The Social Advisor 5.0: Ahead of the Curve
THE SOCIAL ADVISOR 5.0 Ahead of the curve
KEY TAKEAWAYS
Newer and top-tier advisors Advisors who use social Executing an effective are benefiting from an passively or not at all are missing social media plan requires active, robust social presence out on client acquisition more than a DIY approach
Introduction 86% The fifth edition of Putnam’s Social Advisor Survey, conducted in of advisors report November 2017, finds the distinctions between social media and gaining business from traditional communication effectively blurred. Almost universally, social media advisors report that social media has disrupted how they approach prospects, convert leads, and conduct business, all while sharply reducing the amount of face-to-face time previously required.
Advisors are becoming more critical in their views of the role various platforms can play in connecting with and converting prospects. But there still appears to be a “try anything” approach as well as some uncertainty as to whether social media creates unique opportunity — or is simply a box to check.
Although estimates of business gained directly from using social Learn more at have leveled off, comparing the social profiles of advisors based on AdvisorsAREsocial.com tenure, gender, and AUM is constructive. The average amount of assets gained that advisors attribute to social media is just under $5 million, virtually unchanged since 2014, while social use for business has steadily grown. “After I've met a prospect in Advisors reporting that social media activity person, they will often go to helped them gain clients 86% social media to check up on 79% 80% me. If I didn't have any social media presence, they would 66% likely stop considering my services; if they like what they 49% see, they continue to engage.”
Insurance channel advisor, male, age 54
2013 2014 2015 2016 2017
60% Top findings of advisors say social media is a great deal As social media use matures, advisors tell us they are spending somewhat more efficient than less time simply connecting and posting, but remain highly positive on a traditional networking focused use of social to attract and develop new business: Six• in ten say social media is a great deal more efficient than traditional networking, up from 56% in 2016 88% More• than eight in ten advisors (83%) say that social media has helped of advisors say social shorten the time required to convert a prospect into a client media has changed their relationship with Almost• all advisors (88%) agree that social media has changed their their clients relationship with their clients; most cite the ease of sharing information and the frequency of contact as the biggest changes
How advisors say social media has changed their client relationships
It is easier to share information 67%
I have more frequent communication with clients 59 I am more attuned to major events in my clients' lives 54
We have a better professional relationship 54 Decision making is faster and easier 50 We have a better personal relationship 47
We connect less by phone or in person 38
2 | 2017 Putnam Social Advisor Survey More• than one third (34%) say social media plays a very significant role in their marketing efforts (up from 29% in 2016), and even more expect social media to play such a role in the year ahead (38%)
At• 84%, social media use by advisors for business is plateauing year over year, but use among younger advisors is universal and the majority of non-users are nearing retirement
Of advisors using social media for business, 86% report gaining business from social media activity. This is up from 80% in 2016, and was only 49% when we began the survey in 2013
Advisors using social media for business and reported asset gains, “ It is more cost effective 01 01 r rc nt o d i or than local networking, and di n u in oci di or u in I am able to reach the type 4.9 4.9 4.8 of clients I want.” 4.6 Regional broker/dealer, 85% male, age 46 84% 81% . 5% 1.9 1.9 6% 1. 1. 0.8
01 014 015 016 01
i ion
There are now only a few holdouts: Just 28 of 1,014 advisors polled reported no business or personal use of social media, and they are on average 60 years old with 24 years of industry tenure. In spite of their longevity, these advisors report an average of only $69M in total assets under management (AUM) compared with $89M for advisors using social Data and percentages below the top-line findings reflect for business. Even advisors who only use personal social media report advisors who use social media $85M in AUM, suggesting that even a casual social presence may result in for business and/or have gained more business. Of advisors with AUM over $100M, 87% say they have assets attributable to social media use, as noted. gained assets using social media.
