the social advisor 5...key takeaways introduction the fifth edition of putnam’s social advisor...

KEY TAKEAWAYS

IntroductionThe fifth edition of Putnam’s Social Advisor Survey, conducted in November 2017, finds the distinctions between social media and traditional communication effectively blurred. Almost universally, 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 have leveled off, comparing the social profiles of advisors based on 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.

Newer and top-tier advisors are benefiting from an active, robust social presence

Advisors who use social passively or not at all are missing out on client acquisition

Executing an effective social media plan requires more than a DIY approach

86%of advisors report gaining business from social media

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https://www.putnam.com/?ref=SU864.pdf

2 | 2017 Putnam Social Advisor Survey

67%

59

54

54

50

47

38

It is easier to share information

I have more frequent communication with clients

I am more attuned to major events in my clients' lives

We have a better professional relationship

Decision making is faster and easier

We have a better personal relationship

We connect less by phone or in person

How advisors say social media has changed their client relationships

Advisors reporting that social media activity helped them gain clients

66%80%

86%79%

49% 66% 79% 80% 86%

20172016201520142013

“After I've met a prospect in person, they will often go to social media to check up on me. If I didn't have any social media presence, they would likely stop considering my services; if they like what they see, they continue to engage.”

Insurance channel advisor, male, age 54

Top findings As social media use matures, advisors tell us they are spending somewhat less time simply connecting and posting, but remain highly positive on a 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

•More than eight in ten advisors (83%) say that social media has helped shorten the time required to convert a prospect into a client

•Almost all advisors (88%) agree that social media has changed their relationship with their clients; most cite the ease of sharing information and the frequency of contact as the biggest changes

60%of advisors say social media is a great deal more efficient than traditional networking

88%of advisors say social media has changed their relationship with their clients

2017 Putnam Social Advisor Survey | 3

Advisors using social media for business and reported asset gains, 2013–2017

2013

$0.8

$1.9$1.9

$1.2$1.2

$2.7

$4.9$4.6

$4.9 $4.8

2014 2015 2016 2017

76%

75%

81%

85% 84%

AverageMedian

Percentage of advisors using social media for business

$ millions.

•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

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 for business. Even advisors who only use personal social media report $85M in AUM, suggesting that even a casual social presence may result in more business. Of advisors with AUM over $100M, 87% say they have gained assets using social media.

“ It is more cost effective than local networking, and I am able to reach the type of clients I want.”

Regional broker/dealer, male, age 46

Data and percentages below the top-line findings reflect advisors who use social media for business and/or have gained assets attributable to social media use, as noted.

Active engagement beats a purely passive strategyLife was simpler when all advisors had essentially two efficient marketing tools: calling and direct mail. With social media, best practices evolve rapidly as technology and user behavior constantly change.

Advisors today have access to multiple social networks and are becoming more aware of the specific benefits of different platforms — and the nuances involved with

navigating each. LinkedIn and Facebook dominate advisor use, however, LinkedIn functions primarily as a referral tool and is not where advisors or prospects and clients spend the majority of social media time. But while Facebook is “where my clients are,” and is trending up on a number of categories, it is simultaneously trending down in others as advisors expand their leverage of social media platforms.

Business use extends well beyond the Big Three networks

43%

Business use onlyBoth personal and business useNeither personal nor business use

Personal use only

Net: Business use

52 4 33 11

28 27 6 40

34251626

13 48 5 34

3233530

38 31724

59 19 6 17

45 33 3 19

29% 10% 17%

42

39

34

31

23

22

73%

56

46


Business is business, but advice is personalLinkedIn is still identified overwhelmingly as the network of choice for business, although Facebook leads as the network of choice for combined personal and business use. LinkedIn’s share of net business use has flattened among advisors, while the business use of every other network is growing.

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.

“ LinkedIn is primarily for people seeking solutions rather than relationships, which is where Facebook is more effective.”

