Social Media Is Different for Regulated Industry

On June 8, 2010, In Financial social media marketing, By Bruce

By D. Bruce Johnston, President & CEO, DBJ Associates

We are pleased to offer our readers an on-demand link to the popular webinar: “Social Media: Can Advisors Afford to Miss It?”

To hear the latest thinking from the industry leaders in financial services social media marketing — Fidelity, American Century, Socialware and Advisolocity — please click the accompanying thumbnail link.

Hear Jennifer Sussman, Director of Online Marketing for American Century provide highlights from her firm’s recently completed “Financial Professionals Social Media Adoption Study.”

Next, benefit from Ross Ozer’s insights. As Vice President of Marketing for Fidelity Institutional Wealth Services, Mr. Ozer comments on how social media can help advisors generate more referrals, greater marketplace awareness and extend their reach.

Do you consider compliance to be a major barrier to adopting social media in your practice? If so, you are not alone.

Eighty percent of webinar attendees saw compliance risk as a key obstacle — until they listened to Chad Bockius, CEO of Socialware, who had much to contribute to understanding how to overcome social media’s compliance risks.

I was pleased to be able to deliver the results of one of our case studies as an example of how social media can work effectively in advisors’ day-to-day practice to raise AUM and revenue.

Also, if you missed out on the opportunity yesterday to download a FREE copy of Advisolocity’s white paper: “One-2-One: How to have 1000 client conversations at once,” please do so on the link provided.

Topics covered during the 45-minute Q&A session ran the gamut from:

  • What are the implications of FINRA Notice 10-06 for financial advisors and are there solution sets available to comply with the archiving requirements?
  • Are clients really using social networks for financial advice and, more importantly, for advisor selection?
  • Will social media overload the compliance department?
  • What are the nuances of the compliance demands social media poses that make it so difficult for firms to understand?
  • Why are some firms staking a claim to social media applications while the vast majority sit back and watch?
  • What about advisors who have primarily older clients? Should they consider social media tools as strictly suited for Gen Y and X, and not baby boomers?

If you have questions that were left unanswered after you listen to the discussion, please contact Bruce Johnston at bruce@advisolocity.com. I will get your question answered for you in short order. In the meantime, enjoy!

 
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The New ABCs of Sales – Always Be Connecting

On June 1, 2010, In Financial social media marketing, By Bruce

By: D. Bruce Johnston, President & CEO, DBJ Associates

Connecting is the new Closing – Engagement the new Goal!

Many firms have asked us: with the prevalence of dedicated manager research and due diligence teams at home offices and even dedicated manager research at the branch level are separate resources beyond relationship management professionals and wholesalers needed to call on this segment?

The answer may not be additional resources but how the resources are deployed in the field.  As gatekeepers get tied down with researching new managers and talking to existing ones on their platform, they simply don’t have the time to talk to those outside their immediate frame of reference.  Firms hurt themselves by continuing to press for face time at the home office and by not taking their gatekeeper research strategy on the road.

If you trust recent research by Cerulli which states advisors place a significant amount of weight on gatekeeper research and that 86.8% of wirehouse advisors said that the managed accounts platform was a significant factor in any decision to switch sponsor firms then firms should be crafting a field strategy which benefits the advisor.

One such strategy is for firms to identify Centers of Influence “COI” at the Regional and branch level and craft strategies that will help them meet their critical objectives.  Remember, these in-the-field “COI” meetings are where the money is.  Something which seems to have taken a backseat as firms placed added emphasis on the home office gatekeepers.

Regional “COI” meetings should focus on the COIs critical objectives.  Once determined firms can craft strategies which compliment the COIs objectives and work “with” them to accomplish both these goals.

Advisor meetings should focus on their business model, client profile and their portfolio structure needs.  Once these are discussed and determined, firms can now position their product.  All managers will benefit from this strategy but “undiscovered” managers may benefit the most as they now have the opportunity to explain the merits of their product in the context of the advisors strategy.

Try to schedule as many of these meetings as close to month and quarter end as possible.  This is when firms are armed with their most current portfolio information and it syncs with the COI and advisors reporting cycle to their clients.  Firms providing timely and accurate portfolio information, articles of interest and thought leadership pieces versus market commentary will distinguish themselves from the rest.  A portfolio manager as a resource is also welcome after the initial strategy sessions have taken.