2017 Putnam Social Advisor Survey | 3 Active engagement beats a purely passive strategy
Life was simpler when all advisors had essentially navigating each. LinkedIn and Facebook dominate two efficient marketing tools: calling and direct mail. advisor use, however, LinkedIn functions primarily as With social media, best practices evolve rapidly as a referral tool and is not where advisors or prospects technology and user behavior constantly change. and clients spend the majority of social media time. But while Facebook is “where my clients are,” Advisors today have access to multiple social networks and is trending up on a number of categories, it is and are becoming more aware of the specific benefits simultaneously trending down in others as advisors of different platforms — and the nuances involved with expand their leverage of social media platforms.
usiness use e tends well beyond the ig Three networks
r on it r r on t ot r on nd u in u u in u on u on nor u in u u in u
4 % 9% 10% 1 % %
5 4 11 56
6 40 6 8 46
6 16 5 4 4
5 4 5 48 1 9
0 5 4
4 1 8 1
1 6 19 59
19 45
4 | 2017 Putnam Social Advisor Survey Business is business, but advice is personal “ LinkedIn is primarily for people seeking solutions LinkedIn is still identified overwhelmingly as the network of choice for rather than relationships, business, although Facebook leads as the network of choice for combined which is where Facebook personal and business use. LinkedIn’s share of net business use has is more effective.” flattened among advisors, while the business use of every other network is growing. Insurance channel advisor, male, age 27 LinkedIn remains a critical tool, as its user demographics and rich, indexed data are unique compared with the other social platforms. LinkedIn provides a concentrated network of college educated and relatively affluent users, making it the best place to qualify leads, obtain referrals, and begin the process of converting prospects. But just like the local chamber of commerce, day-to-day social business is conducted elsewhere.
Social networks used by advisors for business, 01 01
80% in dIn c oo
60 itt r ou u In t r 40 int r t u r n c t 0
0 01 014 015 016 01
2017 Putnam Social Advisor Survey | 5 Advisors report that they use Facebook most frequently for business — an average of 22 times per month versus only 16 for LinkedIn. This is in line with network use among the broader population. Daily use of LinkedIn is less than 20%, compared with Facebook at 76% and Instagram at 51% based on a recent Pew Research study.
Pew survey Fre uency of use among users of each social networking site
i Less often 6% 15% %
51 6
4 4
5 1 4
18 1 51
Note: Do not know/refused responses not shown. Source: Pew Research Center survey conducted 2016.
Women advisors lead in use of social Social media is a major part of attracting new customers; Men and women advisors present contrasting profiles in the I've gained many customers social survey. Women advisors are more active with social than from Facebook and Instagram men overall, and are similarly represented in the survey’s highest alone. Once they've come performing category of advisors managing over $100M AUM. here, they recommend us A greater percentage of women are reporting success with to everyone. social media, as measured by gaining new clients. The average assets gained by women using social only slightly lags their Independent broker/dealer, male counterparts. For all practical purposes, women are leading female, 29 years old in adoption of effective social methods, and perceived gender gaps in production appear to be disappearing.
6 | 2017 Putnam Social Advisor Survey Building a social book
The largest obstacle to advisor success has always The advisors we survey have at least two years of been building a large enough book of business to experience, and those with three to ten years tenure transition from intensive cold calling to a sustainable were the most likely to gain assets with social. About practice that generates referrals. Advisors with three to 40% of this cohort consider social media to be very five years of experience and beyond are still intensely significant in marketing, compared with just under 30% involved in prospecting and converting leads. Social of advisors with more than ten years in the industry. media’s effectiveness in creating warm leads and Interestingly, advisors with $100M or more AUM are conversions has made it essential for younger and also more likely to have gained clients from social newer advisors, whose natural markets are also media, and this group’s assets gained through social typically younger and fully engaged in social media. are also significantly higher than their longer-tenured peer group.
Social media is significant Have used role in current social media to Industry tenure Average AUM ($M) marketing gain clients Assets gained through social media ($M) Average Median
3–5 years $73 36% 93% $3.1 $0.8 6–10 years $90 42% 89% $5.7 $2.1 11–20 years $97 34% 84% $5.4 $2.5 21+ years $90 16% 68% $5.3 $1.3 $100M AUM advisors $174 43% 87% $7.8 $4.2
Women are much more likely to use Yelp and Instagram than men
89% 41% 65% gained assets via say social media is say using social media social media, significant to their has improved their vs. 84% for men marketing efforts, vs. efficiency a great deal, only 31% of men vs. only 57% of men