Insurance channel advisor, male, 27

Social networks used by advisors for business, 2013–2017

0

20

40

60

80%LinkedIn

Facebook

Twitter

YouTube

Instagram

Pinterest

Tumblr

Snapchat

20172016201520142013


Daily Weekly Less often

Note: Do not know/refused responses not shown. Source: Pew Research Center survey conducted 2016.

76% 15% 7%

51 26 22

42 24 33

25 31 43

18 31 51

Pew survey: Frequency of use among users of each social networking site

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.

Women advisors lead in use of social Men and women advisors present contrasting profiles in the social survey. Women advisors are more active with social than men overall, and are similarly represented in the survey’s highest performing category of advisors managing over $100M AUM.

A greater percentage of women are reporting success with social media, as measured by gaining new clients. The average assets gained by women using social only slightly lags their male counterparts. For all practical purposes, women are leading in adoption of effective social methods, and perceived gender gaps in production appear to be disappearing.

Social media is a major part of attracting new customers; I've gained many customers from Facebook and Instagram alone. Once they've come here, they recommend us to everyone.

Independent broker/dealer, female, 29 years old


Industry tenure Average AUM ($M)

Social media is significant role in current marketing

Have used social media to 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

Building a social bookThe largest obstacle to advisor success has always been building a large enough book of business to transition from intensive cold calling to a sustainable practice that generates referrals. Advisors with three to five years of experience and beyond are still intensely involved in prospecting and converting leads. Social media’s effectiveness in creating warm leads and conversions has made it essential for younger and newer advisors, whose natural markets are also typically younger and fully engaged in social media.

The advisors we survey have at least two years of experience, and those with three to ten years tenure were the most likely to gain assets with social. About 40% of this cohort consider social media to be very significant in marketing, compared with just under 30% of advisors with more than ten years in the industry. Interestingly, advisors with $100M or more AUM are also more likely to have gained clients from social media, and this group’s assets gained through social are also significantly higher than their longer-tenured peer group.


89%gained assets via social media, vs. 84% for men

41%say social media is significant to their marketing efforts, vs. only 31% of men

65% say using social media has improved their efficiency a great deal, vs. only 57% of men

Women are much more likely to use Yelp and Instagram than men

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:

•Forty-six percent indicate that hands-on learning and assistance from friends and family are their primary social media training

•A little more than half report some form of professional training (home office, investment partner firm, online) as a primary learning method

•Forty-one percent say they just “get by,” while 46% claim to be social media experts

•Forty-five percent of LinkedIn users use a free account only

67%

36

47

11

45

10

39

10

37

15

34

10

24

7

Hands-on learning-by-doing

Online training

Training by colleagues in my firm or office

Assistance from friends and family

Training by my firm's home office

Training by a hired third-party specialist

Training by an investment partner firm, such as a

wholesaler or investment company representative

Ranked among top 3 answers Ranked #1

7% I do not use social media

2% Would like to get started but need help

5% Just getting started

41%I get by

46%Expert

Advisor’s self-described social ability is mixed, as is the amount of professional training they receive

A majority of advisors say that going deeper with their existing social media presence is a key priority


The social activity gapIn 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 to report significantly less strategic use of most of the social media tools available to them. Survey responses in 2017 suggest that advisors who have 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

Post business content 74% 54%

Set up a business or company page 61 48

Accept friend connections 60 48

Like companies, brands, or individuals 59 43

Like, comment on, or share content 57 63

Request friend connections 46 32

Create sponsored ads 44 9

Use paid promotion to boost content views 43 5

Post personal content 37 31

I'm on Facebook but use it passively 22 18

An active approach leads to more clients and assets


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

Accept connections 69% 65%

List my company/firm on my profile 63 52

Request connections 59 49

Follow companies 60 36

Display skills 51 37

Join groups 53 29

Like, comment on, or share others' network updates 46 23

Fill out all possible areas of my profile 45 26

Indicate interests 41 28

Post network updates 44 15

Use advanced search to prospect 40 10

Send InMail 35 32

Post to groups/pages 38 14

Write recommendations 34 11

Upload photos 32 15

Request recommendations 32 7

Publish LinkedIn articles (long-form content) 29 11

Use LinkedIn Sales Navigator 16 3

I maintain a profile but use LinkedIn passively 20 41


What’s next?Overall, there still appears to be significant room for improvement in how advisors leverage social media. As with traditional marketing methods, working without a strategic plan for social may be planning to fail.