Lastly don’t ignore the role technology plays in training and delivering your message.  As budgets continue to shrink, COIs and advisors are turning to those firms providing them with webinars and streaming video which help them understand the finer points of your investment process and how it benefits their clients.

Don’t get me wrong, the home office is important but in times like these it may make more sense for firms to focus their budget where the money is – in the field.

Visit us at www.advisolocity.com for a FREE copy of our latest white paper: “One-2-One: How to have 1000 client conversations at once,” and to access additional FREE information from our resource center.

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As Internet business transactions near 450 billion a day, are you ready to receive your fair share?

On May 21, 2010, In Financial social media marketing, By Bruce

By D. Bruce Johnston, President and CEO, DBJ Associates

Commerce on the Internet continues to skyrocket.

Chad Levitt, author of the “New Sales Economy Blog,” recently wrote a post, “Sales Reps, Are You Ready for the Digital Universe?,” based on information he gleaned from a recently released IDC report on predictions for the year 2020.

Here are some of the major findings from the IDC report:

  • Between now and 2020, the amount of digital information created and replicated in the world will grow to an almost inconceivable 35 trillion gigabytes as all major forms of media – voice, TV, radio, print – will complete the journey from analog to digital.
  • Last year despite the global recession, the Digital Universe, set a record. It grew by 62% to nearly 800,000 petabytes. A petabytes is a million gigabytes. Picture a stack of DVDs reaching from the earth to the moon and back.
  • This explosive growth means that by 2020, our Digital Universe will be 44 times as big as it was in 2009. Our stack of DVD’s would now reach halfway to Mars.
  • Most of the digital universe begins with an action by a consumer – an email typed on a laptop, a digital photo taken at a wedding, a movie downloaded from Netflix. In fact more than 70% of the Digital Universe this year will be generated by users – individuals at home, work, and on the go.
  • The social media invasion has just begun. IDC estimates that by 2020, business transactions on the internet, B2B and B2C, will reach 450 billion a day.

While Chad asks, “How do sales reps rise to the top when the waves of information keep crashing on their heads,” I ask,  “How can advisors, money managers and distributors prepare themselves?”

Say it with content

Everyone needs a clearly articulated story that represents a big idea for what a firm represents. “Begin to create content so that you can get found in search engines, social search, and the blogosphere,” Chad wrote. “Do not get lost in the tsunami of digital information.”  I’ve noticed that most firms already have content, but have been slow to package it for different applications.  For instance, those comments from the Chief Investment Officer on the corporate website can be refreshed for corporate blogs, Twitter and Facebook.  The Holy Grail here is a firm’s key word recognition on Google page 1. Consistency, timeliness and relevance are all critical to  claiming one’s “social media turf.”

Thought leadership spoken here

Chad added, “Learn a thing or two about search engine optimization (SEO)…  to be a search engine and opportunity magnet.”  I’ve observed and mentioned before, SEO is the outgrowth of taking a strong thought leadership position.  For example,  Charles “Chuck” Steege, CFP® of SFG Wealth Planning Services, recently authored a white paper which discussed the merits of performance shares.  He quickly dominated Google page 1 rankings for keywords “performance shares executive compensation.” Individuals are hungry for such specialized  content and will engage with firms  that carve out their niche with keywords associated with their subject matter expertise.

Work the net

Chad pointed out the importance of daily digital networking. An interesting article about a company is a reason to reach out to that company’s CEO and other employees on Linkedin. Social networks beget digital conversations that can turn into a real relationship over time. Relationships turn into deals. Social Media Examiner recently pointed out that a significant 85% of all marketers indicated that their social media efforts have generated exposure for their businesses.  Improved traffic to their sites was the second major benefit, followed by building new partnerships.

Branding is a two-way street

The amount of content being created every day, Chad noted, is almost incomprehensible. The personal branders that are striving to solidify their personal brands now, will be the staples of their niche tomorrow. Asset management and wealth management firms that continue to sit on the sidelines are missing an important opportunity to win new customers now. We are discovering that major rebrands are not necessary.  Rather advisors and money managers are finding out they are able to evolve and grow their network with a “brand refresh”,  a more cost effective and efficient way to capitalize on the opportunity.

