s e-mail circles or listen to their one-sided cell phone conversations?

No, I don’t know what’s hipper; to Facebook or to Twitter. I just know for me, personally, discretion never went out of style.

What do you think?  Let us know, leave a comment.

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SIX FACTS ABOUT GEN X INVESTORS – Every Financial Professional Should Know

On May 10, 2009, In Uncategorized, By Bruce Johnston
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 By D. Bruce Johnston, President, DBJ Associates

Investors aged 28-52 in the prime saving and asset accumulation phase of life are more likely to consider themselves their primary source of investment information and advice than any other source, including financial professionals or their employees, according to a new research report, Capturing the Heart & Wallets™ of Peak Accumulators™, which addresses investing habits and attitudes of the mid-career workforce.

The survey, which polled Core Workforce households in the fall of 2008, confirms that middle-aged investors feel very much alone:

Fact 1:  54% find it “difficult” or “very difficult” to “find the right resources for getting help with financial questions

Fact 2:  Only 18% work primarily with a financial professional, such as a broker, registered investment advisor, insurance, banking, mutual fund or on-line brokerage representative

Fact 3:  78% consult friends and family at least “sometimes”, but only 28% say “my friends seem to know how to invest”

Fact 4:  84% are “concerned” or “very concerned” about the “future of Social Security”

Fact 5:  Only 5% “agree strongly” that “my employer is responsible for providing for my retirement”

Fact 6:  Only 9% “agree strongly” that “I’m on track to accumulating the savings I’ll need to retire.”

Despite being the engine of future economic productivity, the report finds that middle-aged investors, or the so called Core Workforce, are largely being overlooked by the investment industry, including asset managers, insurance companies, banks and brokerage houses.  The 57 million households in this population segment currently have $5.2 trillion in investable assets across bank, taxable brokerage and retirement accounts.  Assets are currently concentrated among the 9 million most affluent households, which represent $4.0 trillion of that asset base.

According to the report, Younger Boomers (age 43-53) have more in common financially with Generation X  (age 28-42) than with Older Boomers (age 54-62).  Yet a 2007 survey of over 30 firms with $14 Trillion in assets conducted by Mast Hill Consulting found that 60% of industry “effort and investment” is directed to pre– and post-retirees, especially Older Boomers, while only 12% of industry “effort and investment” is dedicated to Generation X.

The report segments middle-aged investors into three behavioral groups.  The most attractive segment, Peak Accumulators, engages in six constructive financial behaviors: they spend less that they make, have an emergency fund, contribute something to a retirement plan each year, own their own home, have their insurance needs covered, and have little or no credit card debt.  The Hearts & Wallet report recommends that financial services providers actively build programs for Core Workforce investors that creatively dovetail with these behaviors.

“While others focus on serving Older Boomers, there is a terrific opportunity for nimble, forward thinking service providers to re-connect with this audience and establish a first-mover advantage,” concludes the reports sponsors, Boston based Mast Hill Consulting and Sway Research, LLC.

Additional information about the study is available through DBJ Associates.  Please contact Bruce Johnston at www.bruce@dbjassociates.com.

 

 

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B2B, P2P, LinkedIn, Twitter, what’s missing? F2F

On May 9, 2009, In Financial social media marketing, By Bruce Johnston
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By D. Bruce Johnston, President, DBJ Associates

F2F (face-to-face) is YOU!!!  It’s like the old Barry White song – “Can’t get enough of your face babe – I mean your love babe”.  You get the point.  It’s as plain as the nose on your face.  There’s that word again!!

Remember, we’re human beings and after all isn’t that what this social media thing is all about?  Isn’t it about connecting people to people?  Connecting people to you, your product, your service, your solution?  And what will happen in the future?  It will be about connecting clients to clients where they will discuss you, your product recommendations, your service standards, and results of the solutions you recommended.

