Wealth advisers must show human face as they travel along digital highway
With increasing polarisation around ESG and geopolitical issues, the choice and deployment of social media channels is becoming crucial for successful wealth management businesses.
In the fracturing social media landscape, the wealth management industry is finding itself at a crossroads. Not only must firms and their advisers decide whether or not to weigh in on politically fraught matters such as environmental, social and governance (ESG) investing, they must also decide which platform is the best to do so. Twitter, now known as X, is losing its dominance as the public square, while Meta’s Facebook and Instagram have rarely been seen as business-oriented platforms.
Now, it appears that LinkedIn, historically considered a glorified resume database, is becoming the key hub for social media activity. With X increasingly looking like the digital Wild West, LinkedIn, with its ever-expanding features, is a place where businesspeople can convene and let their hair down – at least a little bit. Perhaps, Slate, the tech, culture and political e-zine put it best recently, noting in a November 2023 article that LinkedIn “has always been a social network in the way that a work happy hour is technically social”. For wealth managers, firms and advisers alike, that’s actually good news. Using LinkedIn means it is a safe space to share thought leadership, without worry about the optics of other social media platforms.
Social media hipsters
What’s more, not only is LinkedIn, historically one of the more trusted social media sites becoming more desirable, it’s also becoming “cool”, according to Bloomberg. Few industries understand the importance of trust more than wealth management. Being present on a platform that is both trusted and “cool” is a compelling way to share thought leadership in a manner that encourages conversation and – ideally – generates new business.
In the past, both advisers and firms were reluctant to have an online presence but thankfully that was a silver lining from the Covid-19 pandemic. It is a way for business to reach end prospects and clients, and also grow a robust COI (center of influence) network of attorneys and accountants, who can provide relevant referrals.
A question of framing ESG
One example of how wealth firms can do this can be seen in how they address ESG investing. While investors are generally onboard with investing based on their values, the term ‘ESG’ has become somewhat of a ‘dirty word’ in corporate America, according to a recent Wall Street Journal piece. That doesn’t mean that wealth advisers should avoid such topics in their social media strategy, rather, it becomes a question of framing.
The important thing for firms and advisers to realise is that good branding is a process, which is to say, it’s not something that happens with a single post
Indeed, wealth managers should focus their Linkedin strategy on showcasing how they deliver returns for their clients, and are able to construct financial plans that align with their clients’ goals and values. To some clients and prospects, that may mean an ESG-focused approach, for others, it may not. Obviously wealth managers are equipped to offer both. But by focusing their messaging strategy on client concerns and outcomes versus potentially fraught terminology, wealth managers are encouraging dialogue with clients, rather than potentially alienating them.
The important thing for firms and advisers to realise is that good branding is a process, which is to say, it’s not something that happens with a single post. LinkedIn profiles should share a compelling story that demonstrates to viewers what you're about, versus statements proclaiming what you’re about. This can be achieved by allowing occasional, ‘less corporate’ photos on the site and telling stories that may have a financial planning component to them, but are more about human connection. In wealth management, this is perhaps easier since so many financial matters have a personal aspect to them, such as estate planning and philanthropic endeavors.
Original and third-party mix
The best strategy is to mix a bit of the firm’s or adviser’s own original content with thought leadership from third parties – so long as corporate policy allows doing so. This works well in two ways. First, it establishes your firm and advisers within the wealth management community and second, it shows clients and prospects the type of research that informs the firm’s strategy.
Firms that are particularly adept at LinkedIn marketing are those that show the human face of the business while also allowing the individuals within it to build their personal brands on the site. Wealth management is certainly a financial business, but it is also a deeply personal business. Clients want to work with advisers they trust and connect with.
Understandably, there are advisers who are nervous about building a brand. Fortunately, there are mini steps to take. Sharing relevant articles or whitepapers with a few sentences of commentary is one way to build the LinkedIn habit. From there, advisers can look to post their own content or even newsletter on wealth management news through LinkedIn’s platforms. More ambitious advisers may find that LinkedIn’s video feature is a great way to provide quick, informative analysis of the issues relevant to clients and prospects, such as getting ready for the tax season or reacting to the latest market news.
With the New Year still in its early days, it’s a perfect time for advisers and wealth managers to plot their journey along the digital and social media highway.
April Rudin is CEO of The Rudin Group global wealth management consultancy
