The advent of social media presents a valuable opportunity for wealth management companies. As internet access and smartphone adoption increase, a growing number of internet users are becoming involved with social networking. Companies are developing their processes to be able to respond to web-oriented consumers. Banks and other wealth management institutions are engaging customers with social media, which is shaping up as a strong channel for promoting new schemes, identifying customer needs and receiving feedback online, as a Trimetric Report.
Companies have started to use social media sites as a marketing tool to communicate with external customers and to promote their products and services. These companies use YouTube and Flickr to post videos relating to products and services, key developments, events and conferences. Online video is an important part of the modern internet landscape, reaching a large number of people in an engaging context that is attractive to marketers and advertisers. Companies are marketing their services by posting presentations and brochures on open sharing platforms such as Facebook and Slideshare. Many have launched their own social networking forums and blogs to connect with customers. The cost-effectiveness and large reach make social media one of most preferred advertisement channels among wealth management companies.
Due to the growth and popularity of online channels, wealth management companies are now expected to deliver a personalized online customer experience through social media tools. The sector today is investing in platforms such as sites, blogs and video sharing to create awareness and to expand their reach.
The ultimate goal of adopting social marketing is to attract new customers and generate increased loyalty across existing customers, which will help companies to increase their revenues and profitability in the long run. Social Media interactions provide companies with a platform to reach out to customers and deal with issues in real time, therefore increasing both the quality of their service and their levels of consumer trust.
Global social media sites continue to dominate the social media landscape; however, local companies are beginning to show signs of resistance and are now competing for a share of the market. Social media has been one of the preferred digital advertisement channels among wealth management companies. Wealth management companies are increasing their investments in analytical tools to understand the consumer behavior.
Social media marketing is gaining in popularity as the companies are using it to inform consumers about their product campaigns and other product launches. The increasing prevalence of the internet and widespread adoption of Smartphones have fuelled social media expansion. Companies have started to use social media sites as a marketing tool to communicate with external customers as well as to promote their products and services.
Facebook, Twitter and LinkedIn have managed to establish themselves across the globe but local social networks continue to play a huge role when it comes to brand awareness and customer outreach. Wealth management firms have still not fully exploited the benefits pertaining to their presence on social networks and are actively seeking more innovative ways to gain followers. Wealth managers, financial advisors and family offices have still not made significant progress in social media due to limited awareness, concern for data security, as well as the legal and reputational risks associated with the media.