Advisors have to question the value of what they spend their time doing each day, and how it contributes to building their practice. With social media, the notion that all activity is somehow ultimately productive is fading. Major social platforms have overlapping capabilities and features, and advisor perceptions of what works and what doesn’t for their practices continues to evolve. Advisors may be experiencing the advertiser’s dilemma — half of their 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.

“ Social Media enhances my contact capabilities tenfold. Everything runs quicker and smoother. I could use more expert training to utilize every possible feature of social media.”

Bank advisor, female, 65 years old

54%

48

47

37

36

35

32

Going deeper with existing social network presences

Integrating social media data into my marketing automation system

Adding resources to my team with dedicated social media responsibilities

Paying for a premium membership

Integrating social media data into my CRM

Using paid promotion

Adding another network to my mix

Among advisors who expect social media will play a significant role in their marketing efforts in the coming year.

How advisors plan to expand their social strategies


The value of investingSuccessful advisors are clearly approaching social media with a plan. Not only are they active on the platform and engaging prospects and clients with advanced functions, they are also seeing the value of investing in paid subscriptions and promotions.

In January 2018, Facebook initiated major changes to its proprietary algorithm that determines what users see in their newsfeeds. News from friends, family, and groups now takes priority over content from brands and businesses. As many advisors use Facebook

Business Pages to remain compliant, appearing in their clients’ and prospects’ newsfeeds is now much more difficult and can only be effectively “gamed” by paying for content promotion.

Advisors using LinkedIn Sales Navigator tend to be more active and experienced with social media. Ninety-three percent of Sales Navigator users report asset gains (vs. 71% for users of Basic and Premium), report gains exceeding other users, and have larger 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


SUCCESS PROFILE The Social Advisor 5.0Advisors 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

GENDER: Female

TENURE: 6–10 years

CHANNEL: Planning firm, wirehouse, or bank

PRIMARY NETWORK: LinkedIn with Sales Navigator

NETWORKS USED FOR BUSINESS: 4 or more

FREQUENCY: 20 or more times a month

AVERAGE AUM GAINED: $5.7M

AVERAGE AUM: $99M

MethodologyThe 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.


ASSETS GAINED$0–$1M

FREQUENCY OF USE2–3 days/week

OBJECTIVEImproving referral networkIdentifying prospectsBrand buildingCultivating prospects

ACTIONSMaintain a profileMake connectionsHas an engaging profile SummaryLikes, comments on, and shares contentPosts network updates

NETWORKS AND ACCOUNT LEVELBasic LinkedInTwitter

TRAININGOnlineOffice colleagues

EXPERTISEI get by but need some help

ASSETS GAINED$0

FREQUENCY OF USEWeekly

OBJECTIVEImproving referral networkIdentifying prospects

ACTIONSMaintain a profileMake connections

NETWORKS AND ACCOUNT LEVELBasic LinkedIn

TRAININGHands-onFriends and family

EXPERTISEJust getting started

ASSETS GAINED$5M+

FREQUENCY OF USE“Always on” multiple times a day

OBJECTIVEImproving referral networkIdentifying prospectsBrand buildingCultivating prospectsThought leadership promotionBuilding intergenerational relationshipsBringing in net new assets and households

ACTIONSMaintain a profileMake connectionsHas an engaging profile SummaryLikes, comments on, and shares contentPosts network updatesUses social media personally and for businessPosts personal content Uses Advanced Search to prospectHas set up a Company PageLikes and follows companiesUses Sales NavigatorUses paid promotionSends InMailCommunicates directly with clients and prospects

NETWORKS AND ACCOUNT LEVELTwitterFacebookLinkedIn Sales NavigatorInstagramSnapchat