2017 Putnam Social Advisor Survey | 7 Advisors are connected — now what?
With nearly nine advisors in ten saying social media has helped them gain more clients, and as use of social media by advisors and clients has evolved, gaining fluency in social media remains hit and miss:
A majority of Forty-six• percent indicate that hands-on learning and assistance from friends and family are their primary social media training advisors say that going deeper with A• little more than half report some form of professional training (home office, investment partner firm, online) as a primary learning method their existing social • media presence Forty-one percent say they just “get by,” while 46% claim to be social media experts is a key priority Forty-five• percent of LinkedIn users use a free account only
Advisor’s self-described social ability is mixed, as is the amount of professional training they receive
67% Hands-on learning-by-doing 36 2% 7% Would like to I do not use 47 get started but social media Online training need help 11
5% Just getting Training by colleagues 45 started in my firm or office 10
Assistance from 39 46% friends and family Expert 10
41% Training by an investment I get by partner firm, such as a 37 wholesaler or investment company representative 15
Training by my 34 firm's home office 10
Training by a hired 24 third-party specialist 7
Ranked among top 3 answers Ranked #1
8 | 2017 Putnam Social Advisor Survey The social activity gap
In the 2016 survey, we identified a direct link between advisor use of LinkedIn and Facebook features and assets gained using social media. Advisors who say they have not gained clients with social media continue An active approach to report significantly less strategic use of most of the social media tools leads to more available to them. Survey responses in 2017 suggest that advisors who have clients and assets not gained clients through social are also lower on the social activity scale, especially in categories such as promoted content, paid promotion, and posting original content. Simply liking and sharing content appear to be less helpful in gaining clients.
Facebook feature adoption Advisors paying for content promotion are differentiating themselves from their competition. Facebook’s newly revised algorithm for content makes paid promotion an essential part of any Facebook strategy.
Those who gained assets Those who did not gain assets 74% Post business content 54% 61 Set up a business or company page 48 60 Accept friend connections 48 59 Like companies, brands, or individuals 43 57 Like, comment on, or share content 63 46 Request friend connections 32 44 Create sponsored ads 9 43 Use paid promotion to boost content views 5 37 Post personal content 31 22 I'm on Facebook but use it passively 18
2017 Putnam Social Advisor Survey | 9 LinkedIn feature adoption Using a paid level of subscription, particularly LinkedIn Sales Navigator; promoting oneself as a thought leader; and reaching out directly on the LinkedIn platform sets the successful social advisor apart.
Those who gained assets Those who did not gain assets 69% Accept connections 65% 63 List my company/firm on my profile 52 59 Request connections 49 60 Follow companies 36 51 Display skills 37 53 Join groups 29 46 Like, comment on, or share others' network updates 23 45 Fill out all possible areas of my profile 26 41 Indicate interests 28 44 Post network updates 15 40 Use advanced search to prospect 10 35 Send InMail 32 38 Post to groups/pages 14 34 Write recommendations 11 32 Upload photos 15 32 Request recommendations 7 29 Publish LinkedIn articles (long-form content) 11 16 Use LinkedIn Sales Navigator 3 20 I maintain a profile but use LinkedIn passively 41
10 | 2017 Putnam Social Advisor Survey What’s next?
“ Social media enhances Overall, there still appears to be significant room for improvement in how my contact capabilities advisors leverage social media. As with traditional marketing methods, tenfold. Everything runs working without a strategic plan for social may be planning to fail. quicker and smoother. Advisors have to question the value of what they spend their time doing I could use more expert each day, and how it contributes to building their practice. With social media, training to utilize the notion that all activity is somehow ultimately productive is fading. every possible feature Major social platforms have overlapping capabilities and features, and advisor of social media.” perceptions of what works and what doesn’t for their practices continues to Bank advisor, evolve. Advisors may be experiencing the advertiser’s dilemma — half of their female, age 65 outreach is unproductive, but they don’t know which half. A majority of advisors across tenures indicate that they want to go deeper with their existing social network presence. A majority of high-AUM advisors say they want to add dedicated social media team members and integrate with marketing automation.
In 2018, advisors are customizing their social media strategies to focus on where their clients are active socially. Many believe that they have mastered the arts of social media marketing. However, just as many feel they have not, and are looking for more training and resources in order to be competitive in the evolving advice marketplace.
How advisors plan to expand their social strategies
Going deeper with existing social network presences 54%
Integrating social media data into my marketing automation system 48
Adding resources to my team with dedicated social media responsibilities 47
Paying for a premium membership 37
Integrating social media data into my CRM 36
Using paid promotion 35
Adding another network to my mix 32
Among advisors who expect social media will play a significant role in their marketing efforts in the coming year.