How will you ever provide this high level of connectivity?  Will it come through B2B, P2P, LinkedIn, Twitter, Facebook, some “killer apps” or F2F meetings?  Finally the correct answer is ALL OF THE ABOVE – IT’S ALL INTEGRATED!  And YOUR’s is the FACE of the new emerging integrated approach to customer connectivity.

So you’re frightened of this new world of connectivity, that’s human.  You want things to remain the same, that’s human.  Before you take the new connectivity paradigm plunge you may want to ask, “How have we done without B2B, P2P, LinkedIn, Twitter, Facebook, some “killer apps” and mostly F2F meetings connecting advisors and their clients?” 

Well, according to a just released research report, Capturing the Hearts & Wallets™ of Peak Accumulators™, investors aged 28-52 feel very much alone as 54% find it “difficult” or “very difficult” to “find the right resources for getting help with financial questions.”  Only 18% work primarily with a financial professional, such as a broker, registered investment advisor, insurance, banking, and mutual fund or on-line brokerage representative the report states. 

This means a full 60% of the investment industry’s focus is concentrated on near- and post-retirees while 57 million households in the 28-52 population with more than $5.2 trillion in investable assets are ignored.  Some estimates have the number at over 60% of the near- and post-retirees who haven’t been contacted by their advisor in the past 18 months. 

So, now, how do you think the industry has done without B2B, P2P, LinkedIn, Twitter, Facebook, some “killer apps” and mostly F2F meetings connecting with clients?    

With this bleak assessment of connectivity with Gen X and Younger Boomers as background, “How do advisors change the connectivity paradigm?”  How do advisors provide customers the ability to connect to them, their product set, service model and solution set?  That’s easy – you fire them!

At least that’s what my friend Scott McKain, speaker and autor of the best selling busienss book “Collapse of Distinction” told me he would do – and here’s why:

1) You don’t have the time or resources to create Ultimate Customer Experiences™ for everybody. If you sharpen your focus by “thinning the herd,” you can devote your attention on those bringing you the most business.

2) Ever notice that bad customers complain more and take up more time than great ones? Why give your time and emotion to customers who make up a small part of your business? Center your efforts on those who are already fans…and help them grow to another level.

3) Do you have customers that — by the very fact they are doing business with you — creates bad impressions about you and your organization? Once, I was booked by a speaker’s bureau to address a well-known and respected company. Until the company found out the bureau had shady practices. They cancelled the speech…then, refused to work with me, assuming that “birds of a feather…” Are you doing business with someone that casts a negative light upon your organization?

4) Bad customers cause stress that you don’t need at levels difficult for you to manage. I once had a customer that made my blood pressure spike as soon as I heard she was on the phone. We would jump through endless hoops to try to keep her happy, and she stressed all of us beyond description. I fired her. I told her that we did more for her little bit of business than we did for our best four clients combined…and that was not going to continue. We were choosing to devote that effort for our best customers.

Guess what? The productivity of our team was enhanced…our best customers started getting even better service and increased their business…and the bad customer came back to us and asked what they needed to change so we could continue to work together.

That accomplished F2F, it’s time to create and implement an F2F connectivity paradigm strategy with your customers.  You may consider adopting a version of what the Financial Times did this week.  They are asking readers to contribute to future leader columns.  You read it correctly; readers will be able to help shape the paper’s editorial line through its Arena blog joining FT writers in online debates about topics for upcoming leader columns.

Might an advisor blog help connect people to you, your product, your service, your solution set.  Remember, in the future your clients will be connecting to one another to evaluate you.

According to the Capturing the Hearts & Wallets™ of Peak Accumulators™, study 78% of middle-aged investors consult friends and family at least “sometimes”, but only 28% say “my friends seem to know how to invest”.

This is a situation ripe for an “Integrated Solution Suite”.  The study has identified a need, appropriate solution and target audience. The advisor solution leverages information from their blog, e-mail, the firms, personal, and solution provider of choices website, LinkedIn, Twitter, marketing materials and F2F meetings. 

And by the way, nothing’s changed – it’s still YOUR FACE as the FACE on the new emerging integrated approach to customer connectivity – F2F.

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