2015 Financial Professionals Social Media Adoption Study

Transcription

1 2015 Financial Professionals Social Media Adoption Study JULY 2015 Laura Kouri Director, Media Relations (816) Brent Bowen Director, Corporate Communications (816)

2 Study Objective and Methodology Objective: Gain a better understanding of financial advisors attitudes toward and usage of social media. Methodology: Study target audience: financial advisors, brokers and RIAs. Potential respondents were screened to verify that they sell and/or provide advice regarding financial instruments. Work as a financial advisor, broker and/or RIA Work for a national full-service firm, regional broker/dealer, independent broker/dealer, insurance broker/ dealer, bank brokerage or work as a registered investment advisor (RIA) Research Now, a large, global online research panel provider, provided the sample source and survey hosting. Data was collected from 300 respondents using an online survey during March Note: This is the sixth annual Financial Professionals Social Media Adoption Study. 2

3 2015 Social Media Adoption Study Highlights The use of social media, particularly LinkedIn, with financial professionals continues to grow. Some 43 of financial professionals have attributed a return on investment to social media use. LinkedIn has helped 74 of financial professionals in developing expertise or building their business. However, adoption of LinkedIn premium services has been slow. Financial professionals see LinkedIn Groups as the most important social media offering from asset managers. Professionalism is paramount if an asset manager wants to build and maintain a relationship with financial professionals on social media. 3

4 Experience With Social Media 95 of the financial services professionals participating in the study indicate they have some experience ranging from minimal to extensive with social media. Over 60 report moderate to extensive experience. How would you characterize your level of experience with social media? None: I still don t know what Twitter is 2011 Study Minimal: My kids set up my account and then they lock me out 2012 Study 2013 Study n=303/300/301/309/300 S5. How would you characterize your level of experience with social media? 4 Basic: I m lurking in the shadows trying to understand the value 2014 Study Moderate I m actively participating regularly in at least one medium 2015 Study Extensive: I m a social media addict please don t take mobile access away

5 Most Financial Professionals Have a Social Media Account Do you have a profile or account with any of the following social media? 55 Facebook LinkedIn 16 Twitter YouTube Google+ Instagram Blogs Podcast Study 2011 Study 2012 Study 2013 Study n=303/303/300/301/309/300 Q1. Do you have a profile or account with any of the following social media? The top 3 spots continue to be held by Facebook, LinkedIn and Twitter Photo Sharing Sites Study 2015 Study

6 Social Media s Impact on Likelihood to do Business How does being connected (for business purposes) on social media with someone affect the likelihood that you will do business with someone? Less Likely 2 No Effect 45 More Likely 52 n=212 (Note: New question added in 2015) 11A. How does being connected (for business purposes) on social media with someone affect the likelihood that you will do business with someone? 6

7 Value of Social Media for Business Please indicate how accurately you believe each statement describes your opinions of business use of social media Social media has little value for businesses 2010 Study 2011 Study Social media has significant future potential for businesses like mine 2012 Study Social media is already producing tangible results for my business 2013 Study 2014 Study n=303/303/300/301/309/300 (* Indicates slight wording change in 2015) Q13. Please indicate how accurately you believe each statement describes your opinions of business use of social media. 7 Social media has value for my business 2015 Study

8 Impact of LinkedIn for Business How has LinkedIn helped you with your business? Enhanced my profile with clients Enhanced Improved my Shared my business referrals (open insights with knowledge a door that clients and otherwise had prospects been closed) n=195 ( Note: New question added in 2015) 3A2. How has LinkedIn helped you with your business (select all that apply)? 8 Attracted new clients Retained clients Other I am not seeing any positive changes I attribute to using LinkedIn

9 Impact on Client Acquisition and Business Gains Have you ever acquired a new client or gained a relatively large additional amount of business from an existing client in part attributed to your social media efforts? If so, how large was the win? Under $1 million 27 $1 million to less than $3 million 10 $3 million to $5 million 4 3 Over $5 million There was no instance when social media played a significant role in acquiring a new client or gaining a relatively large additional amount of business from an existing client n=212 (Note: New question added in 2015) 11B. Have you ever acquired a new client or gained a relatively large additional amount of business from an existing client in part attributed to your social media efforts? If so, how large was the win? 9 60

10 LinkedIn Premium Services Not Used What LinkedIn Premium Services are you using? Business Plus 9 Firm subscriptions to LinkedIn premium package (all services) 6 Advertising 4 Sales Navigator Professional 4 6 Don t know Other specify 1 I am not using any LinkedIn premium services 77 0 n=195 (Note: New question added in 2015) 3B. What LinkedIn premium services are you using (select all that apply)?