2017 Putnam Social Advisor Survey | 11 The value of investing
Successful advisors are clearly approaching social Business Pages to remain compliant, appearing in their media with a plan. Not only are they active on the clients’ and prospects’ newsfeeds is now much more platform and engaging prospects and clients with difficult and can only be effectively “gamed” by paying advanced functions, they are also seeing the value of for content promotion. investing in paid subscriptions and promotions. Advisors using LinkedIn Sales Navigator tend to be In January 2018, Facebook initiated major changes to more active and experienced with social media. its proprietary algorithm that determines what users Ninety-three percent of Sales Navigator users report see in their newsfeeds. News from friends, family, and asset gains (vs. 71% for users of Basic and Premium), groups now takes priority over content from brands report gains exceeding other users, and have larger and businesses. As many advisors use Facebook total AUM than Basic and Premium LinkedIn users.
Advisors using Facebook for business who reported gaining assets Are using paid strategies Are using organic-only strategies Days/month active on Facebook 24 24
Percentage who consider themselves experts 71% 53%
Average assets gained $5.4M $3.7M
Median assets gained $1.6M $0.8M
Average reported AUM $97M $67M
Advisors using LinkedIn as their primary business network who reported gaining assets Are using Sales Navigator Are using Basic LinkedIn Days/month active on LinkedIn 23 13
Percentage who consider themselves experts 77% 30%
Average assets gained $8.1M $2.8M
Median assets gained $5.9M $0.6M
Average reported AUM $108M $77M
12 | 2017 Putnam Social Advisor Survey SUCCESS PROFILE The Social Advisor 5.0
Advisors who are successful with social come from all channels and age groups, but have one thing in common: They are actively expanding their books with robust use of social media.
AGE: 40 PRIMARY NETWORK: LinkedIn with Sales Navigator
GENDER: Female NETWORKS USED FOR BUSINESS: 4 or more
TENURE: 6–10 years FREQUENCY: 20 or more times a month
CHANNEL: Planning firm, wirehouse, or bank AVERAGE AUM GAINED: $5.7M
AVERAGE AUM: $99M
Methodology The 2017 survey, conducted online in November in conjunction with NMG Consulting, included 1,014 financial advisors across the United States who have advised retail clients for at least two years or more. The sample includes newer advisors to the well established, working across channels from independent and regional broker-dealers to nationwide planning firms, wirehouses, insurance firms, and RIAs. Advisors were queried about AUM and assets gained via social marketing in ranges; median and average samples are based on range midpoints.
2017 Putnam Social Advisor Survey | 13 The social advisor maturity curve
As social media use becomes the norm among advisors, it becomes increasingly important to identify which activities and strategies consistently lead to AUM, and in particular, where high producers are focusing their social media activities. With this in mind, we have used E pert Putnam’s five years of advisor survey data and our social media training expertise to create the Social Advisor Maturity Curve to help ASSETS AI ED provide a framework for understanding how effective social advisors develop, progress, and achieve results. FRE UE CY OF USE Professional “Always on” multiple times a day
O ECTIVE I ro in r rr n t or ASSETS AI ED Id nti in ro ct Brand building Cultivating prospects FRE UE CY OF USE Thought leadership promotion Intermediate nc d Building intergenerational relationships Bringing in net new assets and households O ECTIVE ASSETS AI ED I ro in r rr n t or ACTIO S Id nti in ro ct int in ro i Brand building conn ction eginner FRE UE CY OF USE Cultivating prospects Has an engaging profile Summary d Thought leadership promotion Likes, comments on, and shares content Building intergenerational relationships Posts network updates ASSETS AI ED O ECTIVE Uses social media personally and for business I ro in r rr n t or ACTIO S o t r on cont nt Id nti in ro ct int in ro i Uses Advanced Search to prospect FRE UE CY OF USE Brand building conn ction Has set up a Company Page Cultivating prospects Has an engaging profile Summary i nd o o co ni Likes, comments on, and shares content Uses Sales Navigator O ECTIVE ACTIO S Posts network updates Uses paid promotion I ro in r rr n t or int in ro i Uses social media personally and for business Sends nMail Id nti in ro ct conn ction Posts personal content Communicates directly with clients and prospects Has an engaging profile Summary Uses Advanced Search to prospect ACTIO S Likes, comments on, and shares content Has set up a Company Page ETWORKS A D ACCOU T LEVEL int in ro i Posts network updates Likes and follows companies itt r conn ction c oo ETWORKS A D ACCOU T LEVEL ETWORKS A D ACCOU T LEVEL Linked n Sales Navigator ETWORKS A D ACCOU T LEVEL ic in dIn itt r nstagram ic in dIn Twitter Linked n Professional Snapchat Facebook TRAI I TRAI I TRAI I nd on n in TRAI I rtn r ir ri nd nd i Office colleagues Home office ro ion ci i t