Find out more about the latest developments in social media for the highly regulated financial services industry on June 2, 2010. Sign up: brighttalk.com/webcast/20874 to join me and panelists from American Century, Fidelity and Socialware as we discuss:  “Social Media: Can Advisors Afford to Miss It?”

Click on Chad Levitt to access his full blog.

 
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Full speed ahead: FINRA social media regs remove “excuses for delay”

On February 16, 2010, In Financial social media marketing, By Bruce

By D. Bruce Johnston, DBJ Associates

Researchers and compliance officers are rallying around FINRA’s landmark 10-06 rule on social media-driven investment communications to give guidance to legions of newly energized investment marketers.

Marketers rejoice: Hedges

Marketers rejoice: Hedges

“We’re seeing new levels of enthusiasm among marketing communications project managers,” said Zach Hedges of Advisolocity recently. “Marketers on a tight budget see sunlight through the clouds.” He credits freeware networking site Linkedin, Twitter and WordPress for a lot of the investment marketers regained optimism.

“They are  just glad they can start telling a story again. That’s all,”  he added.

Financial research firm Nemertes signals happy days for thrifty marketers too in an online report: “The new guidelines bring clarity, but remove excuses for delay.”

Without delay, it’s full speed ahead for SMM.

However, Nemertes cautions the tidal wave of consultants, archivists, communications specialists, compliance firms and social media strategists, to get busy carefully: “Plan to converge or add social media features and capabilities with security solutions for communications media like email and IM.”

Meanwhile, the legal profession is hard at work decoding 10-06 for peers and marketers. Winston & Strawn’s Robert Boresta is scheduled to speak at Knowledge Congress’ Live Webcast on FINRA Guidance on Social Networking Sites on May 4.

Will low budgets prevent marketers from taking advantage of all of this good news? Not likely: media types can breathe easier following a new study quoted by Marketing Pilgrim that while 40% of marketers report budgets down for the year, 70% plan to redeploy their resources from traditional print and advertising to Twitter and Facebook marketing.

The resource shift is sure to accelerate as marketers and compliance officers now find common agreement.

The last impediment to utilizing the cost-efficiencies and creativity of social media programs has been removed. Perhaps a new era of responsible, spontaneous, transparent communication can help put back some heart in the troubled securities industry.

 
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Edelman Study answers the question: Whom do you trust?

On February 11, 2010, In Financial social media marketing, By Bruce

For Financial Advisors, trusted communicator is job one

By: D. Bruce Johnston, President, DBJ Associates 

Brokers and advisors are the most trusted sources for providing accurate information on investments, followed by friends or family, according to the 2010 Edelman Trust Barometer. CEOs landed dead last as least trusted.

Highlights from the survey include:

  • Financial performance now scores at the bottom as a trust factor.
  • Transparency and honest practices took the number one spot
  • Most trusted financial institutions: Local banks were number one, followed by mutual funds and insurance companies

With all of this good news, trusted advisors may still not feel like cheering – especially when confronted with constrained marketing budgets.

“Even though resources are scarce, advisors with a story to tell can still create news,” Advisolocity’s John Drachman said recently. “From free interactive press releases, to white papers and webinars, there are many cost-effective ways to engage customers and prospects that do not cost that much.” The present moment may represent a historical opportunity for advisors.” He added, “Five short years ago their trustworthiness hovered near the bottom of The Barometer.”

What should you do now? Here are Five Things FAs and Advisors should be doing to benefit from this shift in sentiment:

First, they are evaluating their current communications strategy – With so many sources of communication available to your clients today it is imperative that you evaluate and leverage as many as you can.  FINRAs recent clarification around the rules governing social media provides a completely new opportunity to leverage. Don’t let your own lack of expertise in this area prevent you from leveraging these valuable resources – seek professional guidance and input.

Second, evaluate your “customer engagement strategy” – This used to be referred to as customer service but in the new world of communication it’s about “engagement”.  Today’s customers view frequent and honest communication as the most important factor by which they judge financial services firms.  How does your current engagement strategy match up?