TRAININGPartner firmProfessional specialist

EXPERTISEExpert

Expert

Professional

Intermediate

Beginner

ASSETS GAINED$1M–$5M

FREQUENCYOF USEOnce a day

OBJECTIVEImproving referral networkIdentifying prospectsBrand buildingCultivating prospectsThought leadership promotionBuilding intergenerational relationships

ACTIONSMaintain a profileMake connectionsHas an engaging profile SummaryLikes, comments on, and shares contentPosts network updatesUses social media personally and for businessPosts personal content Uses Advanced Search to prospectHas set up a Company PageLikes and follows companies

NETWORKS AND ACCOUNT LEVELTwitterLinkedIn ProfessionalFacebook

TRAININGHome office

EXPERTISEFluent but could go deeper

The social advisor maturity curveAs 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 Putnam’s five years of advisor survey data and our social media training expertise to create the Social Advisor Maturity Curve to help provide a framework for understanding how effective social advisors develop, progress, and achieve results.


ASSETS GAINED$0–$1M

FREQUENCY OF USE2–3 days/week

OBJECTIVEImproving referral networkIdentifying prospectsBrand buildingCultivating prospects

ACTIONSMaintain a profileMake connectionsHas an engaging profile SummaryLikes, comments on, and shares contentPosts network updates

NETWORKS AND ACCOUNT LEVELBasic LinkedInTwitter

TRAININGOnlineOffice colleagues

EXPERTISEI get by but need some help

ASSETS GAINED$0

FREQUENCY OF USEWeekly

OBJECTIVEImproving referral networkIdentifying prospects

ACTIONSMaintain a profileMake connections

NETWORKS AND ACCOUNT LEVELBasic LinkedIn

TRAININGHands-onFriends and family

EXPERTISEJust getting started

ASSETS GAINED$5M+

FREQUENCY OF USE“Always on” multiple times a day

OBJECTIVEImproving referral networkIdentifying prospectsBrand buildingCultivating prospectsThought leadership promotionBuilding intergenerational relationshipsBringing in net new assets and households

ACTIONSMaintain a profileMake connectionsHas an engaging profile SummaryLikes, comments on, and shares contentPosts network updatesUses social media personally and for businessPosts personal content Uses Advanced Search to prospectHas set up a Company PageLikes and follows companiesUses Sales NavigatorUses paid promotionSends InMailCommunicates directly with clients and prospects

NETWORKS AND ACCOUNT LEVELTwitterFacebookLinkedIn Sales NavigatorInstagramSnapchat

TRAININGPartner firmProfessional specialist

EXPERTISEExpert

Expert

Professional

Intermediate

Beginner

ASSETS GAINED$1M–$5M

FREQUENCYOF USEOnce a day

OBJECTIVEImproving referral networkIdentifying prospectsBrand buildingCultivating prospectsThought leadership promotionBuilding intergenerational relationships

ACTIONSMaintain a profileMake connectionsHas an engaging profile SummaryLikes, comments on, and shares contentPosts network updatesUses social media personally and for businessPosts personal content Uses Advanced Search to prospectHas set up a Company PageLikes and follows companies

NETWORKS AND ACCOUNT LEVELTwitterLinkedIn ProfessionalFacebook

TRAININGHome office

EXPERTISEFluent but could go deeper

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Partner with Putnam for social media trainingYour 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 media presence

Learn how to establish a social media profile that will build your brand to attract prospects. Topics include optimizing your LinkedIn profile to generate search results and privacy settings every advisor should consider.

Developing your LinkedIn network

A quality network is the core of your social media activity. We will share best practices for developing and growing your network and how to retain assets across multiple generations.

To learn more, contact your Putnam consultant, call us at 800-354-4000, or visit AdvisorsAREsocial.com

Prospecting and generating revenue using social media

This advanced session teaches how to use powerful search options to discover rollover opportunities with current clients, mining existing client connections for valuable referrals, leveraging 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.

FOR YOUR CLIENTS

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.



the social advisor 5...key takeaways introduction the fifth edition of putnam’s social advisor...

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