11 Asset Managers and Social Media How accurately do you believe each statement describes your opinions of asset management firms use of social media? Social media is a wise use of asset management firms time and resources 2010 Study 2011 Study Asset management firms are smart to explore social media 2012 Study 2013 Study Asset management firms are not yet seeing the value of social media 2014 Study n=303/303/300/301/309/300 Q14. How accurately do you believe each statement describes your opinions of asset management firms use of social media. 11 The leading asset management firms are using social media to their advantage 2015 Study

12 Top Business Uses of Social Media What are your top three business uses of social media? Reading expert commentary/insights Sharing news/content relevant to my clients Researching people (e.g. prospects, contacts, current clients) Monitoring industry/ market news 11 9 Business promotion/ brand building Posting commentary Competitive intelligence Sharing best practices with peers/colleagues Customer feedback/ engagement No business uses 13 5 Maintain a professional blog Other Study 2011 Study n =138/173/189/182/193/212 Q10. Please indicate your TOP 3 BUSINESS USES of social media? Study 2013 Study 2014 Study 2015 Study

13 Top Types of Content: Insights and News What are the top three types of information or content you want to receive from asset managers via social media? Commentary/ market insight 2012 Study Market news Educational content to share with clients 2013 Study 2014 Study Advisor practice ideas New product information Webinar notification Portfolio manager appearance notification 2015 Study N=300/301/309/300 Q15A. What are the top three types of information or content you want to receive from asset managers via social media? Please select your top Other 6

14 Following Asset Managers Why would I follow an asset manager on social media? Offer content I can t get elsewhere 2013 Study Site is easy to use 2014 Study Author is engaging and personable Ability to connect Offers real time Q&A with my industry peers Other 2015 Study N=300/301/309/300 Q15B. Aside from having assets at a particular asset manager, what are the two most important reasons that you would have for choosing to follow a particular asset manager on social media? Choose two from the list below. 14

15 Developing Expertise and Sharing with Clients This year, we saw an 11 increase in using LinkedIn for brand building purposes. Please indicate which social media sites you use regularly for the following three business functions Read Expert Commentary/Insights n=309/300 Q15a2. Please indicate which social media sites you use regularly for the following three business functions? itunes or Podcast YouTube Twitter Facebook Blogs I don t use any social media for this purpose Other itunes or Podcast YouTube Twitter Facebook Blogs LinkedIn Monitor Industry/Market News LinkedIn Business Promotion/Brand Building I don t use any social media for this purpose 12 Other 13 12

16 LinkedIn Named Most Important Social Media Offering from Asset Managers Which is the most important social media offering an asset manager can provide to you as a financial professional? LinkedIn Group 2012 Study Advisor Community 2013 Study Blog 2014 Study Facebook Page Twitter Feed 2015 Study n=300/301/309/300 Q9B. Which is the most important social media offering an asset manager can provide to you as a financial professional? 16 Other 0 None Don t Know

17 Top Social Media Deal Breakers What type of social media activity would keep you from doing business with a firm? 59 Lack of professionalism Privacy/data breach 57 Political cause 39 Content not relevant/boring 36 Lack of, or slow, response/authenticity 27 Lack of sensitivity to current event 24 Charitable cause 17 Other 1 No social media related activities will keep me from doing business with a firm n=195 (Note: New question added in 2015) 15C. What type of social media activity would keep you from doing business with a firm? (Select all that apply.)

18 Regulatory Issues Still Greatest Concern, But Which of the following is your SINGLE biggest concern about using social media for business purposes? Regulatory or compliance issues 2010 Study Potential privacy breach 2011 Study Company or home office restrictions on use 2012 Study Time constraints 2013 Study n=303/303/300/301/309/300 Q16. Which of the following is your SINGLE biggest concern about using social media for business purposes? 18 Technology or security issues 2014 Study Other 2015 Study No concerns

19 Company Restrictions on Social Media What restrictions does your firm have in place for social media? There are no restrictions that I know of 17 I know that there are no restrictions 7 Prohibits posting content that has not been pre-approved 51 Prohibits content posts of products or services 24 Blocks access to all social media sites 16 Prohibits using social media for business 16 Prohibits making connections with asset managers n=300 (Note: New question added in 2015) 17. What restrictions does your firm have in place for social media (select all that apply)? If there are no restrictions please select one of the first two choices provided

20 Use of Formal Social Media Policies Up Do you work for a firm with a formal social media policy or guidelines? 2015 Study Don t Know No Yes Yes 2011 Study n=300 n=303/300/301/309/300 Q16e. Do you work for a firm with a formal social media policy or guidelines? 20 No 2012 Study 2013 Study Don t know 2014 Study 2015 Study

21 Respondent Demographics The number of respondents was 309. Types of financial professionals represented (multiple responses accepted): Financial planners, financial advisors or personal financial consultants 81 Brokers 21 RIAs 17 Participants had an average of approximately 17 years in the business. Participants reported offices in 42 states across the US including Hawaii. 71 of the participants were male and 29 female. The average age of the participants this year was 50 with ages ranging from 23 to

22 Detailed Demographics Category Overall Users of Social Media Non-Users of Social Media Gender n=309 n=268 n=41 Male Female Average years in the business Type of financial advisor n=285 n=244 n=41 Wirehouse Broker Regional Broker Independent Broker Other (Specify) Don't know Prefer not to respond Percentage of business in mutual funds n=309 n=268 n=41 Less than to less than to less than to Prefer not to respond Don t know Total amount of assets personally managed n=309 n=268 n=41 Less than $15 million $15 million to less than $30 million $30 million to less than $45 million $45 million to less than $60 million $60 million to less than $100 million $100 million or more Prefer not to respond Don t know Average age CC-PPT American Century Proprietary Holdings, Inc. All rights reserved. The contents of this American Century Investments presentation are protected by applicable copyright and trademark laws. No permission is granted to copy, redistribute, modify, post or frame any text, graphics, images, trademarks, designs or logos. 22