Consumers have changed, and the line between customer and partner has blurred. A decade ago, financial services marketing was an impersonal affair, with faceless institutions throwing huge marketing budgets into largely intuitive strategies. Now, thanks to the advent of social media, financial institutions have the opportunity to really get to know their customers, and to embark on a mutually beneficial relationship.
One of the biggest surprises of the social media revolution is in its demographics: while we might expect social media to be dominated by teenagers, it turns out that some of the most sought-after consumer profiles are also the most active on social media. Mass Affluents (investors with assets of £60,000 to £600,000, excluding the value of their homes) are a highly visible, highly influential presence on multiple platforms. Over 84% of Mass Affluents confirm using social media, with 40% engaging directly with financial companies and 32% using content created by financial companies. In terms of usage by social media channel, about three-quarters are using Facebook, half are using LinkedIn, and roughly one-quarter are on Twitter.
Thanks to the constant feedback of analytic data provided by social media marketing, we now know more about Mass Affluents and their investment habits than ever before, and some of the information may surprise you:
Out of those surveyed, Mass Affluents learned about a financial institution through:
- Ads = 60%
- Content Marketing = 38%
- A friend on a social network = 34%
- Industry expert = 30%
Mass Affluents learned about new financial products through:
- Ads = 55%
- Content Marketing = 34%
- A friend on a social network = 25%
- Industry expert = 28%
As a result, 63% of Mass Affluents have taken some form of action, including opening or closing an account, or by purchasing a new product.
- 44% of Mass Affluent social media users engage with financial companies
- 31% read their content
- 30% follow or like them
- 23% review multimedia content
- 34% of Mass Affluent social media users engage with the content they consume from financial institutions.
However, before you direct your entire social media strategy towards attracting Mass Affluent business, heed these words of caution from Jacqueline Anderson, director of social media and text analytics at J.D. Power and Associates: ‘Companies that are focused only on promoting their brand and deals, or only servicing existing customers, are excluding major groups of their online community, negatively impacting their satisfaction and influencing their future purchasing decision. A one-pronged approach to social is no longer an option.’
What this means in practice is that any good social media strategy needs to maintain existing relationships as well as develop new ones.