Surprise! Consumers use social networks for financial decisions

Spectrem, a financial research firm and consultant, surveyed 500 financial decision-makers in households with $50,000+ in annual income who spend at least two hours a week on the internet. “Two hours” means that this could be anyone from the recent college grad to your grandfather – in short, virtually anyone.

The “Social Media and the Investor” study showed that…

63% of Twitter users would pay attention to investment tweets. They’re listening, and want to hear from investment and financial professionals.

46% of YouTube users and 41% of Facebook users would seek investment information from these forums. While there may be charlatans and get-rich-quick schemers afoot, these consumers are also looking for real-time reliable information.

Social media networks are also popular sources for developing new investment strategies and seeking buy/sell advice. The average Facebook user has more than 200 friends, and they’re not afraid to ask for advice and input. As peoples’ networks grow much larger through social networks, it’s a huge opportunity for all types of experts to reach out to consumers in new ways – with authentic, two-way conversations.

“For advisors and financial services providers, this means that a social media presence and the use of social media tools for communications have become a virtual necessity,” concluded George H. Walper, Jr., president of Spectrem.

It’s a fact: the financial industry is built on networking, yet many people don’t find their insurance agents through traditional networking anymore. Facebook and Twitter, among others, constitute the world’s greatest invention for massive – yet still personal and authentic – networking.

Progressive firms are jumping on the recent guidance from FINRA to make the most of this new opportunity. Whereas in the past advisors built their business on 1-to-1 conversations and individual referrals today you can reach hundreds of connections with a single, 140-character post. Doesn’t it make sense to understand how to best use these networks – now – to maximize your networking reach and extend your personal brand?

If you are looking to learn more about how advisors can use social networking to drive real results join us for a free webinar on June 2: Social Media, Can Advisors Afford to Miss It?