Third, evaluate the resources and strategy you have allocated to your marketing programs and branding campaigns – Industry estimates show the number of clients receiving comprehensive financial planning will increase by 20-25% over the next year or two.  What are your strategies for establishing and promoting your brand?  How much time are you devoting to client acquisition and retention? 

Fourth, evaluate your resource allocation to the “Emerging Markets” – I’m referring to the next generation of investors, those between the ages of 25 and 34. This is an often ignored demographic for a variety of reasons but 75% of this group say FAs and Advisors are who they first turn to for financial advice.  This may be that “once-in-a-career” opportunity to make significant inroads into this group assuring future growth for your firm.

Fifth, evaluate what differentiates you from your competition – are you using all the tools at your disposal?  Successful FAs and Advisors will leverage both traditional and on-line communication applications.  To enhance “customer engagement” they will leverage market commentary and portfolio manager market overviews in building their financial planning practice. Have you clearly articulated the advantage working with you brings to your clients in terms of achieving lifestyle and financial goals?

Future success and growth of your business will come from a combination of increased interest among investors in fee-based financial planning models, and how well FAs and Advisors position themselves to take advantage of this once-in-a-career opportunity.  Those assessing their business model as outlined above will certainly stand a better chance of success than those adhering to the status quo.

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Esperanza International provides hope to Haitian earthquake victims

On January 21, 2010, In Financial social media marketing, By Bruce

By:  D. Bruce Johnston, President, DBJ Associates

As we struggle with how to provide support for those suffering through the horrors of the earthquake in Haiti, my friend Dave Valle and his great organization Esperanza comes to mind. 

Dave has dedicated his post-baseball life to Esperanza International, a charity whose mission “is to free children and their families from poverty through initiatives that generate income, education and health, restoring self-worth and dignity to those who have lost hope”.

Just days after the Haitian earthquake hit Dave had accounted for his team in the area, mobilized them and sent the following letter to supporters of Esperanza:

Thank you all for your prayers, thoughts and support of Esperanza’s work in Haiti.  I wanted to give you a quick update on our progress on the ground in Port Au Prince.

All of Esperanza’s staff are safe.  The Esperanza office is located in the Northeast portion of Haiti which did not sustain much damage.  Carlos Pimentel, Esperanza’s VP of International Operations, is in charge of our Rapid Response Strategy.  He has served in the DR for 20 years on the Dominican Republic’s Disaster Relief and Mitigation team.  His knowledge and contacts on situations like this are second to none on the island.

We have begun a herculean effort on the ground last week as Esperanza leads a coordinated effort of relief through our large network of partners and churches who, along with Esperanza, have a history of work in the communities.  This is critical in the distribution of aid.  We are known entities, who have been serving the communities for many years.  This will prevent much of what you are seeing on the news reels…fighting for food and unorganized distribution, chaos.

Esperanza had 12,000 food packs in storage as part of our disaster preparedness plan for the island (tropical storms and hurricanes) that were sent immediately. There is more on the way.  We now have a warehouse on the DR border where we are moving supplies from Santo Domingo (where prices have not risen yet) to the warehouse, then from the warehouse to P AU P for distribution to our network.  As of yesterday, Esperanza opened a new office and distribution center in Port Au Prince in alliance with one of our partners that will serve as our base of operation.  We have 2 Doctors there also to provide medical care.

There are many people and organizations coming along side Esperanza to provide support.  We will need more.  

Pray for Esperanza’s leadership in this huge undertaking.  And Thank You for your support over the last 15 years, helping Esperanza to become an organization that has the capacity to respond in this manner and one that others look to for leadership in a time such as this!

Just getting started!

David Valle

Under Dave’s leadership Esperanza consistently invests over 97% of your donation.  If you are looking to help Esperanza has an immediate necessity, and is requesting from their partners abroad, gifts in cash, which will help expedite the arrival of relief to the region. A $40 donation to Esperanza´s Disaster Relief initiatives will provide a family with the basic necessities (food, bottled water, healthcare kits etc.) for ten days.

For more information on how to help, please contact the Esperanza Disaster Response Group at disasterresponse@esperanza.org. This email address is being protected from spam bots, you need Javascript enabled to view it

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