bdi wealth management & social media forum: rising above the noise and building trust in...
DESCRIPTION
Too much time and effort is dedicated to building fans and creating engagement, but this is not the goal. The goal is to build awareness, consideration, purchase intent and advocacy. As such, fans and engagement are a means to an end, but too many social media strategies today focus only on luring fans--any fan--and creating comments and likes--any comment or like. Facebook's EdgeRank provides us a guide, but it's important to remember that it is Facebook's equation, not marketers. The social media marketing equation must be more expansive and include luring the RIGHT FANS and building BRAND VECTOR into our engagement. And the problem of meaningless fans and empty engagement is not merely one on Facebook but all social networks. The problem is that brands seem to think they can collect a disinterested fan, create engagement and build trust, but this is not the way social networks (or the human mind) works. Instead, you have to build trust FIRST, then collect fans and finally build engagement that matters. How do you do that? Five methods are briefly presented using examples from Wealth Management, including programs and strategies from Zurich, Fidelity, Ameriprise and Vanguard.TRANSCRIPT
Rising Above the Noise:
Facebook’s EdgeRank and
Solving the Trust Gap
Augie RayDirector of Social Media StrategyPrudential
@augieray #bdi1
Look! A Fan Surge!
10/2266,353
11/19159,577
Ban
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ay
10/20 10/23 10/26 10/29 11/1 11/4 11/7 11/10 11/13 11/16 11/19
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
@augieray #bdi1
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All Fans are Not Created Equal
High Value Fans Low Value Fans
+$ -$
@augieray #bdi1
∑ Ue We De = Success
The Simple Facebook Equation
Fans to the power of Affinity
Affinity between user & edge creator
Weight for this edge
Time decay factor for edge
FansA *
@augieray #bdi1
∑ Ue We De = Success
The (Slightly Less) Simple Facebook Equation
Fans to the power of Affinity
Affinity between user & edge creator
Weight for this edge
Time decay factor for edge
Brand vector
FansA * * b
@augieray #bdi1
Look! Lots of Engagement!
Company #4
Company #3
Company #2
Company #1
0% 20% 40% 60% 80% 100%
Use/Choose/Recommend
Switch
Not use/Drop/Not Want
Total Insurance Conversation Volume by Brand
Percentage of Social Media Conversations by Topic
@augieray #bdi1
You’re followed, but are you on Twitter lists?
You’re followed on LinkedIn, but who cares?
It’s Not Just a Facebook Issue
It’s easy to forget that the goal isn’t to be liked or followed or to get engagement…The goal is to earn attention, consideration, awareness and advocacy.
@augieray #bdi1
Chicken or egg?
1.2.3.
Follow/LikeEngagementTrust
@augieray #bdi1
55% say “It’s hard for me to know who to trust for financial advice.” (2012 Household Financial Planning Survey, Certified Financial Planner Board of Standards & Consumer Federation of America)
Millennials are four times more likely than baby boomers (28 percent vs. seven percent, respectively) to say they are unwilling to act on the advice of a financial advisor without first consulting other sources. (Accenture)
The trust gap
@augieray #bdi1
The trust gap
Individual is honest and trustworthy
Individual provides transparency & keeps me informed
Investment track record
Fees or commissions charged
Depth of products & services
Offers products from a variety of companies
0% 20% 40% 60% 80% 100%
Choosing a new advisor: HHs w/ $100k to $1mm
Source: National Association of Personal Financial Advisors
@augieray #bdi1
Use trust that already exists
@augieray #bdi1
Borrow peer-to-peer trust
Fidelity’s Stock Plan Services communities allow sponsors to discuss with peers:• New regulations and industry trends• Opinions of Fidelity’s products and
services• Administrative best practices
45% of Fidelity's SPS client base registered to use the site
@augieray #bdi1
Become more transparent
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Goal: Increase followers of Christopher Taylor, head of Financial Institutions.
• Posted content• Banner Ads• Targeted InMail to VPs, Owners,
Partners & C-level in FinServ
• 700,000 ad impressions• 850+ ad clicks• 1,000 new connections in six
weeks• Email had open rate of 14% & CTR
of 15%
Build trust with content
@augieray #bdi1
Source: July 2012 “Collaborative Advice,” Forrester Research by Bill Doyle
Build one-to-one relationships
@augieray #bdi1
Out of an abundance of caution, many mutual funds and other investment companies may file materials on their social media sites with FINRA unnecessarily.
“”
Will not recommend enforcement action to the U.S. Securities and Exchange Commission under Section 15 (a)(l) of the Securities Exchange Act of 1934 (the "Exchange Act") against FundersClub.
“” …use social media to
engage in lending, deposit services, or payment activities… originate new accounts… facilitate a consumer’s use of payment systems… match products and services to users’ needs
“”
Thank you!Augie Ray@augieray