E PERTISE E PERTISE E PERTISE E PERTISE Just getting started I get by but need some help Fluent but could go deeper rt
14 | 2017 Putnam Social Advisor Survey The leader in social media
E pert Follow our Company Page linkedin.com/company/putnam-investments
ASSETS AI ED Follow our CEO Robert Reynolds, FRE UE CY OF USE a LinkedIn Influencer linkedin.com/in/robertlreynolds1 Professional “Always on” multiple times a day
O ECTIVE I ro in r rr n t or ASSETS AI ED Id nti in ro ct Like our Company Page Brand building facebook.com/PutnamInvestments/ Cultivating prospects FRE UE CY OF USE Thought leadership promotion Intermediate nc d Building intergenerational relationships Bringing in net new assets and households Watch our YouTube Channel youtube.com/user/PutnamInvestments O ECTIVE ASSETS AI ED I ro in r rr n t or ACTIO S Id nti in ro ct int in ro i Brand building conn ction FRE UE CY OF USE Cultivating prospects Has an engaging profile Summary Follow our Instagram eginner instagram.com/putnaminvestments d Thought leadership promotion Likes, comments on, and shares content Building intergenerational relationships Posts network updates ASSETS AI ED O ECTIVE Uses social media personally and for business I ro in r rr n t or ACTIO S o t r on cont nt Id nti in ro ct int in ro i Uses Advanced Search to prospect @PutnamToday FRE UE CY OF USE Brand building conn ction Has set up a Company Page twitter.com/PutnamToday Cultivating prospects Has an engaging profile Summary i nd o o co ni Likes, comments on, and shares content Uses Sales Navigator @Putnam_News O ECTIVE ACTIO S Posts network updates Uses paid promotion twitter.com/Putnam_News I ro in r rr n t or int in ro i Uses social media personally and for business Sends nMail Id nti in ro ct conn ction Posts personal content Communicates directly with clients and prospects Has an engaging profile Summary Uses Advanced Search to prospect ACTIO S Likes, comments on, and shares content Has set up a Company Page ETWORKS A D ACCOU T LEVEL @RobertLReynolds twitter.com/RobertLReynolds int in ro i Posts network updates Likes and follows companies itt r conn ction c oo ETWORKS A D ACCOU T LEVEL ETWORKS A D ACCOU T LEVEL Linked n Sales Navigator ETWORKS A D ACCOU T LEVEL ic in dIn itt r nstagram @BillCassPutnam ic in dIn Twitter Linked n Professional Snapchat twitter.com/BillCassPutnam Facebook TRAI I TRAI I TRAI I nd on n in TRAI I rtn r ir ri nd nd i Office colleagues Home office ro ion ci i t
E PERTISE E PERTISE E PERTISE E PERTISE Just getting started I get by but need some help Fluent but could go deeper rt
2017 Putnam Social Advisor Survey | 15 Partner with Putnam for social media training
Your Putnam consultant team is recognized industry-wide as a valuable partner in building your business using social media. They can work with you one-on-one in person, officewide, or via webinar to deliver custom training sessions to you and your clients.
FOR ADVISORS
Creating and optimizing your social Prospecting and generating revenue media presence using social media Learn how to establish a social media profile that This advanced session teaches how to use will build your brand to attract prospects. Topics powerful search options to discover rollover include optimizing your LinkedIn profile to generate opportunities with current clients, mining existing search results and privacy settings every advisor client connections for valuable referrals, leveraging should consider. your alumni network, and identifying your ideal prospect on LinkedIn. Actionable strategies using wealth management and money in motion opportunities are demonstrated that can lead to asset gains via social media activity. Developing your LinkedIn network
A quality network is the core of your social media FOR YOUR CLIENTS activity. We will share best practices for developing and growing your network and how to retain assets across multiple generations.
Growing your business with social media Invite business owners and professionals to this seminar to learn how a robust social media presence can benefit any enterprise or individual. To learn more, contact your Putnam consultant, call us at 800-354-4000, or visit AdvisorsAREsocial.com
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